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Marriott's Competitive Strategies

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Added on  2020/01/23

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This assignment investigates Marriott's competitive strategies within the intensely competitive hospitality industry. It examines how factors like regulation, market pressure, and consumer expectations influence Marriott's performance. Students are asked to analyze the company's approach to competition, considering unique products/services, customer satisfaction, legal compliance, and profitability. The assignment encourages a critical evaluation of Marriott's strategies and their effectiveness in a dynamic market environment.

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Research
Project
1

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TABLE OF CONTENTS
Task 1 Proposal............................................................................................................... 3
1.1 Rationale of research..............................................................................................3
1.3 Review of literature.................................................................................................3
1.4 Proposed methods for research.............................................................................5
1.5 and 2.1 Gantt chart ................................................................................................7
Task 2 Project implementation and presentation ............................................................8
2.2, 2.3 Justification of research methodology that has used and collate and analyse
data to address the research question and objectives..................................................8
3.1 Description and evaluation of factors that affected the achievement of present
research project..........................................................................................................17
3.2 Interpret and analysis of the results......................................................................18
3.3 Recommendation based on findings ....................................................................21
References..................................................................................................................... 23
Appendix ....................................................................................................................... 23
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TASK 1 PROPOSAL
Aim
“To assess the impact of competition and regulation on market performance of
hospitality companies”- A study on Marriott UK.
Objectives
To assess the impact of competition on sales of Marriott UK.
To identify the effect of regulation on the profitability of organization.
To recommended ways through which Marriott can enhance its market
performance.
1.1 Rationale of research
In the present scenario, it has become very difficult for the organizations
operating in hospitality industry to attract customers and increase sales(Jones, Comfort
and Hillier, 2006). Further, it can be stated that along with high growth rate, industry
also experiences intense level of competition among all the businesses (Jin-zhao and
Jing, 2009). The present research will help to assess what kind of impact does
competition have on the sales of business operating in hospitality industry. On the other
hand, in last few years lots of regulations have been developed which all the
organizations in this industry are required to follow (Blomme, Van Rheede and Tromp,
2010). This research will also result in identifying the effect of these regulations on the
overall profitability of businesses. Two factors which inspired researcher to select this
research are increasing competition and strict regulations in the hospitality industry.
1.3 Review of literature
Impact of competition on sales of businesses in hospitality industry
In the modern era, high level of competition in hospitality industry has emerged
as one of the biggest threats for all the businesses. Nowadays, it is not easy for
companies to retain their old customers and attract new ones. People in market are
available with a wide variety of products and services available to choose from. As per
the view of Claver-Cortés and et.al., (2007) competition has direct impact on the overall
sales of business enterprise. A competitive market is the one which has many buyers
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and sellers. Almost all the businesses provide same kind of products and services in the
hospitality industry (Claver-Cortés and et.al., 2007). Zhu and Sarkis, (2007) has
explained that low number of firms increases sales of businesses as people in market
have very fewer alternatives available with them (Zhu and Sarkis, 2007). However,
Barrows and Power, (2008) argued that high level of competition can force a firm to
push its efforts to exceed its normal limits. Along with this, it also encourages
organizations to think something creative and innovative. Businesses in hospitality
industry always try to offer something new and unique so that they are get rid of intense
competition and increase their sales (Barrows and Powers, 2008). It can be stated that
competition has affected the overall sales of organizations and now they are finding it
very difficult to attract customers.
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Affect of regulation on profitability of the organization
Nadiri and Tanova, (2010) has explained that businesses are required to
consider lot of codes, regulations and laws before operating in hospitality industry.
Regulations related to fire, working environment and food hygiene need to be followed
in the best possible manner (Nadiri and Tanova, 2010). It can be also stated that breach
of all the laws and regulations can result in heavy fines and penalties on businesses.
