Strategic Planning for Hilton Hotel in the Hospitality Industry

This report provides a comprehensive strategic planning analysis for Hilton Hotel, a subsidiary of Hilton Hotel & Resort. It begins with an introduction to strategic planning, outlining the process of setting objectives and goals. The report then explores Hilton's strategic direction, including its mission, vision, values, and culture. Porter's Five Forces model is applied to assess the competitive environment, examining the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and industry rivalry. The report also conducts an internal and external environmental analysis, utilizing SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. Finally, the report discusses strategic options such as franchising, mergers and acquisitions, management contracts, and joint ventures, concluding that franchising is a suitable option for Hilton's expansion. The report references key academic sources to support its analysis.

Strategic Planning for the
Hospitality Industry - 14

Table of Content
 Introduction
 Strategic direction
 Porters five forces model
 Internal & external environmental factors
 Conclusion
 References

Introduction
Strategic planning is an organised, long
and expensive process for evaluating the
current tasks of association, setting
objectives and goals in order to achieve
as well as programmes and activities to
achieve them. This assessment selects
Hilton Hotel London which is known
subsidiary hotel of Hilton Hotel &
Resort.

Strategic direction
• Mission: To become the most accommodating organisation in the world
by providing memorable experiences for visitors, meaningful resources for
teammates, monetary quality for owners and a positive influence in our
communities.
• Vision: To fill the world with the warmth and comfort of hospitality by
providing outstanding experiences to every hotel, every visitor, and every
moment.

Continue...• Value: Hilton's Company is focused on six key values such as
hospitality, integrity, leadership, teamwork, ownership and current
requirement of guest and market. Hilton Hotel focused on these things to
generate their brand value in the customer’s mind.
• Culture: Hilton leads culture and is deeply dedicated to making the best
work around the world. It focuses on building a better environment to
work for all members of our team hotel.

Porters five forces model
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new entrants
• Threat of substitute products & services
• Rivalry firms

15/09/20

Continue...
• Bargaining power of buyers: In the case of Hilton Hotel, the bargaining
power of the buyers is low. The number of vendors in the field wherein
Hilton works is much higher than the number of companies manufacturing
the goods
• Bargaining power of suppliers: The bargaining power of Hilton's
suppliers is low. Hilton buys from the more than 4000 suppliers
worldwide and the negotiating power of most distributors is poor because
of lack of differentiation of goods and services offered.

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• Threat of new entrants: In context of Hilton Hotel, threat of new entrants is
low. The economy of scale is relatively difficult to accomplish in the field in
which Hilton works. This makes it much easier for all those generating large
capacity to provide a competitive advantage.
• Threat of substitute products & services: The threat of substituting goods or
services in the hospitality sector is not relevant. The direct replacements for
living in Hilton hotels involve people are staying in relatives 'and families'
homes and individuals leasing rooms for a limited period (Porter, 2020).

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Threat of substitution: Threat of substitution is related to existing or
potential products. substitution is related to availability of similar quality
products at lower prices or better value or better performance perceived by
customers.
Bargaining power of buyers: In case of Park plaza the bargaining power of
buyers is high as there are lot of other options that are offering concentrated
options to this segment of customers. enterprise.

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Bargaining power of suppliers: in case of hotel industry the supplier
that exercise power includes organisation that posses experienced
trained personnel that is in high demand.
Industrial rivalry: Park plaza is a established brand since 1997 and this
has lead to established brand name with the help of their sister brands
such as Park Inn and in year 2019 it is owned by Radisson hotel group
that is leading to achievement of a high competitive advantage

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Rivalry: The competition between established companies in the premium
segment of the hotel industry is moderate. Hilton Hotels faces competition in
the world market with Marriott, Radisson Blu, Sheraton, Hyatt
Regency Renaissance, Westin, Sofitel and other upscale hotel chain divisions.
As a result of substantial investing in variety facets of service provision over
the last few years, Hilton has experienced higher sales growth relative to
competition.