The tourism industry has been a rollercoaster over the last few years, especially with the pandemic. This Marriott SWOT Analysis will highlight how this hotel giant has been able to change with the market and end up successful.
Marriott is a multinational company that mainly focuses on giving its customers the best experience when traveling. It is a multinational resort and hotel brand. It was founded in 1927. However, the hotel and resort brand was established around 1957. Its headquarters are in Bethesda, Maryland, USA. They have dedicated their time and effort to making sure that their customers are happy with the hospitality they are offering. A Marriott SWOT analysis helps the company executives to analyze and assess all the internal and external factors in the community.
Marriott SWOT Analysis is a proven management framework that enables a brand to benchmark its business and performance as compared to its competitors and industry.
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Marriott – At A Glance
|Company Name||Marriott International|
|Founded||March 5, 1927|
|Founders||J. Willard Marriott, Alice Marriott|
|Headquarter||Bethesda, Maryland, U.S.|
|Annual Revenue||$10.571 Billion (FY 2020)|
Marriott SWOT Analysis
SWOT analysis is a strategic planning framework that can be used by company managers to get a successful situation analysis of the company. A Marriott SWOT analysis framework can assist them in realizing their internal strategic factors, such as strengths and weaknesses, as well as their external strategic factors such as opportunities and threats.
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Marriott maintains its intimidating presence in the business sector only by reviewing the SWOT analysis regularly and improving itself. So, Marriott SWOT analysis will be of great use to this company.
Marriott SWOT Analysis Strengths
Marriott has a plethora of strengths that will help it thrive in its main field. A Marriott SWOT analysis will help focus on these strengths. Based on Fern Fort University’s studies, some of these strengths are listed below:
Global reach: Marriott is one of the most well-known hotel brands. It has outlets in about 131 countries with 665 location points. They have about 2,05,000 rooms throughout the world. They are also considering about 160 new hotels. And many more are under construction as we speak. So, with this many outlets, they have a monopoly over the global hotel industry. Although it started in Maryland, it is now a household name for many families across the globe. This gives them a huge global footprint. A global footprint comes in handy when advertising their brand name. It also scares away the occasional Mariott competitor. It is highly effective for drawing in new customers.
High-tier consumer satisfaction: Marriott has something that is known as “The Marriott Way.” It is basically a strict code of conduct customized by the hotel’s authorities. Each and every employee of the hotel is expected to maintain this code. This makes their employees come across as much more trustworthy and polite. It is a known fact that people prefer polite service over impoliteness. Since they provide better service than any other hotel. They also make sure to treat their customers with the utmost respect. However, some other factors also remain key to gaining customers, and Marriott International makes sure to check all of those boxes.
Financial position: Marriott has a strong financial base. It has 25.3 dollars’ worth of assets all over the world. It also has 6,500 properties with more than 1.2 million rooms. It has garnered a total of about 545 million dollars. It has been gaining market share slowly but surely for about a hundred years. It has earned the public’s trust as a star company. Its financial position has put it at a point of pure advantage that has increased its market value and brand name by leaps and bounds. So, this financially secure position is good for the company.
Innovation: If there is something that is very eye-catching about Marriott’s business model, it would definitely be its focus on innovation. Marriott has been innovative from the start of its journey. Due to its innovative nature, it has brought many new materials to the hotel industry. It is also one of many reasons why people prefer to stay at Marriott. This innovative mentality has allowed them to acquire Ritz Carlton, Bulgari Inn, Starwood, and many other resorts under their name. This has had a great influence on Marriott’s success.
Marriott SWOT Analysis Weaknesses
Weaknesses are part of the internal factors of a company. Marriott International’s SWOT analysis will bring many of these to light.
Stiff organization structure: The organizational structure that Marriott follows is not very flexible. Even though it makes for a good training regime for the employees. But constant nagging of employees makes it hard for the said employees to lose motivation. It makes them lose several valuable working hours that put the company’s activities at a disadvantage. We can all agree that not many good things get out of a demotivated workforce.
