Marriott Hotel: Competitive Advantage and Strategic Options Report

This report offers a thorough analysis of Marriott Hotel's business strategy, enterprise, and innovation. It begins with an internal analysis of Marriott's resources, including human resources, machinery, management, materials, and market, followed by a SWOT analysis to identify competitive advantages. The report then evaluates the impact of external factors using a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. Furthermore, it critically evaluates two strategic options for increasing entrepreneurial opportunities: enhancing employee efficiency and delivering products at a lower price, both assessed through the SAFe criteria of suitability, acceptability, and feasibility. The report concludes by synthesizing these analyses to provide insights into Marriott's strategic positioning and potential for future growth.

Strategy, Enterprise &
Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSESSMENT TASK....................................................................................................................1
Question 1........................................................................................................................................1
a) Critically analyse the company’s internal resources and core competences that are sources
of.................................................................................................................................................1
competitive advantage.................................................................................................................1
b) Evaluate the impact of key drivers of change in the external environment and competitive
forces...........................................................................................................................................3
Question 2........................................................................................................................................4
a) Critical evaluation of two Strategies options that can pursued by Marriott hotel in order to
increase its entrepreneurial opportunities in the industry...........................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In enterprises, appropriate innovative strategy is essential for the management as it assist
the company to grow and aids in attaining competitive advantages. With the help of innovative
strategy, management discover various new ways which enables to run their operations in more
efficient way (Innovation and enterprise, 2011). Strategies, enterprise and innovation, these
three terms provide better knowledge about IT which play role as a guideline to achieve business
goals for any company. Present report is based on Marriott hotel which provides their services
worldwide. For this, management must adopt new and innovative things which assist to manage
their work within more than 500 hotels all over the globe. This report has been divided into two
parts in which first part is about internal and external analysis of Marriott and second part is
covered with SAFe which stands for suitability, acceptability and feasibility (Senge, 2014).
ASSESSMENT TASK
Question 1
a) Critically analyse the company’s internal resources and core competences that are sources of
competitive advantage
Befog adapting any new thing, management of Marriott must analyse all such resource
which is currently used by the Marriott so that it becomes easy for the management to evaluate
the impacts of innovation at Marriott (Ragin, 2014).
Internal analysis Human resource: For hiring appropriate and capable candidates in 500 hotels, HR
manager of the company can adopt a systematic process which assists for better
management in workforce. HR manager conducts training and development sections to
retain their employee for long time (Cohen and Lotan, 2011). Machineries: Manager of Marriott is always concern with their equipments which is used
by their employees. Management always maintain and update all equipments in a proper
time so that it assists in reducing the chance of accidental issues in the working place. Management: To manage their 500 hotel staff and their customers Marriott adopts a
strong strategy towards their management. Their work is divided in sub departments
which assist in maintaining accuracy in their work. Management has strong employment
team which is one of the core competencies for Marriott-international (DuPaul and
Stoner, 2014).
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 Materials: Marriott have global presence and it also has strong brand image in the market
place because of their qualitative services. For this, it is must for hotel management to
use good quality material so that they can maintain their quality for long time
(Peterfreund, 2016).
 Market: Marriott cover large number of area in their market that shows their strong
marketing strategies. Without essential marketing, it is not possible for hospitality
industry to stand in the market place for the long time (Schmeck, 2013).
SWOT analysis of Marriott hotel (Source of competitive advantages)
Strength Weaknesses
 Marriott has high brand image in the
market.
 Management of this hotel always adopt
innovative things to enhance their
customer experience level in more
effective way.
 Marriott is always concern with their
employee satisfaction which helps in
retaining their workers for a long time
(Marriott International SWOT Analysis,
USP & Competitors, 2017).
 As compare with its competitors,
Company have limited number of
share that occur problem in their
future market stability.
 Company's global expansion create
problem to adopt different types of
policy and for some time, it leads to
confusions in their working style.
 Brand dilution is another weak point
for Marriott-international hotel.
Opportunities Threats
 Marriott and its management have
potential as they can enhance their level of
potentiality in more effective way.
 Company can adopt more innovative
things which assist to enhance their
customer expectations from hospitality
industry.
 Hotel management can develop their
interior which assists the for attract more
 Price competition is one of the
threats for Marriott which creates
problem in their future.
