Table of Contents INTRODUCTION...........................................................................................................................1 TASK A...........................................................................................................................................1 Background to international Hotel industry................................................................................1 Background of Marriott Hotel West India Quay.........................................................................2 SWOT analysis of Marriott hotel................................................................................................3 TASK B...........................................................................................................................................4 Background to Marriott Hotel as well as Emerging markets......................................................4 PEST of emerging market...........................................................................................................5 Analysis of SWOT and PEST.....................................................................................................7 TASK C...........................................................................................................................................7 Strategic model and frameworks within emerging market.........................................................7 Justification of strategy...............................................................................................................9 Practical application of scheme- 5 and 10 years ahead.............................................................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION International Hospitality Industry can be regarded as one of the most growing industry in the world. It has seen major growth in the recent past due to high discretionary spendings of families as well as individuals within the Global environment. Travel and Tourism Industry has become an important part of GDP of some countries that has resulted in the growth as well as development of their economy. There is a need to make sure that right kind of policies are being made for effective growth and development of this industry in the longer run. The current report will throw some light on the background of International hospitality industry, along with a detail knowledge of the same through SWOT and PESTLE Analysis. The report will also discuss the various policies framed by Marriott Hotels for effectively leading the Hospitality Industry in the longer run. The strategic Models used by the organisation for gaining market share in this competitive industry is also discussed in detail (Brotherton ed., 2012). TASK A Background to international Hotel industry Hospitality is one of the most growing industry and is a major part of any economic system in the longer run. The roles and characteristics of hospitality industry has gone through major modifications in the recent past. Hotel Industry has gone through different changes over period of time, The services are now being offered to a higher number of people with an efficient use of digital technology platforms. The Hotels now a days are now coming up various kinds of services like Spa's, Bars, Restaurants that are inbuilt within the hotel itself, the efficiency of services have also increased. 15% of the people in hospitality industry works in Hotel industry. Travel and Tourism has played a very crucial role in promotion of international trade at Domestic level and this leads to higher income generation along with Employment creation over longer period of time. Through effective management of foreign tourists, a healthy relation between countries can be maintained which is beneficial for the foreign policies of the nation. There are various drawbacks of Growth in the Tourism Industry as well, these includes pollution and polluted environment which damages the environment in general and hence is a negative for any country. After an Advancement in technology of commutation like Air Travel and High End Railway tourism, the growth in the travel and tourism sector has boosted even more, also the 1
process of digitisation within the economy has lead to effective growth and development of the industry in general. There is a specific need to make sure that, every nation shall have right kind of policies of promoting growth in Tourism as well as travelling industry. (Source:- International passenger survey, 2015) The above Graph clearly states, the countries from which the visitors in UK has come up, Large Number of people has came up from north America as well as Europe, the growth of tourists from other countries was quite good enough as well. UK has tuned out to be one of the most attractive destination for visitors around the world. Usually in Hospitality Industry, It includes all Hotel Companies, Small as well as Large Restaurants, and Travel Agency etc. which helps in gaining better experience to visitors in general (Dawson and Abbott, 2011). Background of Marriott Hotel West India Quay Marriott Hotel is one