Team C: Alexander Sosunov, Ming Ma, Luke Scharkopf, Wei Zhao

Professor. LaManna

Marriott
Marriott International is one of the world's largest and most successful hotel chains.

Founded in 1927 by J. Willard Marriott, the company has grown to include a diverse portfolio of

over 30 hotel brands, including well-known names such as Marriott Hotels, Ritz-Carlton, and

Sheraton. Marriott operates more than 7,600 properties in over 110 countries and territories,

making it one of the largest hotel chains in the world by room count. The company's strong

presence in both mature and emerging markets, as well as its diverse portfolio of brands, has

helped it to maintain a leadership position in the highly competitive hospitality industry.

One of the main threats to Marriott is competition from other hotel chains, both large and

small. The hotel industry is highly competitive, and Marriott faces intense competition from

other well-known brands such as Hilton and Hyatt. The intensity of competitive rivalry in the

hotel industry is high, with many established players vying for market share. To stay

competitive, Marriott focuses on offering a diverse portfolio of brands, which allows it to target

different segments of the market and helps to reduce the impact of any downturns in a particular

segment. This portfolio includes luxury brands such as Ritz-Carlton and St. Regis, as well as

select-service brands such as Courtyard and Fairfield Inn. Additionally, Marriott has a strong

presence in both mature and emerging markets, including the United States, Europe, and Asia,

which helps to diversify its revenue streams and mitigate the impact of economic downturns or

other challenges in a particular region.

Marriott operates in a highly competitive and mature industry, and the barriers to entry

are relatively high. Potential new entrants would face significant challenges in acquiring land and

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building new hotels, as well as competing with established brands for customers. Additionally,

Marriott has a well-established loyalty program, Marriott Bonvoy, which has a large and

engaged membership base. The program offers a range of benefits and rewards for members,

including free nights, room upgrades, and exclusive offers, which helps to retain customers and

drive repeat business. Marriott also has a strong reputation for quality and customer satisfaction,

which has helped it to attract and retain customers, as well as enabling the company to charge

premium prices for its products and services. In addition, Marriott's customers have a relatively

high bargaining power, as there are many options for accommodations in most markets.

Customers can easily compare prices and amenities from different hotels, and may choose to stay

elsewhere if they feel that they are not getting a good value. To mitigate this, Marriott focuses on

offering competitive pricing and high-quality service and amenities to attract and retain

customers. The company has a well-established loyalty program, Marriott Bonvoy, which offers

members a range of benefits and rewards for staying at Marriott properties, which is one of key

drivers of Marriott's success has been its focus on customer satisfaction and loyalty. Therefore,

Marriott has consistently ranked highly in customer satisfaction surveys, with a strong reputation

for quality service and amenities.

One of Marriott's key weaknesses is its dependence on the hospitality industry, which is

subject to economic downturns and other challenges. The company's performance is largely

dependent on the health of the global hospitality industry, and any downturns could significantly

impact its financial results. Marriott is also vulnerable to external factors such as natural

disasters, terrorism, and pandemics, which can disrupt operations and impact demand for travel.

The recent war between Russia and Ukraine contributed to a shortage of supplies and resources.

Due to the unpredictability of the war, Marriott has announced the suspension of its hotel

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operations in Russia. Even though Marriott has suspended its hotel operation, it continues to

focus on its employees and community, according to the article of Marriott to suspend all

operations in Russia, “We have deployed $1 million in internal disaster relief funds for

associates and their families to assist with resettlement aid, including food vouchers,

transportation assistance, medical, and legal support.” As one of the world's leading companies,

Marriott really keeps its promise and cares for employees and other stakeholders. Another

weakness of Marriott is its limited ownership of properties. While the company operates a large

number of properties, it does not own many of them. This means that Marriott is reliant on

landlords and franchisees to maintain and operate the properties, which can create challenges in

terms of controlling the quality of the guest experience. Despite facing these pressures, Marriott

has consistently shown results against these issues. They won awards and gained recognition in

2021 such as being one of the 250 best managed companies by Forbes as well as numerous

diversity achievements. It's key to Marriott that if they are going to be franchising that they

manage the wellbeing of all its employees to the highest standard.

Facing the inherent risks in the business, one of the main opportunities for Marriott is the

growth in the luxury hotel segment, which is expected to see strong growth in the coming years.

Marriott has a number of luxury brands in its portfolio, including Ritz-Carlton, St. Regis, and

Luxury Collection, and by focusing on this segment, the company has an opportunity to capture

a larger share of the market and increase its profitability. Another opportunity for Marriott is

expansion into emerging markets, particularly in Asia and Latin America, which are expected to

see strong growth in the coming years. Marriott has a strong presence in these markets and has

an opportunity to expand its operations and capture a larger share of the market. Finally, Marriott

has an opportunity to differentiate itself from competitors and improve the guest experience by

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investing in technology. The company is investing in initiatives such as mobile check-in and

keyless room access, as well as the use of artificial intelligence and machine learning, which

could help to streamline operations and enhance the guest experience. M live is Marriott's

unique social marketing platform that aims to learn more about customers' behavior. Social

media experts monitor how the brand name appears on different channels. Furthermore, the

brand social team will customize and deliver a real-life experience to their clients, which leaves a

lasting impression to retain them.

