Marriott International: Future Business and Innovation Capabilities

This report provides a detailed analysis of Marriott International's business strategies and innovation requirements for 2020 and beyond. It includes an industry analysis, company analysis, and strategy analysis, focusing on the innovations necessary for Marriott to sustain its growth. The report identifies key challenges the company faces, such as Brexit, stricter legal regulations, changing technologies, and increasing competition, using Porter’s five forces framework and PESTLE analysis. It also discusses the capabilities Marriott needs to develop, based on a SWOT analysis, to address these challenges. The report emphasizes the importance of effective leadership, a positive workplace environment, an improved value chain, partnerships with competitors, and the implementation of Internet of Things technologies to ensure Marriott's continued success.

Running Head: BUSINESS AND INNOVATIONS
0 | P a g e
Business and Innovations
Report
Student name

Business and Innovations 1 | P a g e
Executive Summary
The aim of this report is to explain Marriott International business strategies which are necessary
to sustain the growth of the company in the future. This report covers industry analysis, company
analysis, and strategy analysis for 2020 and beyond. It will also describe about the innovations of
the Marriott International and it will briefly explain about the innovation requirements of 2020
and beyond. The findings of this report include key challenges which Marriott International will
face in the future which are likely to affect its profitability. To understand these factors, Porter’s
five forces framework and PESTLE analysis is used in this report. The company faces challenges
due to Brexit, stricter legal regulations, change in technologies, customer perspective, intensity
of competition and others. These factors will affect the operations of the company in 2020 and
beyond. The capabilities which Marriott is necessary to develop are discussed in this report
based on SWOT analysis to ensure that the company is prepared for the challenges in 2020 and
beyond. The corporation should focus on effective leadership, positive workplace environment,
improved value chain, partnership with competitors, implementation of internet of things
technologies and others to ensure that it is able to sustain its growth by 2020 and beyond.

Business and Innovations 2 | P a g e
Table of Contents
Introduction......................................................................................................................................3
Purpose of the Report...................................................................................................................3
Structure of the report..................................................................................................................3
Overview of the organization.......................................................................................................3
Innovation history of the organization.............................................................................................4
The Future of the Industry 2020 and beyond...................................................................................6
Porters 6 analysis of Marriott International.................................................................................6
The Organisations Innovation Requirements 2020 and Beyond.....................................................7
Political Factors............................................................................................................................8
Economic Factors.........................................................................................................................8
Social and Cultural Factors..........................................................................................................8
Technological Factors..................................................................................................................9
Legal Factors................................................................................................................................9
Environmental Factors.................................................................................................................9
Building the Future Innovation Capabilities..................................................................................10
SWOT of Marriott International................................................................................................10
Capabilities of Marriott International........................................................................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Business and Innovations 3 | P a g e
Introduction
Handling Innovation in commercial enterprise is an important method that any company has to
put into effect in order to acquire aggressive advantage. Technological changes are helpful for
the business of an organization in different perspective. Innovations are helping the Marriott
international in their business (Arabia, 2018).
In this report will discuss about the strategies of Marriott International for 2020. It will also
explain about the Porter’s 6-force model and PESTLE analysis for the Marriott international.
Purpose of the Report
Future innovations are making basic principles for the organizations. It is a way to maintain their
standard with good quality. There are so many strategies for the handling of business of Marriott
International at global level. Following are the goals of the Marriott International for their future,
which are;
• It started different services for making their business higher.
• Marriott international started their innovations from 1927. They are continuing their work for
making their future in the field of hospitality.
• Present performance is based on the innovations
• The enterprise in 2020 – using Porter’s six forces analyses to have a look at the industry in
2020
Structure of the report
In this report, different analysis’s are conducted for the 2020 and beyond for the Marriott
International. It is based on the innovations and requirements in the future. In this report, Porter’s
six-force analysis is used for the Marriott International. Porter’s analysis is helpful for the
planning and execution for different business processes in future. This report is also included
PESTEL analysis for the Marriott International.
Overview of the organization
The researcher has chosen Marriott global for a venture that is associated with the Hospitality
enterprise. The agency is an international resort chain that gives luxury accommodation in one
hundred thirty countries all over the world. John Willard Marriott and Alice Marriott are the

