Marriott is a multinational company that mainly focuses on giving its customers the best experience when visiting a foreign land. It is a resort and hotel multinational brand. It was founded in 1927. But the hotel and resort brand was established around 1957. Its headquarters are in Bethesda, Maryland, USA. They have dedicated their time and effort to make 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 of the community.
Marriott SWOT Analysis is a proven management framework that enables a brand to benchmark its business & performance as compared to the competitors and industry.
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 frame that can be used by the company managers to get a successful situation analysis of the company. A Marriott SWOT analysis framework can assist them to realize their internal strategic factors such as strength and weakness, also their external strategic factors such as opportunity 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 for this company.
Strengths of Marriott in SWOT Analysis
Marriott has a plethora of strengths that will help it to thrive in the main field. Marriott SWOT analysis will help to focus on these strengths. Based on Fern Fort University’s studies, some of these strengths are enlisted 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 whole 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 the monopoly over the global hotel industry. Although it has started from Maryland, it is now a household name for many families across the globe. This gives them a huge global footprint. Said global footprint comes handy when advertising their brand name. It also scares away the occasional weed like competitions. 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 authorities of the hotel. Each and every employee of the hotel is expected to maintain this code. This makes their employees come across 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 utmost respect. However, some other factors also remain key to gain 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 6500 properties with more than 1.2 million rooms. It has garnered a total of about 545 million dollars. It has been gaining market slowly but surely for about a hundred years. It has earned the public trust as a star company. Its financial position has it on a point of pure advantage that increased its market value and brand name by leaps and bounds. So, this financially secure position does 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 towards innovation. Marriott has been innovative from the start of its journey. Due to its innovative nature, it has brought many new materials in the hotel industry. It is also the 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 behind Marriott’s success.
Weaknesses of Marriott in SWOT Analysis
Weaknesses are part of the internal factors of a company. Marriott International 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: All though 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, after 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 as 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.
Opportunities for Marriott in SWOT Analysis
The opportunities are outside factors of a company that they can exploit for profit and benefits for themselves. 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 the Marriott will be constricted within its own shackles. It can turn around in 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.
Threats for Marriott in SWOT Analysis
Threats are the most important part of a swot analysis. Marriott SWOT analysis will point out the threats for 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 deadly 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 of services that Marriott provides. Even though the gap of profit is quite large they are expected to become smaller over the coming years.
Marriott SWOT Analysis Overview Template
Conclusion and Recommendations for Marriott
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 care rather 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 organization. It may not look like much but it is a huge load to carry.
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.