Business Strategy for Hilton Hotel: Analysis, SWOT, Ansoff Model, and Porter's Five Forces

This report analyzes the business strategy of Hilton Hotel, including SWOT analysis, Ansoff model, and Porter's Five Forces. It also covers the operating structure, customer analysis, and strategic positions of the company.

Business Strategy

Table of Contents
1.INTRODUCTION........................................................................................................................3
TASKS.............................................................................................................................................3
2.Business situation analysis.......................................................................................................3
Strategic positions ......................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Executive Summary
This project will demonstrate the various heads under the market analysis such as business
situation analysis, strategic positions, customer analysis, with the operating structure of the
company which help in identifying the key strategic marketing objectives.
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1.INTRODUCTION
Business Strategy is the roadmap for the business in order to achieve the desired goals and as the
competition is increasing so, there is a need of the business strategy to set the objectives. This
report is going to evaluate the future attractiveness of a market with the help of understanding
strengths, opportunities and weaknesses. This project will demonstrate the various heads under
the market analysis such as business situation analysis, strategic positions, customer analysis,
with the operating structure of the company which help in identifying the key strategic marketing
objectives. The company chosen for this project is Hilton hotel which is an American
multinational company of hospitality with a wide range of resorts and hotels. As it is the one of
the world's largest hospitality company which deals in owning, managing and franchising the
resorts and hotels. The sources which are used for the report are the journals, online data, public
records, E-books and the articles. The research in this project is done on the basis of secondary
research.
TASKS
2.Business situation analysis
About the brand
History
Hilton Hotel is a famous global brand which provides services of resorts and hotels and it was
started by Conrad Hilton. It targets on business and leisure both with the help of having locations
at popular destinations, near airports, centers globally. Hilton provides different services such as
gym, spa, sauna and many others to keep the customers engaged and satisfied. The global
presence of the hotel is strong as it has a positive impact on the mind of the customers . As they
take the feedbacks from the customers so that they can provide what exactly the customers want
to make an emotional bond with the customers. Moreover, it keeps employees retained in the
company (Oldman and Tomkins, 2018).
Mission Statement/ Values
Mission statement is a roadmap for the company to bring success with setting goal to provide a
memorable experience for the customers. The mission statements of the Hilton hotel is to
bring best experiences for the customers by impacting the society in a positive manner. It is
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expanding globally by giving the importance to its customers. It also looks after to the operations
of society for the overall development (Marshall, 2018).
Products/services/business life cycle phase
The services which are provided by the Hilton hotel are as follows-
 Customers can have dinner and relax in different ways provided by the luxury hotel
chain.
 As it offers a wide range of drinks and food as per the choice of its customers which are
required for the stay.
 Different services such as gym, sauna, relaxing spa and many others to keep the
customers engaged and satisfied.
Customer analysis
Hotel can mainly focus on the segment of target audience of customers such as the senior
professionals with a good level of income who can enjoy a luxury lifestyle because the company
charges the premium level of price for its services for the customers satisfaction. Segmentation,
positioning and targeting in the hotel segment can help to enhance its strengths and opportunities
in the market that can be an advantage for the company (Teoli, Sanvictores and An, 2019).
Segmentation- There are various segmentation required to segment the operations of the hotel
by considering the various factors such as gender, lifestyle, age, social class. The audience can
be divided into geographic, demographic and behavioural segmentation to ascertain the target
audience and their requirements that further can be implemented into the company.
Targeting - The target audience will be the audience who has the ability to avail the services.
These can be men or women who generally afford and share as interest in the services provided
by the company.
Positioning-Various campaigns can be conducted so that the audience can have a clear message
of awareness for the Hilton hotel so that the customers can get to know about the new services
that is not well-known for the audience like when a new service is launched in a new country.
With the help of campaigns company can get the chance to expand in new market by targeting
new customers of the existing market to provide its services. That can be done by making the
services more appealing to gain the market share. The main reason of campaign is to draw the
attention of customers in different ways like social media, television, hoardings, print
advertising, email marketing and promotion. It will help the to promote the company and
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enhance the role of company in the market. STP allows to attract the audience by using product
or service innovation with better marketing techniques to yield high return on the investment
( Yuan and et.al., 2020).
Operating structure of Hilton hotel
At present the operational structure which is followed by the Hilton Hotel is Hierarchical that
most of the senior most position is occupied by senior management where the chain of command
is followed from top to bottom where the employees has a clear vision of the plan and duties of
the department to control the authority and to boost the specialization of the company (Knikker,
2021).