of the biggest Hospitality company within the industry and is having diverse sorts of operations around the world. The hotel was opened up in 2004 and is having around 301 rooms which are located on the bottom 12 floors of the 33 story building as well as 47 apartments within it. It is one of the property of Marriott Hotels and is growing rapidly. It has been able to serve the tourists and visitors of UK in an effective manner, through its premium as well as luxury services over period of time. It is a luxurious Hotel that delivers world class services to its customers, which are both local as well as international. It is situated on the verge of sea line and thus gives a greater staying experience to the people within the hotel. Marriott Hotel Group is one of the most reputed group within the Hospitality Industry and is 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
having good brand image as well as recognition in the marketplace. There is a need to ensure that management of the organisation frames effective policies to maintain the level of growth as well as reputation over longer period of time. It is also very important to make sure that the ultimate needs and wants of Tourists and visitors are addressed by the Management of Hotel to retain on one of the top position within the industry effectively. The Hotel is trying to increase its online presence in a manner that will enable it to capture a higher market share at the same time derive growth as well as profits over period of time (ErciĹź, and et. al., 2012). SWOT analysis of Marriott hotel West India Quay Marriott Hotel West India Quay is a large hotel on a global scale, thus company enjoys a reputation of higher growth within the business of Hotel Industry. SWOT Analysis is an effective tool which helps an organisation in assessing the internal strengths as well as weaknesses with external opportunities and threats that prevails within the business environment. This analysis also guides an organisation as to what steps can be taken that will lead to better and effective management its resources and how higher growth as well as profitability can be achieved by focusing on internal factors. The SWOT Analysis of Marriott Hotel West India Quay is laid down as follows: StrengthsWeaknessesOpportunitiesThreats MarriottHotelWest IndiaQuayoffers uniqueandluxurious interiors to its visitors whichisnotusually seen in any other hotel groupseasily,thusit givesacompetitive advantage to the group in an effective manner. Duetoproviding premiumandquality services to its clients, thehotelishavinga highcoststructure which turns out to be oneofthemain weaknessofthe organisationover periodoftime(Hall, TimothyandDuval, 2012). China is one of the fastestemerging countrywithinthe world,therefore variousopportunities are there for Marriott touseadvanced technology In serving itscostumersinan effective manner. The various mid range HotelGroupwithin china is offering high qualityservicesto visitors and tourists in averycompetitive price point, which can be a threat for market shareofMarriottin China. Effective adaptation ofMarriotthotelWestTheavailabilityofThreatsoflosing 3
digitaltoolsand technologiesthatwill enhance and speed up the process of service deliverytocustomers forgrowthand developmentofthe organisation in longer run. India Quay shall focus onimprovingits servicestowards customersandatthe same time maintaining the price at the same leveltogaina competitive edge over the others. resourceswithin chinaisquitehuge andthuscompany canutilisethose resourcesinan effective manner. market share as well as interestsofmid incomegroup.The reason for the same is the emergence of new Mid range Hotels that are providing the same quality of services in a considerableless amount to consumers. Theorganisation maintainsproper reservesofcashfor futuregrowthand developmentofits business operations. Thecompany's expenditureon marketingisnot enoughtocompete effectivelywith competitors. MarriotthotelWest India Quay have the opportunity to target themidincome segmentofChina, which can expand the businessactivityof theorganisationin the longer run. There is a larger threat on the organisation of increasingcostof travelandleisure which can further fuel thecostingforhotel and hence may make it lesscompetitive (HuiminandRyan, 2011). TASK B Background to Marriott Hotel as well as Emerging markets Marriott Hotel is one of the biggest hotel Brands having a headquarter in United States. It is regarded as the fourth best company to work for in United Kingdom by the Times Magazines in the year 2009. The company is having over 566 properties around the world. The company has been a pioneer within the industry of Travel and Tourism. The tourism Industry do have a important contribution in the overall growth as well as development of economy be it developed or an emerging nation. It has contributed in giving employments to millions of people and at the same time has raised the foreign exchange reserve of the nations. Which further increased the relevance of this industry in the GDP of nations. 4