Business and Innovations 4 | P a g e
founders of Marriott. It is situated in the Washington D.C.-Maryland. It is offers a high-quality
customer support in the field of hospitality. Marriott is fastest growing organization in the
hospitality industry. The industry covers accommodation, meals, beverage, journey, and
tourism. Marriott business enterprise becomes the very first hotel chain that launched on-line
booking and it provides best facilities to the customers in all over the world. Marriott
International and its subcontractors are the most popular brands at the International level. It is
first choice of the customers for stay in every corner of the world, as it provides best facilities to
the customers. Business enterprise takes competitive advantages via reducing the competition
and making them partners. It is a best approach for reducing the competition in the market
(Gollan, Marriott International Will Open 40 Luxury Hotels in 2018, 2017).
Innovation history of the organization
Marriott international is best performer in the field of hospitality industries based on their
innovations and facilities for the clients. Forbes announced that Marriott is one of the most
modern organizations becoming a member of ranks like – Amazon, Tesla and Apple in 2017.
They are always focused on the innovations for their clients as well as business. Marriott is
having a great role in the field of innovation in hospitality industry. They start loyalty rewards to
their valuable customers. They started Marriott rewards, Ritz-Carlton rewards for their clients.
They can redeem their points according to their requirements, when they travel in all over world.
Marriott is having a long history in the field of innovations. They are always following the
innovative ways for making their customers happier from their services (Brooks, 2013).
Following are the innovations of Marriott international:
Year Innovation 4 P’s of
Innovation
space
1927 First A&W root beer stand is started
by the Marriott International
Service -
Radical
1988 In Poland, they started 500 hotels Position –

Business and Innovations 5 | P a g e
(marriott.com, 2018, A). Incremental
1997 The acquisition of Renaissance Hotel
Group.
Position -
Incremental
2004 Marriott’s has announced about the
first Bulgari Hotel and resort.
Position –
Incremental
2009 They started Autograph collection Position -
Incremental
2011 In Europe, Brazil and North
America, they started AC Hotels for
their clients (marriott.com, 2018, A).
Position -
Incremental
2012 Marriott started one click scheme for
the RED coat in which customers
will manage their events.
Process -
Incremental
2013 MOXY was lunched in the Europe
for targeting their market. It is a 3-
start hotel.
Position -
Incremental
2014 Marriott International doubles their
distribution in Africa for reducing
competition.
Position –
Incremental
2015 Marriott merge the Delta hotels and
resorts in them.
Position –
Incremental
2016 Starwood hotel is merged with the
Marriott and it is reducing the
competition of it (marriott.com,
2018, A).
Position –
Incremental

Business and Innovations 6 | P a g e
2017 The company was awarded with
digital edge 50. (Marriott News
Center, 2018).
Process –
Incremental
2018 Loyalty Rewards are started for the
clients, which is beneficial for clients
as well as for the organization
(Marriott News Center, 2018).
Service –
Incremental
The Future of the Industry 2020 and beyond
Porters 6 analysis of Marriott International
Porters six forces model is used for analyzing the competitive environment. The forces in the
model include:
Bargaining power of suppliers (medium)
It is depending on the number of supplier that the organizations negotiate with suppliers if they
are more than in number. Marriott International is having many suppliers but if they compromise
with the quality of the products than it will also affects their image in the industry. In 2020, the
corporation will have to change its suppliers as the demand of customers changes based on
which it will have to create a positive relationship with them.
Bargaining power of buyers (high)
If supply is lower than demand than buyer is power is decreased. Marriott international is always
a foot ahead for making their customers happy and satisfied with their facilities. However, the
number of competitors will increase by 2020 and technological advancement will allow
customers to easily check and compare prices. There is no switching costs based on which the
barraging power of customers is high.
Threats of Rivalry from the new entrants (moderate)
New entrants are decreasing the profitability of any company. There are so many things to be
considered for manage this threats, such as patents, rule, regulations, brand, government policy.