SWOT Analysis of Hilton Hotel
SWOT Analysis allows the company to examine both the internal and external factor of the
company. It helps the organisation to be aware about all the factors which are required in
decision making. Internal and external factors affects the organisation in different aspects.
SWOT Analysis of Hilton Hotel is explained below-
Strengths
 The hotel has wide range of resorts and
hotels with loyal customers base.
 During the pandemic the hotel aims to
take care of all the norms and hotel
cleaning to protect the customers
from the risk of Covid-19.
Weakness
 Due to its large size, there is lack of
flexibility.
 The feedbacks given by the customers
with poor reviews on the social media
can be the weakness fort the hotel.
Opportunities
 The hotel can expand globally by
using social media that is Instagram by
posting and branding through photos
and videos.
 The hotel can tie up different ventures
to add the long term growth with
revenues.
Threats
 Due to lock down, the working of the
company can get affected in financial
way.
 The competitors of Hilton hotel are
Omni Hotel, Holiday Inn, Fairmont
Hotel, Hyatt and Leows Hotels such
hotels have a great team of
management and quality based
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services.
PESTLE Analysis of Hilton Hotel
PESTEL analysis is a tool to measure the macro environment of the company. PESTEL stands
for political, economic, social, technological, environmental and legal factors which affects the
external environment of the companies. Various factors are explained below-
 Political Factors- The hotel is expanding globally so, the political environment of all the
countries plays a major role in the growth of image of the company. Mainly due to its
brand image the company is able to deal with the serious issues created by the pandemic
and Brexit.
 Economical Factors- UK is considered to be the strongest economy in the world with
elevating success of the companies. It includes the issues like inflation rate, GDP and
growth rate of the business. For the growth of any company a stable economic
environment is require. During Covid-19, the productivity of the hotel industry became
slow and the customers were spending less in the leisure activities.
 Social Factors- Hilton hotel contains different factors such as the habits, preference,
lifestyle, culture and population growth rate. During the pandemic, people avoided the
public gathering and interacting with people to stay safe and to have control over the
social factors.
 Technological Factors-Under the hotel industry, new technologies are necessary to keep
the customers engaged by using new and innovative ways to communicate with the
customers as it provides a support for the company to be more efficient. Hilton has
adopted the recent technologies such as easy booking with the instant connecting rooms
and sharing the digital key.
 Environment Factors-Nowadays, people are getting aware about the role of
environment in order to reduce the issues like waste management and pollution. All the
countries have various rules and regulation regarding to environment. Company is taking
the various steps to save the environment by supporting the renewable energy and
managing the waste management in the service sector (Dewald, 2018).
 Legal Factors- Various factors are considered such as protection law, patents, copyright,
consumer protection law or employment laws. The law and regulation of the country
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creates an impact on the operation of the company and Hilton always consider the various
laws of the countries in which they are operating. For example, in the case of pandemic
the various rules are to followed such as to sanitize the hotel rooms in order to stop the
virus and to maintain the social distancing that affected the profitability of the company.
ANSOFF Model
Ansoff model was developed by Ignor Ansoff in 1957 and this has four fields in order to
understand the opportunities of the growth of the company. When it comes to improving the
business of Hilton hotel -
 Market penetration- Hilton can offer new range of services in the existing market such
as discounts can be provided to the customers with a motive to attract the customers. The
main focus is to motivate the consumers to avail the services.
 Market development- By targeting the pricing and service facilities of the company
helps to target the new segments of the market. Market development is all about the
promoting the existing services into the new market. Hilton can also target the sports
lover audience so that they can launch the services for the sports lover or super luxury
rooms for the upper class of society.
 Development or modification- Hilton can target on the innovation in the rooms or
facilities which was not available before. Once a new service is launched proper
marketing is required in order to create the awareness. This step of the model is a new
way to generate more revenue (Bigelow and Barney, 2021).
 Diversification or innovation into new market- The services which are being offered
by the company can be revamped or innovated into the new market. Hilton is already
operating globally so it will not face much difficulty while diversifying into the new
market with new or updated services.
Hilton hotel can use diversification by making its own food of different cuisines , offer
the transportation services to the customers and adding more varieties of tour packages for the
stay of customers.