This lowers down the entire profitability as majority of their profits are being spend on
paying fines and penalties (Tavitiyaman, Qu and Zhang,2011). In hotels, one of the
major threats to employees, customers and property is associated with fire. Therefore,
regulations such as (Fire) (Safety) Regulations 1988, Gas Safety (Installation and Use)
Regulations 1994 etc. have been developed. As per the view of Cho and et.al., (2006)
organizations are required to use effective measures to deal with issues related to fire at
workplace (Cho and et.al.,2006.). On the contrary has Becerra, Santaló and Silva,
(2013) argued that Health and Safety at Work Act 1974 is one of the major regulations
among all of them. Organizations operating in hospitality industry are required to take
note of those substances which can result in illness, harm or injury to all the workers
(Becerra, Santaló and Silva, 2013). Businesses also need to provide workers with
protective clothes at the time of handling any kind of harmful substances. This increases
the overall cost of businesses and lower down their profitability. Therefore, it can be
stated that such regulations are negatively affecting the overall profits of businesses
which are operating in the hospitality industry.
1.4 Proposed methods for research
Research approach: Research approach can be defined as the way in which a
scholar carries out his/her study (Chilisa, 2011). In the present research,
inductive approach will be used to accomplish objectives of this study in the best
possible manner. One of the main reasons behind using inductive approach is
that it will provide more accurate information regarding the impact of competition
and regulation on market performance of hospitality companies.
Research philosophy- There are two different types of research philosophies
which are interpretivism and positivism that can be used by the scholar to carry
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out study (Terrell, 2012). For the present research, interpretivism philosophy will
be used. The reason behind using this philosophy is that it will help in
determining what kind of impact does regulations and competition have on the
overall market performance of Marriott. This will also allow the researcher to
access information from the managers of hotel.
Data collection- Researcher will be using both primary and secondary sources to
collect information regarding the subject matter. Rationale behind using the
above stated sources is that it will help in getting more reliable information on the
impact of competition and regulation on market performance of hospitality
companies. Secondary sources will provide researcher with generalize
information related to the topic. On the other hand, primary sources will help in
getting more specific information about the selected organization. Primary data
will be collected by five managers of Marriott UK with the help of a well-structured
questionnaire. Books, journals and online articles are some of secondary sources
which researcher will be using to collect information.
Sampling- Sampling can be defined as the process in which researcher use an
appropriate method to collect data from primary sources (Hine and Carson,
2007). Non-probabilistic and probabilistic are the two common types of sampling
methods which can be used to collect information. In the present study,
purposive sampling which is a technique of non-probabilistic sampling method
will be adopted. Further, reason behind choosing this technique is that it will
support in getting the best and more reliable information suitable with the
purpose of this research. The sample size is going to be five managers of
Marriott. It can be stated that selected sample will help in getting useful
information about the topic under investigation.
Data analysis- Data analysis can be termed as the method of analyzing
information collected from various sources in order to get the findings (Terrell,
2012). In the present study, qualitative technique of data analysis will be used.
The reason behind this is that information will be present in non-numeric form
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and therefore, qualitative technique will be more suitable. Collected information
will be presented through various graphs and charts.
2.1 Resources required to conduct research
The researcher will require various kind of resources in order to carry out this
research and accomplish its aim and objectives. Human resources will be required to
collect data, analyse and present the same as useful information. Financial resources
will be also required to gather information from various primary and sources. Time and
money is needed to approach managers of Marriott and gain useful information from
them. Technical resources are also needed at the time of recording and presenting
information.
1.5 and 2.1 Gantt chart
Research questions
Determine the impact of competition on sales of Marriott UK?
Identify the effect of regulation on the profitability of organization?
What are the ways through which Marriott can enhance its market performance?
