Ownership and Management of Marriott Hotel West India Quay in Thailand

Marriott Hotel West India Quay will adopt a franchise business strategy for expansion into the Thailand market. This strategy involves brand collection, management contracts, vertical and horizontal integration, singleness, value-related products and services, and global positioning. Marriott aims to reduce costs by taking advantage of economies of scale in marketing, buying, and marketing. The company will also introduce new services to cater to specific trends and values among customers in the emerging market. This strategic approach is justified given the high cost of Marriott's services compared to competitors. In the next 5 years, the company expects to increase its customer base in Thailand, while in the next 10 years, it anticipates making revenues and profits earned earlier.

Running Head: STARTEGIC MANAGEMENT 1
Strategic Management: Marriott Hotel
West India Quay

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Table of Contents
Background to International Hotel Industry (and tourism).............................................................3
Background to Hotel Company.......................................................................................................3
SWOT Analysis of Marriot West India Quay.................................................................................4
Strengths.......................................................................................................................................4
Weaknesses..................................................................................................................................5
Opportunities................................................................................................................................5
Threats..........................................................................................................................................6
Background to Global Hotel and Tourism Industry – developed and emerging markets...............6
Background to Emerging markets...................................................................................................7
Thailand as Emerging market for Marriott West India Quay..........................................................7
PEST of selected emerging market (Thailand)................................................................................8
Political........................................................................................................................................8
Economic.....................................................................................................................................9
Social Factors...............................................................................................................................9
Technological factors...................................................................................................................9
Analysis of SWOT and PEST..........................................................................................................9
Porter’s Generic Strategies............................................................................................................10
Cost Leadership strategy............................................................................................................10
Differentiation Strategy..............................................................................................................10
Ansoff Matrix................................................................................................................................10
Product Development.................................................................................................................10
Market Penetration.....................................................................................................................11
Market Development..................................................................................................................11
Nykiel ‘s Fourteen growth options................................................................................................11
Justification of strategy..................................................................................................................13
Practical application of strategy – 5 and 10 years ahead...............................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Background to International Hotel Industry (and
tourism)
International hotel and tourism industry plays a robust role in global economy. The primary
foundation of hospitality and tourism industry is built upon guests and customers services, which
work as an element that is shared by every division of hotel business. As per the figures of World
Trade Market (WTM) Report 2016, international hotel industry is a global industry, which is
growing very fast. This report indicates that international hotel industry is developing at 4% per
year and it offers 7$ trillion annually to World Domestic Gross Product. The facts and figures
from the report show that number of tourists has been doubled during last twenty years and it is
forecasted to increase twice in coming years. International hospitality market is very profitable
for the growth of economy of any nation, because it provides employment, growth and career
opportunities to the people of that country (Solberg & Durrieu, 2008). There are so many reasons
behind the growth of international tourism and hotel industry, like; globalization, technology
development and demographics etc. According to WTM industry and UNWTO Tourism
Highlights, there are so many countries, which have emerging markets and economy. It is
beneficial for the organization to expand their business in these countries.
Background to Hotel Company
The Marriott West India Quay is a 5-star luxury hotel in London, United Kingdom. The
organization is located at 22 Hertsmere Road, Canary Wharf supervising West India Quay
Marina. Marriot West India Quay Hotel is operated and managed by Marriot Hotel group. The
hotel has 301 rooms in the property. The hotel property is owned by a property developer, i.e.
John Christodoulou. The company offers an exceptional hotel and guest experience in the heart
of Canary Wharf. It is perfectly designed and ideally located and provides a perfect setting for
the leisure and business travellers. The luxury hotel offers the room with all the amenities, like;
spacious room and suite, mini-bar, flat screen TV and floor- to-ceiling windows with the
sceneries of London Docklands (Marriott International, 2017). It also provides a fitness center
for the guests to do morning workout. There are some additional facilities, like; business center,
20 versatile event spaces. The most important thing about Marriot West India is that it is located

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at the location, from where it is very easy to explore most famous attractions in London, like;
Olympic Park ad O2 Arena.
SWOT Analysis of Marriot West India Quay
SWOT analysis is an important technique for analyzing the internal and external factors of an
organization. An organization can adopt SWOT analysis this tool to analyze its strengths,
weaknesses, opportunities and threats. These factors may impact the growth and success of
organization.
Strengths
Global Leader
Marriot West India Quay is operated by Marriot Group that is one of the largest hotel groups in
the world. It is an international leader in the global hospitality and tourism industry, with
approximately 5% share value and a large market and geographic presence (Ashton and
Chootiraka, 2016).
Strong Internet Presence
Marriot West India Quay has strong presence on internet and social media networking sites. The
website of the company guarantees the best process available, appealing the price conscious
consumers away from websites of other hotel companies.
Technology Innovations
Along with Marriott West India Quay, all the hotels of Marriott International Group are adopting
advanced technology and upgrading its hotel property with technology innovations. It fulfills the
needs and wants of leisure and business travellers (Beaman, Cohen and Isin, 2014). The
company is transforming its areas to motivate the guests to socialize and work by adopting the
latest technology and design, food and beverages.
Location advantage
In London, Marriott West India Quay Hotel is situated in the prime location, from where it is
very easy for the guests to explore the most attractive tourist destinations of the city. It is

