Marriott Hotel West India: SWOT, PEST, and Strategic Analysis

This report provides a comprehensive analysis of Marriott Hotel West India, focusing on its operations within the international hospitality industry. The report begins with an overview of the international hotel industry and the background of Marriott. A detailed SWOT analysis examines the hotel's strengths, weaknesses, opportunities, and threats, while a PEST analysis explores the political, economic, social, and technological factors in the emerging market. The report further analyzes the interplay between the SWOT and PEST factors, leading to strategic recommendations for market entry and expansion. The justification for the chosen strategy is presented, along with practical applications and a conclusion summarizing the key findings and recommendations. The report highlights the importance of understanding market dynamics and adapting strategies to ensure long-term success in the global hospitality sector.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Background to International Hotel Industry...........................................................................1
Background to Hotel Company..............................................................................................2
SWOT analysis of Marriott Hotel West India........................................................................2
Background to Global Hotel and Tourism Industry...............................................................4
Background to emerging market............................................................................................5
PEST of emerging market......................................................................................................6
Analysis of SWOT and PEST................................................................................................7
Hotel strategy to be adopted and implemented within entering market.................................7
Justification of strategic emerging market...........................................................................10
Practical application of strategy...........................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................13

INTRODUCTION
International management is related with development and maintenance of multinational
operational activities of a company across territorial regions. In this regard, managers of such
organisations have possessed necessary skills and knowledge for managing stakeholders, cross-
cultural processes and environment of business in a right manner. In context with hospitality
management, business owners in this field concerns on development of ability in order to
manage and control high quality hospitality as well as tourism around the world (Brotherton,
2012). This report is going to cover different aspects of hospitality industries by focusing on
various contemporary issues. Company chosen in this assessment is Marriott Hotel West India
which deals its business in UK market. SWOT analysis of this hotel with PEST of emerging
market of World Trade Market 2014 will be done in next part. Further for maintaining market
growth and long term share, some marketing strategies are also discussed.
Background to International Hotel Industry
In tourism sector, many companies are operating their business at international level in
order to gain profitability. Tourism industry in worldwide has been generated millions for
recipient nations. It makes tourism as one of the most successful business in terms of
international trade related to services. Hospitality organisations usually come under tertiary
sector which conduct business to provide services like good accommodations, transport facility,
food and more to customers (Buhalis and Crotts, 2013). With this assistance, there are many
booming sectors which are found in service industries like IT, aviation sector and software. In
order to monitor progress as well as developed and promote sustainability in hotel industries,
many world trade organisation has been created. It includes WTM (World Travel Market),
UNWTO (United Nation World Trade Organisation), WTTC (World Travel & Tourism Council
and more. These organisations give support to hospitality sectors by arranging financial sources
for them so that they can cope up from economic conditions and run business in appropriate
manner. As per WTM report 2014, there international tourist arrivals has now surpassed with 1
billion and will become 1.8 billion in upcoming years worldwide.
In this era, hotels are playing a crucial role in developing and enhancing tourism in a
country. Marriott Group of industries which is headquartered at UK has operated its business in
many countries worldwide. Currently, hotel of this group found near about 6,520 different
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locations of the world where more than 177,000 employees giving high quality of services to
customers and tourists of other countries. It was founded in 1927 by J. Williard and Alice
Marriott. This hotel has launched business in 1993 first time at international level, when business
of it was split in two companies via Marriott International and Host Marriott Corporation.
Moreover, it is a worldwide franchisor and operator related to lodging facilities. For enhancing
tourism, hotel industries are considered as most important industries that offer and deliver high
quality services to tourists (Brown, Arendt and Bosselman, 2014). In this regard, Marriott Hotel
refers to first chain which serves best quality food to customers that is free of trans fats and
enrich with high nutrition.
Background to Hotel Company
The Marriott Hotel West India was established in 2004 at London and known as Canary
Wharf Business. It is located at West India Quay and is operated by Marriott Hotel Group.
Currently, it has more than 47 apartments and 301 rooms. It provides a high quality facilities to
customers such as Manhattan Grill Steak Restaurant, an executive lounge, 19 event rooms with
some bar and health club. In order to serve best services to tourists, management of this hotel has
treated its employees equal and provide them various beneficial opportunities. It includes right
to deliver services to customers in own manner that provide them effective satisfactions (Sisson
and Adams, 2013). Along with this, other aspects that show strong culture of organisation are -
consider employees as most valuable assets, creativity, supports community in active manner,
positive environment, performance reward system and more. Moreover, to gain competitive
advancement and sustainability at marketplace, this hotel seeks to exceed consumer expectations
rather than to meet only.
