Marriott International General Business Level Strategy Marketing Essay

When considering Marriott International, Inc. 's product, market, and distinctive competencies, you can develop a clear position that sets the business in multiple universal business-level strategies. This company is an internationally franchisor and operator of hotels and lodging facilities, which operate under multiple independent brand names. They may be a high player in the Hotel and lodging industry, and will certainly remain to be for quite some time to come. Predicated on multiple competitive advantages, including uniqueness and cost, and the breadth of these competitive range, both wide-ranging and slim, Marriott International, Inc. pursues multiple business level strategies. By taking a glance at their stock portfolio of brands, Marriott shows an established presence across a broad market encompassed by a number of customer segments. Their distinctive competency originates from their differentiation strategy, by offering unique products, as well as their cost leadership strategy.

Differentiation Strategy

Marriott International, Inc. is, the burkha user of this strategy as they continue steadily to develop a product and service that exclusively satisfies customer's needs. Not merely are customer needs fulfilled, the distinctive attributes the business offers are respected and regarded as superior than competition. By providing to multiple customer segments, from moderately priced to premium costed, the Marriott has attained a reputation for creativity and quality. The worthiness added provided by the business's uniqueness permits it to charge reduced price for the more upscale customer. This acts as a valuable feature as it allows the company to offset a cost increase by suppliers; by passing along the costs to customers who cannot easily substitute the product and service they offer.

A current exemplory case of this strategy is seen in the Marriott's benefits of new brands to appeal to new buyers and provide unique guest segments. In Dec of This past year, J. W. Marriott himself released the Autograph Collection. This new make of very upscale independent hotels will provide a variety of distinctive personalities in major towns and desired locations throughout the world. The member properties will preserve their personalities and branding, while utilizing Marriott's acclaimed marketing, reservation, and technology websites. The impressive new brand is set to group worldwide iconic hotels based on the unique experience guests are looking for; whether it's a vacation resort, an urban border hotel, traditional hotel, or a boutique arts hotel. The purpose is to appeal to an evergrowing portion of customers who seek an event that an self-employed hotel can provide; while further being strengthened by Marriott's presence in their inside businesses. Seven hotels are set to officially form part of the Autograph Collection in Apr; 25 or even more properties are anticipated to be added throughout 2010.

Furthermore, global luxury brands like The Ritz-Carlton are renowned for their unique architecture and exceptional quality of dining options, facilities, and customized guest services. Most of the properties offer valuable amenities, such as golf courses, spas, and tennis courts, that your upper level customer usually calls for. A number of the properties even provide option to buy luxurious real property in one bedroom apartments to tremendous penthouses, while being able to benefit from the facilities and services provided by the hotel. This strategy acts as a practical way of earning greater than average results as customer's level of sensitivity to price is reduced by an increase in brand devotion.

Cost Control Strategy

On the other hand, Marriott International, Inc. will a superb job in offering brands that are targeted towards the more price very sensitive consumer. Brands such as SpringHill Suites, and Courtyard concentrate on the upper modest price tier portion, while Fairfield Inn targets the lower average price tier. The business excels in successful cost creation that permits to charge a low price in comparison to its competition while still making an acceptable profit. The Marriott strives to keep costs low while catering to a broad portion of customers; providing them with clean, useful, and comfortable rooms as well as exceptional service. The company has had the opportunity to lower functioning costs through a number of ways including renewable buildings, waste lowering, and greener source chains.

Marriott is rolling out a "soul to protect" idea that encompasses many of these initiatives that not only provide to protect the surroundings, but to reduce costs as well. Last year the company got were able to have 67 properties either LEED accredited or signed up, including their headquarters in Bethesda, Maryland. In addition, it applied 32 LEED licensed designers and designers to aid in growing their renewable building collection. By 2015 Marriott has placed a goal to increase the volume of LEED certified buildings to 300. The importance of all this originates from a reduced amount of a hotel's water and energy consumption by up to 25 percent; a favorable cost decrease because of this top industry player.

Furthermore, the "spirit to preserve" idea will target their work on energy, drinking water, and waste lowering. The eminent environmental impact from hotels is their ingestion of energy and era of misuse, which donate to greenhouse gas emissions. Marriott has set a goal to lessen water and energy usage across its brands by twenty five percent per available room from 2007 levels by 2017. Also, in 2009 2009 it was also able to reduce water consumption per available room by 8. 2 percent. In conditions of greener source chains, the company could negotiate with suppliers across their $10 billion resource chain to provide greener cheap products that reduce source and energy consumption. Products that were unveiled in 2008 and 2009 include greener key cards, recycled pens, low energy lights, water productive showerheads and toilets, and the list is growing.

2. Discuss how your small business has attemptedto create a competitive strategy to protect its

business-level strategy. For example, if your organization is operating in an embryonic industry, discuss the ways it includes attemptedto increase its competitive benefit over time. If it performs in a mature industry, discuss how it offers tried to manage the admittance and rivalry

In its most important occupation, Marriott International, Inc. has a number of strong competitive strategies which will make it the very best company in its mature industry. At Marriott they believe in a continuing long term success through more than 80 years of experience, strong brands, customer desire, and an effective business model. Presently, the company's stock portfolio includes more than 3, 400 franchised and handled properties across 18 brands in about 70 countries spanning across six continents. As of 2009, roughly 137, 000 employees were part of producing sales around $11 billion; a number that is likely to grow constantly in the following years.

