Hilton Hotels: Business Strategy and Ansoff Matrix Analysis Report

This report provides a comprehensive analysis of Hilton Hotels' business strategy. It begins with an introduction to strategic management and its importance for the hospitality industry, specifically focusing on Hilton's operations. The report then delves into a critical analysis of Hilton's business, examining key strategic questions and the company's current market position, strengths, weaknesses, opportunities, and threats. The analysis includes an examination of the competitive landscape, with a focus on major competitors like Marriott International and Starwood Hotels. A significant portion of the report is dedicated to the Ansoff Matrix, illustrating how Hilton can pursue market penetration, market development, product development, and diversification strategies to achieve growth. The report considers various strategic tools and techniques that can be utilized for effective strategic plan implementation. Finally, the report concludes with a summary of the key findings and recommendations for Hilton's future growth and development, highlighting the importance of adapting to changing market trends and consumer demands.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Hilton...........................................................................................................................................1
2. Critical Analysis...........................................................................................................................3
3. Ansoff Matrix...............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy is identification of activities and plans that will helps in achieving defined goals
and objective of organisation. Strategies are long term future growth plans of organisation which
comply with goals of mission and vision of organisation. Hilton hotel is engaged in delivering its
service to hospitality industry. So, analysis of changing requirement and need of consumers
should be efficiently analysed in order to develop profitable marketing strategies for firm. The
strategic management can be required in any operation of venture (Bordum, 2010). So, selection
of techniques and tools utilised during the effective implementation of strategic management
plan by higher key authority of an firm should be appropriate in order to gain desired results and
helps in achieving Hilton targets. In order to implement an efficient and profitable strategic plan
in working environment the company should develop an right answer to the critical analysis
questions for success of developed strategies.
In this particular report various answers to the questions of development of strategic plan
and management of strategic tools and techniques is discussed. The assignment also carries out
an intense study of various strategic plan that can be helpful for future growth of Hilton hotel in
market (Getz and Lee, 2011). This analysis the Ansoff matrix developed in context with the
various growth opportunities available to respective hotel chain in current trending market
scenario.
1. Hilton.
Hilton hotel and resorts is the subsidiary of parent company named Hilton. This is
founded in 1919 with an great developing history of 98 years. This is founded by Conrad Hilton
being engaged in the delivering an quality services to consumers and tourists. The headquarters
of Hilton hotel and resorts is located in Virginia, United States. The company is serving their
services worldwide through establishing more than 570 hotels approximately. These hotels are
spread across 85 countries and territories (David, 2011). The company is doing business through
developing various subsidiaries, franchisee worldwide. Target market for the organisation is
traveller for business purposes and leisure travellers. The place of Hilton hotels are very specific
according to the demand of their customers located nearby to airport, city centres, famous
vacation destinations etc. New strategy of Hilton is development of Hilton honours in order to
increase sales through attracting consumers trough various benefits along with basic
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accommodation facility in hotel of company (Getz and Lee, 2011). The company has developed
an Hilton hotel guest loyalty programme which provide additional discounts on the company
purchased exclusive hotels along with various amenities like fee Wi-Fi, digital check-in and
check out, keyless entries. This loyalty programme also enables consumers of Hilton to select
room according to their choices and preference in pre booking through Hilton honours app. This
an profitable strategy for the organisation in brining higher satisfaction level of consumers and
building customer loyalty in market with brand name.
Hilton is having different companies workings unity in order to contribute in profitability
of parent organisation collectively. Various hotels chains of the organisation are Waldorf Astoria
collection, Conrad Hotel and resorts, Canopy, Curio, Double tree, Tapestry Collection, Embassy
Suites Hotels, Hilton Garden Inn, Hampton Hotels, Tru by Hilton, Hoome2wood Suites and
Home2Suites by Hilton, Hilton grand Vacations (Freeman, 2010). Waldorf Astoria collection
comprises the hotel chains located in the iconic destination of world to give an diverse
experience to customers. Conrad hotels is engaged in delivering luxurious facilities to the
consumer by targeting leisure travellers in market and contribute in profitably of firm to large
extent.
The economy of country is growing at faster rate. In respect to this results in increased
spending power of people in market and engaged in spending leisure time in order to get rest
from daily routine busy schedule. This builds an growing market for the profitably of an
hospitality industry as the people are preferring to travel various destination and using luxurious
facility of hospitality sector (Carroll and Shabana, 2010). In order to grab these huge growth
opportunity the company functionality should be complied with an profit making strategic
management in organisation working environment. This will leads to achievement of goals and
objective of Hilton hotel effectively. Today market is an potential growing market for an hotel
chain. The firm can make huge earning from the development of efficient strategic plan through
utilising various techniques to manage and implement these strategies in practice efficiently
(Haynes and Hillman, 2010). The market trends are changing continuously with the customers
needs and the consumers are demanding for luxurious facility and opting various qualification
criteria for selection of services like quality food along with cleanliness and different amenities
in hotel room. So, the Hilton is having great growth opportunity through developing new
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products in their services which attracts customers and contribute in developing higher level of
current loyalty with brand name.
