Competitive Strategy Analysis of Hotel Industry

The assignment involves analyzing the competitive strategies of several hotel chains, including Marriott, Hilton, Hyatt, and Wyndham Worldwide. It requires students to identify the market leader, follower, and niche players in the industry, as well as determine which hotel chain has the best chance to snatch market share from the market leader. The assignment also involves analyzing the business model and sustainability strategy of Marriott, and identifying potential opportunities for hotels to gain market share.

Running head: COMPETITIVE STRATEGY ANALYSIS
Competitive strategy analysis
Name of the student
Name of the University
Author note

Running head: COMPETITIVE STRATEGY ANALYSIS
Company/Product Name
(Ex. Ford/Focus)
Criteria 1
(Ex. Total Product Revenue/year)
Name _________________
Criteria 2
(Ex. No. of unit sold/year)
Name __________________
Criteria 3
(Ex. No. of customers/year)
Name _________________
Marriott International, Inc.
$17,072.00 M
(Hoover’s.com, 2018)
27.22%
(CSIMarket, 2018)
6,000 Properties across 122
Countries
(About Marriott Hotels, 2018)
Hilton Worldwide Holdings
11,663.00 Million USD
(Hoover’s.com, 2018)
21.15%
(CSIMarket, 2018)
4900 properties distributed in
104 countries
(hiltonworldwide.com, 2018)
Hyatt Hotels Corporation 3490.57 Million USD
(Hoover’s.com, 2018)
3.1%
(CSIMarket, 2018)
700 properties spread across 55
countries
(hyatt.com, 2018)
Wyndham Worldwide
Corporation
5,599 Million USD
(Hoover’s.com, 2018)
2.77%
(CSIMarket, 2018)
8000 properties across 110
nations
(Wyndham Worldwide, 2018)
Table 1: Market analysis
Source: (Created by Author)

1COMPETITIVE STRATEGY ANALYSIS
Competitive Positions* Company/Product
Basis for Position (e.g. product leadership,
cost leadership, innovation, core
competencies, etc.)
Market Leader
Marriott International, Inc.
Diversification in business: Provides service
in different market segment
Innovation in business: Franchising and
managing hotels, resort as well as food and
beverage service instead of owning the them
(business model and sustainability strategy,
2018)
Market Challenger/Follower
Hilton Worldwide Holdings
Innovation: Providing social place in new
hotels to gain competitive advantage
(Dudovskiy, 2018)
Market Follower
Hyatt Hotels Corporation
Cost leadership: Enhancing profit and
customer satisfaction with price cut (Hyatt
Configures Organization to Accelerate
Growth, 2018)
Vision: Proper assessment of market for
gaining competitive advantage
Market Follower/Nicher Wyndham Worldwide Corporation
Differentiation: Provides vast scale of service
(Core Strategies | Wyndham Worldwide,
2018)
Table 2: competitive analysis
Source: (Created by Author)

Running head: COMPETITIVE STRATEGY ANALYSIS
Answer 1:
From the competitive analysis of the hotel industry, highlighted in table 2, it can be
seen that the Marriott International, Inc. is the market leader. The brand has more than 6,000
full-service franchises spread around 122 countries. In addition to this it enjoys 27.2% market
share, when it comes to hospitality service provider (Hoover’s.com, 2018). According to the
statistics, the brand had 17,072 sales during 2016 and it has assets over 24,140 million USD
(About Marriott Hotels, 2018). Comparing to its rivals, market value of Marriott
International, Inc. is higher, which germinates through large number of employees the brand
possess. Business model and sustainability strategy, (2018), states that, Marriott International,
Inc. has more than 226,500 employees that help it to provide24/7 to their customers. In
addition to this Marriott International, Inc. has taken innovative way to enhance its revenue.
Through franchising and managing hotels, resort as well as food and beverage service instead
of owning them, it has become one of the largest hospitality service providers in the world
and market leader among the chosen brands.
Answer 2:
Data found through competitive analysis highlights that Hilton Worldwide Holdings
is the nearest competitor of the market leader Marriott International, Inc. it has been found
that Hilton Worldwide Holdings enjoys 21.15% market share in hotel industry with their
4900 properties spread across 104 countries in the world (Dudovskiy, 2018). In addition to
this, Hilton Worldwide Holding’s net sales during 2017 were of 11,663 million USD that
makes it the closest competitor of the market leader (CSIMarket, 2018). Analyzing in details,
it can also be found that utilizing innovating ways the brand has performed 11,663 sales
during 2016 and owing to vast employee range of 169,000 it has transformed itself as one of
the best hospitality service provider (hiltonworldwide.com, 2018). Market value of the brand

