Marketing Management Report: Analysis of Accor Hotels' Strategies

This report provides a comprehensive marketing analysis of Accor Hotels, a multinational hospitality company. It begins with an executive summary and an overview of Accor Hotels, then delves into internal and external environmental analyses. The internal analysis utilizes a SWOT framework to identify strengths, weaknesses, opportunities, and threats. The external analysis employs a PESTEL framework to assess political, economic, social, technological, environmental, and legal factors impacting the business. The report also examines Accor Hotels' supply chain management and marketing mix, highlighting key offerings. Finally, it offers recommendations for the company's strategic direction over the next five years, concluding with a summary of key findings and insights. This analysis aims to provide a holistic view of Accor Hotels' position within the competitive hospitality market.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
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Executive Summary
The report has thrown light on analysing the different kinds of internal and external
environmental analysis of Accor Hotels. With the help of the SWOT and PESTEL analysis,
the different kinds of internal strengths, opportunities along with external threats and
weaknesses have been analyzed. With the help of marketing mix, the different kinds of
offerings of the company have been identified which played a major role in the organizational
activities. Lastly, the recommendations have been provided for the next five years which will
be beneficial for the overall success of the organization.

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Table of Contents
Introduction................................................................................................................................3
Overview of Accor Hotel.......................................................................................................3
Internal Analysis........................................................................................................................4
SWOT Analysis.....................................................................................................................4
External Analysis.......................................................................................................................6
PESTEL Analysis...................................................................................................................6
Supply Chain Management of Accor Hotels.............................................................................8
Marketing Mix of Accor Hotels...............................................................................................10
Recommendations....................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
The report throws light on analyzing the different external and internal environmental
analysis of the Accor Hotels. As commented by (), strategic management is the continuous
planning, monitoring, analysis along with assessment of the different factors which is
necessary for the organization to meet the different goals and objectives in an appropriate
manner. It is one of the most essential factors as it allows the different companies to analyze
their current capabilities and the operating environment in which they are operating their
business along with identification of the long-term opportunities and threats that can be
helpful for them in improving the business operations and marshal the resources of the
company to address them. The main aim and purpose of the report is to analyze the different
internal and external threats and opportunities of Accor Hotel to improve their business
operations.
Overview of Accor Hotel
Accor Hotel is one of the French multinational hospitality organizations which owns,
manages along with franchises the different hotels, resorts along with vacation related
properties. The hotel was founded in August 1967 and it is headquartered in Paris, France. In
addition, the respective hotel operates in more than hundred countries wherein there are more
than 4200 hotels along with 250000 employees who are working in the entire worldwide. The
total capacity of the respective hotel is approximately 570000 rooms wherein more than 25%
is present in France (AccorHotels.Group 2019). In addition, Accor Hotels has wide portfolio
of 26 marques which is helpful in covering the different 26 trademarks in the different
segments in the hotel market as well. The operating income along with net income of the
company has crossed €550 million along with €481 million till the year 2018. Lastly, more

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than 44% of these hotels of Accor are leased and owned and more than 31% and 25% are
franchised.
Internal Analysis
SWOT Analysis
With the help of SWOT analysis, the different kinds of internal strengths, weaknesses,
opportunities along with threats are analyzed which play a major role in improving their
business operations and gain competitive advantage in the market appropriately.
Strengths
Presence across the different segments- Accor Hotels tries to offer the different
customers with the different kinds of services within their budget. The different economy
habits include Ibis, Motel 6 and Formula 1. In addition, the mid-tier segment which includes
Mercure Hotels and Adagio (Aguinis, Edwards and Bradley 2017). Lastly, the different
luxury hotels include Novotel, Fairmont along with Raffles which has been able to ensure the
strong customer base in the market.
Loyalty Programs- Accor Hotels is known best for delivering the best loyalty
programs in the entire business. The different guests who are frequent to the hotel are having
proper access to the different kinds of privileges such as free nights along with
complimentary upgrade to online-check in and other privileged check out as well (Ansoff et
al. 2018).
Weaknesses
Losing to the online business- It is the major weakness which is being faced by

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Accor Hotel in the mid and economy segments as there are different other small hotels which
are the major competitors such as Oyo and Airbnb. The different small hotels have been
investing a huge sum of money in enhancing their services and it affects the overall
efficiency in a negative manner (Baumgartner and Rauter 2017).
Over-emphasis on the different sub-brands- It is the second weakness of Accor Hotel
wherein the different sub brands include Ibis or Mercuri are popular and it is creating huge
disconnection in the minds of the different customers regarding the actual company and due
to the same, it can be identified that the customers are not able to recognize the actual hotel
Accor (Bryce2017). It is one of the major weaknesses which is required to be managed by the
company to beat the other competitors present in the market (Bergh et al. 2016).
Opportunities
Adaption the habits of customers- It is one of the major opportunities of Accor Hotel
which can be helpful for them in gaining huge popularity and receive profitability in the
business. Accor Hotels can create a survey which will help them in gaining huge idea on the
tastes and preferences of the customers as there are new trends which are required to be
adopted by them to become more competitive (David and David 2016).
Growth in the different emerging economies- It is the other opportunity of Accor
Hotel as this will be a huge scope for hoteliering the entire business in Africa and Asia which
are the major emerging economies (Engert, Rauter and Baumgartner 2016). There is surge of
the different kinds of tourists to the different destinations which can create a huge
profitability for the business and gain competitive advantage. The major growth in business
in the respective regions have resulted in surge in number of business travelers and it will be
providing boost to the brands like Accor Hotels (Ethiraj, Gambardella and Helfat 2016).