SWOT analysis of Marriott Hotel West India
Strengths:
High Brand Recognition - Marriott Hotel is considered as premium hotel having 5 and 7
rated stars under hospitality chain across the world. The biggest strength of this hotel is its strict
adherence in terms of operational norms. Top managers of this organisation has been designed
code of conduct in custom manner which is expected to be followed by each staff member.
Therefore, it has good reputation at marketplace among its guests that receive best services. It
offers heavy discount to old customers and newly married couples for their honeymoon.
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Good employee retention - Marriott Hotel West India has more than 250 well trained and
experienced staff. They know very well how to meet requirements of customers and deliver them
accordingly as per expectations. Therefore, management of this hotel relies much on them and
provide them open environment as well as strong culture to get their retention (Hall, Timothy
and Duval, 2012).
Experience in tourism and hospitality sector - In order to serve good facilities to tourists, this
hotel has adopted many innovative technologies with best lodging experience. Room are
facilitated with High Definition Televisions, high-speed Wi-Fi internet services, MP3 docking
station and more. Along with this, doors are installed with Guest sensors also.
Weaknesses:
High-expensive rates- Marriott Hotel mainly targeted rich business class or high-status
people and offer services accordingly. Along with this, tariff rates per room for one night varies
near about £340 to £559 which is not possible to be afford by middle class people. Therefore, it
highlights major weakness of this hotel (Ariffin and Maghzi, 2012).
Governmental Policies- Increase taxation rates with 20% hike of total profit of hotel
industries has resulted to change operational strategies of Marriott Hotel. It majorly affects
tourism in UK and other emerging countries where this hotel has operated business.
Controversies: Image of this hotel has been disturbed by various controversies like
improper lodging facilities, blockage of personal wireless internet access which state privacy
risks and more. All these things impact negatively on reputation of this market.
Threats:
Economic and political turbulence- Hospitality industries and properties which are star-
rated, facing major risk from terrorists group. As these areas are targeted much by terrorists like
in 2011, The Marriott World Trade Centre was destroyed during terrorist’s attacks. So, this
factor has created a large impact on tourism in a country and profitability of hotel industries
(Deng, Yeh and Sung, 2013).
Economic recession- Hospitality industries are adversely affected by global recession
which assists organisations to sale out their shares and properties on marketplace who are not
able to generate revenues.
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Competitors- Presence of many competitors like Hilton, The Langham, Brown's Hotel and more,
create a major threat on profitability of Marriott. All these hotels are continuously improving
techniques and offer great facilities to customers in order to become market leaders.
Opportunities:
Tradition and Digitisation: Marriott Hotel has installed many innovative technologies
like HD-TVs, Radio Frequency Identification, Guest Sensors and more. So, if it displays
traditional and heritage of London then this unique combination of tradition and digitisation
provide opportunity to attract mind of customers in vast manner. It also helps in gaining retention
of tourists (Wood, 2013).
Expansion in Global and emerging marketplace: Marriott Group of Hotel has expanded
its business in more than 67 countries of the world. As this hotel has provided high facilities and
accommodations to customers. So, it is expected to get success by operating business in
emerging market also like Changzhou, Africa, Europe and more. Thus, this factor of business
expansion in global and emerging market will also give opportunity.
Shift of consumer Behaviour- Today with increasing economy, people are liked more to
stay at luxury hotels with family and friends. Therefore, this emerging trend give opportunity to
Marriott Hotel to accommodate services to other class of tourists also.
Background to Global Hotel and Tourism Industry
In respect to globalisation, there are many trends taken place in hotel and tourism
industries. It includes customer services, innovative technologies, sharing economy, reputation
management, expectations of international tourists, real time marketing and more. By creating
better and exclusive services for customers which are exceeding expectations and anticipations
of them, hotel industries will gain opportunity to capture more mind of visitors.
The most essential aspect in global hotel and tourism industries is booking profitable
business in the developed marketplace (Boella and Goss-Turner, 2013). As if profitability of
business increases then it would result to more development in level of accommodation,
occupancy, effective price rates for each room and more. Along with this, innovation in
technologies proved beneficial for hotel industries as customers can easily book rooms by mobile
and other apps of internet services. They can relate price of different hotels with
accommodations for booking on affordable rate. Moreover, real time marketing is incorporated
with customer-generated content with the help of internet services like social media. Therefore, it
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is taken as most important aspect of marketing mix for tourism industries and global hotels in
developed marketplace. Trends related to health and weakness assist hotel industries to focus
on providing effective services to customers. Hotels should provide healthy food options to
customers for their wellness.
