Hilton Hotel: Business Environment and Competitive Analysis Report

This report provides a comprehensive analysis of the Hilton Hotel, examining its position within the dynamic hospitality industry. It begins with an overview of the company and its industry, highlighting the increasing competition and the importance of adapting to market changes. The report identifies ...Read More

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Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Overview of company and industry ( Hilton ).................................................................................3
What are the key factors which are differentiate from its competitors. ..........................................4
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10
Appendices.........................................................................................................................................12

INTRODUCTION
The hospitality industry is changing with period of time. Business sector is wider and
broader and it is important to focus on these change market sector. The level of competition in
market Is increasing at rapid scale. Hospitality industry is a type of sector which comprises of
providing of services to its customers such as lodging, foods, transportation, event planning, etc.
(Ann, and Blum,, 2020). Main aim of this report is to understand the importance of business
environment in this rapid changing sector. Hilton, a globalised hotel headquartered in U.S. The
hotel is being serving its customers at global scale. It is mostly known for its luxury services,
hospitality, etc. It also has many competitors such as Hyatt, Hyatt Hotels & resorts, Omni hotels
Holiday Inn, Fairmont Hotels & Resorts etc. This report focuses on research questions which is
what key factors are differentiate from competitors. Further, it comprises of overview of
organisation, STP, competitive advantage strategy of hotel, market and competitor analysis.
MAIN BODY
Overview of company and industry ( Hilton )
Business comprises of various types of organisations small, medium and large. It is located
Virgina, U.S. It has been expanding its business as well as services at larger scale with aim of
gaining more profit and sales. Director of hotel is Christopher Nassetta. Company targets its
customers on all class which is middle, lower and high class people. It has also adapted
international strategy such as franchising within their business. Further, it too recruit its candidates
and shortlist applicants for their vacant jobs through both domestic as well as non-domestic
processes. Hotel has been also stepping into diversification strategy & innovative plans to expand
their survival period for longer time interval (Dimitriou, and Sartzetaki, 2017).
Furthermore, they are also have many sub brands across the globe such as Tru by Hilton,
Double Tree, Conrad Hotels etc. The size of investment in this company has been playing important
role in development of business & goals. Also, they have skilled employees, staff members &
management which produces higher productivity within enterprise.
What are the key factors which are differentiate from its competitors.
In businesses, competitors have deep impact on enterprise and overall organisational
structure at wider scale. It is essential for every business to focus on their competitors on basis of
which it is easy for them to achieve goals as well as objectives in proper manner. To achieve
competitive advantage, it is crucial to focus on competitor's strategy so that decision making is
carried out effectively. There are are various factors differentiate Hilton from its competitors.
Factors are further discussed below-

Customer relationship management- The CRM is most effective factor which
differentiate Hilton from its competitor Hyatt. This is because Hilton has expertise employee who
have ability to deal with customers problems and manage their queries in most effective manner. In
comparison with Hyatt, they are slow in response to customers and feedbacks. It is essential to
focus on customer relationship management so that goodwill of firm increases.
More large suppliers- It is another factor which differentiate Hilton from its competitor.
Suppliers are considered as most important part of business which assist in accessing to customers
easily & are responsible for distribution of products. In context of chosen entity, they have their sub
brands across the globe for example- Hilton has larger suppliers as compared to Hyatt worldwide
(Franco, and et.al., 2020).
Booking- In hotel industry, booking is often look by customers in both online a s well as
offline mode. According to tripadvisor.com, they have stated that booking in Hyatt is not easy
which because hotel doesn't provide what are demanded by customers. Whereas in comparison with
Hilton, they deliver most convenient booking & offers to their both old as well as new customers. It
allows them to access to competitive advantage in market appropriately. Also, they provide advance
booking, cancellation fees, refundable options etc.
In relation of Hilton Hotel, they too focuses on their competitor which assist them in
accessing of available opportunity in appropriate manner. With increase of competition in market,
it is essential to be different from competitors to achieve set objectives within period of time. So, to
differentiate from others Hilton focuses on STP approach of marketing.
STP
It is the process that helps management of a business firm to take effective decisions
regarding it's business activities (Guo, , and et.al., 2017). It is a three step process that includes
dividing market into segments consisting various people depending on their taste and preferences.
Next step is of introducing various plans and policies for targeted segments and last step is of
analysing responses and feedbacks from customers and reacting accordingly. Considering the fact
that business works in dynamic environment where needs and wants of people are unpredictable.
This analysis helps a company to boost up their sales and accomplish it's objective of profit
maximization. STP analysis of Hilton are as follows:
Segmentation: It refers to process of dividing several groups of people in various segments
depending on demographic conditions, Geography, Psycho-graphics, life stages and behaviours.
This tools helps management of a business firm to choose correct place to implement it's sales
techniques and approaches. Management of Hilton uses this tool in order to extract maximum
output from it's given resources. It helps firm to avoid wastage of it's resources that enables the
form to deliver best quality services to there respective customers at best possible prices.

