Strategic Analysis of Four Seasons Hotel in New York: PESTLE & SWOT

This report provides a strategic analysis of the Four Seasons Hotel in New York, examining its market environment and internal and external factors. The report utilizes PESTLE and SWOT analyses to evaluate the hotel's strengths, weaknesses, opportunities, and threats within the hospitality industry. The findings reveal the hotel's strong financial position and quality of services, but also highlight weaknesses such as a lack of a strong global network and a lower brand image compared to competitors. The report discusses political, economic, social, technological, legal, and environmental factors influencing the hotel's operations. The conclusion suggests the implementation of a premium pricing strategy and diversification strategies, such as offering unique services and facilities, to enhance the hotel's competitive advantage, attract guests, and increase market share. The report includes references and appendices for supporting data.

Hospitality Management

HOSPITALITY 1
Executive Summary
The main motive of this paper is to learn the theory of strategic management. In this report, Four
Seasons Hotel New York has been taken into consideration to examine the current market
situation. PESTLE Analysis and SWOT Analysis are the two strategic models that are used to
analyze the internal and external environment of Hotel of New York. It is recommending that the
pricing and diversification strategy has to implement at the workplace to achieve the objectives
in future.

HOSPITALITY 2
Contents
Introduction......................................................................................................................................3
Findings...........................................................................................................................................3
SWOT Analysis...........................................................................................................................3
PESTLE Analysis........................................................................................................................5
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
Reference List..................................................................................................................................9
Appendices....................................................................................................................................10

HOSPITALITY 3
Introduction
The procedure of evaluating, summarizing and evaluating the market environment of the
organization is called strategic management. The company needs to analyze the current situation
of the market to achieve its objectives. The organization uses the various strategic tools to
evaluate the market such as PESTLE Analysis, SWOT Analysis, Porter’s Five Forces
Framework and the others (Ansoff, Kipley, Lewis, Helm-Stevens, & Ansoff, 2018). In this
paper, the discussion is made on the market situation of the hospitality industry of New York. In
this report, Four Seasons Hotel New York has been taken into consideration to evaluate the
internal and external environment that affects the business. Four Season Hotels Limited is an
international luxurious hotel that offers accommodation and the other services to visitors. The
hotel operates in different areas of the world with the number of 100 hotels. In this paper, the
work is done on the basis of Four Season in New York market (Four Season, 2018).
At the starting of the report, the external environment of the hotel will be discussed with
the use of the PESTLE Analysis tool. After that, the internal environment of the hotel will be
analyzed with the use of SWOT Analysis. At the end of the report, the recommendation will be
given to overcome the threat and weakness and gain the objectives. Findings
SWOT Analysis
Strength

HOSPITALITY 4
Four Season hotel provides unforgettable moments to its guest by providing the quality of
services. The quality of services is the main strength of the hotel that helps to enhance the
percentage of staying guest in the hotel.
The other strength of the company is its strong financial situation. It has been evaluated
that the financial situation of the hotel is strong as it also has its private jet that is used to provide
the modern, enriching and interactive flight experience (Four Season, 2018).
Weaknesses
The main weakness of the hotel is the lack of a global network. The hotel has high
goodwill but it has a lack of a strong global network chain. The hotel has to improve its global
network chain so that it can grasp the market share at the international level.
It has been found that the brand image of Four Season hotel is less as compared to the
other competitor’s hotels such as Hyatt, Hotel Hilton, and the others. Due to the low value of the
brand image as compare to the competitors the hotel faces the challenges related to earn the
profit (Four Season, 2018).
Opportunity
It has been found that the opportunity for the hotel is to enhance the brand image in the
market. Although, the brand image of the hotel is high it has to improve the quality of staff so
that it will operate the business. But still, it has to enhance the brand value of the hotel by
connecting the people.
As the hotel operates the business in different locations of the world due to which the
hotel has the opportunity to build a strong relationship with the suppliers and the other hotels for
merging and acquisition.

HOSPITALITY 5
Threat
The hotel has a high degree of threat of competitors as various other hotels in the New
York market provides an excellent or high level of services to the guest. The hotels attend the
guests with a large number of services such as Skater Socks, the market place and others (The
Plum Guide, 2018).
It is observed that the brand value of the hotel is low as compared to the famous hotels of
the global level. Although, the hotel has a high reputation in the market it has the threat of losing
the consumers as compared to the other hotels those have a high brand image at the international
level.
PESTLE Analysis
Political
The government of New York controls the budget of $78.3 billion in the year 2016
(TTRA, 2018). The government of New York highly supports the hospitality industry by
introducing the campaigns just to remind the international travelers. The percentage of
international travelers is increasing by 40 percent which affects the operation of hotel in a
positive manner by increasing the amount of revenue (NYIT, 2018). It is beneficial for the hotel
as well as the society because it contribute in the development of the economy.
Economic
The GDP rate of New York is strong as with the amount of $1,275,137,000,000 in the
year 2016. Tourism Industry of New York generates the $108.7 billion just because of large
number of visitor visit the place (New York State, 2018). The high amount of revenue from the
tourism industry is beneficial for the hotel to earn the high profit.