In order to protect its business level strategy, that was greatly damaged by a global tough economy and a scale back on travel, the Marriott has continued to be on top by using marketing and sales programs and a focus on customer service. They may have effectively were able to cuts costs at their commercial offices, hotels, and timeshare brands to create a stable cashflow which has decrease their debt ratios to continuous and secure levels. Most importantly, the company has placed a deep seeded give attention to their team of employees and associates; a primordial little bit of their strong competitive position. In addition, by concentrating on using technology and ground breaking complex programs to increase the customer experience, the Marriott is able to identify itself from rivals and have a solid competitive edge. It has result in a difficult to imitate setting of procedure that competitors make an effort to match.

b. Your small business is already conducting business far away.

1. What strategy is your organization pursuing to remain competitive globally? Inside your view, is this the right strategy, given cost pressures and stresses for local responsiveness?

In order to be competitive globally, Marriott International, Inc. has been following a proven strategy of franchising and managing hotels alternatively than having full ownership. At the end of 2009, about 46 percent of the resort rooms in the business's system were handled under management contracts, 52 percent operated under franchise contracts, while only 2 percent were leased or had by the business. Inside the franchised properties, the business foregoes direct control over employees and strives to create upon maintenance and inside operations. This concentrate on franchising and producing management agreements provided the business with stable income in tough financial cycles while further broadening the amount of properties added to their system. This plan has allowed for significant global expansion while reducing financial risk and leverage in this cyclical industry.

In my thoughts and opinions this is not only an effective, but also ground breaking approach to be able to compete internationally. The strategy the business uses not only reduces their capital risk but it also allows for a more customer responsive set of properties. By focusing on internal operations and making certain the hotels are up to par with brand criteria customer targets may be taken care of, and brand equity can be strengthened. Furthermore, the implementation of this strategy provides the Marriott with the right level of financial versatility through lowering and recycling their invested capital.

2. What major overseas market does indeed your company serve, and what function has it used to type in this market? Why is your company lively in these marketplaces rather than others? What exactly are the advantages and cons of making use of this mode of accessibility? Might another setting of entrance be preferable?

Marriott International, Inc. has changed at a continuous tempo throughout the years; which lends for their top position as a worldwide leader. The company has were able to establish a existence in every of the major continents of the world. On the years end of 2009 Marriott acquired 3, 094 properties in the Americas, 169 properties in Europe, 122 properties in Asia-Pacific, and 35 properties in the centre East and Africa. The need for their mode of entry originates from their system of franchising and taking care of properties rather than wholly getting them. Of the current development businesses of more than 600 hotels, an addition of about 100, 000 new rooms, more than one third are located outside of North America.

The main reason the company is productive in these markets is because of the immense potential for development they see in the long term; the gains substantiate this. In '09 2009, of the $154 million the company made from management fees over two thirds came from hotels located outside of THE UNITED STATES. The benefit of using this strategy is because the raised percentage of growth will still be fueled by ongoing global development. An example of this is Asia; they exposed the first hotel twenty years ago and now they may have about 114 properties with 55 in the works. By the end of this season Marriott expects to use 60 hotels in China, making it the most significant international market apart from North America.

In the end, by the prosperity and continuous expansion the corporation is experiencing it appears as though another function of entry is probably not preferable. The negatives of by using this mode of entrance seem to be to be minimal. The company's progress involves a broad range of brands, making their diversification a massive monetary stimulator for overseas cultures. This seems to stand for a perfect trade off as governments provide recognition through assistance and incentives for economical development and occupation.

The company has learned by experience that customers want to conduct do it again business with an entity that sticks to what they have confidence in and are focused on being a responsible global leader. The clients demand a global player that leads by example; the primary distinguisher between Marriott and its competitors. The business has a strong competitive advantage because of their socially responsible internal operations. The company's properties throughout the world strive to focus on placing their part in alleviating some pertaining to global issues. From poverty, to children's health, to the conservation of the environment, the company strives to demonstrate that they are putting forth your time and effort towards making a notable difference.

The hotel industry may have a substantial amount of competitors, yet none will conquer the inimitable name that the Marriott has generated for itself. The company prides itself in providing shelter and food to those who need it, providing education so people can secure a significant job, and assisting children residing in a host that lacks opportunity. Despite the fact that the Marriott has a disciplined give attention to global development, they managed to efficiently align it with a in charge global attitude. Their most significant competitive strength lies in their associates; providing a rich variety of culture and experiences to their friends worldwide. A strong stock portfolio definitely makes this company distinctive, yet their durability comes from, as J. W. Marriott himself places is, the fact they have "mastered the skill of taking care of people". The system has worked for many years, and it will undoubtedly continue being this way; the company's notorious and respectable brand talks for itself.

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