Targeting: Next step in STP is to target various segments of people divided in previous
stage. In this management of an organisation takes various steps in order to fulfil demands of their
customers and also react as per the feedbacks received from them and make necessary changes in
companies product or services as per customer needs and market trends. With context to Hilton, this
tools helps companies management in taking various decisions regarding it's plans and policies. It
helps to develop good market presence of the workforce and build it's good brand image in eyes of
their customers.
Positioning: It refers to statical analysation of data extracted of a firm with regards to it's
production activities, sales, etc. (Gupta, 2019). This tool helps the management of a business firm to
grab upcoming opportunities and tackle with future threats. It helps a firm to recover from it's losses
by conducting needful studies and also finds an effective way to tackle with companies competitors.
In relation to Hilton, it's management conduct proper research programs to extract companies
performance data for a given financial year. It helps in proper analysation of companies strengths
and weaknesses and also allows the firm to make modification in it as per marketing trends.
As per the above analysis it can be said that STP analysis proves to be an important tool for
a business firm, as it helps management of a company to implement it's plans smoothly and to
establish proper coordination between it's various departments. Using this analysis higher
authorities of Hilton was able to divide it's customers in various segments and direct their plans as
per their behaviours. It helped company to increase loyalty of customers contributing towards it's
better goodwill. Using this analysis the company was able to boost up there annual sales which
ultimately contributed towards it's profit maximization.
Marketing mix-
It is another approach which is used by Hilton and differentiate themselves from their
competitors. It refers to set of tools that are used by entity to accomplish goals/ objectives (Hassi,
2019). It is an important concept which is needed to be considered with proper considerations. In
this competitive market, it is critically important to focus on these elements as they help in using
of resources efficiently. Further, with help of marketing mix it is easy to implement strategies
within business. It comprises of four basic components that are mentioned as follows-
Product- It refers to commodity or thing which is used for sale and purchase. It is important
to have product on basis of which exchange process is being carried out in effective manner. In
context of chosen enterprise, their services are being considered as product of their business. For
example- they deliver services to their customers on a particular prices & requirements. Without a
product it is not possible to carry out exchange process. Also, it is seen that in comparison with
Hyatt hotel, Hilton provide more wide range of services to their customers. Whereas Hyatt still

lacks of services due to low in demand.
Price- It is a another component of marketing mix in which it refers to value of commodity
which is set for a specific product. It depends upon a particular organisation to put a price of their
products relying on demands, needs of customers. Basically there are different types of pricing
strategies which are often used by businesses such as price skimming, penetration pricing,
psychological pricing & many more. In relevance of selected hotel (Hilton), they have been using
premium pricing strategy. It is a type of pricing strategy in which higher price is being charged by
firm for products / services with of higher quality & add ons features (Jiang, and Alexakis, 2017).
Place- A place refers to location from where distribution of products or service is being
done. It is crucial to have physical place so that it is easy for audience to visit to brand location or
purchase. In business, place has wide impact on organizational activities. For example- in
reference of chosen entity, they have large number of suppliers with wide range of global chain. It
reflects that they are located worldwide & also they have their website which helps customers to
access to information in convenient way.
Promotion- In this, it is defined as way of promoting or advertising brand name by using
appropriate tools as well as techniques. As market is becoming wider it is essential for corporation
to promote their services or products to access to customers & globalise brand name. With help of
promotion, it become easy to do marketing. So, in relation of Hilton they promote their brand at
global scale by using social media tools like Facebook, Instagram, etc.
Therefore, from above discussed matter it has been seen that it is essential to focus on
marketing mix as well as STP approach as they help in making uniqueness of brand in proper
manner. Also, it is too examined that through proper analysing these makes easy for Hilton to take
advantage at all aspects. Both these marketing approaches are way on basis which it is easy to
achieve objectives & carry out business plan in appropriate manner (Kim, and et.al., 2018).
Competitive Advantages in the marketing Strategy of Hilton
In businesses, competitive advantage are necessary as without them survive period of firm
is short. Marketing strategies are being used by companies to carry out their operations & functions
in effective manner.
Strong financial company from its competitors-
The financial capability of brand (Hilton) is strong as it because they have expanded
business across the globe which depicts their strong financial capability & resources which reflects
their strong point. Finance has been always the first major point for all business as without it
activities cannot be operated in proper manner. Also, chosen hotel has large number of investors
within their firm which assist them to acquire more financial resources at larger scale. With strong
financial capability, it is easy to access to new opportunities in market with effective manner.