Background to Emerging Markets China is the fastest growing economy in the world, and is having a higher market share in most of the international trade. According to the UNTWO tourism highlights 2014, The country attracts tourists as well as visitors in large numbers from various regions that is beneficial for its economy as well.There is a need to make sure that right kind of policies are framed by the political people in china to ensure effective travel and tourism growth within the nation. Various Steps needs to be taken by the concerned authorities for effective development of the tourism industry within the Country. These are discussed as follows: Prosperity:If effective growth has to be achieved, there is a specific need to make sure that more funds are invested within country like china, so that more destinations can be developed for the purpose of travel and tourism. This will ultimately enhance the standard of living of individuals within China. JobCreation:GrowthofTravelandTourismindustrycreateslargenumberof employment within the country and thus higher level of growth is expected within china through growth in the travel and tourism industry. Infrastructure Development:It is also essential that effective Infrastructure is there which will attract tourists to travel and visit to china quite frequently in an efficient manner. China is spending heavily on its infrastructural objectives, which can further fuel the growth as well as development of Tourism industry within it. The infrastructure of china has gone through efficient development in the previous decades, thus it makes the country more conducive for the growth of tourism industry in general. Highlights of 2014 also explains the future outlook of Tourism Industry, these are as follows: Forecasting towards 2030:As per the reports of UNTWO, There is an increment of around 3% in total number of visitors from 2010 to 2030. It is also expected that number can increase to 1.8 billion till 2030. Market Share:The market share of emerging economies is increasing quite rapidly in the International tourism industry, mainly because of the high discretionary spending that prevails out there. The market share has increased from 30% in 1980 to around 47% in 2013 which if translated in numbers equals to 1 billion arrivals of tourists from around the world (Kim and Hardin, 2010). 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
(Source: UNWTO Tourism Highlights of 2014) PEST of emerging market China is one of the most developing country in the world and its economy is growing on a fast pace, which is giving opportunities to companies around the world to capture the market of tourism. Marriott Hotel West India Quay has been focusing on china, which has resulted in effective growth in its revenue as well as profits. Some of the primary reason of entering into China was Low cost of Labour, Considering The immense size of the countryas well as economy, Potential of thecountry is also very high because of its high discretionary spending and Domestic Savings. The PEST Analysis of China are laid down as follows: PoliticalThe political positioning of the country is quite good enough and there is a level of stability within the economy, thus it attracts Big companiesforthepurposeofinvestmentwithinthetourism industry. The political situation of China is quite balanced, the country does not run on democracy, hence most of the policies that are framed by the government are easily implemented without any protest. Thus, the chances of development in both tourism as well as Hotel Industry is quite high. Marriott Hotel West India Quay shall consider the political situation before investing heavily in country like china, because the legal policies and procedure may differ from developed countries like USA and UK. If the political Position of a 6
country is good, that means it will be translated in a better economic condition, thus higher per capita and disposable income in China which will be beneficial for Marriott Hotel West India Quay in the longer run. EconomicalIn the recent few years, Chinese economy is fluctuated due to various positive as well as negative factors and it has a much positive influence on the existence of hospitality companies, Some oftheseinfluencescanbepresenceofExportBusinessfor effectively exchanging goods and services. The ever rising Urban PopulationofChinahasleadtogrowthanddevelopmentof economyveryfast,thusthereishigherpotentialformarket Expansion and business growth, This can be a very important growth factor for international hospitality industry and Marriott Hotel West India Quay can enter into China to capture a ever growing disposable income of Chinese consumers, also china is becoming attractive destination for tourists around the world, which can be beneficial for the organisation in longer run. SocialThis is an important factor that a business shall consider before investing in a particular country. Marriott Hotel is continuously planning to make its business environment conducive enough to cope up with the social norms that prevails within the Chinese business environment and it is expected that it will help the business of Marriott hotel effectively. Socially china is not as evolved as any other developed countries, there are restrictions on free exchange of views and the criticism of government policies are not entertained in the country, but there is availability of people from most of the regions around the world, thus hiring is not an issue for hospitality industry, more specifically hotels like Marriott Hotel West India Quay. The social growth going forward can enhance the profitability of the whole industry in an effective way. (Kong, Cheung and Song, 7
