BUS 21227: Hyatt Hotels Innovation and Strategy Report

This report serves as an innovation consultant's analysis of Hyatt Hotels, a multinational hospitality company. It begins with an introduction to Hyatt, followed by an external environmental analysis, competitor analysis, and customer analysis to understand the market landscape. An internal analysis assesses Hyatt's strengths and weaknesses, leading to a SWOT analysis that identifies key areas for improvement. The report then presents two innovative options: implementing a diversification strategy to expand the business and launching creative marketing campaigns to attract customers. The viability of these options is discussed, along with recommendations for implementation, including market research and a combination of social innovation and open strategy. The report concludes with a call to action, encouraging the company to adapt to the changing market conditions and leverage the proposed strategies for future success. The report also includes references to support the analysis and recommendations.

Running Head: Business Management
Business Management
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[Company name]
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Contents
Introduction................................................................................................................................2
External Environmental Analysis..............................................................................................2
Competitor Analysis...............................................................................................................3
Customer Analysis.................................................................................................................4
Internal Analysis........................................................................................................................4
Synthesis....................................................................................................................................5
SWOT Analysis.........................................................................................................................5
Portfolio of Innovative Options.............................................................................................6
Viability of Innovative Options.............................................................................................7
Implementation of Strategies.................................................................................................8
Recommendations..................................................................................................................8
References..................................................................................................................................9

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Introduction
The objective of the paper is to enlighten the reader with the information about the service
company Hyatt. Hyatt Hotel Corporation, commonly known as Hyatt is an American
multinational company present in hospitality segment that is headquartered in Riverside Plaza
area of Chicago. The company provides premium services through their products and service
offering in the worldwide environment. The organization holds more than 850 hotels and
resorts in the worldwide market. Further, below mentioned is the list of problem statement
affecting the productivity of the hotel chain explained along with the use of innovative
options for the success of the organization. Validation of the strategies and action plan would
successfully help the hotel chain to incorporate strategies in the worldwide environment.
More details about the strategies implemented for the hotel are mentioned below:
External Environmental Analysis
Political: US is the most powerful nation in the world due to which the government
management appropriate political stability so as to government other nations. Donald Trump
is the current president of the nation who manages all international relations of the country.
Economic: most of big firms like Apple, Microsoft are present in the country and contribute
towards the economic development of USA. GDP of USA is growing with a rapid speed and
it is increasing purchasing power of people as well. However, emergence of COVID-19 has
collapsed the functioning of several companies in USA. The economy has been affected
rapidly as thousands of people are getting contaminated daily (Hurdawaty, and Pratama
2019).
Social: people in USA loves their freedom and give it major importance in their life as well.
The country has third most biggest population in the world and there is presence of diversity

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among population as well. Education and technology are two most prominent industries
present in USA. People present in USA are educated and take decision with their minds.
Technological: technology is the biggest and most profitable industry in USA that provides
several opportunities to the companies present in the nation. Companies appropriately make
use of technology to strengthening the position of the business (Gitman, et. al., 2018).
Environmental: usually the environment USA is occupied with climate, geography and
wildlife. Diversity has increased the attractive features of the nation but with the emergence
of COVID-19, the environment and tourism has rapidly depleted. The environment of USA is
wasted because of emergence of Corona virus.
Legal: the legal environment of USA is extremely complicated as the government is tries to
protect the clients and monitor the functions of the companies on a regular basis.
Employment laws help the people to work effectively with getting appropriate rights with
them as well.
Competitor Analysis
Two biggest competitors of Hyatt hotels are Marriott and Hilton hotel chain. The hotel chain
is facing extreme competition in the environment. Marriott and Hilton both the organizations
have larger operations than Hyatt hotel chain. Marriott has total 7349 properties in the world
till 2019 and Hilton holds 5757 locations in the world while Hyatt has only 913 hotel chains
in the world. This clearly explains that the profitability of the competitors is also high in the
worldwide environment. Hyatt holds $ 5 billion revenue while Marriott had revenue of US $
20.75 billion in 2018. In the year 2018, Hilton earned US $ 8.90 billion in the world.
Furthermore, it is not easy for new companies to enter in this industry because it requires
huge investment; thus, there is low threat of new entrants. Competitive rivalry is extreme