Strategic positions
Porters five force model
The porter's five forces was developed by Michael Porter in 1979 containing the five forces
which helps in identifying the various weakness and strengths to mange the long-term
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profitability. The name is given after Harvard Business School and the five forces are as
follows-
 Rivalry among existing firms-There are various competitors of the Hilton hotel such as
Hyatt Regency, Radisson blu, Marriott. Hilton captures a main position in the hotel
segment due to the investment done by the company in the marketplace. The company
can also invest in research and development activities to find put the new customers
segments. One thing can also be done is that collaborating with other competitors can
also be a good way.
 Bargaining power of suppliers- The bargaining power of suppliers is comparatively
low because the services which are provided by the chosen company are rare. If the
company is not updated about the market knowledge that will directly give the power to
suppliers against the company. Good relationships can be maintained with the suppliers
from different regions (Bel, 2018).
 Bargaining power of customers- Consumers has the various options available to find
out the best option suitable for the company. When the bargaining power of customers is
low that will directly affect the growth opportunities of the Hilton hotel. This can be done
by providing new services and targeting new market segments to adopt the diversification
strategies. The company can implement the strategies to strengthen the competitive
positioning in the market.
 Threats of substitute of services- There are always other hotels with same price range
and same services. When the same service is provided by the different company can be a
threat of substitute of the service. Hilton can get rid of threat of substitute by considering
the needs of the customers instead of what they are buying. Threats of new entrants- Hilton can work on the customers relationship management
and the new innovations with new ways to do things such as reducing the cost and pricing
strategy. Being a well-established company, Hilton has to take care and manage all the
challenges to safeguard the competitive edge.
Porters Generic strategies
These strategies are used to determine the direction of the company to beat the competition and
attract the customers of the industry. Such strategies contribute to the success of the company by
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assisting the management with growth and profitability of the company to create a sustainable
competitive strategy .The porter generic strategies are explained below-
 Cost leadership- Under the cost leadership, the company can focus on becoming the low
cost producer in the hotel industry. If a company is able to sustain the overall cost
leadership then it can set command prices in the industry.
 Differentiation- In the hotel industry, Hilton can use the differentiation strategy to be
unique in the industry. That unique differentiation can help the company to offer in the
market with premium prices. Hilton can use various ways to monitor the trends of the
market by doing research and innovation to deliver the high-quality of services .
 Focus- By using this strategy company can focus on the market so that the nature of the
market can be analysed to develop the services of the market (Alegre and et.al.,2018).
CONCLUSION
It can be concluded from the above report that business strategy provides a direction to the
company to achieve the mission collectivity and ways to deal with competitors with satisfying
the customers to bring success. The above report concluded that appropriate control mechanism
assists to measure and monitor the implemented business strategy for the growth of the company.
Moreover, the report also inferred that SWOT Analysis plays a major role in ascertaining the
external as well internal factors of the market. There are various investing strategies such as
growth investing, income investing ,value investing or indexing strategies. As per the chosen
company growth investing strategy is best as it can focus on improving the investor's capital.
Recommendation
The hotel can tie up different ventures to add the long term growth with revenues. It can expand
globally by using social media that is Instagram by posting and branding through photos and
videos.
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REFERENCES
Books and Journals
Alegre, I., Berbegal-Mirabent, J., Guerrero, A. and Mas-Machuca, M., 2018. The real mission of
the mission statement: A systematic review of the literature. Journal of Management &
Organization, 24(4), pp.456-473.
Bel, R., 2018. A property rights theory of competitive advantage. Strategic Management
Journal, 39(6), pp.1678-1703.
Bigelow, L.S. and Barney, J.B., 2021. What can strategy learn from the business model
approach?. Journal of Management Studies, 58(2), pp.528-539.
Dewald, J., 2018. 2. A Delicate Balance: Strategy, Entrepreneurship, And Longevity.
In Achieving Longevity (pp. 37-48). University of Toronto Press.
Knikker, J., 2021. Mission and Vision. In How to Win Work (pp. 14-16). RIBA Publishing.
Marshall, S.J., 2018. Strategic Planning as Sense-Making. In Shaping the University of the
Future (pp. 413-436). Springer, Singapore.
Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy
and context. Routledge.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Yuan, Y., Lu, L.Y., Tian, G. and Yu, Y., 2020. Business strategy and corporate social
responsibility. Journal of Business Ethics, 162(2), pp.359-377.
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