Activities 1st
Wee
k
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
week
10th
Week
Drafting the
proposal of
research
Determining
the aim and
objectives
of study
Literature
review
Identifying
methods of
data
collection
Determining
research
methods
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Collecting
secondary
data
Deriving the
findings
Data
analysis and
discussion
recommend
ations
Final
Submission
The scholar with begin with activities such as drafting of the research proposal in
the first weak. Further, in second week aim and objective will be developed for the
study. The writing down of literature review will get started in 3rd week. In the fourth
week, the researcher will be identifying methods of data collection and determining
research method. Collection of secondary data will take two week time and findings will
be derived in secondary week. In 8th week the scholar will continue with Data analysis
and discussion and at last with recommendations in 9th week. The final submission will
be done on 10th week.
TASK 2 PROJECT IMPLEMENTATION AND PRESENTATION
2.2, 2.3 Justification of research methodology that has used and collate
and analyse data to address the research question and objectives
The present investigation is aiming at assessing the impact of competition and
regulation on market performance of hospitality companies therefore, Marriott UK is
chosen to conduct the investigation. There have been used number of research
methods and tactics to reach the outcomes of investigation. Here, for present
investigation inductive research approach is selected as the study has a new concept
and it is required to have an in-depth investigation into the topic. Through using this
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approach new theories are going to be analyzed that are suitable to reach the
outcomes. Research philosophies are the research method that are helpful in changing
the mindset of researcher. For this investigation researcher has used interpretivism
philosophy as it allows to have an in-depth investigation and researching into wide
literature. This is used just because it helps in determining what kind of impact does
regulations and competition have on the overall market performance of Marriott.
The use of interpretivism philosophy and inductive approach allow researcher to
access information from the managers of hotels. In respect with the present
investigation, both the methods such as primary as well as secondary have been used.
For primary collecting primary sources, questionnaire method is used. However,
secondary data collection sources are books, journals as well as online and physical
library. The rationale behind using secondary sources is to gather generalize
information on the research topic. However, primary sources are being used for the
purpose of collecting more specific information about the selected organization. The
above mentioned both the data collection methods have been used for the purpose of
gathering reliable information on the research topic. To collect the data via primary
sources, it was required to approach the right population for the purpose of making an
accurate study.
The research population for the present investigation were the managers,
employees as well as the board of members. For the present investigation managers of
Marriott organization are selected for the purpose of collecting information via well-
structured questionnaire. For the preset investigation, purposive sampling technique of
non-probabilistic sampling method is used and the rationale of using such tactic is to get
more reliable information suitable with the purpose of this research. In respect with this,
it could be said that sample size of present investigation is 5, managers of Marriott. The
selected sample size is justified as it is sufficient to provide the information on this
research topic. However, in this investigation qualitative technique of data analysis are
used as it was required to represent the information in non-numeric form.
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Collate and analysis of data
Age Number of respondents
Below 25 0
25-35 1
35-45 1
Above 45 3
1. The level of competition
among businesses in
hospitality industry is very
intense
Number of
respondents Percentage
Strongly agree 2 40
Agree 2 40
Neutral 0 0
Disagree 1 10
Strongly disagree 0 0
10
Age
Below 25
25-35
35-45
Above 45

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High level of
competition affects
sales of Marriott in
negative aspects
Number of
respondents Percentage
Yes 4 80
NO 1 20
11
The level of competition among businesses in hospitality
industry is very intense
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
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3. Marriott is required to follow
all laws and regulations in order
to operate smoothly
Number of
respondents Percentage
Strongly agree 2 40
Agree 3 60
Neutral 0 0
Disagree 0 0
Strongly disagree 0 0
12
Yes NO
0
10
20
30
40
50
60
70
80
90
High level of competition affects sales of Marriott in negative aspects
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4. How Marriott can improve
its market performance
Number of
respondents Percentage
Introducing unique products
and services 1 20
Gaining high degree of
customer satisfaction 1 20
Following all laws and
regulations 0 0
All of the above 3 60
13
Marriott is required to follow all laws and regulations in order to operate smoothly
Strongly agree
Agree
Neutral
Disagree
Strongly disagree

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Does alteration in tax
and regulations
adversely affect your
profitability
Number of
