Hospitality Management Simulations

Running Head: HOSPITALITY MANAGEMENT SIMULATIONS
HOSPITALITY MANAGEMENT SIMULATIONS

2HOSPITALITY MANAGEMENT SIMULATIONS
Table of Contents
Introduction................................................................................................................................2
Findings......................................................................................................................................2
1. Porters Five Forces analysis...............................................................................................2
2. PESTLE analysis................................................................................................................4
Conclusion and Recommendations............................................................................................6
References..................................................................................................................................8

3HOSPITALITY MANAGEMENT SIMULATIONS
Introduction
Marriot International is a famous international hotel chain headquartered at Bethesda,
Maryland, US. Marriot International is a diversified hospitality company which franchises
and manages a huge portfolio of hotels along with lodging facilities around the globe. In
recent years it is been noted that Marriot continuously rely on the acquisitions for expanding
their market share (Johan, Baga & Asmara, 2018). Outside US the company is looking for
increasing market share to gain a position in top place and boost overall performance. The
main aim of this report is to explore current situation this hotel chain with the use of
theoretical model analysis. Also, the purpose of the report is to produce a tactical and
strategic management decisions that they need to take to increase their market share. The
recommendations from analysis would help in informing managerial decisions for expanding
its market share. The following report will analyse the current position of Marriot
International hotel chain using two different theoretical models and recommend strategies to
improve their current situation. Porters Five Forces analysis and PESTLE analysis are
presented in the following section.
Findings
The current position of Marriot International hotel chain is analysed through two
aforementioned theoretical models.
1. Porters Five Forces analysis
Threat of New Entrants
New entries within the hotel industry are bringing innovation along with new ways of
operating business which is putting pressure on Marriot International. They are specifically
threatened by the lower pricing strategy, reduced costs and adding new value propositions to
the customers (Borisova & Razumeiko, 2018). As a result, the company have to manage all
the present challenges and build effective barriers to creating its competitive edge. Marriot
International can build new products and innovate their services ensuring customer loyalty
and also attract a new segment of customers. By defining their standards regularly new
entrant can hardly penetrate into this dynamic industry as resources are spent over research
and development.