1COMPETITIVE STRATEGY ANALYSIS
is 25551.287 million USD and it has total assets of 26,211, which enables it to provide tough
competition to the market leader Marriott International, Inc (Hoover’s.com, 2018).
Answer 3:
As shown in the table 2, Hyatt Hotels Corporation is the market follower and
Wyndham Worldwide Corporation is the niches. Hyatt being one of the top hospitality
service provider has been has vast amount of assets spread across 55 countries
(Hoover’s.com, 2018). However it has failed to capture enough market shares. From the
competitive analysis it has been fond that it enjoys only 3.1% market share and recently
through following the price cut mechanism of market leaders it has face 2.33% sales growth
(CSIMarket, 2018). It quantifies that Hyatt is not price setter, rather price taker that makes it
the market follower as well. On the other hand Wyndham Worldwide has been providing
hotel service in 110 countries through its 8,000 franchised hotels and 121,000 vacation rental
properties (Hyatt Configures Organization to Accelerate Growth, 2018). Being a service
provider only in hotel industry this brad can be categorized under niche market performer.
Answer 4:
Considering the competitive advantage details showcased in table 2, it can be stated
that Hilton has the best chance to snatch market share from market leader. According to
statistics, within last five years it has started to enjoy 5% of hotel booking out of total rentals
worldwide and sales growth has been astonishingly as high as 17.85% during 2017 compared
to 2016 (Hoover’s.com, 2018). In addition to this high market share and 77.65% of employee
growth makes clear that Hilton can snatch some amount of market share from the market
leader Marriot (Core Strategies | Wyndham Worldwide, 2018).

2COMPETITIVE STRATEGY ANALYSIS
Reference:
Hiltonworldwide.com. (2018). Hiltonworldwide.com. Retrieved 22 March 2018, from
http://www.hiltonworldwide.com/
Business model and sustainability strategy. (2018). Marriott.com. Retrieved 22 March 2018,
from
http://www.marriott.com/Multimedia/PDF/CorporateResponsibility/2015_Reports/
2015_BusinessModelandSustainabilityStrategy.pdf
Dudovskiy, J. (2018). Hilton Hotels Business Strategy and Competitive Advantage - Research
Methodology. Research Methodology. Retrieved 22 March 2018, from
https://research-methodology.net/hilton-hotels-business-strategy-and-competitive-
advantage/
Hyatt Configures Organization to Accelerate Growth. (2018). Investors.hyatt.com. Retrieved
22 March 2018, from
http://investors.hyatt.com/investor-relations/news-and-events/financial-news/
financial-news-details/2018/Hyatt-Configures-Organization-to-Accelerate-Growth/
default.aspx
Core Strategies | Wyndham Worldwide. (2018). Wyndhamworldwide.com. Retrieved 22
March 2018, from http://www.wyndhamworldwide.com/category/core-strategies
Hoover's.com. (2018). hoovers. Retrieved 22 March 2018, from
http://www.hoovers.com/company-information/company-search.html
hyatt.com. (2018). hyatt.com. Retrieved 22 March 2018, from https://www.hyatt.com/
About Marriott Hotels. (2018). www.marriott.com. Retrieved 22 March 2018, from
http://www.marriott.com/marriott/aboutmarriott.mi

3COMPETITIVE STRATEGY ANALYSIS
Wyndham Worldwide. (2018). Wyndhamworldwide.com. Retrieved 22 March 2018, from
http://www.wyndhamworldwide.com/
CSIMarket. (2018). Csimarket.com. Retrieved 22 March 2018, from https://csimarket.com/