About Marriott: Marriott International, Inc., is a global leading lodging company with nearly 4,500 properties in 87 countries and territories. Marriott International reported revenues of more than !4 billion in "scal year #0!5. $ounded by %. &illar &illard d and 'lice Marriott and an d guided by Marriott family leadership for nearly (0 years, the company is head)uartered in *ethesda, Maryland, +'.
Vision
-o become the premiere provider and facilitator of leisure and vacation e/periences in the world.
Mission
-o enhance the lives of -o o f our customers by creating and an d enabling unsurpassed vacation and leisure e/periences.
Core Values
&e put people "rst 1 -a2e care of associates and they will ta2e care of the customers.
&e pursue e/cellence 1 3ur dedication towards the customer shows in everything we do.
&e embrace change 1 Innovation has always been part of the Marriott story.
&e act with integrity 1 ow we do business is as important as the business we do.
&e serve our world 1 3ur -spirit to serve ma2es our company stronger.
Marriott’s Competitive Strategy: Marriott )uic2ly recognied that one hotel brand would not cater to every guests needs. herefore, Marriott utilies a *road 6ierentiation strategy in that there are multiple hotel brands all
catering to a dierent type of traveler or consumer in the hospitality mar2et. $rom upscale oerings li2e it 9arlton and %& Marriott esorts and pas for the consumer desiring high: end and lu/urious accommodations to the 9ourtyard by Marriott that provides the business traveler in:room o;ces space, to the $air"eld Inn which provides Marriott )uality for travelers on a budget, Marriott International has lodging brand that will meet about any consumer desires. he aforementioned it 9arlton, %& Marriott and Marriott otels and esorts are mar2eted toward a consumer that desires a more upscale lodging e/perience and is willing to pay a higher cost for the e/tra lu/urious amenities. 9ourtyard by Marriott provides business travelers space to have a remote o;ce set:up in room and aords the ability to be productive after hours on business trips. pringhill uites is a moderate hotel oering a single traveler or a family a living area to unwind before a good nights rest. esidence Inn and ownplace uites oers e/tended stay accommodations for travelers that are loo2ing for a place a little more li2e home. hese accommodations oer full sie 2itchens and living areas with the sleeping )uarters completely separated. $inally, the $air"eld Inn as mentioned above is for the budget traveler that desires Marriott )uality accommodations. 'll:in:all, there is a Marriott for all sorts of occasions and Marriott
Generic building blocks of Competitive Advantage of Marriott: Eciency: he Marriottority of the company
around 4?@ is produced by its international operations. his is a great advantage as it allows the company to not depend on one single mar2et to generate revenues. he earnings are obtained by operating in both emerging and already matured mar2etsA the latter driving the value of growth while the former drives the volume. he company
uality: he )uality standard of the Marriott is far from lenientA this is something the company prides itself in. Marriott
!nnovation : ' strong focus of the Marriott
programs li2e M' provide a valuable level of customer service through a practical use of technology. 'nother innovation Marriott developed is a price auditing tool to handle costly renegotiation re)uests from its clients. he program, called the Croperty Duest 3b>ect 3riented ystem ECD33F, automated the process of monitoring shifting corporate rates and auditing of M'. he implementation of CD33 leads to customers receiving the lowest rates available that coincided with the current state of the mar2et. Innovation can de"nitely be )uali"ed as a competitive advantage and edge for this company.
"esponsiveness to Customers: In order to properly respond to customers< wants a company must constantly identify and cater to their changing needs. he Marriott has consistently ta2en steps to e/cel in this competitive advantage, either through customiation or consistent delivery of )uality service. In order to meet customer demands the Marriott has utilied multiple systems, such as M', to provide an incomparable attention to its customers. It also depends heavily on customer feedbac2 to constantly improve customer satisfaction and loyalty. he company is committed to providing a level of )uality that will 2eep customers coming bac2A whether it is for business or for pleasure. he Marriott hotel brand is not only notorious but also respected in the hotel industry. In #00(, $ortune magaine ran2ed Marriott as number ?7 in the &orld
#usiness Strategy:
Marriot International is a company that has used generic business:level strategies successfully. Marriot is a worldwide franchisor and operator of hotels and lodging facilities. hey are a top player in the otel industry and will continue to be for many years. *ased on multiple competitive advantages, which include uni)ueness, cost, and e/tent of their competitiveness. Marriott International, Inc. pursues multiple business level strategies. MarriottGs vast portfolio of brands allows them to have a strong presence in the mar2et. his is part of their dierentiation strategy.
$i%erentiation Strategy: Marriot International uses the dierentiation strategy to develop a product and service that uni)uely satis"es a customers needs. *y providing multiple lodging options, from moderately priced to premium priced, the Marriott has earned a reputation for innovation and )uality. he value added provided by the companyGs uni)ueness allows it to charge a higher premium for upscale hotels.
Cost &eaders'ip Strategy Marriott International also oers brands that are aimed for a lower budget. *rands such as pringill uites, and 9ourtyard target the upper moderate price tier segment, while $air"eld Inn targets the lower moderate price tier. he company e/cels in e;cient cost production that enables to charge a low price compared to its competitors while still ma2ing a reasonable pro"t. he Marriott strives to 2eep costs low while catering to a broad range of customers. •
(ranc'ising Strategy:
In order to be a global competitor, Marriot International adopted the strategy of franchising and managing hotels instead of becoming a full owner. In #00(, about 4H percent of the hotel rooms in the companyGs system were operated under management agreements, 5# percent operated under franchise
agreements, while only # percent were leased or owned by the company. In a franchised property, the company foregoes direct control over employees and strives to build upon maintenance and internal operations. his reduced a great "nancial ris2 for the company while still allowing global growth. It was also bene"cial during tough economic periods.
S)*+ Analysis: Strengt's
)eakness
*pportuni ties
+'reats
!. igh brand recognition and recall. #. echnical innovations to improve customer .e/periences and 9onstant upgrade of business processes. ?. Dood employee retention with a total wor2force of !50,000. 4. as over ?700 hotels and resorts in over 70 countries. 5. arious brands range from attainable to aspirational. !. 9ompetition from long established hotel chains means limited mar2et share. #. Dlobal e/pansion and high number of hotels may lead to brand dilution. !. igh potential in emerging mar2ets. #. Innovation in customer services. ?. *etter interiorsJ&ell done renovations. 4. Indian and as well as global hospitality sectors are loo2ing at a boom. !. =ntry of several international brands along with the strong hold of long standing, well established Indian brands. #. 9ompetition on price points. ?. tagnated growth.
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