HOSPITALITY 6
Social
According to the analysis, it is observed that the numbers of tourist is increasing or
fluctuating with the increasing or decreasing as per the demand and trends. In the year 2014, the
large numbers of people visit the place but it decreasing in the year 2016 (Statista, 2018). The
fluctuation of increasing or decreasing demand affects the operation of hotel.
Technology
New York country also adopts the advance technology which is favorable for the hotel as
using the advance technology the cost of operation is reduces. Cost of services is reducing due to
which the hotels can easily maintain the balance between the expenses and revenue. Advance
technology also attracts the guest due to which the hotel attains the higher level of success in the
business (Morschett, Schramm-Klein, & Zentes, 2015).
Legal
The New York states department of Health’s Bureau of Community Environmental
Health introduces the laws to protect the public health by ensuring the quality of food services.
Ensuring the quality of food services helps to protect the guest from any incidents. The hotel
needs to takes the approval while introducing the new dishes or the other branch for food.
Environmental
It has been seen that the government of New York introduce the laws and obligation to
protect the consumers. The hotel has to follows the obligations regarding the protection of
environment. It is necessary for the hotel to provide healthy and clean environment to guest by
talking care of them.

HOSPITALITY 7
Conclusion
At the end of the paper, it is concluded that Four Season hotel operates effectively and
efficiently in the New York City. It has been seen that the hotel has to take the approval before
introducing any new dish or facility as per the government decision. Although, the hotel has the
high brand image in the market but still it require establishing the strong network chain to spread
the business. The hotel has to implement the strategies to attain the objectives and these are
discussed below:
Recommendations
Pricing Strategy
Pricing Strategy defines the leadership of price that the hotel set to attain the competitive
advantage in the market. As per the above analysis, it has been found that the hotel has strong
financial position as provides the excellence services to guest but still it has less brand image as
compare to the others and it also has to faces the competition. That’s why; it is suggesting that
Four Season has to implement the premium price strategy to provide or to attend the higher and
middle class of people. Higher class or middle class segmentation helps to earn the high amount
of revenue (Ruiz, & Holmlund, 2017).
Diversification Strategy
Diversification strategy states the differentiate services that the hotels helps to attain the
competitive advantage in the market. It has been seen that the hotel has to provide the unique
services or facilities to the guest so that the guest will come back to the hotel for special visiting.
According to the analysis, it is observed that there are large numbers of hotels in the market of
New York those provides the accommodations services to the consumers. There are many hotels

HOSPITALITY 8
that provide the services at all range with the different standards of facilities. As it also has the
worldwide operations with the 100 hotels due to loyalty and trust of consumers is increasing
(Four Season, 2018). It is recommending that the hotel has to provide the services with the
higher level of standards such as beach party services, pool room services, special jet services for
entertainment ride and the others to gain the competitive advantage in the market. Higher level of
attraction of guest helps to grasp the market share in the market.

HOSPITALITY 9
Reference List
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Four Season. (2018). About Us. Retrieved From
https://www.fourseasons.com/about_four_seasons/
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management (pp.
978-3658078836). Springer.
New York State. (2018). Exploring New York State is an amazing business. Retrieved From
https://esd.ny.gov/industries/tourism
NYIT. (2018). Hospitality Industry: Government. Retrieved From
https://libguides.nyit.edu/c.php?g=61862&p=398523
Ruiz, C. D., & Holmlund, M. (2017). Actionable marketing knowledge: A close reading of
representation, knowledge and action in market research. Industrial Marketing
Management, 66, 172-180.
Statista. (2018) International visitor spending in New York from 2010 to 2017 (in billion U.S.
dollars). Retrieved From: https://www.statista.com/statistics/310413/international-
visitor-spending-in-new-york/
The Plum Guide. (2018). Top 20 hotel quality homes in New York. Retrieved From
https://www.plumguide.com/new-york/hotels?
gclid=EAIaIQobChMIqK2w75qp5AIVQQ4rCh1WMAeuEAAYASAAEgJRY_D_BwE

HOSPITALITY 10
&title=yes&titlename=1&city=new_york&location=&q1=&q2=&housetype=hotel_alter
natives&time=&utm_source=google&utm_medium=PPCGeneric&utm_content=NYC|
hotel_hotelinNewYork&utm_campaign=Search|Hotel|NYC|ROW|
Exact$tCPA&uc=ROW&device=c
TTRA. (2018). How Does Politics Affect Tourism?. Retrieved From https://ttra.com/how-does-
politics-affect-tourism/

HOSPITALITY 11
Appendices
(Source: Statista, 2018)