Renowned brands
As the selected organisation is global brand, they are able to market themselves in most
effective manner. Furthermore, it helps them to enhance their customer base at wider scale. Also,
another advantage of being renowned brand is that it it become easy to pool money from financial
sources because of goodwill in market (Konovalova, and et.al., 2019).
Competitive Analysis
This analysis helps the company to analyse it's strengths and weaknesses so that it may
tackle it's competitors. It helps management of an organisation to make important decisions related
to it's planning process for tackling it's customers. With regards to Hilton, Hilton groups of hotel
was incorporated in 1919 by Conrad Hilton. The company provides great services to it's customers
and support services like sauna, gym, spa and many more inside there hotel structures. some of it's
competitors are Hyatt, Marriott, IHG. One of it's biggest competitor is Marriott International. It
have a good market presence of about 65,000 hotel structures across 127 countries of the world.
Hilton is been awarded by many international level rewards for delivering best quality services to
their customers. The management of company takes various decisions regarding formulation of it's
plans and procedures and establishes proper coordination between it's various departments. In
positive sense competition for a business organisations acts like a motivation to pursue goals of the
organisation in an effective manner. As strong the competition a business have it have more reasons
to provide better services to their customers. Therefore, higher authorities of an organisation make
proper competitors analysis in order to understand companies position with their competitors and
helps in maintaining customer loyalty towards it's brand. As it proves to be helpful for a firm in
order to boost up their sales, increases market presence and maintains loyalty of customers towards
companies brand.
Brand Equity
It refers to image of a brand with respect to it's quality and provided services in minds of
companies customers. The management of an organisation takes various decisions for developing
good brand equity in mind sets of people. They introduces various schemes in order to boost up
their sales and provide with best benefits of a product to it's consumers. In relation to Hilton, it is
been analysed that it's brand equity was reported to overtake one of it's biggest competitors which is
Marriott Hotels and Resorts in year 2018. That was the highest growth of a company reported in it's
history. Hilton's brand value in respective year was reported as 17% with net earning of $7.4 billion
which resulted in downfall of growth report in Marriott of about 8% with decreasing brand value of
$5 billion. The management of Hilton focused in adoption of effective techniques in their
production activities. They followed the basis of optimum utilisation of resources and achieved
excellence in providing best quality services to it's customers. They kept in mind personal goals of

staff working in the workforce and provided them best working environment to extract best out of
their capabilities and provided them enough motivation to implement new plans. It is a difficult task
for a business organisation to maintain it's brand equity due to presence of various factors such as
dynamic business environment, competition etc. for this purpose management of a company
formulates timely plans and provide various offers on their product and services which benefits the
firm in long term.
Market analysis in the marketing strategy-:
Market analysis is to be defined as process of scanning market and gaining relevant
information for business to achieve benefits for future development. It is crucial to focus on this
market analysis as it assist in achieving of positive output. Marketing strategies are used at all
stages of business. By properly carrying out market analysis Hilton is able to access to customers
information in proper manner which enhance their way of doing business.
Distribution strategy in marketing strategy of Hilton- Distribution strategy is also
crucial part of enterprise as it assist in delivering of product or service to customers in effective
way. In context of chosen firm, they too uses distribution strategy which helps them to distribute
products according to set tactics. It includes they are operating business in many countries as well
as most of single entrepreneurs take franchised which refers to operating business functions (Liang,
and et.al., 2017). It involves they are couple of new properties which are establishing in many
countries. It considered as creating strong brand image at market place which refers to sustain and
survive at marketplace. It utilising different distribution strategy in order to beat competitors at
marketplace. It includes they are Hilton airport properties as well as flagship properties which refers
to corporate managing effectively and efficiently.
Customer analysis-:
This is also to considered as crucial part of business because it help in understand
customer point of view appropriately. With carrying out customer analysis leads to elimination of
risk in business operations or activities. Through this, identification of customer needs, demands
are properly analysed & fulfilled in most efficient manner. Also, it help in analysing why customer
is attached or leave brand (Porcu, and et.al., 2019).
Thus, it has been examined achieving competitive advantage is essential because as size of
business is increasing, the intensity of competition is too increasing at rapid scale. To reduce rivalry
in market, strategies & other activities are carried out.