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Threats
Huge Competition- It is one of the major threats for Accor Hotels wherein the major
competitors include Starwood Hotels, Hilton Hotels Corporation along with Best Western are
the different hotels which can affect the overall efficiency of the team in a negative manner
(Frynas and Mellahi2015).
Global Economic Condition- It is the other major threat which can affect the overall
competitiveness of the hotel negatively. Furthermore, it can be hampering the overall sales in
the upscale and luxury segments that affected the overall growth of Accor Hotels in a
negative manner (Hanson et al. 2016). There can be different kinds of innovation which can
be done by the different competitors present in the market and it affects the overall sales of
the company and it can make the hotel reach the saturation point and it can be ineffective for
the business operations (Hitt and Duane Ireland 2017).
External Analysis
PESTEL Analysis
With the help of PESTEL analysis, the different kinds of factors are required to be
identified which can create a huge positive or negative impact on the different business
operations of Accor Hotels.
Political Factors- The VAT has increased from 5% to 7% in the respective year and it
can reach 10% in the year 2015. Moreover, there is inclusion of political instability in the
economy of France which can create huge differences and affects the business of Accor
Hotels negatively (Hitt, Ireland and Hoskisson 2016). Moreover, the different other political
issues include the additional tax for the hotel nights is Euro 200 and difficult situations in

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some countries such as Middle East and Pacific Asia are the different issues that can affect
their business operations.
Economic Factors- There is inclusion of huge economic crisis wherein it led to
decreased in the demands of the hotel in the competitive business environment. Due to the
slow economic growth in France and the ongoing turmoil in Europe will be leading to the
reduction in buying power of the different individuals (Lasserre 2017). The other long-term
economic kind of threat s the growing level of inequality along with stagnant of the wages of
middle-class individuals which reduces the ability of the people in travelling to different
other countries.
Social Factors- The different social factors include the different kinds of social
factors which play a major role for the bright future of Accor Hotels as the number of
individuals planning to travel internationally has increased by more than 15% between the
years 2013 and 2014 and it can be identified that there has been huge increase in the number
of travelers as they are ready to spend more money on travelling (Meyer, Neck and Meeks
2017). There are different cultural changes which could influence Accor Hotels such as
increased number of travelers has been able to successful in increasing demand for certain
kinds of experiences related to travel such as luxury resort (Morden 2016).
Technological Factors- Furthermore, technological aspects play a major role in
improving the different activities of the Accor Hotels. The technology has been able to create
huge impact on hotel business such as in form of rental serv ices which is inclusive of Airbnb
that helps in letting the different individuals rent homes or rooms directly to the different
travelers. More than six million guests in Airbnb properties in 2013 and it can be beneficial
for Accor hotels in gaining competitive advantage in the market through implementation of
interactive terminals (Morschett, Schramm-Klein and Zentes 2015).

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Legal Factors- The main legal factor which will be affecting the business of Accor
Hotels is the complexity related to increased minimum wage and it increased the cost of labor
and reductions in services. Furthermore, the other legal rules and regulations that affect the
business of Accor Hotels include changes in French Hotel rating system in order to match the
international one and it can affect the business operations negatively (Moutinho and Vargas-
Sanchez 2018).
Environmental Factors- There are different kinds of environmental factors which
will be affecting the different business operations in a negative as well as positive manner.
The recent trend of eco-friendly aspects can be beneficial for Accor Hotels business to
successful improve the business operations successfully (Noe et al. 2017). Moreover, the
environmental issue that can affect Accor Hotels is the nuclear catastrophe in Japan which
has reduced tourism in the respective area and it affected the overall stability negatively.
Furthermore, the increased temperatures from global warming can close the different ski
resorts of Accor hotels and these developments can force closure or the relocation of the
different resorts.
From the overall PESTEL Analysis of Accor Hotels, it can be identified that there is
inclusion of political stability and few environmental issues that can affect the growth of the
respective hotel Accor Hotel in a negative manner. In order to improve the respective
scenario, Accor Hotels needs to implement the different kinds of potential developments that
will be helpful in the overall growth of the company in a positive manner in the near future in
an effective manner as well.
Supply Chain Management of Accor Hotels
The supply chain management of Accor Hotels include proper planning, sourcing of
merchandizing, standardization along with control replacement which can affect the overall