Higher funds for the technology sector: Marriott spends enough money to develop its technological sites. It is still quite behind in this matter since many of its competitors are ahead of it in this matter. Also, the incident of 2018 in which over 500 million people’s data was exposed, has left the mass a bit weary of their data protection skills. This puts it quite an inconvenience as they put a damper on the team’s morale. So, Marriott should invest a bit more in the technological sector and get a better security system.
Research and development: Marriott spends more than that is average in this industry on research and development. And yet somehow, they are far from having a sound position in the market. So, it is not enough. It is still spending less than what many other brands in the field are spending. As a result, they are falling behind in the competition.
Marriott SWOT Analysis Opportunities
The opportunities are outside factors of a company that they can exploit for profit and benefits for themselves. A Marriott SWOT analysis will help the executives to contemplate them before their next big move.
Low rates of inflation: The rate of inflation is very low this year and experts believe that the rate will continue to lie low for a while. This presents the company with an excellent opportunity to earn a good amount of profit. It also saves the company from the risks of potential losses. It will also ensure that the cost inputs are low for that period of time.
New markets: As the millennials and Gen-Z arrive to lend a hand to economic development there are new markets in the making. This will help Marriott broaden its already wide horizon of business. It has already acquired about 1.2 million rooms across. These numbers can rise higher thanks to the new markets.
Globalization: The increase in globalization does not mean that Marriott will be constricted within its own shackles. It can turn around into what one can expect as a full-blown chance to show the world exactly what Marriott is capable of. This can result in more customers, interested dealers, and much more profit and popularity.
Marriott SWOT Analysis Threats
Threats are the most important part of a swot analysis. A Marriott SWOT analysis will point out the threats to this community that has been holding it back.
World Recession: This is the time of a pandemic. Marriott International is one of the leading companies in the consumer goods department. Even though this pandemic has failed to make any big impact on the sales figure, that does not mean that the magnitude of the situation is any less. This pandemic has affected Marriott’s profit margins. This has fueled major changes in Marriott’s business strategies.
Competition: In recent times, many new companies are mushrooming in this new market. This increases the competition. In the hospitality sector, Marriott’s most competitive rival is Hyatt. It has become even more of an issue after they announced their new plans regarding their new outlet openings. This service provides an alternative option to the services that Marriott provides. Even though the gap in profit is quite large they are expected to become smaller over the coming years.
Marriott SWOT Analysis Overview Template
Marriott SWOT Analysis: Conclusion and Recommendations
Here are some recommendations for Marriott to improve their market game from the experts:
- They should recruit more people across the globe, as it would diversify their workspace and boost team morale.
- They should try to make their business more organized and diversified.
- They should focus on training their workforce with much more care than strict policies.
In conclusion, it can be said that a steady line of profit and global reach are the key strengths of Marriott. As for its greatest weakness, that would be its stiff structure of the organization. It may not look like much, but it is a huge load to carry.
FAQs for Marriott SWOT Analysis
What are Marriott company values?
Putting people first, achieving excellence, embracing change, acting with integrity, and serving the world are among Marriott’s fundamental values. They place a high value on social responsibility and consumer happiness.
What is the difference between Marriott and Marriott Bonvoy?
Marriott is the parent company, while Marriott Bonvoy is its loyalty rewards program. Bonvoy offers members exclusive benefits, points for stays, and access to a vast network of hotels and resorts.
What is special about Marriott?
Marriott is distinguished by its wide-ranging worldwide presence, diversified portfolio of hotel brands, dedication to sustainability, and extraordinary guest experiences that are frequently tailored to the interests of individual visitors.
A Marriott SWOT analysis helps the community in many different ways. Only because it would allow the executive directors to theoretically take apart the community’s strategic approach to this day and scrutinize them.