Strategic Analysis of Hilton Worldwide

Running head: STRATEGIC ANALYSIS
hILTON wORLDWIDE
Strategic Analysis
3/16/2019

STRATEGIC ANALYSIS 1
Executive Summary
Hilton Company offers quality services to
enhance the customer delight, which
contribute in improving the brand value of
the group. Along with this, with the
support of their disciplined approach to
asset management, company create and
implement the strategic plans for all the
hotels comprised in the portfolio of the
group in order to improve its position in
the market. The group has framed its
strategic direction with the motive to
successfully lead the hotel and resort
industry. The entire group is focused
towards giving an unforgettable experience
to its customers, which can make them
loyal customers of the company. In
numerous numbers of hotels, company
invest in renewing the rooms of the guest
and public spaces and improving retail and
meeting spaces to increase profitability.
Furthermore, strategic objectives of the
company comprise the constant expansion
of their worldwide footprint. As Hilton
they take entry in new franchise contracts,
it expand its operations with limited or no
investment of the capital since the required
capital to construct and maintain the hotels
is normally offered by the third party or
the owner of the hotel with whom the
contract of offering franchise services has
been initiated.
However, the company is surviving in the
competitive environment and its major
competitor is Marriott, which is
experiencing a major decline in its
revenue. This leads to the major
opportunities for the investors to proceed
with their investment with Hilton
Worldwide for better stakeholders’ returns.
The adopted strategies by the group that is
segmentation, targeting, and positioning
supports company in successfully aiming
its marketing efforts towards the target
group of customer that have the capability
to pay for the offered services. Moreover,
future position of the company will be
analysed with the number of satisfied

STRATEGIC ANALYSIS 2
customers that will endure to consume the
services of the company.
Overview of Hilton Worldwide
Hilton Worldwide is formally called as
Hilton Hotels Corporation. It is a
hospitality company of America that
involved in the management and
franchising a wide hotels and resorts
portfolio. In 1919, the group was
established by Conrad Hilton. According
to the reports of 2018, the portfolio of the
group comprises around 5,500 properties
with 894,000 rooms that are present in 109
nations and territories. Hilton is one of the
leading companies in the hospitality
industry, with 14 top brands including
around 5,400 properties with closely
880,000 rooms, in 106 nations 12. Hilton is
devoted to satisfying its mission of being
the most hospitable business by offering
best experiences to every guest all the
time.
14
Hilton is involved in different corporate
social responsibility programs in order to
contribute some parts towards the society.
Few of its activities are mentioned below:
Empowering and educating personnel -
Hilton Worldwide University provided
around 2 million courses and 5 million
hours of learning for the workers in the
year 2015 9. Besides this, it organized an
anti-corruption and ethics training
program, which was attended by around
14,000 managers of Hilton.
Minorities and Gender Equality –
Women employees signify 51% in the US
owned, and managed corporate location of
Hilton. From, Hilton has hired around
7,300 veterans and their spouses 9.

STRATEGIC ANALYSIS 3
Strategic Direction of Hilton
Hilton Worldwide is leading hotel and
resorts brand with the mission of
becoming the most hospitable business
across the globe by offering heartfelt
experiences to their guests, the opportunity
to the team members, and positively
inspire the community. The statement of
mission focuses in two main aspects i.e.
high positive impact and hospitality. It
believes in becoming the world’s most
hospitable business, by offering quality
services to the consumer like Amazon
does.
According to the report of American
Customer Satisfaction Index, people are
more satisfied with the hotels that offer
quality and luxurious services. As per the
report Hilton is placed at top position with
81 score, in comparison to its competitor
Marriott and Hyatt with 80 score 1.
Strategies
Strategies are framed by the businesses to
successfully meet its strategic direction. In
order to meet its strategic direction, Hilton
Worldwide is involved in practicing
different strategies like segmentation,
targeting and positioning. Under
segmentation, Hilton has divided its
market based on unique ambiance and
experience. The targeting strategy of the
company is based on the profile of the
customer that is upper-class society.
Positioning of the business highlights its
effectiveness and performance in the
market. The Hilton Group is positioned as
a luxury hotel group among the customers
5.
Unique Selling Proposition of Hilton
Worldwide
Sales orientation – The sales orientation
is dependent on the ideas that customers
will buy more services and goods. In
marketing, it is important for the business
to establish its USP, which supports it in
setting the product, service, or brand ahead
of the rivals. The USP of Hilton
Worldwide is its unique facilities for its
guest i.e. spa, outdoor pool, health club,