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efficiency of the company in an appropriate manner. In addition, the supply chain
management of Accor Hotels provides the customers with flexibility to adopt to the different
changing tastes and preferences of the customers as per their ability. There are different
functions of supply chain management which is inclusive of receiving along with filling
customer requests. The different functions include:
Primary Activities
Inbound Logistics
It is essential to develop strong relationships with the different customers which will
be beneficial for Accor Hotels in transforming the different products which can be beneficial
for handling of materials such as interior and architecture of the hotels (Wheelen et al. 2017).
Operations
The different activities which help Accor Hotels to transform raw materials to
finished products, there can be proper utilization of customer data to serve the different
advertisements which will be based on usage behavior to clients to make the different
products available for customers such as moulding of plastic to make different products
(Wheelen et al. 2017).
Marketing and Sales
The different marketing related activities which has been included by Accor Hotels
include the pricing technique, promotional activities along with sales force management
which will be beneficial for attracting more customers towards the hotel (Trigeorgis and
Reuer 2017).
Services

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There should be inclusion of after sales service by Accor Hotels along with
maintenance for successful usage of the different products which will be beneficial for them
in attracting the number of customers in the market (Steiss 2019).
Support Activities
Infrastructure of Firm
There are different activities such as legal services, planning, general management
along with quality management which will be providing scope to Accor Hotels in managing
the business unit level and gaining competitive advantage.
Human Resource Management
Human Resource Management affects the competitive advantage such as recruiting,
selecting along with rewarding with the other personnel activities. The effective HR
management can allow Accor Hotel to reduce the competitive pressure based on commitment
along with skills of the workforce. The organization can achieve the cost minimization
objectives by hiring along with training costs with their relative return (Rothaermel 2015).
Development of Technology
The technology supported customer service plays a major role in the supply chain
management related activities of the company which will be beneficial for research and
development related activities of the company (Rothaermel 2015). The Accor Hotel needs to
analyze the importance of technological advancement which will be beneficial for success.
Procurement Activities
There is inclusion of the different kinds of supply chain related activities which will
be beneficial for increasing efficiency of the company appropriately. most of the sub-

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contracting is done in order to increase the overall effectiveness of the supply chain of the
hotels.
Marketing Mix of Accor Hotels
Price- Accor Hotels have utilized the varied strategy of pricing wherein it caters to the
different sections of the society. Moreover, for the upscale and vacation properties, the
respective brand has been able to promote the premium pricing policy which is helpful for
them in delivering bets quality along with unmatched products and services (Renz 2016).
Product- It is one of the multinational companies that franchises along with manages
own vacations, resorts and hotels. The group is organized in total three segments of the
economy which includes midscale, upper-scale along with other customer segments through
offering them with qualitative and unique experiences (Renz 2016).
Place- Accor Hotels have been able to spread their network to include the five
different continents along with more than 100 countries. Furthermore, Accor Hotels have
more than 250000 collaborations which helps them in operating successfully in the global
arena (Renz 2016).
Promotion- Accor Hotels have powerful brand which is known globally for the
different impeccable products. The brand recognizes importance of social media and they
have launched the own website along with application for fast and easy transactions
(Rothaermel 2015). The website along with Twitter and Facebook page offer related
information in an appropriate manner.

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Recommendations
Therefore, from the overall strategic analysis of Accor Hotels, it can be identified and
analyzed that there are few recommendations which can be provided to them which will be
beneficial for them in performing better in the next five years and gain competitive advantage
in the competitive business environment as well.
There can be inclusion of development strategy which can be implemented by Accor
Hotels wherein they are planning more than 20 hotels both in Europe wherein the penetration
of the budget chain of hotels is weak in emerging countries like China. Moreover,
investments are high in respect to renovation. Moreover, with the most profitable segments,
there was financial contribution to assist the group to open 1000 hotels by the year 2019.
In order to enhance the brand image of the company in the future, Accor Hotels needs
to create loyalty cards which focuses on the Accor hotel in same or close segment of market
which will be beneficial in making the customers discovering other brands of Accor. In
addition, Accor Hotels need to keep proper focusing on the direct relationship with the
different customers even when they will be developing online services.
Conclusion
Therefore, it can be concluded that Accor Hotels is the premier tourist destinations
has the portfolio of the products. With the help of the internal and external environment
analysis, it can be analyzed that Accor Hotels have different kinds of opportunities that can
be beneficial for the overall growth of the company in the next five years.

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References
AccorHotels.Group 2019 AccorHotels company profile (online) Retrieved from
https://www.accorhotels.group/group [Accessed on 26th April 2019]
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strategic management. Springer.
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
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Bergh, D.D., Aguinis, H., Heavey, C., Ketchen, D.J., Boyd, B.K., Su, P., Lau, C.L. and Joo,
H., 2016. Using meta‐analytic structural equation modeling to advance strategic management
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Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2016. Replication in strategic
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