Business and Innovations 7 | P a g e
Marriott international is using a best approach for reducing competition by acquiring new
business and it is a well-established brand which is likely to sustain its brand reputation.
However, other competitors might also follow this strategy; therefore, the threat of new entrants
will be moderate in 2020.
Threats of substitution (low)
Strong branding is reducing the substitution threats, such as iPhone is having a brand. There are
not specific substitute products; however, some substitute includes motels, guest house, Airbnb
and others. By 2020, new substitute might launch such as virtual experiences, however, they are
less likely to disrupt the industry; thus, the threat of substitution is low.
Competitive Rivalry in the industry (high)
This is the biggest threats for the organization. It is a high-level rivalry between the products of
different organizations. The number of competitors for Marriott is likely to increase by 2020 and
it will create challenges for the company. Competitors of Marriott include IHG, Wyndham
Worldwide Corporation, Choice Hotels International Inc., Four Seasons Hotels Limited and
others which are likely to rely on innovation to expand their operations by 2020, therefore,
competitive rivalry is high (Winder, 2018).
Relative power of other stakeholders (moderate)
The government is another key stakeholder which affects the operations of Marriott
International. Marriott operates globally; therefore, the company is affected by actions taken by
governments in many nations. By 2020, governments will new regulations for the hospitality and
Airlines industries which will be enforced on Marriott. This industry in highly affects the
economy of the country. It is also based on the tourism and traveling from the national as well as
international tourists. New changes brought by the government will influence the profitability of
Marriott since its management will have to change its current processes to comply with new
guidelines. Therefore, the relative power of other stakeholders is high for Marriott since it will
influence the profitability of the industry.

Business and Innovations 8 | P a g e
The Organisations Innovation Requirements 2020 and Beyond
Marriott international is a great innovator in the field of hospitality and other business. There are
so many things for making their business in increasing stage. Therefore, they are highly focused
on the innovations in the field of hospitality. It is also necessary for following the rules and
regulations of governments and it is helping to maintain their status (Whiteling, 2010).
These are the basic strategies of Marriott International Inc. for growth in future.
PESTLE analysis is most important thing for an organization. Here is PESTLE analysis of the
Marriott International.
Political Factors
The main political elements that would have an effect on Marriott are the danger of terrorism,
International business and the political climate in famous tourist locations. Major political
decisions such as Brexit resulted in affecting the operations of the company. For example, the
United Kingdom is a major market for Marriott and Brexit will makes it difficult for the
company to effectively manage its operations situated in European nations. The number of
customers is likely to reduce and other tariffs, duties and charges are likely to increase which
poses new challenges for Marriott. The threat of terrorism has also affects the hotel industry and
it is also a reason which frightens people away from traveling (Pestleanalysis.com, 2018).
Economic Factors
Essential monetary elements on the way to affect Marriott’s business are the slowing of
economy. It increases in China and the continued financial issues in Europe. Such occasions as
the inventory market collapse in China and the crisis in Europe have substantially decreased
individuals’ travel at different places ( Gollan, Marriott Wants To Build Loyalty With Luxury
Travelers By Providing Transformative Experiences, 2018).
Social and Cultural Factors
Social elements make the destiny appearance very good for Marriott International. It is also
based on the quality of travelers that planned to travel all over the world. Social perspective of
customers towards luxury travel is changing and millennial customers prefer to pay extra for a
luxury travelling experience. By 2020, the use of technology will makes it easier for Marriott to

Business and Innovations 9 | P a g e
reach new customers in developing nations as the access of customers to the internet increases.
These changes can expand the numbers of tourists form the different cultures, such as China,
India, and many other countries (Oskam & Boswijk, 2016).
Technological Factors
IoT is changing the way services and products supply fee and in imminent future it will also
redefine guest enjoy by means of rendering hyper-personalized tips and fixing actual-time
queries of the guests. famous person-wood motels & hotels utilized a technique referred to as
“sunlight hours harvesting” to shop electricity and growth indoor lights consistency by way of
routinely adjusting the power-efficient LED lighting based at the natural light detected entering
the room ( Bursell, 2017).
The hospitality enterprise is imposing IoT-centric systems to better serve customers and boom
the performance of its operations. As an instance, the motel industry can use IoT to offer
included services, which include application driven devices and automated triggers like
automatic door locks, set-pinnacle-bins, thermostats, phones, mild switches, electric powered
blinds, and different gadgets, which are connected on a not unusual network to enable the
services that visitors want. These forms of facilities will help hoteliers to decorate their in-room
studies and provide a high priced ambience for his or her guests (Center, 2018).
Legal Factors
The fundamental legal element with the intention to affect Marriott’s future business is the
popularity of offerings. ( KHARE, 2016). Legal changes brought by Brexit will affect the
operations of Marriott since it will have to comply with new legal guidelines. The corporation
which uses online platform to reach a wider audience, such as Marriott, will have to comply with
cyber security and data protection regulations to ensure that they protect the privacy of their
customers. A good example is implementation of GDPR (General Data Protection Regulation) in
European Nations, UK and the United States (Tankard, 2016).
Environmental Factors
Environmental element that could disrupt Marriott’s business is gas prices. There are so many
things, which are related to the environment. Falling oil fees may want to cause decreased travel
costs and more demand for motel rooms. Glaringly, a capability chance to Marriott’s commercial