respondents Percentage
Yes 4 80
No 1 20
14
How Marriott can improve its market performance
Introducing unique products
and services
Gaining high degree of
customer satisfaction
Following all laws and
regulations
All of the above
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6. What are the key regulations which
Marriott needs to follow
Number of
respondents Percentage
(Fire) (Safety) Regulations 1988, 1 20
Gas Safety (Installation and Use)
Regulations 1994 0 0
Health and Safety at Work Act 1974 1 20
Employment Act 0 0
other than this 0 0
All of the above 3 60
15
Does alteration in tax and regulations adversely affect your profitability
Yes
No
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7. What are the strategies
which you have adopted to
deal with competition
Number of
respondents Percentage
Service differentiation 1 20
customer survey 0 0
competitor analysis 0 0
All of the above 4 80
16
What are the key regulations which Marriott needs to follow
(Fire) (Safety) Regulations
1988,
Gas Safety (Installation and
Use) Regulations 1994
Health and Safety at Work Act
1974
Employment Act
other than this
All of the above

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3.1 Description and evaluation of factors that affected the achievement of
present research project
Factors
The factors that affected the achievement of present research project
Availability of literature review: The achievement of present research project is
affected by the wide range of academic information that is available in the online and
physical library. However, there were few investigations found on the present research
topic so it was hard to get enough secondary sources. Hence, the limited availability of
secondary information has affected the achievement of present research project.
17
Service differentiation customer survey competitor analysis All of the above
0
10
20
30
40
50
60
70
80
90
What are the strategies which you have adopted to deal with competition
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Support of respondents: In the present investigation primary sources of data
collection have been used therefore, willingness of respondents is the crucial factors
that has contributed to the achievement of present investigation, All the respondents of
this study were supportive and they have contributed in the success of this research.
The mangers of Marriott have given authentic views and have filled the questionnaire
properly, hence their support was the major thing that affected the achievement of
present research project. However, prior to the investigation they were informed about
the objective.
Famous areas and demand of research: : The concept of this investigation and the
topic has become famous among hospitality industry. The hospitality companies now
want to know about the impact of competition and regulation on their market
performance. However, the role of competitive policies and regulation is widely being
discussed in academic areas. Hence, the popularity of research topic and extensive
demand of corporate for the reduction of negative impact of competition and regulation
on their market performance are the major factor that affected the achievement of
present research project.
3.2 Interpret and analysis of the results
Theme 1: Hospitality industry is facing intense competition
From the primary data collected, it can be analysed that hospitality industry is
going through a situation of very intense competition. Out of the total 5 respondents of
Marriott hotel UK, 40% strongly agree with this fact and other 40% agree with the same,
further, they explained that the investments required is not very high in this industry.
Therefore, is not difficult for businesses to enter the same. Along with this, it is also
providing organizations with high growth rate and opportunities for expansion. Now
there are many small and big market players competing with each other to steal sales
and market share. On the other hand, 10% of respondents disagree and explained that
the competition in industry is not as intense as it is in retail industry. The results of
secondary data also highlight the same thing that the entire hospitality industry is facing
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high level of competition among all its businesses. Nowadays customers have wide
variety of alternative available to choose from.
Theme 2: High level of competition is affecting sales of Marriott in negative
aspects
The information collected from various sources highlights the fact that high dgree
of competition affects sales of businesses in negative terms. Out of the total 5
respondents of Marriott hotel UK, 80% agree with this fact. On the other hand, 20%
disagree with this. It can be analysed that majority of respondents believes that they are
not able to gain adequate opportunities for growth and development due to high
competition. The organization' sales has been lower down because customers have
variety of options available. Marriott is also finding it difficult to retain customers as they
want to try out what other market players are offering. The respondents that drop in
sales due to high competition has become one of the major challenge for Marriott.
Further, it is also trying very hard find out the ways and strategies which can help in
getting competitive advantage and increase sales. The same thing has been witnessed
from the information collected by secondary sources. Businesses sales directly gets low
down when there are many sellers present in market. Organizations are required to
offer something new and innovative to people in the market in order to increase their
sales.