Marriott international, Starwood Hotels and resorts and Accor hotels are the major
competitors of Hilton hotel chain worldwide. These hotels ate competing with their brand name
and similar services to Hilton in marketplace. Marriott hotel is also engaged in delivering
services to large numbers of business travellers. While the target market segment for the
Starwood hotels is the leisure travellers (Hess and Rothaermel, 2011). So, these competitors are
largely influence the profitability of Hilton hotels. In order to this organisation should develop
various efficient policies and plans through development of competitive advantage in business
environment through utilising their strength efficiently.
2. Critical Analysis.
Any organisation needs to grow on daily basis and to evolve as a top company in the
existing market needs a specific plans and management technique. Since the competition getting
tougher every day it is important for an organisation to work on the specific marketing strategies.
And to make this marketing strategy there are certain tools and techniques to formulate strategy.
By using these strategic marketing techniques a company can achieve its goals based on the
resources it has while considering internal and external environment in which company is doing
its business (Simple. Effective. Focused. 2017). It is analysis done so to know the potential threat
from existing competitors recognizing threats and opportunities of the company that can from
within or external environment. Some of techniques used for strategic management are as critical
question analysis, BCG matrix, GE Multiplication factor portfolio matrix, PESTLE analysis,
SWOT analysis, Balanced scorecard, VRIO analysis, MINTZBERG'S 5P'S of strategy and
porters five force model. These techniques are highly powerful and gives proper evaluation of
the market condition which will help in making the market strategies of a company.
Academicians have certain question while evaluating a market strategy plans and it is a part of
critical question analysis. Few of the questions are:
what are purposes and objectives of any organisation? Organisation needs objectives
that must be clear, achievable in time and clear. Objective setting sometimes is included within
planning role. This includes profitable returns to investors in a company. Senior management is
responsible for deciding strategy for a company which ultimately profits shareholder and the
management team has to check about their salaries also (Dörner, Gassmann and Gebauer, 2011).
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Public sector company have a slightly different marketing strategy in which profits are kept in
account but more focus is on providing benefits to others. NGO'S are bounded by their donors so
its investors do not have any profit plans. While designing an organisations purposes like
deployment of resources, acquisition and development of new resources. Development of new
resources include plans for optimum utilization of resources (What is Strategic Planning? 2017).
Purpose can be wide ranged. Organisational objectives includes research and development,
marketing, production and sales achieved in certain time frame and environment condition.
Where is the organisation presently going? Organisation present condition is evaluated
in this question. This question can be answered by doing SWOT analysis of any organisation like
what is strength, weakness, opportunity and threat of the organisation. Where is organisation
presently going depends on its market value, status and image of market. Organisations
conditions depends on revenue and profit margin a organisation generate in a single financial
year. strength of any organisation revolves around what kind of resources it has and how it uses
it. Weakness of an organisation may lie in a question that what is there laggings in a market in
which they are operating. Every company has opportunity within itself by how they acquires its
new resources develops it and uses it for making profit. Every organisation must think of its
potential threats in order to have sustainable economical growth and keep their hold in market.
In what kind of environment an organisation now exist? An organisation works in
many kinds of environment at the same time. It is important for them to understand its locality,
operating conditions internally and externally. It is how it behaves if any kind of changes occurs.
PESTLE analysis can be an important tool for understanding this question (McGrath, 2013).
Political, economic, social, technological conditions surrounding any company is important to
understand is environment and how it will react to small changes in these factors.
What can be done to better achieve organisational objectives in the future? For any
company it is important to know its future growth potential which will only be achieved by
fulfilling its organisational objectives. Better ways to achieve this by increasing investments in
new areas of business. Making maximum profits can be achieved by acquiring new resources
and developing those resources. Any organisation prime resources is human resource and
training them and directing them to act on an specific plan can help in achieving future goals.
Hilton hotels is one of the largest chain of hotels in UK and abroad. Its objective includes
providing best hospitality while increasing its economic revenue and hence profit of the
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organisation. It plans to extent its legs in many other countries across the globe. Hilton hotels are
performing well but it has potential threat from new entrants in market. Environment in which
these hotels are operating is very competitive and there are large number of existing competitors
in the market. Brexit is one of those issues for which it has to have pre-plans to overcome the
losses as the free trade in UK and other EU countries might not be the same as of now
(Beckmann, Hielscher and Pies, 2014). So importing and exporting of raw materials between
these companies may be expensive that could overall effect to the profit margin of the company
in UK.
