Ansoff's Growth Strategy Matrix Application

This assignment requires the application of Ansoff's Growth Strategy Matrix to a real-world scenario, specifically the hotel industry. The student needs to analyze the strengths, weaknesses, opportunities, and threats (SWOT) of a hotel chain and apply the matrix to identify potential growth strategies. The assignment also mentions Porter's generic strategies and their impact on organisational problems in non-profit sports clubs, as well as the effect of sharing economy on tourism industry employment. The student is expected to provide a comprehensive analysis and recommendation for the hotel chain based on the application of Ansoff's matrix.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background to international hotel and tourism industry........................................................3
Background to Marriott Hotel West India Quay....................................................................4
A). SWOT analysis of Marriott Hotel West India Quay........................................................4
B. Emerging market................................................................................................................5
C) PORTERS GENERIC STRATEGIES and Ansoffs matrix..............................................7
CONCLUSIONS............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International hospitality management is basically related to service industry. International
hospitality management include hotel management, tourism and hotel management, hotel
administration etc. Marriott Hotel West India Quay operates its business in hospitality sector in
London, England. It aims at providing hospitality services to its customers and making them
satisfied. In this following study report, SWOT and PEST analysis of Marriott Hotel West India
Quay is conducted in order to find out internal and external strength and weakness of company.
Analysis of emerging trends is also conducted. Strategic models and frameworks are also
implemented and discussed in the report.
MAIN BODY
Background to international hotel and tourism industry
International hotel and tourism industry is developing and growing on a fast rate and it is
undertaking commercial businesses of the world. Hotel and tourism industry focuses on
providing range of services to its customers and it includes accommodation facilities, travel
arrangements, food and beverages facility, arrangement of leisure activities etc. International
hospitality and tourism industry satisfies fundamental need of travellers, wanderers, tourists,
pilgrims, etc. People who travel abroad requires all the above mentioned services which is
provided by hotel and tourism sectors (Gannon, Roper and Doherty 2015.). Management of
hotel and tourism sectors makes relationship between host and guest and focuses on delivering
the best services and making them comfortable and satisfied.
International hotel and tourism sector has various components such as lodging operations
in hotel, motel and restaurants. It also deals in retail sector through souvenir shops. It handles
activities of guiding to traveller, arranging festival and events for clients. It also provides
recreation facility which makes its customers relax and enjoy. Hotel and tourism industry act as a
complete guide and information centre for people who travel abroad.
International hotel and tourism industry provides and generates large number of
employment as it requires lot of people to manage variety of its activities. It is basically
dependent upon disposable income of people and their leisure time availability.

Background to Marriott Hotel West India Quay
Marriott Hotel West India Quay is situated in London, England and it was started in 2004
and has 301 rooms and 47 apartments. This Hotel is operated by Marriott Hotels Group and
owned by John Christodoulou. The Hotel aims at providing best services to its customers and
making them satisfied and it also aims at creating and building brand image of the company in
mind of its clients. It provides wide range of services and arranges various activities in order to
attract customers which can create trust and build their loyalty. Main amenities of Marriott hotel
are air conditioning rooms with Wi-Fi, daily housekeeping services, restaurant and lounge
facility, health club and also 24- hour business centre (Yu, Byun and Lee 2014).
Hotels and Resorts manages and franchises hotels and lodging facilities. Marriott
International has total 566 hotels and restaurants in world-wide and it is the largest hotel chain
business of the world. The hotel chain business is operated in 127 countries having 6500
property locations and it also has 30 international brands. It has around 1,77,000 employees
around the world operating its business and business related activities. Marriott International
generates approx 22.89 billion dollar in a year. hotel aims at creating trust and brand image in
order to expand its business and increasing its productivity and profits.
A). SWOT analysis of Marriott Hotel West India Quay
Strengths
Marriott is world class brand, it is a very
famous in around the world. Which helpsto
give a competitive advantages in market. This
hotels have a brand loyalty which make very
strong in comapare to competitors. Hotel West
India Quay has a very efficient control system
that help the hotel to run their operational
function with efficiency and effectively.Hotel
West India Quay have dynamic staff and
management who are able to make the
customer satisfied by fulfilling their needs and
wants.
Weakness
Marriott Hotel is famous for the world class
service. Staff of the hotels is not sattisfied with
their work, their working hours is very long. So
they are not able to give the effective service to
the customer. It is a weak point of the Marriott
to not the sort outthe problem of employees. Its
affect overall (Chathoth 2016.).
Opportunities Threats