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focusing on improving the accommodation at hotel and enhancing the guest experience
(Bordean, 2010).
Weaknesses
More Focus on Domestic Market
Marriott West India is just focused on the UK hospitality market. The company does not run its
business operation in global markets. It remains heavily reliant on the UK only. At Marriott,
there is need of international expansion to spread its business worldwide.
Competition
In the hotel and tourism industry, there are so many long established hotel chains, which are
posing competition for Marriot West India. Thus, the organization has limited market share
regardless better brand image (Buhalis and Crotts, 2010).
Lack of low-cost lifestyle
Marriott Group does not have a low cost life style hotel brands in its product and service
portfolio. The hotel rooms of the company are very costly, which are not affordable for all
income level groups. Company only targets the high income level people. There are so many
other players, who are using low cost life style.
Opportunities
High Potential in emerging markets
Expansion of business in emerging markets can be very beneficial for the hospitality
organization. Marriott can expand its business operations in global country market worldwide,
where Marriott does not own its hotels.
Technology innovation in customer services
Marriott West India Quay can use innovative technology in its business activities and operations.
Implementing up-to-date and new technology for offering better customer services will help the
organization in attracting maximum customer base (Charoenphon, 2014).
Going Green

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Nowadays, people are too concerned about environment and they are engaging in eco-friendly
activities. If this organization goes green by engaging the environment-friendly activities, then it
can entice more customers to stay at their hotels. It will increase the number of guests at hotel
and decrease the operation prices. By this, Marriott can save its funds, in this way; still they can
generate more profitability (Channoi, Clemes and Dean, 2013).
Threats
Entry of various international hotel brands
Entry of many foreign brands along with the strong holdings of long standing is creating threat
for the companies like; Marriott West India Quay.
Higher rate of fluctuation
In the prices of hospitality services, the higher rate of fluctuation is found as there is an intense
and high competition due to international players in the industry. It is affecting the prices of
Marriott West India hotel rooms.
Political and Economic Instability:
Economic and political instability can be a reason behind the threat on Marriot West Hotel. With
the downturn in the economy, the number of customers will decrease. It will influence the
income and revenues of the hotel (Evans and Campbell, 2013). For Marriott, it is essential to
keep the organization and management updated with new policies.
Background to Global Hotel and Tourism Industry –
developed and emerging markets
The background of global hotel industry is focused on development over last few years and it is
facing many challenges in the growth and development process, like; social changes, great
depression, world wars and industry rebellion. With the passage of time, global hotel and tourism
industry is confronting various barriers. In past decades, industry revolution has led to the
development of hotels all over the world. In that era, changes in the transportation modes, resorts
and hotels were developed in the country (Fernando, 2011). With the introduction of vacation
concept, global hotel and tourism industry has seen a significant growth and development. It was

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in 1920s, when the development of hotels took a prosperous phase and at that time, most popular
hotels were introduced (Guttentag, 2015). This was the era, when famous hotels in United States
and other nations were introduced with well-known hotel brands, like; Marriott Group, Radisson
etc.
There are some organizations, which represent the developing markets in global tourism and
hotel industry, such as; World Tourism Organization (WTO), The World Travel and Tourism
Council (WTTC), International Hotel and Restaurant Association (IHRA), Hospitality Sales and
Marketing Association International (HSMAI) etc.
Background to Emerging markets
According to the UNWTO and WWTC, Tourism and Travel industry has positive response from
the beginning of the year 2012. The number of tourists has increased by 4.9% in past few years.
Because of this growth in tourists and passengers, the occupancy rates at hotel are growing in the
emerging markets. Thus, the hotel and tourism industry is growing in the countries and this is the
reason behind that organizations are doing great in these nations. Among all, one of the most
emerging markets in international global hospitality industry is Thailand (Hill, Jones & Schilling,
2014). The above paragraph shows the discussion about the Thailand market in international
hotel and hospitality industry.
Thailand as Emerging market for Marriott West India
Quay
For expanding its business globally, Marriott can choose to enter in Thailand country. This will
be best destination for the hotel company to enhance its business operations in global tourism
and hotel industry. The hotel and tourism industry is one of the fast growing sectors in the world.
This is specifically true for Thailand where this segment has too much importance for both
private and public sectors. Thailand is a beautiful nation with its rich culture and natural
sceneries. In this country, the ministry is common in the hotel and tourism market. The tourism
authority in this country wants to make the country as tourism industry capital of all over tourism
sector in Asia (Horner, 2012). In Thailand, most of the tourists reach from China, Japan, Korea,
Malaysia etc. In Thailand, the major attractions are like; Beach and Sea Resorts, Nature,