 Other competitors, who they in
competition with Marriott, they may
create problem in the future.
 Stagnant Growth is also threat for
the hotel management (Schmeck,
2013).
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customers.
With the help of this SWOT analysis management can analysis the actual situartion of
their internal business. They can use their strength in which they can utlize their strength in more
effective way. With the help of identification of their weaknesses, they can concern with such
points which assist to over come with their drawbacks. Opportunities and threats are also play
role for improvement in organisations (Aghion, Van Reenen and Zingales, 2013).
b) Evaluate the impact of key drivers of change in the external environment and competitive
forces
PESTLE analysis of Marriott Hotel
To stand in the market place, it is important for management of Marriott to ignore all
such threats to create barrier for entity to grab opportunities. For this, Marriott must maintain
their level of potentiality to enhance their level of competition and attract their customers
towards hotel products. PESTLE analysis of Marriott hotel is discussed below which helps to
analyse its market situation more effectively (O'Neil, 2014).
Political factor: For Marriott, some political factors create danger and these are
terrorism, international relationship and political climate. All three political aspects negatively
impact the business of hospitality industry. Various attacks from terrorist develop fear for
visitors which affect their business in a negative way (Villanueva, Graupera and Guarner-
Argente, 2013.).
Economical factor: One of the biggest threats for Marriott is economic condition for
country which impacts on individual income factor. When the economic condition is changes
then it also impacts on the middle class wage rate become reduce then they lost their level of
potentiality towards (Song and Li, 2015).
Social and culture factor: As per 2014 data, 14% people enhance their interest towards
the travelling and used to go for international tour. This is positively impacts on the future
business of Marriott because people are more interested in spending their money which is good
for company growth (Marriott International’s exeternal environment analysis, 2016).
Technological factor: This is the biggest factor which affects the hotel industry because
today's era all work is done with the help of online services. Marriott hotel is also concern with
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their way of working which assist in reducing the extra expenses of customers. On the other
hand, their tax and vat charge included in online charges negatively affects their customers.
Legal factor: Marriott having a global presence in the market and for this, it is essential
for hotel management to focus on each and every country’s rules and regulations effectively. If
hotel industry does not follow the same then it may lead to develop negative impacts on market
as well as their goodwill (West and Bogers, 2014).
Environmental factor: Recently, demand of hotel is reduced due to weak environment factor.
Fuel price are increased which affects the transportations and tourism sector. Cordially, this also
impacts on guest behaviour towards the travelling that obviously impacts on their business
potentiality. Global Warming is also an environment factor which affects Marriott business in
negative way (Anderson, Potočnik and Zhou, 2014).
All above study is helpful for management of hotel to evaluate the actual situation and
grab all that factors which impacts the business in a negative way. This evaluation is not
controllable because of their external presence but hotel management can control this with the
help of their strength.
Question 2
a) Critical evaluation of two Strategies options that can pursued by Marriott hotel in order to
increase its entrepreneurial opportunities in the industry.
Management of Marriott adopt two strategies to do some innovation which for their
business. These two strategies have been identifies with the help of porter generic strategy and it
will be implemented with the help of SAFe analysis (Russia, 2014). Enhancing employees efficiency: For enhance their business efficiency, management of
Marriott adopt various ways which assist for develop level of potential in their workers.
When the level of efficiency increase in their work then they become efficient towards
handle different types of customers in more significant way (Aghion, Van Reenen and
Zingales, 2013). With the help of management tours, management provide practical
knowledge to their employees' to groom them self. When the employee join such tours
then it becomes easy for workforce to apply such practises in their working style which
helpful for entity to enhance their working methods. With the help of this method
management can develop a team which assist for company's growth (Senge, 2014).
Strategic choice through (SAFe) criteria.
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For enhancing their employee skills, management adopt SAFe criteria which helpful for
deciding its future effectiveness. Following three are listed below that shows the chances of
success of this strategy:
Suitability: With the help of this point, Hotel management decide that this strategy is
appropriate for the company and its work point of view. If Marriott adopt this strategy that suits
on their employee to gain practical knowledge about their customers. This is positively impacts
on the business because they gain appropriate knowledge from their external learners (Ragin,
2014).
Feasibility: In this point management evaluate its financial resource which is obtained by
the entity or not (Peterfreund, 2016). If the Marriott spend their finance on train their employee
then this will assist for their employee to handle their customers which leads to enhance their
goodwill in the market trend.