2011). TechnologicalThe level of Technology within Chinese economy is growing quite rapidly, a report of World bank has suggested that china may be spending around 3.5% of GDP on the development of innovative tools as well as technologies in the longer run, but the official number of China is way much higher. . Marriott Hotel West India Quay can bring new as well as innovative products for its customers and visitors. The company shall make effective plans of marketing and productions with efficient use of internet and Extranet. Some of the benefits that can be derived Marriott are given as under: ď‚·Availability of latest Technology within ď‚·Digital Promotional Tools like internet marketing etc. ď‚·Mobile Communication availability can help in reaching a wide range of consumers easily (Line and Runyan, 2012). Analysis of SWOT and PEST There is a effective need to make a proper analysis of SWOT and PEST that is being conducted on Marriott Hotel. These micro as well as macro factors can help in framing effective as well as efficient strategy for the growth and development of the business. The PEST Analysis helps in determining the various macro factors that may affect business and its operations in the longer run. Once the PEST Analysis is done, it is essential to assess the internal factors that can help in achieving organisational success over period of time. The major attractiveness offered by the company is its luxurious and premium service offering. The cost structure of company is quite high with lying opportunities for growth and expansion over period of time. The PEST assessment has brought out certain knowledge regarding the political and economical situation of China, along with social and technological growth that can be availed by the company over period of time. The major outcomes received through analysing SWOT and PEST are determined as under: ď‚·Acquisition of knowledge about rivals. ď‚·Reliable information about Market. 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Identification of barriers as well as problems (Sigala, Christou and Gretzel eds., 2012). TASK C Strategic model and frameworks within emerging market International market is having lots of complexities which brings various challenges and difficulties towards hospitality companies to operate its business functions more smoothly. For this, it is necessarily required to adopt an effective plans and strategies so as to enter into new market and ensure sustainability within shorter period of time. The management is required to appoint specialised and knowledge person who are much aware about the fluctuations in market which makes easy for an organisation to formulate an effective plans in advance to enter into new market. Strategies are of different types which are available for the management of Marriott Hotel West India Quayto expand its business into international market. Some of the strategies are explained as under: Porter generic strategy:Using such strategy, the management of Marriott Hotel are able to analyse various factors which may influences their decision of expansion of business at global level. Such influencing factors are properly analysed in order to minimised cost, differentiated or attention towards marketplace. As Marriott Hotel is deciding to expand its business to China in order to capture large market across worldwide. It can be successful possible using such strategy. There are mainly three types of porter generic strategies which are explained as under: Cost leadership:Under this strategy, hospitality companies need to lower its price of hospitality products and services which can easily attract customers across worldwide. For example, to attract new customers from new market, the company need to lower price of its products and services.. Differentiation: Under this strategy, company need to focus on introducing new products or make changes in existing products so as to differentiate their products from their rivals. It can be easy for customers to recognise their products in market among their different rivals. Fot example, Hotel Marriott focuses on reaching its business to Chinese market thus providing differentiated products as compared to the existing rivals easily grab an attention of maximum number of customers. Focus: Under this strategy, company need to focus on targeted segment group so that an effective strategies can be made to attract their decision to buy company’s hospitality services. 9