With increasing in connectivity in the world, tourists get chance to travel to different
locations. In context with Emerging Market, there has been a large expansion in rising tourism
and global hotel. As per WTM 2014, it might be European and Asian counties or some locations
in South Africa provide great opportunity to companies for emerging their business market. As
per studies, it has evaluated that emerging markets are increased volatility. Therefore, it is
required by hotel industries like Marriott Hotel West India to make an investment in Research
and Development Department. Managers of this division should conduct a proper research
before entering into new marketplace place of emerging countries as it is associated with major
risks. It cope up with risks and reduce the same, in emerging market there is a presence of insight
of landscape for domestic business, authentic interest of customers, traditional building and some
cultural aspect. Changzhou city refers as one of the emerging market era for tourism industries
and global hotels (Ferdinand and Kitchin, 2012). The main reason behind this is stable
parliament of city as official it is considered as Communist City. As regulatory bodies of this
nation has maintained a tight control on lives of people as well as promote private ownership,
entrepreneurial ventures and investment at international level. Some of the most emerging cities
are Changzhou, Guiyang, Xiangyang, Hengyang, Chongqing and Suqian where Changzhou has
high educated people and economical stability with many big enterprises. So, all these things
gives opportunity to Marriott to put its feet in new emerging market for expanding its business.
Background to emerging market
Emerging market is considered as a nation which has major characteristics of a developed
countries and cities. It also doesn't meet standards for being a developed market also.
Economical condition of Changzhou, Africa, Europe and India etc. are taken as largest emerging
market which give opportunity to global hotel and hospitality industries to conduct their
businesses. These market places also provide potential at great level for profitability to
industries. Along with this, it also covers major risks like patent infringement for such companies
who want to emerge into new market area. Changzhou is considered as world's workshop where
people are manufacturing a wide range of products. Moreover, financial sector of this country
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has been evolved to meet requirements of modern economy with trade at global level. In context
with emerging cities, Changzhou has a good economical condition as well as largest hub of
operations where many companies are running their business (Line and Runyan, 2012). Income
of people is approximately 5,100 in USD currency which shows good economy condition of this
city. Along with this, Changzhou has a good infrastructure also which assists tourists of different
countries to visit its place. Thus, if Marriott Hotel West India Quay open its business in
Changzhou then it will help in earning high profitability. Because good economy of people
shows that they can pay easily for taking services of this hotel. While Xiangyang is also
considered as perfect location to open a hotel. As this city enrich with energy resources like
minerals, gold, manganese, rock salt or more. Here many textile industries are running which
attracts business class tourists more. As Marriott Hotel focuses more on business class people so,
launching business in this city will provide opportunity to generate high profitability as well.
PEST of emerging market
Political Factor- Features under this factor are indicated by employment law, taxation
policy, tariffs, limitations of trade and some environmental laws. Therefore, it is necessary for
management of Marriott Hotel West India to concern before opening business in emerging
market of Changzhou. The three main factors which shows potential of this nation for
international business are less labour cost, size of marketplace and economic growth of
Changzhou. It has a stable political environment but to run business smoothly, it is necessary for
management of Marriott to abide the same. In terms of legal manner, Changzhou has less
experienced in drafting e-commerce legislations like recognition of digital signatures,
consumer’s rights as well as validations of electronic contracts. So, some of these aspects are
fruitful for opening hotel in this nation like less consumer rights aid in making effective
strategies (Chen, Cheung and Law, 2012).
Economical Factor- This factor features for liability of FDI (Foreign Direct Investment)
on global hotels and hospitality industries. It includes foreign exchange rates, interest and more.
From last five years, economical condition of Changzhou is relatively developing at high rate.
Along with this, as per GDP it is the second largest nation of the world which has good
economy. So, it shows beneficial factor for running business successfully for hotel industries.
Moreover, income tax rate of this country is 25% which reduces till 15% for qualified business
that operate business in hotel sectors.
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Social Factor- It comprises on travelling trends of a country in emerging market for hotel
and tourism industry. As Changzhou is one of the most populous cities in world and has a total
population of approximately in millions. So, demand of tourists also increases at high rate as
billions of tourists are used to come to visit its destinations in large manner. It attracts mind of
Marriott Group of Industries to open its business. In terms of demographic, population growth
and age distribution in this country also change which provide opportunity for global hotels to
generate high revenues. Lifestyle of people, level of education, cultural aspect and increment in
emigration are some social factors of emerging market of Changzhou.
