Strategic Analysis of Hilton Hotels Corporation in Australia

Running head: INNOVATION ANS ENTREPRENEURSHIP
Innovation and Entrepreneurship

INNOVATION AND ENTREPRENEURSHIP 1
Table of Contents
Introduction...........................................................................................................................................2
Overview of Hilton Worldwide.............................................................................................................2
Corporate Strategy of Hilton.................................................................................................................2
Micro and Macro Analysis of Hilton Corporation.................................................................................3
SWOT Analysis.....................................................................................................................................3
PESTEL Analysis..............................................................................................................................4
Competitor’s Analysis.......................................................................................................................5
Porter’s Five Factor Analysis............................................................................................................6
Recommendations.................................................................................................................................7
Introduction of Diversified Force......................................................................................................7
Travel Packages.................................................................................................................................7
Conclusion.........................................................................................................................................7
References.............................................................................................................................................9

INNOVATION AND ENTREPRENEURSHIP 2
Introduction
Strategic analysis is a process of analyzing the strategies of an organization on the basis of
strategic analysis tools to find the actual position of the company. It also helps the
management to find the sections which need improvement to increase the profitability of the
organization. This report includes the strategic analysis of the business of a well-known brand
in the hospitality sector, ‘Hilton Hotels Corporation'. The strategic analysis is conducted for
the business of Hilton in Australia. As Hilton is an international organization, it is working
efficiently in more than 103 countries and Australia comes on the second number after its
home country (Ahsan, et al., 2014).
The main tools of strategic analysis like SWOT analysis, PESTEL analysis, and Competitor's
analysis is being used to analyze the strengths, weaknesses, opportunities, and threats existed
in the business environment along with the effect of main factors on the profitability of the
business. Further, based on analysis, some recommendations have been provided which can
be used by the organization to increase the business and improve the goodwill of the
business. At the end of the report, a conclusion has been drawn to provide an overview of the
entire report.
Overview of Hilton Worldwide
Hilton Hotels Corporation is a conspicuous hospitality organization at international level
having more than 5000 hotels with approximately 812,000 rooms in 103 countries. The
corporation also holds and manages some franchises and some major hotel brands. It is
owned by Blackstone Group, a private equity firm. Hilton is included in top ten corporations
providing the services in the hospitality sector of the world. The major brands of Hilton are
Hilton, Conrad, Hampton Inn, Hilton Garden Inn, Hampton Inn & Suites, The Waldorf
Astoria Collection, Homewood Suites by Hilton and many more. With a large range of the
Hilton brand, Hilton offers their guest a different type of services in best quality in at most of
the places in the world (Anon., 2017).
Corporate Strategy of Hilton
At earlier stages, Hilton used to concentrate on owning and securing additional real estate.
But the management had changed the developmental strategy at later stages and now it
focuses on distributing its services with the help of franchises. This helps the organization to

INNOVATION AND ENTREPRENEURSHIP 3
earn the revenue from providing services in the hospitality sector. Enlarging the number of
franchises also helps the corporation with a foreseeable and stable stream of income and
enables the management to deal with any type of unforeseen events or situation of the
recession in the industry.
As per the other corporate strategy of Hilton, Hilton prefers to aim business class travelers in
order to tie up with the airfares, which often results in enhancing the capability of a client to
spend on a hotel room, resorts and other facilities (Dudovskiy, 2016).
Micro and Macro Analysis of Hilton Corporation
SWOT Analysis
This tool helps in analyzing the internal strengths and weaknesses in context with the
emerging threats and opportunities in the environment of the organization.
Strengths
 Hilton Corporation has expanded its services and branches all over the country
providing high end, corporate and business class products and services to the
customers.
 The corporation also owns some firms that manufacture it fittings and also have
invested in online booking advertisements for the hotel to increase the sales of their
products.
 The employees are well educated and highly trained to treat the high profile
customers.
Weaknesses
 The charges of the products and services provided by the organization are too high to
afford middle-class professionals and businesspersons.
 The Human Resource management of the corporation is not so strong and this can be
verified from the yearly reports on employee satisfaction (Anon., 2015).
Opportunities
 Due to the popular brand image of the firm, it is easy to attract investors to provide
their services with the collaboration of Hilton.