Expansion of Marriott International Inc. in the Netherlands

EXPANSION OF THE
MARRIOTT
INTERNATIONAL INC. IN
THE NETHERLANDS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Marriott’s Background.................................................................................................................3
Business Environment.................................................................................................................8
Analysis of Business Scenario...................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The expansion of hotels in hospitality industry is necessary for expanding their presence
globally at new locations around the world. Many hotels have expanded their services in many
other countries despite the home country (Menegaki and Agiomirgianakis, 2019). The main aim
behind the expansion is to create a strong impression on customers who regularly visits for
business and accommodation purposes and to earn a large profit margin with increased number
of sales.
The Marriott International Inc. is the most diversified and renowned hospitality company which
provides services of lodging and hotels (Chu and King, 2019). It is the world’s largest hotel
chain having headquarters in Bethesda, Maryland. The objective of this report is to expand the
business operations of the company in Netherlands by increasing the sales and profit margin.
The report will describe the background information of the company and the market structure of
the host country i.e., Netherlands. The report will also analyse the Pestle Factors in Netherlands
and its impacts along with examining the effects of Porter’s 5 Forces. The research of the report
will be concluded by analysing the impacts of opportunities and threats for the company in order
to expand itself.
MAIN BODY
Marriott’s Background
The founder of Marriott John Willard Marriott along with his wife Alice Sheets founded
Marriott in 1927 as a root beer stand in Washington, DC by examining the existing demands of
the customer for a place to get a cold drink (Czyżewska, 2019). After getting a good profit
margin, it expanded itself in the form of many restaurants and shops of drinks.
The company made progress by establishing many hotels one by one. In 2009, the hotel of
Marriott became the largest hotel which was operating continuously. After getting a sufficient
fame, the founder of the company gave his responsibilities to his son who made the company to
grow worldwide. He planned to sell the shops in order to earn more profit and sales.
In 1993, Marriott International was formed and became the first company of hotels to provide the
advanced hospitality services worldwide. In 1997, the company took the legal form of Public
Limited Company by acquiring the most listed company named Renaissance Hotel. After the
destruction of Marriott World Trade Centre in 2001, the company thought of making some
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changes in 2002 which were completed in 2003 (Woo and et.al., 2019). Marriott later owned
Ramada International Hotels and in 2006 it announced all the buildings of lodging in US and
Canada by creating new policies which includes all the facilities of hotels.
Marriott after facing all the threats and difficulties, had created headquarters in Bethesda,
Maryland, U.S. It had done many innovative developments in 2014 (van Ginneken, Koens and
Fricke, 2019). In order to make innovations, the company has adapted many technological
advances. It faced many problems like hacking of the personal details of 500 million guests. But
in spite of all these, Marriott became the first chain of hotels which serves the healthy food to its
customers in its restaurants. In 2017, Marriott had almost 177,000 employees serving worldwide.
After getting a great success in the form of loyal customers and increased profit, the company
began its operations overseas in different countries in 2019.
Table: Countries and No. of hotels
Countries in which Marriott expanded overseas operation No. of Hotels
Africa 145
Asia 818
Australia & Pacific Islands 41
Canada 257
Caribbean 61
Central America 148
Europe 713
Middle East 131
South America 82
Source: Marriott International Inc., 2020
Structure of Market
After holding a good position in the market, the company had many competitors in the
emerging market locally and overseas. The local competitors of the company include the Van der
Valk Hotels, Art’otel Hotels, CitizenM Hotels, Fletcher Hotels and many more. The competitors
overseas include the Hilton Worldwide, Hyatt Hotels and Intercontinental Hotels. In 2018, the
company had a market share of 29% (Abdelgawad and Zahra, 2019). The Marriott Hotels and
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