This hotel is expanding worldwide by the time,
according to report more than the 80 countries
it is going to open their new hotels. Its help to
build the brand loyalty and brand awareness. It
is helpful for Marriott Hotel West India Quay
to get many benefits in the form of increasing
revenue and company growth help them to
push their business high they can attract the
business class people to international tourists.
Marriott has very other challenges or threats
their business by the others as well as their
inner environment. Changes in political has
been seen which affect the business of hotels,
inflation is also affected the hotels business.
There are many other competitors in the market
which are giving tough competition to
Marriott. Like – Hilton Hotel, Star wood
Hotels, Taj Hotels etc.
B. Emerging market
Tourism industry is growing very fast in the world, many traveller are travelling for many
reasons, there is not any single purpose they could be travel for their business or leisure. There
are many types of traveller like; single traveller, couple traveller or with group or family.
Tourism industry now play a important role for the countries GDP. Government also supporting
the tourism by the promoting of tourist places via social media, TV and magazine. Now days
peoples are exploring new places in the world that's why the global tourism market its changing
constantly. Travel and tourist industry is the world's largest industries which include over 7.6
trillion U.S. Dollars on 2016. Now days, France and United States is popular tourist attractions
but on the other hand there many other countries are emerging ion the world (Josephi, Stierand
and van Mourik, 2016).
World travel market 2014 industry report shows many emerging markets for the tourism
that Marriott can opt for market expansion. For this, it is important to enter in that market and
have to seek the medium or long term market growth. For the growth of the business,
management of hotel may have to select the location of Mumbai, India. It is the best place in the
world for Marriott. India is the second most populated place in the world after China and the
reason for this city is that it is the most populated city of India as well as it is economic hub of
India. It contribute the 6.16% of total Indian GDP. There are many points which help Marriott
for the growth in the city. There are many factories in India which stands on top of Indian
industries. Industrial output of Mumbai is more than 25%. it has also stands on top on the view
point of custom duty that is 60%. On the other hand there is the oldest stock exchange of Asia

that is Bombay stock exchange. Mumbai port is the oldest port in India (LI, 2015.). There are
many billionaires living in this city its got the sixth place among top ten global cities of the
billionaire living places. There are many beautiful place which relate to the history, it help to
attract the international tourist as well as local tourists. There are many reasons like
transportation facilities, tourist attraction industrial areas which help Marriott to attract the
different segments customer that is the make Mumbai to right place for Marriott But emergent
market is the great opportunity for the investors for the growth of the company and they can
build the brand awareness and brand loyalty in their customers. After ensuring that Mumbai is
the right place for the business expansion of the Hotel, management has also faced some
challenges of the countries.
Selecting the Mumbai for Marriott Hotel's investment is the good idea but management
of Marriott has to look on the many factors and issues which may affect the company
management have to consider both long term issue and short term issues. Before making any
planning,Hotel has to analyses the both issue including internal and external which may create
few problems in the future. External issues are strong issues which may create challenge Hotel's
investment objective. For analysing different issues, management may apply the PEST
techniques which is discussed as below:
POLITICAL ISSUES- For Marriott Hotel investment, Mumbai political issues is the
main concerning point. Modernization of airport, improving transport facilities, open sky
policies, development of new tourist places, develop the infrastructure facility this are the points
which are focus by the government of India and Mumbai's local authority to promote the tourism
of India (Fang, Ye and Law 2016). To start the new hotels in India, government is providing ease
of doing work they less the formalities of laws and regulations to get more foreign investment in
country. Government also grant exceeded the tourist visa time limit up to 5 years and multi entry
facilities carrying a condition of 90 days.
ECONOMIC ISSUES- Mumbai is play important role to contribution in the nation's
GDP it is generated 6.16% of the total Indian GDP. City is the economic hub of India also play a
major role in international trade as India's many imports and exports are done from Mumbai
which attract many business clients to this city it helps to increase the chance to get more
customer to the hotels that is the reason it is an emerging place for the hotel industry there is
huge demand for the hotel industry. Government of Mumbai also encourage the foreign

