International Hospitality Management: Report

Running head: INTERNATIONAL HOSPITALITY MANAGEMENT
International Hospitality Management
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Table of Contents
Introduction......................................................................................................................................2
Background of Sheraton Hotel........................................................................................................2
Strategic Position of Sheraton.........................................................................................................3
SWOT Analysis of Sheraton...........................................................................................................3
Global Hospitality Market...............................................................................................................6
Background to Emerging Market....................................................................................................6
PEST Analysis of Russia.................................................................................................................7
Porter’s Five Forces.......................................................................................................................11
Threat of new entrants...............................................................................................................11
Threat of substitute products.....................................................................................................12
Bargaining power of suppliers...................................................................................................13
Bargaining power of buyers.......................................................................................................13
Threat of competitors.................................................................................................................14
Ansoff’s Matrix.............................................................................................................................14
Market entry strategy.....................................................................................................................16
Justification of the adopted strategy..............................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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Appendices....................................................................................................................................23
Appendix 1.................................................................................................................................23
Appendix 2.................................................................................................................................24
Appendix 3.................................................................................................................................25

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Introduction
The hospitality industry is a continuously growing sector due to increased demand for
luxury travel, leisure, and business. In order to sustain the competitive business market, it is
essential for the business organization to increase their business and customer base. In order to
strive for continuous growth, the business organizations need to emphasize on the international
establishment. This will allow the companies to explore new markets and customers thereby,
increasing the business. Tough competition is seen among the hospitality industry, as the
business organizations have to implement strategies for attracting customers and business
expansion.
This report introduces the background of Sheraton Hotel, is a chain of luxury hotels
owned by Marriott International along with evaluating the strategic positioning of the hotel
chain. The internal environments of the Sheraton Hotel chains are analyzed in order to judge of
the suitability of the hotel chain for international business expansion in Russia. Therefore, the
external environment of Russia, both micro, and macro are studied to judge the suitability for
international expansion. Additionally, the report also discusses the various market entry
strategies along with justifying the most suitable market entry strategy for The Sheraton Hotel
Chains in Russia.
Background of Sheraton Hotel
The Sheraton Chain of Hotels is a subsidiary of the Marriott International. The chain of
hotels is a Starwood brand and is considered one of the world’s largest and oldest brands. The
chain of hotels has more than 800 chains around the world. The hotel believes in offering luxury

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and comfort to the customers’ throughout the world. The main aim of the chain of hotels is to
provide the best and superior quality of service to the customers thereby, providing them a
lifetime experience. Until now, the hotel has been successful in providing high-quality service
for the customers. Due to excellent work and customer service over the years, the Sheraton
Hotels have received awards such as Trip Advisor Certificate of Excellence in 2016 along with
Global Business Travel Association (GBTA) in 2017 (Starwoodhotels.com, 2017).
Strategic Position of Sheraton
In order to sustain in the competitive market and establish a successful business in the host
country, The Sheraton emphasizes on creating lifetime experience and value for the customers
(Skift, 2017). The company has introduced different types of signature elements that highlight
superior customer service. According to the chain of hotels, the customers not only stay in the
hotels but the customers belong to the hotels. Therefore, the new strategic positioning of the
hotel emphasizes on comforting and warm service for the customers. The system of four points
by the Sheraton chain of hotels provides honest and good value to the customers (West, Ford and
Ibrahim 2015).

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High quality
High priceLow price
Low quality
The Sheraton Chain of Hotels
Figure 1: Strategic Position of the Sheraton Chain of Hotels
(Source: Author)
Based on the type of service provided by The Sheraton Chain of Hotels, it is strategically
positioned in the category of high quality and high price.
SWOT Analysis of Sheraton
A SWOT analysis is conducted in order to evaluate the internal environment of the
Sheraton Hotels.
Strength
 Above 800 hotels worldwide
 Strong brand presence
Weakness
 Innovations are easily duplicated by the
hospitality competitors