Theme 3: Marriott is required to follow all laws and regulations in order to operate
smoothly
From the data collected, it has been found that organizations are required to take
care and follow all the laws and regulations developed by government of the country.
Out of the total 5 respondents of Marriott hotel UK, 40% strongly agree with the above
stated fact whereas 60% agree with the same. The respondents explained that the
government and other regulatory bodies are very strict. Further, being such as
renowned organization, Marriott is required to follow all the regulations. The
respondents explained that it helps in operating smoothly in long run. Along with this,
they also stated that if the organization do not follow these laws and regulations, it may
charged with heavy fines and penalties. This will have impact on its entire brand image
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and will also affect future profits. The same thing has been identified from information
collected from secondary sources. If business do not follow rules and regulations then
government may impose restrictions on its activities and operations.
Theme 4: There are various ways thorough which Marriott can improve its market
performance
From the information gathered, it has been observed that boost up its overall,
market performance with the help of various ways. Out of the total 5 respondents of
Marriott hotel UK, 20% said that market performance can be enhanced by introducing
new products and services. Further they explained that it will support in attracting more
customers and increase sales. Other than this, out of the total respondents,20%
explained that the market performance can be enhanced by getting high degree of
customer satisfaction. Majority which is the 60% of the respondents explained that the
new products, high degree of customer satisfaction and following regulations are the
elements required to enhance market performance.
Theme 5: Alternation in tax and regulations affects profitability of Marriott
From the data collected, it has been found that profits of businesses gets
affected by any kind of change in regulations and tax rates. Out of the total 5
respondents of Marriott hotel UK, majority which is 80% agree with the above stated
fact. Only 20% of the total respondents do not agree with the same. Most of the
respondents argued that when a new regulation is introduced, Marriott is required to
make changes in all its process and activities which increases overall cost. On the other
than, increase in tax rates also lower down the profit margin of the organizations.
Therefore, it can be stated that tax and regulations have a direct impact on overall
probability of businesses operating in hospitality industry.
Theme 6: There are various regulations which Marriott is required to follow
From the information collected it can be analysed that Marriott is needs to follow
various kinds of regulations developed by government. Out of the total respondents,
60% stated that regulations such as Gas Safety (Installation and Use) Regulations
1994, Health and Safety at Work Act 1974, Employment Act, (Fire) (Safety) Regulations
198 etc. are required to be followed. On the other hand, 20% were in favour of fire and
20
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safety and the remaining 20% favoured heath and safety Act. Further the respondents
explained that all these regulations are being formed specially for businesses in
hospitality industry. All the organizations strictly required to follow them. The same
information can be analysed from data collected with secondary sources. Government
in the country is very strict has developed various regulations which needs to be adhere
by organizations in hospitality industry.
Theme 7: various strategies are adopted by Marriott to deal with competition
The findings of primary data explains that the organization has adopted several
kinds of strategies in order to deal with high competition. Out of the total 5 respondents,
80% stated that service differentiation, customer survey and competition analysis are
the strategies adopted by Marriott. 20% respondents were in favour of service
differentiation only. The respondents explained that Marriott try to introduce new
products and services at regular intervals to attract customers and develop their
interest. All services are developed with the help of customer surveys carried out at
regular intervals. Along with this, the organizations also conducts competitor analysis to
become aware about products, services price and strategies of its major competitors.
3.3 Recommendation based on findings
On the basis of findings of this research, recommendation provided to Marriott
are mentioned below as:
It can be recommended that the organization should adhere to all laws and
regulations in the best possible manner. This will not only help in smooth
functioning but will also support in enhancing its brand image.
It can be recommended that Marriott should adopt the strategy of service
differentiation in order to overcome the threat of high competition. By providing
innovative and creative services, it will be able to attract customers irrespective
of what degree of competition is prevailing in market. Further, it will also result in
increasing sales, profits and market share of the brand.
