Critical Analysis of Industry Practices in Strategic Hospitality Management

Strategic management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task..................................................................................................................................................3
Critical analysis of industry practices ........................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management refers to the process of setting goals and objectives for the organisation
and to conduct procedures to make the organisation more competitive in the market. The value
and importance of the strategic management are increase day by day as the competition in the
market are increasing. Strategic management is one of the most important and valuable concept
of the organisation which helps to established effective standards for the company. Strategic
management is based on the use of different types of models and procedures in the organisation
to maintain the competitiveness of the organisation. One of the most important task which the
managers of the organisation has to done in strategic management such as to develop effective
goals and objectives for the organisation. The goals and objectives has provide direction to the
management as well as the employees of the company towards the mission and vision of the
organisation. This report is based on the hospitality industry of the United Kingdom. The
organisation which is chosen here to demonstrate this report is Hotel mariott.
Task
Porters five forces model was founded by Michael E Porter of Harvard University. Porters five
forces model is a technique for analysing the operating environment of a competition for a
business organisation (Abutabenjeh, 2021). It has five forces that derive and shows the
attractiveness or lack of it of a business organisation in the terms of profits of the organisation.
These five forces also determine the competitive intensity of the business. The five forces are as
follows:
Threat of new entrants.
Threat of substitutes.
Bargaining power of customers .
Bargaining power of suppliers.
Competitive rivalry.
Porters five forces model's five forces that shape competition of Marriott are as follows:
Threat of new entrants:
Current organisation face competitions with the entry of new entrants in the existing industries.
The new entrants come in the industry with the aim of acquiring or gaining market share from
the existing business organisations. This results in the increase in price leading to the pricing

pressures, costs reduction , loss of sales, distribution of profits etc . The competition is high if the
entry of new entrants is easy as the barriers are low or if the barriers are high then the entry is
restricted and less . Marriott is a well established and leading hotel chain company. It is very
difficult for a new entrant to enter in competition with Marriott as it will require great capital
investment in hotels, infrastructure, and advertisements (Anokhina, et. al. 2019) . There is a
huge loss to this hotel industry because of covid, having work from home, even this has lead to
demotivate the entry in this hotel industry as people have to be at home. Moreover, being an
international hotel, it has great rules and regulations. And being a part of five star hotel, it has
loyal customers .
Threat of substitutes :
Using different manufacturing or other strategies for the same economic need of a product is the
work of a substitute. For example dominoes and pizza hut or havmor and baskin robbins etc. they
give each other a tough competition . Being a hotel in this pandemic , the biggest substitute of
Marriott is a home. And even with the gain in popularity of work from home, it has faced loss.
With the increase in unique ideas hotels and unique destination preferences of people that is
tourists have changed. Innovative ideal hotels like bubble rooms, underwater rooms, ice homes
etc has been playing a major part in capturing hotel industry and are being substitute to Marriott.
However Marriott being a reputed one, has loyal customers who still prefer it over everything.
Bargaining power of customers:
Also known as market of outputs, as the product price and demand depends on customers . They
can have a great control and can lead pressure on the organisation resulting in the changing of
prices of the products. If there is a variety of the same product then the power of buyers has high
impact whereas it is low if they have less choices within their reach. Bargaining power is
moderate for Marriott. Marriott has its customer base divided in two parts, one for the customers
travelling for their vacations in luxury hotel, and their bargaining power is low. The other
customer base is that of big business organisations who send their employees for business deals.
They have a tie up with Marriott and are our regular customers.