Overview of Starwoods Hotels & Resorts Worldwide Inc.
Starwood Hotels & Resorts Worldwide Inc. is one of the largest hotel companies in the world. It was originally formed by a real estate investment firm Starwood Capital under the name of Starwood Lodging and was run by the ambitious Barry Sternlicht. Later on Starwood Lodging came to be known as Starwood Hotels & Resorts Worldwide Inc after Barry Sternlicht stepped down as CEO. The company owns and operates hotels leading brands such as Sheraton, Westin, St. Regis, Four Points, and it’s recently developed W brand. The majority of Starwood's hotels are owned by franchisees, and the company directly owns or leases about 170 of its approximately 750 hotels worldwide. Nearly 500 of the company's hotels are in North America. Starwood runs hotels in some 80 countries in Asia, Europe, Africa, and South America, including a chain of prestigious European palaces called the Ciga Group.
Porter’s Five Forces
In this model, three forces arise due to from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Industry Rivalry:
Starwood Hotels & Resorts Worldwide, Inc. has many competitors in the hotel and lodging industry, but its major upscale and luxury industry rivals consist of four other companies. These competitors are Hilton Hotels, Marriott International, Inc., Global Hyatt Corporation, and MGM Mirage. They have built a brand image and equity that intensifies rivalry in the industry. Since all of the actors in the hotel industry made huge investments, their exit barrier is high that adds more fuel to rivalry in the hotel industry.
Threat of Substitutes:
In the overall hotel substitutes category, there are several substitutes for Starwoods such as timeshares, staying at friends and...
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