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Mountains and Parks, Golf, Spa, Culture and History of food and Shopping. Most of the hotel
organizations are interested in expanding business in this emerging market and offer their
services to the tourists (Thai Business UK, 2017). The government of Thailand is making efforts
to make it best place for tourism. If one look at the Thailand tourism and hospitality industry,
than it has a good future and there are so many factors, which support the industry, like;
government commitment, political stability and co-operation among private and public sector
organizations (Huttasin, Mommaas and Knippenberg, 2015).
PEST of selected emerging market (Thailand)
PEST analysis is a tool, which is used for analyzing the external factors, like; political,
economic, social and technological factors. An organization should consider these factors in
growing the business emerging market (Gupta, 2013). These aspects may have huge impact on
the growth of organization in Thailand. PEST analysis of Marriott Wide India Quay in Thailand
is given below;
Political
In Thailand, the political factors are related to the stability of organization, which comprises the
corruption, terrorism, demonstration etc. Political stability is positive for the hospitality and
tourism industry. The political factors are the factors, which can influence the market of Thailand
are such as; overtime work without extra payment, harmful wastage by the factory outlets and
illegal migration (Kahn, 2012). These types of aspects are influencing the environment and
culture of Thailand. Government of Thailand has various laws for the hotel organizations, which
state that for starting a new hotel business, an organization should have a lot of experience and
enough economic and financial support. The owner should be familiar with the policies and
procedures of business. Apart from this, permits and license are needed for establishing a new
hotel business in Thailand. There is a requirement certificate of construction, sale of food and
license for entertainment (Mok, Sparks and Kadampully, 2013).
Economic
Economic factors of a nation play a significant role for all types of businesses. In Thailand, there
may be some adverse economic conditions, which may impact the business of Marriott West
India Quay hotel. These factors are like; unemployment, bankruptcy, loss of consumer

STARTEGIC MANAGEMENT 9
confidence, investment risk etc. Now, economic conditions are improved in Thailand country.
The export segment has a huge impact on GDP of this country. The economic growth of country
is approximately 8% per year and this rate is growing every year. The population from developed
countries is reaching to Thailand tourist attractions, so this will be good for Marriott expanding
business in the country (Munar and Jacobsen, 2014).
Social Factors
Social factors are the factors, which are related to some aspects of society, like; changes in life
style, health and family relationships. Demands and preferences are moving in current years.
They prefer to live in private accommodations. By expanding the business, Marriott can provide
various job opportunities to the population of Thailand. It will assist the language, culture and
community of nation (Nieves, & Quintana, 2016). The organization needs to understand the
culture and tradition of emerging market.
Technological factors
Technological factors play a major role in development of hotel and tourism industry. Thailand
is a technology advanced country. So, the company can easily adopt new and innovative
technologies in its business operations. Thailand has shown interest in implementing the
advanced technologies to enhance the tourism and hospitality business. The major activities are
like; internet banking, online booking, online shopping etc. In Thailand, Marriott can also use
these techniques to approach and attract the customers (Smith and Puczkó, 2014).
Analysis of SWOT and PEST
Thus, the above section of this report includes the SWOT and PEST analysis of Marriott Hotel
that is planning to expand its business in Thailand. The SWOT analysis of the company reflects
on strengths, weaknesses, threats and opportunities of the company. The hotel company can use
its strengths and opportunities to overcome the weaknesses and threats. Moreover, PEST analysis
of Thailand hotel industry offers the knowledge about different factors, which may affect the
growth and survival of company in the country. From the analysis, it can be stated that
conditions in the country are positive for Marriot to expand. Marriott is investing in Thailand
after studying these aspects properly (Solberg & Durrieu, 2008). It shows that company can
survive in the country and can do its best.