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because every organization is struggling to be on the topmost position. Lastly, Marriott hotels
hold dominant position in the market.
Customer Analysis
Considering the customer analysis for the hotel Hyatt present in hospitality industry, it should
be noted that the hotel aims to target people belonging to upper middle segment. They target
people who go for business meetings or family trips on a regular basis. These people belong
to the age group of 25 to 55 years. Further, it should be noted that more than economic value,
people present in this segment look for the luxurious benefits that they might get from the
organization. Along with this, the customers also wants to attain some additional benefit in
the environment like complimentary breakfast or an evening stay (Yue, & Xu, 2018).
Internal Analysis
The hotel of Hyatt works with many subsidiaries in the society like casino, resorts, spa etc.
The organization came into existence when the Hyatt house was purchased by the group in
Los Angeles in the year 1957. Since then, the organization has grown organically by initiate
acquisition strategies in the business environment. At the end of 2019, the company had more
than 100000 employees working with them at nearly 900 properties across 20 brands in 60
nations. The Hyatt hotels were ranked on the 32nd position in America’s best companies to
work for in 2019. Through their service offering, Hyatt provide high scaled premium services
to the present in business environment (Zeng, Liu, & Zhang, 2016). Therefore, it can be said
that the company targets upper middle class and high-class customers prevailing in the
business environment. Further, considering two main problem statements faced by the
company, it should be considered that Hyatt has appropriate resources but it is believed that
the organization is not expanding its scope of business in the international environment. In
order to compete with other multinational companies in hotel industry, it is important for

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Hyatt to leverage growth by increasing chain of Hyatt hotels. Secondly, another difficulty
faced by the company is that their marketing team is not working effectively due to which,
the business is unable to capture the interest of customers wisely (Arif, & Hossin, 2016).
Synthesis
SWOT Analysis
Strengths: grand reputation and alike luxurious services of the company acts as the biggest
strength for them to attract more and more people in the hotel industry. The company
manages properties like Grand Regency etc. that clearly explains the kind of service that they
offer to the customers. The value of services is its biggest strength in the environment.
Weakness: the biggest weakness of Hyatt is that the expansion of the company is extremely
small in front of other competitors present in business environment. Small size of the
company makes the functions of business weak and incompetent as well. Resulting in which,
the revenue of the company is going to other competitors in the market (TOMA, &
GRĂDINARU, 2018).
Opportunities: expansion is the biggest opportunity that Hyatt need to address in the current
business environment. With leveraging all the resources of the company, the organization
would be able to enter in different parts of the world and compete with other hotel chains
present in hospitality industry. The company could open resorts and spas to attract more
clients as well.
Threats: lastly, it is evident to see that competition is the biggest threat faced by Hyatt in
current environment. However, emergence of COVID-19 has also eliminated complete
revenue from the hospitality industry for some time from now. Also, in future, people who be

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threatened in entering different geographical boundaries due to which profitability from the
industry would subsequently reduce for a long period of time.
Portfolio of Innovative Options
There are two basic ways to resolve the problem related with the organization Hyatt, these
strategies are listed below:
Implement Diversification Strategy: diversification strategy is a part of Ansoff Matrix
framework that involves the organization to effectively expand the scope of business either
through product expansion or through geographic expansion. The company should make use
geographic diversification strategy to expand the scope of business in different directions in
the world. The company needs to develop its footprint in the worldwide environment and
increase market capitalization in hospitality industry because currently there are only few
customers who prefer Hyatt hotels over others like Marriott (Dawes 2018). Size of Hyatt
hotel chain is small in the hotel industry due to which the company becomes invisible to
many prospective customers. Geographic diversification will make the organization to enter
in different parts of the world and let the customers to get connected with the brand in the
market as well. In this way, the hotel chain would be able to increase its revenue by
leveraging its resources and expanding the scope of business either through acquisition or
through greenfield investment. In this way, Hyatt would also be able compete with giants like
Marriott etc. Support of marketing activities to this expansion strategy of Hyatt would help
the management in successfully increasing the profitability in the market (Schawel, and
Billing 2018).
Introduce Creative Marketing Campaigns: the company only targets the premium or skimmed
customers present in the business environment. Therefore, such customers only rely on the
ratings given to the organization on famous platforms or personal experience. Personal