Business and Innovations 10 | P a g e
enterprise would be any surprising increase in gas prices, specifically for the travelers, which are
using airways for travel (Quaste , 2017).
An ability long-term environmental impact on Marriott may want to encompass accelerated
strength charges created by means of efforts to slash greenhouse gases by limiting the burning of
coal in strength plants. Climate trade may want to damage Marriott’s business with the aid of
elevating ocean degrees and flooding inns or growing storms that discourage seashore going.
Accelerated temperatures from international warming result in closing ski resorts or make a few
beach hotels too hot for comfort. These factors will force Marriott to rely on innovation to
change its offering and innovations in order to sustaining develop in 2020 ( Solis, 2018).
Building the Future Innovation Capabilities
SWOT of Marriott International
Strengths
 Strong profitability: Marriott international has sustained its profitability by expanding
its operations globally. The company reported a massive internet a profit of 398 million
greenbacks inside the first zone of 2018, which is a 7 % growth comparing to the first
zone of 2017, expects the second area of 2018 to reach approximately 945 million dollars
gross costs sales which makes 10 or 11 % boom profitability evaluating to 2nd quarter of
2017 ( Taylor, 2018).
 Market share: Marriott International is one in all leading organizations in to the
hospitality industry.it is spreading their business day by day at all over the world.
Employer presently operates 29 specific manufacturers around the globe. The plan of
expansion is positive and the agency appears after new share markets ( Yu, 2017).
 Strong focus on innovation: Marriott International has announced that they are very
proud to introduce a brand new loyalty scheme for his or her clients in 2018 across 6500
hotels in 127 countries. The brand new scheme will deliver the possibility for clients to
gather factors and gain Silver, Gold and Platinum fame with a view to result in extra
bonuses and blessings (Volodzko, 2018). These types of innovations are beneficial for the
organization as well as for clients. The business enterprise has additionally introduced a

Business and Innovations 11 | P a g e
moment of stay – musical and culinary display provided through Marriott with
partnership of widespread song institution (Development, 2018).
Weaknesses
 Excessive focus on expansion: The Corporation is extensively focused on expanding its
operations in new areas which resulted reducing the quality of services of the company.
 Attrition of employees: Marriott is finding it difficult to retain talented employees in the
workplace since its attrition rate is high. Many people leave Marriott and join its
competitors due to lack of availability of facilities and growth opportunities.
 Lack of environmental friendly policies: The importance of social responsibilities of
companies is increasing based on which many competitors of Marriott are improving
their value chain in order to implement sustainable policies which are likely to negatively
reflect on the public image of Marriott.
Opportunities
 Shift in consumer behavior: Perspective of customers is changing and prefers to pay
extra for a luxury travelling experience.
 Increase in number of customers: The number of global travellers is increasing,
especially in developing nations. New market expansion opportunities are available for
hotel corporations to expand their business in the market.
 Personalized travel: Hotels are giving personalized travel option to their customers in
which customers can customize their travelling experience and they pay extra for those
customizations.
Threats
 Competition: Increasing competition is a major threat for hotel corporations since the
number of competitors is increasing in the market.
 Strict compliances: Governments are introducing new laws and regulations on hotel
corporations which make it difficult for them to sustain their profitability in the market.