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Hotel strategy to be adopt and to be implemented (using strategic model and frameworks) within
the entering market
Porter’s Generic Strategies
Cost Leadership strategy
Marriott West India will adopt a cost effective strategy as its growth strategy. Under this, the
organization will provide the guest worth for their paid money by fulfilling their demands, with
offering services on low costs as compared to its competitors. In Thailand, the hotel company
will satisfy the customers by providing some more services, like; affordable rooms and suites.
Differentiation Strategy
Along with this, the organization will adopt differentiation strategy. In Thailand, the company
will try to differentiate its services from its competitors. It will target a new market segment. By
using this strategy, Marriott will provide high quality hospitality services to guests that entice
both the business and personal visitors (Turner, Sermcheep, Anantasirijkiat and Srisangnam,
2016).
Ansoff Matrix
Product Development
This growth strategy is about improving the services of the hotel company in new market, i.e.
Thailand. It will help Marriott West India in fighting with leading competitors in emerging
market. By expanding business, Marriott can include some complementary services, such as; fun
activities, games, health care services for guests etc.
Market Penetration
Marriott Group of Hotels is a well-known group worldwide. So, market penetration will not
affect the strategic position of this hotel company. By developing this strategy, the organization
will look at the legal and political risks and challenges in new market.
Market Development
In Thailand, the demands for hotel and hospitality services have been increased. This is the
major reason that organization is opening its hotel in the country. It will lead the firm to increase

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its customers and expand business globally (Turner, Sermcheep, Anantasirijkiat and Srisangnam,
2016).
Nykiel ‘s Fourteen growth options
There are fourteen strategies under Nykiel’s growth options, which are discussed below;
1. Horizontal Expansion
Marriot West India Quay will make efforts to expand from one service line to another for going
to new market.
2. Geographic Expansion
Marriott West will be emerging from a comparatively small radius to a geographical location for
entering to Thailand’s market.
3. Product Hybridization
This hotel organization will expand the variety of hotel and hospitality services for entering in
emerging market.
4. Specialization-Specialist
The organization will be specializing in connecting with expensive growth in context of pricing
and services offered for going to new market.
5. Product Tiering
Marriott West will be handling the forces related to people growth, economic and demographic
changes and increased market segment for entering into Thailand.
6. Product Re-Branding
There will be very much explosion of the hospitality services of Marriott West India Quay
while entering into Thailand.
7. Non-Franchising

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This hotel organization will keep control over its products and services, quality, ownership and
management of these services in new market (Walker, 2016).
8. Franchising
Marriott Hotel West India Quay will follow a well-known business strategy, like franchise
business for development. This business will help the organization in its business expansion.
9. Brand Collection
This hotel will make efforts to take the advantage of limited stock for buying branded functions,
which are supposed to have the growth potential.
10. Management Contracts
The company will manage the contracts with the owners and other hotels.
11. Vertical and Horizontal Integration
Marriott will be part of more than one hospitality segment for gaining competitive advantage by
making investment in different components of the hospitality market (Fernando, 2011).
12. Singleness
Marriott will develop a single service, for which it will have the total ownership and control on
management while entering into Thailand market.
13. Value related Products and Services
The hotel organization will introduce a new service for fulfilling specific trends and values
among customers for going into new and emerging market.
14. Global Positioning
Under this strategy, Marriott will expand the market globally considering different reasons for
investment, risk levels and strategies for expanding the business in merging market.
Justification of strategy

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There are so many causes behind that Marriott is implementing cost effective strategy and
differentiation strategy. The company is adopting product differentiation strategy for dealing
with the communication and cost risks. To decline its costs, the organization will take the
benefits form economies of scale in marketing, buying and marketing. The costs of Marriott’s
services are higher in comparison to competitors (Evans and Campbell, 2013). It will restrict the
target market of company. So, Marriott will adopt cost effective strategy to target other market
segment. In Thailand, the company will develop its services for enhancing its presence among
people. Execution of these strategies is justifiable for the Marriott West India.
Practical application of strategy – 5 and 10 years
ahead
There are so many hotel organizations, which have used above-mentioned strategic approaches.
For instance, Hilton Hotels has used similar strategies to develop stakeholders’ agreement. In
business expansion, it is very necessary to make better relationships with the stakeholders.
Marriott will also focus on this to make long term relationship with stakeholders. In next 5 years,
the company will be able to increase its customer base in Thailand. In next 10 years, it will make
the revenues and profits, which it has earned earlier (Solberg & Durrieu, 2008). Application of
these strategies will be beneficial for Marriott West India Quay hotel.
Conclusion
Thus, the above report concludes that Marriott West India Hotel has better opportunities in
developing the business in Thailand country. It will assist the organization in becoming top-
ranked hotel all over the world. The market conditions of Thailand are suitable for the company.
In Thailand, there are so many positive factors, which will assist the hotel in coming to top of the
world. Along with this, the organization should focus on its weakness and challenges in the
country. This expansion will offer the organization better identity and growth in the business of
overall Marriott Group. Thus, it will be beneficial for Marriott West India Quay Hotel to expand
the business Thailand market.

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