Marriott International Inc.: Organization's Internal Strengths and Weaknesses
7- Identify the organization’s internal strengths and weaknesses:
Strengths
• Global leader – Marriott International Inc is the leader in the global hotels market, with a near 5% value share in 2007 and a large geographic presence.
• Unhampered by hotel ownership – the company owns less than 1% of its hotel portfolio and is thus less vulnerable to real estate price fluctuations than rivals. Moreover, its emphasis on franchising facilitates the rapid expansion of its portfolio.
• Focused pipeline development – Marriott International is pursuing a growth strategy to further consolidate its presence in foreign markets and capitalize on the booming travel and tourism industries of emerging markets, which should continue to serve its business well in terms of revenue over the forecast period.
Unfortunately, the global economic downturn is hindering expansion plans, particularly as consumer confidence softens and demand for travel accommodation falls.
• Strong internet presence – Marriott International's website guarantees the best rates available, enticing price-conscious consumers away from third party websites.
• IT solutions – Marriott International is upgrading its properties with technology that responds to the needs of business and leisure travelers. In the latter part of the review period, for example, it has transformed its public areas to encourage guests to work and socialize through the adoption of the latest design, technology, food and beverage offerings.
Weaknesses
• Domestic market focus – despite international expansion, Marriott International remains heavily reliant on the US, making it sensitive to the changing fortunes of its domestic market.
• Luxury brands – mid-scale and upscale hotel brands leave Marriott International vulnerable to any potential global economic downturns, particularly given that economy travel accommodation is gaining increased penetration in major destination markets.
• Courtyard brand – the Courtyard brand is
Strengths
• Global leader – Marriott International Inc is the leader in the global hotels market, with a near 5% value share in 2007 and a large geographic presence.
• Unhampered by hotel ownership – the company owns less than 1% of its hotel portfolio and is thus less vulnerable to real estate price fluctuations than rivals. Moreover, its emphasis on franchising facilitates the rapid expansion of its portfolio.
• Focused pipeline development – Marriott International is pursuing a growth strategy to further consolidate its presence in foreign markets and capitalize on the booming travel and tourism industries of emerging markets, which should continue to serve its business well in terms of revenue over the forecast period.
Unfortunately, the global economic downturn is hindering expansion plans, particularly as consumer confidence softens and demand for travel accommodation falls.
• Strong internet presence – Marriott International's website guarantees the best rates available, enticing price-conscious consumers away from third party websites.
• IT solutions – Marriott International is upgrading its properties with technology that responds to the needs of business and leisure travelers. In the latter part of the review period, for example, it has transformed its public areas to encourage guests to work and socialize through the adoption of the latest design, technology, food and beverage offerings.
Weaknesses
• Domestic market focus – despite international expansion, Marriott International remains heavily reliant on the US, making it sensitive to the changing fortunes of its domestic market.
• Luxury brands – mid-scale and upscale hotel brands leave Marriott International vulnerable to any potential global economic downturns, particularly given that economy travel accommodation is gaining increased penetration in major destination markets.
• Courtyard brand – the Courtyard brand is