No matter what kind of business it is, for a small business to grow into one of the most respected companies in the world, it needs to be determined, dedicated, work hard, and use good methods.
Marriott International, Inc. is an international company headquartered in the United States that owns, operates, franchises, and licenses hotels & residences, and timeshares. Marriott International is one of the world’s leading hotel companies, with more than 5,700 properties in over 30 countries and territories. Marriott is continually ranked as one of the top companies to work for and has a well-known, trusted brand.
You can learn a lot from Marriott SWOT Analysis if you’re starting or growing a business like Marriott Company. It’s impossible to run a business effectively without understanding some of the factors responsible for the organization in question.
For the purpose of this article, we are going to discuss Marriott’s strengths, weaknesses, opportunities, threats, and other internal factors that have been responsible for the success of the company. Stay tuned and read through this content.
Here is a summary table from the Marriott SWOT analysis:
Complete Marriott International SWOT Analysis
Strengths of Marriott Hotel
The global profile and operations have boosted the revenue of the company and have also minimized the spread risk. Even if revenue from one region drops, the company can fall back on its other regions. The United States is one of the 127 countries and territories where Marriott does business.
Leadership in the Market
More than 30 brands, 81 hotels and $25.1 billion in assets make Marriott the world’s leading hotel chain, with 6,500 assets around the world, offering more than 1.2 million rooms. Because of its large size, it is able to take advantage of all the savings that come with buying in bulk.
According to Forbes, Marriott has been named one of the world’s best workplaces for women and one of the world’s top 100 companies. In addition, it has appeared on the Fortune 500 every year for the past two decades, most recently at number 151 in 2019.
Marriott has done better than its competitors because it has teamed up with some of the most powerful companies in the world.
It has teamed up with Alibaba to make it possible for millions of customers to book right away without putting down a deposit.
When Marriott acquired Ritz Carlton from Starwood Hotels, Resorts Worldwide, and Bulgari Hotels, it enlarged its portfolio, sales, and profits.
A portion of the customers of Marriott won’t even think of going to another resort. It uses different methods to keep its customers, such as the company’s largest loyalty program, which has helped it cultivate some of its most devoted customers around the world.
Code of Behavior
A wide range of difficulties affect the hotel service industry, and this industry is particularly susceptible to these concerns. Marriott’s strong code of conduct assures the delivery of all these factors for success. The company excels in all business conduct, including cleanliness, politeness, and punctuality in service delivery.
Marriott creates value via the successful use of new technologies and innovation. Creative practices are at the heart of Marriott’s success, from the Villas & Homes initiative to the wallet-free experience. According to Forbes, it was listed as the 21st most creative company in the United States.
Any organization’s success is dependent on adhering to a set of professional norms and regulations. Employees at Marriott are being suffocated by the company’s stringent policies. With the decline in performance and output comes a decrease in work satisfaction.
For years, Marriott had tense dealings with the law, which harmed the company’s reputation. When a client sued Marriott for limiting his Wi-Fi security, the court assessed a $600,000 fine against the hotel.
A poor reputation for Marriott in 2017 was created by the Irma Hurricane and the way the company responded to the matter.
When the cruise ship’s administration only saved its guests and abandoned the others, despite the fact that half of the ship was unoccupied. Since it’s in the service and hospitality business, the organization should exercise caution while making such choices.
As a family-run corporation, Marriott has a solid name in the industry. Young millennials, on the other hand, are the company’s future leaders. However, being a family corporation is one of the key flaws that the company has.
In 2018, the Marriott Starwood hotel’s internet security system was breached by hackers. Over 500 million people’s personal information was jeopardized. Individuals’ names, passport numbers, and email addresses were all provided.
Opportunities are external variables that a firm can take advantage of for its own gain and profit.
The SWOT analysis of Marriott will help the company’s leaders think about their options before making a big choice.
Low rates of inflation
This year’s inflation rate is quite low, and analysts expect it to remain that way for some time.
This is a great potential for the corporation to make a lot of money. Furthermore, it protects the organization from the risks of potential losses and damage. As a result of this strategy, costs are reduced and will also be lower for that period of time.
New market opportunities
New markets are being made as Millennials and Gen-Z move in to help the economy grow.
This will allow Marriott to expand its already extensive business portfolio. It already has nearly 1.2 million hotel rooms worldwide. The new market opportunities have the potential to increase these figures.
Globalization does not imply that Marriott will be confined to its own constraints.
It’s possible that it may turn into a full-blown opportunity for Marriott to show the world what they’re made of. Customers and dealers equally will benefit from this, as well as increased sales and popularity.
As more millennials and Gen-Z reach their target demographic, the company can grow its customer base by marketing itself as a cool, young brand.
Threats from Marriott
Marriott has lost 92 percent of its earnings as a result of the epidemic.As long as the virus stays around or comes back in new waves, it will keep hurting Marriott’s bottom line.
The competition in the hotel business is fierce. Several well-known hotel brands, like Hilton, Novotel, and others, could hurt Marriott’s market position by a lot if they had the chance.
Millions of jobs have been lost in a short period of time, and countries are sinking further into recession. Hospitality businesses have previously been badly impacted by the repercussions of the global recession.
Global corporations and firms like Marriott are ideal targets for populist administrations because of the growing acceptance of isolationism. Using Marriott as leverage or a weapon in the trade war might cost the company a significant amount of money.
The Risk of Terror Attacks
The Marriott is a five-star hotel that caters to a diverse range of travellers from across the world. Terrorists target high-end hotels with a high concentration of guests from other countries.
What is Marriott tagline?
In keeping with Marriott Bonvoy’s worldwide slogan “Where Can We Take You?” the ad campaign uses the word “here” as a metaphor for celebrating the real, everyday moments that travellers appreciate and often miss while away.
What type of hotel is Marriott?
Marriott’s portfolio of luxury hotels is well-known in its own right, featuring such well-known names as the Ritz Carlton and the St. Regis. Due to its recent merger with Starwood Hotels, Marriott now has a portfolio of prestigious lodgings, including many all-suite hotels in far-flung regions like the Maldives and Bora Bora.
After conducting a thorough SWOT analysis of Marriott, we’ve determined that it is one of the largest hotel and restaurant companies in the world.. Recession, security concerns, lawsuits, and terrorist threats are among the greatest barriers. Marriott should enhance its security system and strengthen its presence in developing nations.