This paper provides an assessment of the competitive position of the two companies Marriott International Inc. and Starwood Worldwide. It analyses how these companies compete with other market-competitors through strategic group control. The PESTEL framework provides an analysis concerning the external environment of the company, highlighting the economic, technological political and social influences that affect the environment. Meanwhile, Michael Porter's five forces are the frameworks that shape the competitive position of a firm.
Marriott International Inc. and Starwood Worldwide have been the leading franchiser, operator and licensor located in over 100 countries worldwide. In September 2016, the company announced the acquisition of Starwood Hotel and resorts to merge the world’s largest hotel companies under the name Marriott International Inc. Marriott International has a series of well-planned strategies such as advancing new generation travelers, portfolio strength, brand differentiation and technology leadership. This strategy is designed to compete with rival chains. In addition to this strategy, Marriott International has a strategy known as the "spirit of service to our community," which is a social approach to staying ahead of the competition.
The merger between Starwood and Marriott is a strategic move that not only builds more meaningful brands but also provides the most competitive advantage that helps them reach their goals and makes them competitive within the industry. It is well known that the implementation of effective strategies leads to better outcomes, through a coordinated approach, responding to local needs and problems, based on the best practices and existing strengths.
Marriott has made a strategical series of decision and actions to meet the objective of becoming the best hotel company in the world. It is the basis of establishing commercial enterprise, and it is essential for a company to survive and to sustain itself in today's changing environment, providing insights and encouraging its mission. Marriott International's business environment includes both internal and external factors that influence its performance and decision.
Table of Contents
1.0 Introduction
2.0 Related Strategic Evaluation
2.1 Corporate level strategy
2.2 Business level strategy
2.3 Functional level
3.0 Critical Evaluation of Key Stakeholders
3.1 Marriot’s Stakeholders and Their Contributions towards Merger
3.2 The stakeholder theory
3.3 Application of stakeholder theory
4.0 External analysis uses PEST to identify and explore key trends
5.0 Industry analysis using Porter's five forces
5.1 Analysis by Marriott International, Inc. The service uses five (5) Porter Force models
Barriers to entry
5.2 Implications of Porter Five Forces at Marriott International, Inc.
6.0 Conclusion
Research Objectives and Core Themes
The primary objective of this study is to evaluate the competitive position of Marriott International following its merger with Starwood. By applying strategic management frameworks, the paper investigates how the organization navigates its business environment to maintain a competitive advantage through strategic group control and corporate alignment.
- Strategic management evaluation at corporate, business, and functional levels.
- Comprehensive stakeholder analysis in the context of the Marriott-Starwood merger.
- Macro-environmental assessment using the PEST framework to identify global trends.
- Industry competitiveness analysis utilizing Michael Porter’s Five Forces model.
- Alignment of corporate culture and social responsibility strategies for long-term growth.
Excerpt from the Book
1.0 Introduction
Marriot International Inc. and Starwood Worldwide, been the leading franchisor, operator and licensor located in over 100 countries worldwide (Marriot International Inc, 2015). In September 2016, the company announces the acquisition of Starwood Hotel and resorts to merge the world largest hotel company and carrying the name Marriot International Inc.
As the case may be, Marriot International has series of well-planned strategies such as advance new generation Travelers, portfolio strength, brand differentiation and technology leadership. This strategy is designed to compete with rival chains. In addition to this strategy, Marriott International has a strategy known as the "spirit of service to our community," which is a social approach to staying ahead of the competition.
The merger between Starwood and Marriot is a strategic move that not only builds more meaningful brands but also provides the most competitive advantage that helps them reach their brand and make them competitive with the industry. It is well known that the implementation of effective strategies leads to better outcomes, through a coordinated approach, responding to local needs and problems, based on best practices and existing strengths (Weiss, Berger & Hatcher, 2008).
Marriott has made a strategically series of decision and actions to meet the objective of becoming the only best hotel company in the world. It is basis of establishing commercial enterprise, and it is essential for a company to survive and to sustain itself in today's changing environment, providing insights and encouraging its mission. Marriott International's business environment includes both internal and external (PESTEL analysis) that influences its performance and decision.
Summary of Chapters
1.0 Introduction: Provides an overview of the Marriott-Starwood merger and introduces the strategic tools used to analyze the firm's competitive environment.
2.0 Related Strategic Evaluation: Examines the three levels of strategic management—corporate, business, and functional—employed by Marriott to enhance global performance.
3.0 Critical Evaluation of Key Stakeholders: Identifies essential internal and external stakeholders and applies stakeholder theory to understand their roles in the merger process.
4.0 External analysis uses PEST to identify and explore key trends: Analyzes the macro-environmental factors, including political, economic, socio-cultural, and technological influences, that impact Marriott's operations.
5.0 Industry analysis using Porter's five forces: Utilizes Porter’s framework to evaluate industry competitiveness, including threats from newcomers, suppliers, and substitute products.
6.0 Conclusion: Summarizes how Marriott's internal corporate culture and strategic flexibility have secured its reputation as a leading hospitality company.
Keywords
Marriott International, Starwood, Strategic Management, Merger, Stakeholder Theory, PEST Analysis, Porter's Five Forces, Competitive Position, Corporate Strategy, Business Environment, Hospitality Industry, Brand Differentiation, Sustainability, Technological Innovation, Global Growth.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the competitive position of Marriott International following its merger with Starwood, assessing how strategic group control and effective management contribute to the firm's success.
Which primary theoretical frameworks are utilized for the analysis?
The study employs the PESTEL framework for external macro-environmental analysis and Michael Porter’s Five Forces model for industry-specific competitive evaluation.
How is the corporate strategy of the merged entity structured?
The strategy focuses on aligning the strengths of both companies, enhancing market competitiveness through portfolio power, and emphasizing brand excellence to provide value to shareholders.
What is the role of stakeholders in the Marriott-Starwood merger?
Stakeholders, including shareholders, employees, government bodies, and financial institutions, are identified as critical players whose interests and contributions directly influence the success of the merger integration.
What does the PEST analysis reveal about Marriott's operations?
The PEST analysis highlights how political stability, economic factors like inflation and exchange rates, socio-cultural shifts in travel patterns, and technological advancements dictate Marriott's strategic focus in diverse global markets.
What are the key conclusions regarding Marriott's competitive advantage?
The conclusion emphasizes that Marriott's success is rooted in a robust internal corporate culture, a focus on community service, and the ability to remain flexible and innovative in a changing global landscape.
Why did Starwood withdraw from the timeshare market?
Starwood's withdrawal enabled the combined entity to consolidate its focus solely on the core hotel and resort industry, thereby streamlining the corporate direction.
How does Marriott handle technological factors in its strategy?
Technological innovation is identified as a top priority for Marriott, enabling faster bookings, payments, and improved customer experiences, which serves as a significant differentiator against competitors.
- Citation du texte
- Sanni Olawale (Auteur), 2020, The Competitive Position of Marriott International Inc. and Starwood Worldwide, Munich, GRIN Verlag, https://www.grin.com/document/932142
