The effects of economic recession on the profitability levels, of Marriott International, Inc. has, contrary to expectations, made Marriott hotel expand on its strategies in meeting its objective. To improve on the lost confidence and trust of its customers, Marriott introduced the improvement of quality of their brands, and creation of image through provision of exceptional customer service. This has sustained their customers as they are assured of quality even before they are booed in the hotels (FLEISHER, and BENSOUSSAN, 2008). The hotel’s strategy of increasing its operations abroad, also adds to its success. This will assist in improving the customer base, and increased profits.
The introduction of Autograph and Edition also adds to the list of differentiated services that will assist in meeting its objective. Given that with changes in technology and diversity customers only look for the best, the introduction of these luxurious and differentiated products boosted its competitive powers and market share (PORTER, 2004). Additionally, the franchising element of these new products acts as a defense tactic on the unpredictable global economic diversities. The additional products to serve the middle class customers, who form a significant population, also increase the profit generating ability of the hotel.
The move on opening the hotel’s blog marks its ability to change to modern market trends. This has enhanced fast service delivery, marketing of the hotel’s services, and on cutting down its costs on marketing and advertising. Marriott’s objective of being the premier hotel by functioning in all business’s areas has contributed to its world recognition. Its policies on environmental sustenance have received recognitions from the Environmental Protection Agency. Security assurance has also contributed to customers’ confidence while on their premises (CADLE, PAUL, and TURNER, 2011).
The European market provides an opportunity for Marriott’s expansive objective. This will serve as a significant contributor of profits as the market has not been exploited by many competitors. By using its economies of scale, and regional brand recognition strength the hotel will penetrate the market easily than most of its competitors. by using the cost leadership strategy, the hotel has managed to challenge most of its competitors.
The hotel faces a threat of losing some of its benefits in marketing and recognition of brands as a result of mergers and partnerships. Additionally these ventures may reduce on the profit generation capacity as they are paying a lesser percentage of revenue than market offers. The management should acquire these ventures as assets of synergy or to improve on customer’s loyalty, and for long term objectives (CADLE, PAUL, and TURNER, 2011).
The reward program should also incorporate employees so that they earn points on effective customer service. This will act as a motivating factor to the employees to provide quality services. Combined with the proposed reduction of costs of the services, this will enhance the hotel’s profit earning capacity.
The Travel Legislation Act provides an opportunity for Marriot as it will enhance room demand from international visitors. This will increase on profits and capital required for expansion, and later accommodates a percentage of the domestically unemployed potentials. This will provide a trickle-down effects as employee’s increase in disposable income will also mean increased expenditure in the hotel.
Being a family establishment implies high levels of cohesiveness on the hotel’s owners. Working as a family improves on unity and speed in decision making. However, the owners need to work as a team to overcome the unpredictable economic situations that may hinder the hotel’s objective.
CADLE, J., PAUL, D., & TURNER, P. (2011). Business analysis techniques 72 essential tools for success. Swindon, British Informatics Society Limited.
FLEISHER, C. S., & BENSOUSSAN, B. E. (2008). Business and competitive analysis: effective application of new and classic methods. Upper Saddle River, N.J., FT Press.
PORTER, M. E. (2004). Competitive strategy: techniques for analyzing industries and competitors. New York, NY [u.a.], Free Press.