Technological Factor- This factor is associated with rate of technological inventions,
inducement, mechanisation and more which create a large impact on level of production, cost of
operation as well as decisions for tourism and global hotels in emerging market. As in
Changzhou, technology has developed more so, it assist Marriott to install new techniques in
premises through which it can provide better services to tourists.
Analysis of SWOT and PEST
PEST analysis of Marriott provide information related to political, economical, social and
technical factors. By this , it has evaluated that entering into emerging market of this country,
will be beneficial for Marriott Hotel West India Quay. Because more than one billion of tourists
used to come yearly to spend their holidays and visit beautiful destinations of nation yearly.
Through SWOT technique, it has cleared that Marriott offers a wide range of services to
customers by which this hotel can grab a large attention of tourists.
Hotel strategy to be adopted and implemented within entering market
Porter's Generic Strategies:
In context with hotel industries at global marketplace, this model is considered as most
important strategy. It helps a firm in expanding business into new market era as well as
developing and maintaining the long term profitability share. It consists three main aspects that
are Differentiation, Cost Leadership and Focus Strategy. Cost leadership strategy is used to
provide services to customers on lowest rates with best quality. In context with Marriott Hotel
West India Quay, it provide services on less rates as compared to other hotels like Hilton. It
helps in attaining a good position at marketplace by generating high revenues. But if this
organisation make some improvisation in techniques then it will enhance efficiency of business
in emerging market also like Changzhou (Hall, Timothy and Duval, 2012). Other ways by which
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this hotel can become market leader are accessibility to an increased source of lower cost items
in exclusive manner and take decisions related to vertical integration. Since resources in
Changzhou are much available at low cost like low labour cost so, it also gives opportunity to
this hotel to offer services on less price rates. Because if employees work on less salary then it
will helpful in gaining high retention of them. It would provide beneficial in providing good
services to customers also by giving employment to large number of employees at workplace. In
Changzhou, there is availability of wide range of rich food ingredients which is also fruitful for
hotel industries to serve different style of food products to customers as per their taste.
In terms of Differentiation strategy, Marriott Hotel has achieved success as it has
accessibility to lead scientific research in more easy manner. It has a creative as well as highly
efficient team that provide effective services to tourists. Along with this, as there are many
competitors already present in market area of Changzhou so, managers of Marriott requires to
create product differentiation. This hotel needs to provide special services to customers like
discount for newly married couples, family packages, unique services to business class people
and more. Furthermore, Focus strategy relates to contract session as people of Changzhou are
working on low capital so, if this hotel will offer them good salary then loyalty of them can be
earned.
(Sources: Porter's Generic Strategies, 2018)
Nykiel's Fourteen Hotel Strategy Growth-
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Illustration 1: Porter's Generic Strategies

 Strategy 1: Horizontal Expansion – In order to enter into new emerging market,
management of Marriott Hotel West India Quay can use this strategy by expanding its
hospitality services in other sector also.
 Strategy 2: Geographical Expansion – For entering into emerging market, this hotel
can grow its business in large geographical area.
 Strategy 3: Product Hybridisation – This strategy will help Marriott in expanding its
range of service into new market era of Changzhou.
 Strategy 4: Specialisation-Specialist – By specialising in effective products and
services, this hotel can grab more attention of customers of new era.
 Strategy 5: Product Tie-ring - For entering in market area of Changzhou, this strategy
will help Marriott in dealing with forces which are related with demographic and
economical changes as well as growth of population and market segmentation.
 Strategy 6: Product Re-Branding – Using this strategy, Marriott can create
development in its services which will help in attaining minds of tourism towards its
product brand (Ariffin and Maghzi, 2012).
 Strategy 7: Franchising – It is considered as most highly established strategy used for
growth of business. It will help Marriott in attaining its rapidly growth in new emerging
market of Changzhou.
 Strategy 8: Non-Franchising – For keeping control on quality of ownership, service
management and more, this strategy will be beneficial for Marriott.
 Strategy 9: Brand Collection – To purchase branded function which have consisted
potential for growth, it will useful for Marriott.
 Strategy 10: Management Contracts – This strategy is specialised in managing hotels
who are seeking to grab a new market area.
 Strategy 11: Vertical and Horizontal Integration - Marriott Hotel West India Quay
offers a variety of services to tourists on different discounts so it helps in gaining a high
competitive advantage to this firm.
 Strategy 12: Singleness – By developing a single service i.e. high total ownership and
full management control help Marriott in entering market area of Changzhou more
easily.
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