Marriott relies on a number of suppliers, including vendors for food and beverage,

cleaning supplies, and other operational needs. The bargaining power of these suppliers is

generally considered low, as Marriott has a strong bargaining position as a large and well-known

company with a global presence. However, Marriott may be vulnerable to price increases or

supply chain disruptions if it relies heavily on a small number of suppliers. Threat of substitutes:

The threat of substitutes for Marriott's products and services is relatively low. While there are

alternative options for accommodations, such as vacation rentals or hostels, these tend to be

targeted at different segments of the market and do not pose a significant threat to Marriott's core

business. A growing company like Airbnb uses its online network to attract more suppliers and

customers. By competing against this potential competitor, Marriott offers short-term rentals in

private homes to meet the growing demand. Additionally, private home bookings offer a loyalty

rewards program for clients that leverages the brand reputation to attract more customers .

The biggest issue facing Marriott aren’t the individual threats from competitors or global

economic turmoil. The culmination of different needs for environmental initiatives against

climate change, aid in assistance to those employees and customers that are threatened from

different global political conflicts, and the looming long economic recession all pose a threat for

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these coming years. Marriott stands on its values even going as far as publicly stating so

whenever there is a crisis outside of Marriott that they need to take a position on. This company

has provided its own solutions for every downturn facing it due to their approach. Never giving

up on the wellbeing and growth of their employees and customers, and the nature of their mostly

franchisee structure.

In recent years, Marriott has focused on expanding its footprint in the luxury and select-

service segments, as well as investing in technology to enhance the guest experience. The

company has also made a commitment to sustainability and social responsibility, with a goal of

reducing its environmental impact and supporting local communities. Looking to the future,

Marriott faces a number of challenges and opportunities. The ongoing impact of the COVID-19

pandemic has had a significant impact on the hospitality industry, and Marriott has had to adapt

to changing travel patterns and restrictions. However, the company has also used this time to

invest in new technologies and initiatives that will help it to better serve its customers and

recover from the pandemic. Overall, Marriott operates in a highly competitive industry with a

number of forces at play. The company has been able to maintain a leadership position by

focusing on customer satisfaction, investing in technology and amenities, and offering a diverse

portfolio of brands. However, it must continue to adapt to changing market conditions and the

evolving needs of its customers in order to remain competitive.

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 Work Cited Page

● Gourtsilidou, Maria. “Top 10 Major Hotel Companies in the World for 2022.”
CEOWORLD Magazine, 3 Jan. 2022, https://ceoworld.biz/2022/01/03/top-10-major-
hotel-companies-in-the-world-for-2022/.

● “In the Face of a Pandemic, Marriott Leans on Its Values.” The Wall Street Journal, Dow
Jones & Company, 21 Jan. 2021, https://deloitte.wsj.com/articles/in-the-face-of-a-
pandemic-marriott-leans-on-its-values-01611259330.
● Kunesh, Andrew. “The Economics behind Hotel Loyalty Programs (with Insights from a
Former Marriott VP).” The Points Guy, 6 Nov. 2020,
https://thepointsguy.com/news/economics-behind-hotel-loyalty-programs/.

● “Marriott International, Inc. - Company Profile, Information, Business Description,

History, Background Information on Marriott International, Inc..” Reference for Business,
https://www.referenceforbusiness.com/history2/12/Marriott-International-Inc.html.

● “Marriott International, Inc..” Marriott International,

https://www.marriott.com/marriott/aboutmarriott.mi.

● “Marriott Takes on Airbnb by Offering Private Home Rentals.” ABC7 Los Angeles, 8
May 2022, https://abc7.com/marriott-airbnb-rental-properties-new-business/11829019/.

● “Marriott to Suspend All Operations in Russia.” Business Traveller,

https://www.businesstraveller.com/business-travel/2022/06/06/marriott-to-suspend-all-
operations-in-russia/.

● Plc, GlobalData. “Marriott International Inc Company Profile - Marriott International Inc
Overview.” GlobalData, https://www.globaldata.com/company-profile/marriott-
international-inc/.

● Serve360.Marriott.com.
http://serve360.marriott.com/wp-content/uploads/2022/10/Marriott-2022-Serve-360-
ESG-Report-accessible_F.pdf.

● Social Tables. “Why Marriott's Marketing Strategy Is above the Rest.” Social Tables, 5
May 2021, https://www.socialtables.com/blog/hotel-sales/marriotts-marketing/.