Professional Documents
Culture Documents
Case narrative
The first hotel of Marriott opened in Arlington, Virginia in 1957 and during this
time its experience in the service industry in 1927 when J. W and Alice Marriott
opened a small root beer stand in Washington D.C and later became as hot
Shoppe restaurant. In 1943 the company went public J.W Marriott remained
president, succeeded by his son Bill in 1964, Marriott later divested its self of
the restaurant business and eventually spun of its burgeoning food service
business in order to concentrate primarily on lodging, 1999 Marriott international
was the largest hotel company in fortune magazine ranking of 500 biggest U.S
firms and also one of the most admired Companies in America, several different
product mix and branding strategies according to choice hotel senior president
this strategy help the company to avoid market conflict, making room for
expansion Marriott seeking growth internationally it has 350 location over 50
countries and now Marriott looking at Europe and Latin America to further
globalize its brand.
I.
INTERNAL ANALYSIS
Porters Analysis
III.
PROBLEM IDENTIFICATION
Primary Problem
What is the best growth strategy of the company to implement global expansion
in the Asia Pacific?
Alternative solution
A. Partnership
Is defined as legal relations existing between two or more persons contractually
associated as joint principal on business, this means that the company has easy
access for expansion once Marriott International strategy is to have partnership
with the recent local Company. This will give Marriott International an efficient
building business as their partner knows more the flow of business in the
country. It will cultivate and collaborate owner relationships, leveraging industryleading resources, offering a diverse portfolio of world-class brands and
delivering exceptional service, Marriott International will be able to hold fast to
our commitment to lead the lodging industry in the Asia-Pacific region .
B. Branding All
The company has already implemented a branding strategy of making the
brands carry Marriotts name but not all. This leads to dilution of most
consumers who are not aware of it. It is better to have branding all company as
well as the franchisee, to avoid customers confusion. Branding All means to
have edge on the other competitors. Brand strategy brings you competitive
positioning to life, and works to position you as a certain in the mind of your
prospects and consumer (marketingmo.com) if the Marriot International able to
brand each franchisee or another Marriott International branches then each has
the same digit of revenues. The brand name of the company affects the cost or
rate itself as well as the standard prescribes services that leads to solution their
recent debts and easier for the company to expand in Asia. Branding all gives
the company more valuable compare to the competitors, the one that gives
valuable is the one that consumer remember for.
Secondary Problem
How could the company franchisee maintain the good relationship
towards employee?
Alternative Solution
1. Rewards and incentives
Rewards and incentives is a key to motivate everyone in the organization, to
maintain not just the customer satisfaction but as well as the employees
satisfaction.
Evaluation of Alternative
Primary
1. Partnership
Pros
This will give Marriott International an efficient building business as their
partner
knows more the flow of business in the country, and they will be able
to penetrate in the market they will easily inter in a new location offering same
service.
Cons
This will require more time, location research as well as company research ,
because choosing company to be a partner in the business required time to
ensure the quality and success of the partnership.
2. Branding All
Pros
This will remove the customers confusion, and Marriot International able to
brand each franchisee or another Marriott International branches then each has
the same digit of revenues.
Cons
Having the same brand for all Marriott hotel will be a challenge to
company to actually maintain its quality service , they should be commit to offer
same service to all hotels and having the same brand will lost the different
market segment, and this branding strategy is considered to be the hotels key of
success.
Secondary
Cons
Conducting seminars and training is costly and they must allocate new
budgets for it.
RECOMMENDATION
In order for Marriott International to implement global expansion in the
Asia Pacific, we recommend partnership with the top local companies in Asia.
The company already blanketed the US market and they are slowly paving its
way to penetrate Europe and Latin America. No doubt, the company has already
taken over the US. While Europe had over 95 Marriott hotels in the area and 9
countries out of 26 in Latin America was dominated by the company. But there is
a doubt of its dominance in Asia Pacific. True, they already have hotels around
the continent but their expansion is not quite acknowledge. It might be due to
numerous competitors which are hard to overpower or it might be because their
growth strategy is not quite commendable.
Through partnership with top local companies in Asia, it can guarantee
Marriott International the advantage of penetrating the continent, particularly the
Asia Pacific market which typically includes much of East Asia, South Asia, and
Southeast Asia.
Solution B is not that essential compared to A because their branding strategy is
also an advantage of the company. Even if the lesser brands might detract the
image of the company, they wont worry about it. In short, the advantage of their
branding strategy outweighs its cons because it has contributed to their
success. So, solution A is much important to undertake than B.
ACTION PLAN
WHAT
Partnership
WHO
WHEN
Marriot
As
Internationa
possible
and
early
top because
HOW
local
companies
in
Pacific
step
to
successful
strategic
partners
be
long-term
partnership,