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experience of friends and peers could lead them to come towards the organization, but
building reputation online requires to make use of digital marketing strategy (Leung, Bai, and
Erdem 2017). Thus, if Hyatt would initiate new marketing campaigns to attract the interest of
customer by offering them valuable services, then they would definitely come to the hotel.
The management should apply a creative marketing campaign where the customers get
additional benefits while attaining the service and a promise to get more on their second visit.
In this way, the business would satisfy the customers on one hand and assure repeated sales
on the other. This strategy would also help the organization in eliminate high degree of
competition from the business environment. This strategy would align initial strategy of
Hyatt mentioned above. Therefore, it should be noted that Hyatt should make use of these
strategies if they want to eliminate the given issues prevailing in the internal environment of
the hotel (Fyall, et. al., 2019).
Viability of Innovative Options
Considering the viability of the given options, it should be noted that both the above
mentioned strategies are extremely beneficial for the organization to manage their position in
upcoming years. Diversification strategy would help the company to expand the scope of
business in the worldwide environment. With the expansion strategy, Hyatt would be able to
attain more foothold in the market. This strategy would help the company to promote the
name of the company in the market and help people in providing appropriate hospitality
services as well. The diversification should help the company in attracting customers and
retaining them in the worldwide environment as well. Further, marketing strategy would
combine with the diversification strategy with marketing campaign and provide optimum
services to the customers as well. The marketing campaign would highlight the
diversification strategy and it would let the people understand that they are safe while living
in their hotel in the times of COVID-19 and after that. Thus, these are the most appropriate

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and viable options for the company to implement and initiate sales accordingly (Anastazi,
2017).
Implementation of Strategies
After the times of COVID-19, the company should again initiate market research in the
environment so as to understand the interest of customers and their perception towards the
industry. After the research the company would work upon the given target market and
implement the diversification and marketing strategies accordingly. Once these strategies are
implemented, the company would simply monitor the value addition in the sales and
implement same strategies in different parts of the world. The company should implement the
strategies by making use of combination of social innovation and open strategy so as to coupe
up with the situation and manage brand reputation as well.
Recommendations
Lastly, concluding the above mentioned facts, it should be recommended to the company that
the company should start working with the healthcare setting in the current times so that their
future is beneficial. The company should offer their hotel rooms to the hospitals to quarantine
their people in case of need. This corporate social responsibility would help the company in
enhancing their brand image in the target market. Thus, once the COVID-19 situation fades
away, the customers would build positive brand image in the market. This activity would
benefit the diversification and marketing strategies strategy in the environment.

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References
Anastazi, S. (2017). Assessing the Relationship Between Human Resources Planning and
Employee Performance in Tourism Industry: A Case Study of Hyatt Regency Kilimanjaro
Hotel (Doctoral dissertation, The Open University of Tanzania).
Arif, T. M. H., & Hossin, M. Z. (2016). A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), 13-22.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Fyall, A., Legohérel, P., Frochot, I. and Wang, Y., 2019. Marketing for Tourism and
Hospitality: Collaboration, Technology and Experiences. Routledge.
Gitman, L.J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B. and Hyatt, J.C.,
2018. Ready, Set, Start Your Own Business. Introduction to Business.
Hurdawaty, R. and Pratama, A., 2019, August. Marketing Mix Strategy To Attract
Customers: Case Study Of Salsa Verde Restaurant In Grand Hyatt Bali. In International
Conference on Cultural Studies (Vol. 2, pp. 306-312).
Leff., G. (2019) Hyatt’s Two Problems [online]. Available from <
https://viewfromthewing.com/hyatts-two-problems/ > [accessed on 19 Apr. 20].
Leung, X.Y., Bai, B. and Erdem, M., 2017. Hotel social media marketing: a study on
message strategy and its effectiveness. Journal of Hospitality and Tourism Technology.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
Springer Gabler, Wiesbaden.

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TOMA, P. D. S. G., & GRĂDINARU, P. D. C. (2018). The Marketing Mix In A Luxury
Hotel Chain. Contemporary Economy Journal, 3(2), 84-90.
Yue, M., & Xu, S. (2018). The Perception of Hyatt Place—a Mid-scale Brand among Hotel
Customers in China. JIHT, 71.
Zeng, G., Liu, M., & Zhang, X. (2016). Revenue management strategies of a star-rated hotel's
self-service restaurant: case from Guangzhou Grand Hyatt. Tourism Tribune, 31(2), 86-96.