investment as well as institutional foreign investment. Indian tax structure is very different from
the other south Asian countries it is very high tax structure. But in this city there are mostly
business class people are come so the investment in here is not the wrong decision for Marriott.
SOCIAL ISSUES – Indian customers are very sensitive to the pricing issues but The
culture of India is very different from the west. In India, Marriott have to focus on very different
religious issues. The major population of Mumbai is Hindu and Muslims so they have their
religious sentiments towards the beef and pork. Environment of this place is a concerning issues
for the management of hotels that issues must be set and operate the hotel business in India
(Rahimi and Gunlu, 2016.).
TECHNOLOGICAL ISSUES – Marriott has a very good reputation in the
technological solution department. Now-a-days, technology is able to change the traditional
business approach. For starting a new hotel in Mumbai, management has to bring all the
technology facility to Mumbai and should also explore the new technology which are important
for the hotel by analysing and research of the market. Mumbai has many companies where many
technical experts are working as it is not big deal for company to arranging the technical expert.
On the other hand, if management want to collect technical expert from other countries than
there is not any obligations from the Indians governments.
C) PORTERS GENERIC STRATEGIES and Ansoffs matrix
A company's relative position in the industry determined by the company's profitability .
The higher profitability of the average in the long run is sustainable competitive advantage
(Mowforth and Munt, 2015. )
There are two types of the competitive advantage, a company can posses; low cost or
differentiation. These advantages are combined with the scope of activities for which a company
wants to achieve them. There are three types of strategy which lead to achieve the above average
performance of a company; cost leadership, differentiation and focus. Focus strategy also have
two different variants; cost focus and differentiation focus.
Cost leadership corresponds to low cost transportation mode this strategy helps to
achieve the competitive advantages. In cost leadership, a company wants to become the low cost
producer in its industry.

Differentiation corresponds to the luxury providers. This company can provide unique
service to their customers. Differentiation strategy wants to be unique in its industry by
providing unique products.
Focus corresponds to market segmentation by offering special product and service to
market. It rests on the narrow competitive scope choice in the industry. Focus strategy have two
components ; cost focus and differentiation focus (Johan, Baga and Asmara 2018)
The management of Marriott Hotel should apply the porter value chain techniques. This
is the way that help Marriott management to analyses the activity and available resources for
new investment. This may be help the hotel for short and long term activity. There are many
issues which face by the management before making final investment in Mumbai. The
infrastructure include – Eco-friendly issues, luxuriant issue, safety issue, ambiance. There are
also issue for the man power hiring which set the management. Availability and use of
technology is also a point of concern which need to sort out by the company. The performance of
the Marriott depend on the issues. Hotel should examine and analyse these all issue before
investment (Wicker and et. al., 2015. ).
Management of Marriott has to ensure that requirement of resources which are useful for
the hotel is available or not in the Mumbai which is the main purpose before investment. It
ensures the competitive advantages for Marriott hotel in Mumbai. When management is in
positions to fulfil the new client's needs and expectation then they will be able to reduce the risk.
This isat moderate level of threat to Marriott. Management are fulfilling the needs and
expectation of the existing customers it will help them to reduce the threats.
This activity helps Marriott to get the competitive advantage in Mumbai. The strategy can
help the management of the hotel to provide the effective and better service to the customer in
compare to the competitors. For the management of Marriott required a lot of resources related
to - finance, technology, manpower, infrastructure, raw material and others. For the investment
in Mumbai, management needs finance support from the locals. For doing business with less
work government start many policies. Indian government and Mumbai authorities also provide
the lower interest loan to encourage the tourism. Marriott has many benefits to invest in the
Mumbai. Many banks are able to provide the financial help to hotel. Management may be able to
get skilled and non skilled man power according to need on the much cheaper price in city or
from the all over India. Any kind of raw material, technical or other useful resource are easily

