Analysis of Hilton Hotel's SWOT and External Environment Factors

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Added on  2023/01/07

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This report provides an analysis of the Hilton Hotel, examining its internal strengths and weaknesses, as well as external opportunities and threats. The report delves into the company's competitive advantages, such as its trained workforce and strong brand image, while also acknowledging its profitability challenges. It assesses the impact of external factors, including economic conditions, social trends, technological advancements, and legal and environmental regulations, on Hilton's operations. The analysis highlights how Hilton can leverage technology, adjust pricing, and collaborate with governments to adapt to changing market conditions and enhance its impact on the external environment. References to relevant academic sources support the analysis of the report.
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Introduction
Hilton is a global brand of hotel which was
founded in 1919 by conrad. Hilton. It is a UD
based company and operate world wide. It
provide luxury accommodation and various other
services to people. there are 586 hotels in
different countries.
Hilton hotel and Its Environment
External Environment
Political- As HILTON operate in various countries they have to follow
rule and regulation. However, in many countries political condition is
unstable. So, it is directly affecting on growth of hotel
Economic- it includes GDP, income level, inflation rate etc. Due to
covid 19 GDP of nations has declined so company growth is affected
to a great extent as revenue is declined.
Social- it is related to change in taste and preference, needs, lifestyle
of people. If the needs changes then it directly influence on business
operation. This is because of rise in income level. People require
luxury services and have become health conscious. Thus, it will
highly affected on business operations.
Technological-. It has affected on business operations in positive way.
Moreover, in hotel industry various advance technological device are
used such as robotics, AI, IOT etc. So, with more use of technology it
will ease in doing of operations in HILTON.
Legal-. They include health and safety, employment law, wages law
etc. So any change in these highly impact on business operations.
However, many government is focusing on changing law to provide
more health and safety to staff in hotel.
Environmental-. It is related to change in environmental law, CSR
policy, etc which directly influence business operations.. However, as
HILTON operate in hotel industry they will have to follow new
policies and laws.
How the company impact its context External
Environment
Here, it is found that Hilton can affect on factors such as
economic, social technological, etc. in pandemic time they
can provide contact less services to people with help of
technology. For that robots and machine can be used.
Besides that, they can reduce prices so that they are able
to survive in market for long term. In this way economic
growth of nation can be revived. The organization can
collaborate with government to attract people and start
tourism industry again. In addition, new laws and
regulation can be formed which is followed by all people.
So, this will ensure safety of people as well. In this way by
operating in better way Hilton can impact on external
environment.
Internal Factors
Strength
The employee working in it are highly trained and
experienced. HILTON is having is huge resources as trained
work force which is motivated as well.
Hotel is having a high level of customer satisfaction due to
its strong and positive brand image.
Weakness
Its profitability ratio is low as per industry average.
Opportunities
By using new technology hotel can attract more customers
by effectively doing marketing of products and retaining of
loyal customer.
HILTON can attract new customers from online channel. It
will benefit in creating a large customer base
With change in customer trends, HILTON can offer new
services to them.
Threats
Rise in competition from rivals can be a threat to HILTON
The change from physical to online business model can
impact on driven supply chain.
References
Newman, C.. and Trifkovic, N., 2020. Corporate social
responsibility in a competitive business environment. The
Journal of Development Studies, pp.1-18.
Trigkas, M.,and Lazaridou, D., 2020. Business model for
developing strategies of forest cooperatives. Evidence
from an emerging business environment in
Greece. Journal of Sustainable Forestry, 39(3), pp.259-282.
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