From the above three strategies, differentiation strategy is the suitable strategy for Marriott Hotel as it help them in representing their products and services in unique and different than their rivals existing in Chinese market. Ansoff matrix:Ansoff matrix is another an effective tools which is adopt to achieve corporate growth strategies, focusing on the present situations of firm and existing products and services. To identify its effectiveness regarding achieving growth and expansion of company into new market, there are four combinations introduces by Igor Anson are required to discussed in brief which are given under below: Market penetration:Using such strategy, the firm mainly focuses on achieving growth with current products and services in the existing market in order to gain large market share. Marriott Hotel may have option of offer discounts, attractive packages, organising campaigns etc. to attract middle class customers which encourages them to enter into Chinese market more successfully. Product development:Using such strategy, the firm is looking to introduce new products in existing market segment to achieve loyalty of targeted customers as well as attract new customers. Marriott Hotel should require to start giving air taxi services for their upcoming special guest using helicopters from airport to hotel or vice-versa (Tavitiyaman, Qiu Zhang and Qu, 2012). It increases revenue of company which strong their idea of entering into Chinese market. Market development:Using such strategy, the firm mainly focuses on reaching its existing products and services to the new market segment to reach business at global level. Marriott Hotel expand its business through establishing new branches to such countries such as China where they can receive high amount of customers. Various destinations also play a major role in attracting hospitality companies to expand its business. Diversification:Using such strategy, the firms looking to achieving growth through diversifying into new businesses by introducing new products for new markets. Marriott Hotel should required to start sea cruise company at global level and provide the same standard of service offered by hotel Marriott. It makes easy for them to enter into Chinese market as it grabs lots of attention of Chinese customers. From the above strategies, diversification strategy adopted by Hotel Marriott as it directs them to introduce new products into new market. As in the present case, Hotel Marriott decided 10
to enter into Chinese market thus adoption of such strategy shall be very useful to receive positive outcome in near future. Nykiels strategy:This is the strategy which also brings more beneficial outcome to company to expanditsbusinesstoothercountries.Usingsuchstrategy,MarriottHotelisfocusing implementing various actions to achieve growth and success in new market. Such actions are given as under: Specialisation:Specialised products and services maximises the satisfaction level of customers therefore Hotel Marriott need to focus on offering luxurious hospitality services in UK through making their employees more capable by providing them training and learning programs (Tsiotsou and Ratten, 2010). Horizontal expansion:Under this, the top authority ensure organisation about having sufficient amount of funds in order to expand its business to other countries without facing any difficulties. Brand collection:Using such strategy, promotional tools are playing an important role in promoting brand of Marriott Hotel at global level. Justification of strategy All strategies briefly described above supports maximum to the sustainability of Marriott Hotel into new market place. Such strategies assist an organisation to acquire knowledge about the fluctuations occurred in international marker and changes in needs of customers as well. It strong the presence of Hotel Marriott at global level by making an effective strategies and plans inadvance.Thus,describedstrategiesaboveprovidesverymuchsupporttoachieve sustainability and profitability of an organisation. Justification of such strategies are elaborates below in briefly manner: Porter generic model: It reflects the blueprint of porter five forces which can influence of decision related to entry of business into new international market. It explains the various factors which forces management to consider while implementing plans and policies. The reason behind adopting such strategy of differentiation by Hotel Marriott are given as under: ď‚·Enhance profitability through lowering cost of their existing products and services. ď‚·Provide differentiated products which brings them ahead than their rivals. ď‚·Proper analysing the competitor's strategies. 11