available in the market. To invest in new project may be decision of its board of directors,
financial and non financial decision also take by the management of hotel for the investment in
Mumbai. It is true some time entity select the low profit or negative project which may not give
the desirable result but they think they may be give growth or opportunity in the future. But on
the other hand it is emerging place, the management of hotel should have to consider the
suitability issue in investment. The main purpose of the management is to aware people of India
about the Marriott (Gurcaylilar-Yenidoga and Aksoy 2018.).
The strategic implementation's main purpose is to increase the awareness of entity and
social culture as it helps them to know about the rules and regulation of Mumbai corporate, it's
help to consider the shareholder and stakeholder benefits and short and long term return as well
as growth Marriott in Mumbai market. Porters generic model can be able to apply by the
management of Marriott for strategic implementation analysis. Porters generic model works with
the cost leadership issues, differentiation, focus strategy. Cost leadership can be used for goods
and service costing issue it is required minimum costing policy. Price is a very sensitive issue for
the existing and potential customers. A higher price policy is not able to make the long term
relation with the customer.
Expansion startegy
Differentition- Marriott hotel known for its luxury and unique service in the market that's why
the differentiation strategy is the best for the hotel to select. To maximize its profit in compare to
others this is the appropriate strategy for the company.
Ansoff Matrix
Igor Ansoff present the matrix that focus on the company's current product and new
product and customers. There are four possible product market combinations. Ansoff's matrix
provides four different growth strategies:
Market penetration- This help the company to achieve the growth from the current
product in the current market. It is risky since the competitors increase with the resources and
capabilities. Maintaining the market share is help to grow in market. Market share has a limit
once market reach that limit then company have to use another strategies to continue
grow(Ansoff's matrix.2018.).
Market Development- Market development relate to the growth with its existing
product in new market segments. Its mean to add the new market segment or new geographical

region. This strategy is very risky because of the expanding the company with the new market
(García-Lillo, Úbeda-García and Marco-Lajara 2016. ).
Product Developments- Product developments seek growth from new products in
existing market. This strategy is appropriate if company's main strengths are its customer rather
than the product. New products are target to the existing customers. Similar to the market
development, new product developments also carries risk.
Diversification- Company seek the growth from the new product in the new market. It is
the most risky strategy in compare to other strategies. A new product has to introduce in the new
market is very risky management have to take the risk for the success of the new product
(Khanna, and Chopra 2016. ).
Management of Marriott is able to apply the Ansoff matrix model for the strategic
implementation analysis. Management of Marriott has to analyses the market penetration
strategy, market development strategy, product development strategy and diversification
strategy.
In Market penetration strategy, Marriott may fill the lower risk because of presenting the
existing product in existing market its help the management to build the brand loyalty and brand
awareness applies to specific promotion offers. This is not applicable strategy for the Marriott
hotel for newly investment in Mumbai. In Market development, strategy consider the new
market with existing product this is the applicable for the Marriott because of opening a new
property in Mumbai. it s help Marriott to expand its property.
In Product development strategy, company can introduce the facilities and service to the
existing customer. It could be some new amenities which were not provides to the customer
previously its help engage the more customer towards the products and attract the customer
towards the new products(Ramgade and Walvekar 2016. ). Diversification is very risky process
for the company to introduce the new product in new market but somehow it can be beneficial to
the company in the future.
Expansion strategy-
Diversification- invest the new project in Mumbai is the diversification strategy. Where
company is going to introduce the new product in new market so it is the suitable expansion
strategy for the company.
Practical application of strategy-

Marriott has the graetc opportunity to diversified its hotel business in india its help the companyb
to to retain market position as well as can the competitive benefits, by this strategies Marriott
hotel in Mumbai will be the upcoming leader in market after the 5-10 years.
CONCLUSIONS
The above study report explains various strategies adopted and implemented by hotel and
tourism industries in order to attract customers and increase their business share. The SWOT
and PEST analysis conducted by hotel and tourism sector helps in identifying the factors which
affects the business and its activities. Analysis resulted in identifying internal and external
factors of environment affecting tourism and hotel industry. And how Mumbai will come as a
emerging market and what are the challenges which has face by the Marriott to invest in market.

REFERENCES
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Online
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