CONCLUSION
After a brief analysis of above report, it has been concluded that it is essential to be different
in business so that goals are accomplished appropriately. So, discussions have been about Hilton
hotel & how it is different from its competitors. It is being evaluated that enterprises are needed to
be aware of their competitors so that they are able to use their resources & make further decisions
appropriately. Moreover, it has been specified that with proper analysis of competition in market
makes it easy for organisation to implement strategies in effective manner. Furthermore, it is too

analysed that it is necessary to focus on business in such a way that positive outcomes are achieved.
REFERENCES
Books & Journal:
Anu 2020. Motivating senior employees in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Dimitriou, D. J. and Sartzetaki, M. F., 2017. Competitor Analysis to Quantify the Benefits and for
Different Use of Transport Infrastructure. International Journal of Industrial and Systems

Engineering, 11(11), pp.2731-2734.
Franco, S., and et.al., 2020. Are you good enough? CSR, quality management and corporate
financial performance in the hospitality industry. International Journal of Hospitality
Management, 88, p.102395.
Guo, L., and et.al., 2017. Automated competitor analysis using big data analytics. Business Process
Management Journal.
Gupta, 2019. Talent management dimensions and their relationship with retention of Generation-Y
employees in the hospitality industry. International Journal of Contemporary Hospitality
Management.
Hassi, 2019. Empowering leadership and management innovation in the hospitality industry
context. International Journal of Contemporary Hospitality Management.
Jiang, 2017. Comparing students' and managers' perceptions of essential entry-level management
competencies in the hospitality industry: An empirical study. Journal of hospitality, leisure,
sport & tourism education, 20, pp.32-46.
Kim, H. L., and et.al., 2018. The effects of corporate social responsibility (CSR) on employee well-
being in the hospitality industry. International Journal of Contemporary Hospitality
Management.
Konovalova, E. E., and et.al., 2018. Methodological approaches to development strategies for the
tourism and hospitality industry enterprises. International Journal of Engineering and
Technology (UAE), 7(4.38), pp.277-280.
Liang, T. L., and et.al., 2017. Transformational leadership and employee voices in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Porcu, L., and et.al., 2019. Analyzing the influence of firm-wide integrated marketing
communication on market performance in the hospitality industry. International Journal of
Hospitality Management, 80, pp.13-24.
Appendices
Table 1 - Research Stages
Task 2
1 Clear explanation of what has been asked (in your own
words)

This report gives brief information about key factors
which depicts the uniqueness of Hilton Hotel from its
competitors. The focus has been made on hospitality
industry and Hilton competitors. Further, during this report
researcher will select topic & collect credentials from both
primary as well as secondary sources.
2
Research Topic
The topic which has been selected by researcher is factors
which makes Hilton different from competitors. Main aim
of this choosing this topic is that data and relevant
information is easy available which saves time. Also,
through this topic, it is easy to implement strategy for
further decision making in effective manner.
3
Research Question(s) - what shall I be doing? Why is it
important?
What are the key factors differentiate Hilton Hotel from its
competitors?
There are several types of factors which makes selected
hotel different such as CRM, Booking, etc. With properly
focusing on these factors, it is easier for company to target
their audience in appropriate way.
Further, focusing on these elements helps in achieving of
competitive benefit in appropriate manner.
4 Information needed (data) to answer the research question.
Researcher collected information on that basis evaluating
and and analysing information so various ways such as-
Primary data- It is type of sources of data in which

information is gathered through fresh & new ways such as
by accessing to interviews, questionnaire, surveys etc. It is
an effective way of gaining information for project or
research.
5
Key words to search for
Keywords are also important to be focused. So, during this
research questions several key words have been used
which are competitors, rivalry, advantage, tools, methods,
marketing etc. Through using of keywords, it is easier for
researcher to collect data about topic & then achieve final
outcome in appropriate way.
6 Key resources (e.g. journal articles, books, company websites etc.)
6
Storing and organising the data so that you can find it when
needed (e.g. in folders on your desktop, printed out, etc.)
After collecting of credential, research will store data in
desktop, & print outs notes. This is because storing
information is important as it help in using of data in future
period too.
7
Extract relevant information from the identified key
resources – identification of key areas of information
needed to help answer the research question (list key areas
of the research project)
This section consists of resources which are used to help
researcher with aim of gathering of data. So, in this
credentials have been collected regarding Hilton Hotel on
basis of which marketing approaches are used such as
marketing mix, STP.
8 Structuring the report - subheadings organised in such a
way that the report flows in a logical way
It includes researcher followed proper structures in order to
developing report such as content page, introduction of
topic, information related to company and industry,
appropriate heading and sub heading as well as conclusion
which result as researcher developing proper research and
achieving their objectives of report. For example, it

includes researcher will adhered to follow structure so they
providing introduction regarding Hilton Hotel as well as
briefly providing information in order to organisation
utilizing various tools and techniques on that basis
conducting research.
9
Project deadlines – produce a Gantt chart to indicate order,
duration/completion of main activities
In this, researcher uses Gantt Chart & WBS as they are
considered as most effective tool for completion of work in
effective manner. Moreover, Gantt Chart is a type of tool
which is used by most of entities to prepare project within
period of time in appropriate way. It is essential to uses
them with proper considerations so that it is easy to
achieve positive outcome.