It can be also recommended that the brand should always seek for ways through
which it can reduce its cost of operations. This will support in increasing the profit
margins.
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Further areas of research
The present research was based on impact of competition and regulation on
market performance of hospitality companies. Same kind of research can be conducted
on other sectors such as airlines, retail etc. Along with this research can be carried out
on topics such as relationship between degree of competition and performance of an
organization or affect of government regulations on operations of business.
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REFERENCES
Books and journals
Barrows, C.W. and Powers, T., 2008. Introduction to Management in the Hospitality
Industry, Study Guide. John Wiley & Sons.
Becerra, M., Santaló, J. and Silva, R., 2013. Being better vs. being different:
Differentiation, competition, and pricing strategies in the Spanish hotel
industry. Tourism Management. 34. pp.71-79.
Blomme, R.J., Van Rheede, A. and Tromp, D.M., 2010. The use of the psychological
contract to explain turnover intentions in the hospitality industry: a research
study on the impact of gender on the turnover intentions of highly educated
employees. The International Journal of Human Resource Management, 21(1),
pp.144-162.
Chilisa, B., 2011. Indigenous research methodologies. Sage Publications.
Cho, S., Woods, R.H., Jang, S.S. and Erdem, M., 2006. Measuring the impact of human
resource management practices on hospitality firms’
performances. International Journal of Hospitality Management. 25(2). pp.262-
277.
Claver-Cortés, E. and et.al., 2007. Environmental strategies and their impact on hotel
performance. Journal of Sustainable Tourism. 15(6). pp.663-679.
Hine, D. and Carson, D. eds., 2007. Innovative methodologies in enterprise research.
Edward Elgar Publishing.
Jin-zhao, W. and Jing, W.A.N.G., 2009. Issues, challenges, and trends, that facing
hospitality industry. Management Science and Engineering, 3(4), p.53.
Jones, P., Comfort, D. and Hillier, D., 2006. Reporting and reflecting on corporate social
responsibility in the hospitality industry: A case study of pub operators in the
UK. International Journal of Contemporary Hospitality Management, 18(4),
pp.329-340.
Nadiri, H. and Tanova, C., 2010. An investigation of the role of justice in turnover
intentions, job satisfaction, and organizational citizenship behavior in hospitality
industry. International journal of hospitality management. 29(1). pp.33-41.
Nykiel, R.A., 2007. Handbook of marketing research methodologies for hospitality and
tourism. Routledge.
Tavitiyaman, P., Qu, H. and Zhang, H.Q., 2011. The impact of industry force factors on
resource competitive strategies and hotel performance.International Journal of
Hospitality Management. 30(3). pp.648-657.
Terrell, S.R., 2012. Mixed-methods research methodologies. The Qualitative
Report, 17(1), pp.254-280.
Zhu, Q. and Sarkis, J., 2007. The moderating effects of institutional pressures on
emergent green supply chain practices and performance.International journal of
production research. 45(18-19). pp.4333-4355.
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APPENDIX
Name________________________________
Gender
Male
Female
Age
Below 25
25-35
35-45
Above 45
1. The level of competition among businesses in hospitality industry is very intense
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
2. High level of competition affects sales of Marriott in negative aspects
Yes
NO
3. Marriott is required to follow all laws and regulations in order to operate smoothly
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
4. How Marriott can improve its market performance
Introducing unique products and services
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Gaining high degree of customer satisfaction
Following all laws and regulations
All of the above
5. Does alteration in tax and regulations adversely affect your profitability
Yes
No
6. What are the key regulations which Marriott needs to follow
(Fire) (Safety) Regulations 1988,
Gas Safety (Installation and Use) Regulations 1994
Health and Safety at Work Act 1974
Employment Act
other than this
All of the above
Other than this
6. What are the strategies which you have adopted tChilisa, B., 2011. Indigenous
research methodologies. Sage Publications.o deal with competition
Service differentiation
customer survey
competitor analysis
All of the above
7. Your view on how organizations can increase its sales and profitability
25
1 out of 25
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