Acceptability: Potential employee is assist to achieve the organisation expectation so they
can grab the benefits for the entity. For example, when Marriott goodwill will increase then it
positively impacts on their stakeholders. This assist for customers to expect to fulfil their desire
from hotel.
 Delivering products at low price: One more strategy, which is based on reduction price
in their services. For this management of Marriott reduce the ratio of profit in their
products and services. When the management adopt this strategies then this will assist for
management to stand in the competition (Schmeck, 2013). When customer get same
services with economical price then they will select the Marriott hotel first. Customer
also have perception that low price means less quality, to solve this problem,
management can adopt discount policy so that customer not develop their negative
perception with the same. They also tie-up with the marriage inventor and provide
commissions. This is also one of the good way to grab more customers towards the
Marriott hotel (Villanueva, Graupera and Guarner-Argente, 2013).
Strategic choice through (SAFe) criteria
With the help of SAFe analysis management can develop their working criteria because
various discounts and price assist to attract their customers towards the hotel services.
Suitability: It suits on the hospitality business and its impacts in a positive way because
less price enhance the number of customers towards the grab hotel services. This impacts in a
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positive way because shareholders more invest in this industry which is good for Marriott future
(Song and Li, 2015).
Feasibility: Less price always attract customer who they are from middle class. It is also
positively impacts on financial position of the company because less price leads to large number
of customer who they visit and use hotel services (West and Bogers, 2014).
Acceptability: This strategy has big chance of success because if Marriott reduce its price
then more marriage and commercial events are held in their hotels which assist to enhance their
fame and finance both term (Aghion, Van Reenen and Zingales, 2013).
Both strategies are appropriate for Marriott to grab the opportunities and enhance their
potentiality level for better and effective future. First strategy helpful for making their teams in
more strong way and second strategy is good to cover large area of market stand to become the
leading one in this sector (Buckley and Casson, 2016).
CONCLUSION
After summing up all above study, it is concluded that for enhance and adopt any
business expansion a systematic step is must have taken by the management to enhance their
way of working in more effective manner. In this report, SWOT analysis of Marriott is carried
out which assist to utilize industry strength in more effective way and control over the threats
towards the reduction. In this report PESTLE analysis is also described which assist to analysis
the business options of the Marriott. For better and effective working, Marriott adopt two
strategies which relates to the employee efficiency and affordable products and services which
enhance the business of Marriott.
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REFERENCES
Books and Journals
Russia, U. I. E. E., 2014. Risk and Uncertainty Management in Technological Innovation.
Technovation. 34(8) pp.395-398.
Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional ownership. The
American Economic Review. 103(1). pp.277-304.
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
Management. 40(5). pp.1297-1333.
Buckley, P. J. and Casson, M., 2016. The future of the multinational enterprise. Springer.
Cohen, E. G. and Lotan, R. A., 2014. Designing Groupwork: Strategies for the Heterogeneous
Classroom Third Edition. Teachers College Press.
DuPaul, G. J. and Stoner, G., 2014. ADHD in the schools: Assessment and intervention
strategies. Guilford Publications.
O'Neil, H. F. ed., 2014. Learning strategies. Academic Press.
Peterfreund, E., 2016. The process of psychoanalytic therapy: Models and strategies.
Ragin, C. C., 2014. The comparative method: Moving beyond qualitative and quantitative
strategies. Univ of California Press.
Schmeck, R. R. ed., 2013. Learning strategies and learning styles. Springer Science & Business
Media.
Senge, P. M., 2014. The fifth discipline fieldbook: Strategies and tools for building a learning
organization. Crown Business.
Song, G. and Li, X., 2015. Substrate Activation Strategies in Rhodium (III)-Catalyzed Selective
Functionalization of Arenes. Accounts of chemical research. 48(4). pp.1007-1020.
Villanueva, C., Graupera, I. and Guarner-Argente, C., 2013. Transfusion strategies for acute
upper gastrointestinal bleeding. New England Journal of Medicine. 368(1). pp.11-21.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.
Online
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Marriott International SWOT Analysis, USP & Competitors, 2017. [Online] Available through:
<http://www.mbaskool.com/brandguide/tourism-and-hospitality/2370-marriott-
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