3. Ansoff Matrix.
This respective matrix is also knowns as Product /market expansion grid. This helps in
development of various expansion strategic planing of an organisation. This is matrix was
formulated by H. Igor Ansoff who implemented new strategies in order top garb various growth
opportunity available to the business entity through analysing market potential and changing
tends of market effectively. Ansoff matrix defines various strategic plan according to the
changing market needs along with utilising competitive advantage of firm effectively. This
framework plays very important role in successful implementation and management of
diversification of strategies of business organisation (Zhang and Rajagopalan, 2010). The Hilton
hotel develop various product in order to capture new market. Company is also engaged in
entertaining the consumers of existing market to large extent through development of good
customers services in market in order to penetrate the target marketplace effectively. The various
strategies are developed by Hilton hotel to expand their business are as follows:
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Sources: Ansoff Matrix, 2017.
Market Development Product Development
 This involves development of various
strategies in order to target the new
market and this also helps in
exploration of new area that many be
profitable in existing market with the
same product line and services of
company.
 Targeting new market or development
of services in newer marketplaces can
be achieved effectively through
selecting appropriate approaches by
analysing macro environment of
business organisation through
conducting PESTLE analysis.
 This strategic management techniques
also involves developing an effective
market mix according top needs of new
 This strategies defined in Ansoff matrix
involves introduction of new product in
existing market.
 This involves representation of
products in different way to attract the
customers with new perception and
with newer expectations.
 This involves repackaging the product
or introduce new variants in
marketplace.
 This requires development of new
competencies in working culture in
order to be promote new product and
services in market place effective.
 Hilton hotel developed various range of
packages with targeting various types
of customers towards company
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Illustration 1: Ansoff Matrix, 2017.

market in order to reposition the brand
image in perception of consumers of
Hilton hotel.
 This can be followed by developing
market development strategies in
working environment by segmenting
the market efficiently according to the
various needs of customers.
services.
 Hilton developed honeymoon packages,
accommodation with breakfast.
 Hilton also developed various facilities
like free Wi-Fi, digital check-in and
various amenities in hotel rooms along
with basic accommodation facilities.
Market Penetration Diversification
 This involves development of new
strategies in organisation working in
order to sell same product and services
by Hilton hotel in existing market.
 The sales of existing services of the
hotel can be achieved through
developing various loyalty programme
in organisation workplace in order to
penetrate the existing are of market
effectively.
 This can be attained effectively through
enhancing sales force capability.
 The market penetration can be effective
through changing pricing policies and
the facilities provided by the company
to customers.
 Boston matrix can be utilised in order
to penetrate the market by Hilton hotel
through developing an strategies by
selecting the services on which
investment should be increased and
 This strategic development of
expansion of business of Hilton hotel
include the diversification the
operations of firm.
 This involves catering with new market
through development of new product.
 This strategies development is at very
much riskier as it target new market
with new products which can affect
successful implementation of strategies.
 Hilton develop various services in order
to cater niche market through attracting
room their facilities.
 The company is attracting new
customer base through developing
luxurious facilities to the leisure
travellers.
 The company introduces new products
like suite rooms and the various range
of new hotels like Waldorf Astoria
collection which are attracting the
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facilities which re nit giving any return
should be restricted for further delivery.
consumers who are interested in
visiting the famous destinations of
world.
CONCLUSION
It can be concluded for the above report, that strategies management techniques are
important aspect of developing growth plan is of organisation. Hilton hotel is continuously
engaged in development of various strategies related to market penetration with existing products
and new product development strategies in order to attract more prospective customers towards
company services. The firm is involved managing various growth opportunities available in
marketplace in order to expand business. Ansoff matrix analyse the growth opportunities of
company through analysing various strategic development like market penetration, product
development, market development and diversification. These are different approaches which
helps in enhancing the profitability of firm through gaining competitive advantage in market and
targeting the niche market are existing market efficiently.
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REFERENCES
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Online
What is Strategic Planning? 2017. [Online]. Available through:
<http://www.balancedscorecard.org/BSC-Basics/Strategic-Planning-Basics>. [Accessed
on 20th July 2017].
Simple. Effective. Focused. 2017. [Online]. Available through:
<http://hiltonworldwide.com/development/performance-advantage/revenue-
management/results/>. [Accessed on 21th July 2017].
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