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Ansoff matrix:Such strategy guide organisation to make changes in their existing products and services in order to sustain into new market for longer period of time. It communicates the management of Hotel Marriott about the market needs and modifications required in their business operations so as to compete with international rivals. Using such strategy gives directions to company to enhance their brand value at global level. Diversification strategy assist Hotel Marriott to introduce new product into new market to achieve growth and success. For example, it will be more useful for Hotel Marriott ot enter into Chinese market. Nykiels strategy: Using such strategies, Hotel Marriott can able to arrange and allocate funds which are required to implement new strategies and plans to make their presence at global level more strong. It has been summarised after analysing the effectiveness of above mentioned strategies that Hotel Marriott may faces difficulties to expand its business to Chinese market but can be overcome through using such strategies. It makes strong the presence of Hotel Marriott at global level (Yoo and Bai, 2013). From the above three strategies, Marriott Hotel need to adopt Porter generic and Ansoff matrix strategy as both strategies supports them to introduce new and differentiated products and services in Chinese market which makes easy for hotel to compete with rivals exist in Chinese market. Practical application of scheme- 5 and 10 years ahead Lunkenya Getaway Ltd., a hospitality company of Kenya has adopted mainly two strategies of porter generic strategies namely differentiations and focus strategies. Using differentiation strategy, the company are able to bring differentiate products than their rivals which were easily attracts lots of customers across worldwide. Aling with this, focus strategies have been used to identify the market so that an appropriate strategies are formulated. It brings Lunkenya Getaway Ltd ahead than their rivals existing in competitive market. Therefore, Marriott hotel also required to focus on such strategies in order to strong their presence in Chinese market in next 5 to 10 years (Yu, Byun and Lee, 2014). CONCLUSION From the above discussion on hospitality industry, it can be said that there is a rapid increase in the overall Hospitality industry on the global level, Growth in the discretionary 12
income of individuals in emerging market has lead to higher spending in travelling and leisure activities, which has created headrooms for Hospitality companies to grow and prosper over period of time. Thus, it is essential to make sure that conducive environment is maintained within the economy, so that higher FDI in this industry can be achieved in an efficient manner. This industry shall be given priority, as it leads to employment generation, and higher standard of living for people of the nations. 13
REFERENCES Books and Journals Bowie, D., Buttle, F. and Brookes, M., 2016.Hospitality marketing. Taylor & Francis. Brotherton, B. ed., 2012.International Hospitality Industry. Routledge. Dawson, M. and Abbott, J., 2011. Hospitality culture and climate: A proposed model for retaining employees and creating competitive advantage.International Journal of Hospitality & Tourism Administration. 12(4). pp.289-304. Erciş, A., and et. al., 2012. The effect of brand satisfaction, trust and brand commitment on loyaltyandrepurchaseintentions.Procedia-SocialandBehavioralSciences.58. pp.1395-1404. Hall, C. M., Timothy, D. J. and Duval, D. T., 2012.Safety and security in tourism: relationships, management, and marketing. Routledge. Huimin, G. and Ryan, C., 2011. Ethics and corporate social responsibility–An analysis of the views of Chinese hotel managers.International Journal of Hospitality Management. 30(4). pp.875-885. Kim, J. and Hardin, A., 2010. The impact of virtual worlds on word-of-mouth: Improving social networkingandservicescapeinthehospitalityindustry.JournalofHospitality Marketing & Management. 19(7). pp.735-753. Kong, H., Cheung, C. and Song, H., 2011. Hotel career management in China: Developing a measurement scale.International Journal of Hospitality Management. 30(1). pp.112- 118. Line, N. D. and Runyan, R. C., 2012. Hospitality marketing research: Recent trends and future directions.International Journal of Hospitality Management. 31(2). pp.477-488. Ransley, J. and Ingram, H., 2012.Developing hospitality properties and facilities. Routledge. Sigala, M., Christou, E. and Gretzel, U. eds., 2012.Social media in travel, tourism and hospitality: Theory, practice and cases. Ashgate Publishing, Ltd. Tavitiyaman, P., Qiu Zhang, H. and Qu, H., 2012. The effect of competitive strategies and organizational structure on hotel performance.International Journal of Contemporary Hospitality Management. 24(1). pp.140-159. Tsiotsou, R. and Ratten, V., 2010. Future research directions in tourism marketing.Marketing Intelligence & Planning. 28(4). pp.533-544. Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative approach betweenhospitalityandbusinessjournals.InternationalJournalofHospitality Management. 33. pp.166-177. Yu, Y., Byun, W. H. and Lee, T. J., 2014. Critical issues of globalisation in the international hotel industry.Current Issues in Tourism. 17(2). pp.114-118. Online Ansoffmatrix.2017.[Online].Availablethrough:<www.google.co.uk/search? q=ansoff+matrix&source=lnms&sa=X&ved=0ahUKEwiY7rqznJzVAhXDwI8KHe_zB kMQ_AUICSgA&biw=1557&bih=761&dpr=1>. Competitiveadvantage.2017.[Online].Availablethrough:<www.google.co.uk/search? q=porter+generic+strategies&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi3sa7Ls5 14
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser