Professional Documents
Culture Documents
Portfolio
Ansoff matrix...................................................................................................................... 5
Branding............................................................................................................................. 11
CONCLUSION............................................................................................................................. 15
REFERENCES............................................................................................................................... 16
STRATEGIC ANALYSIS
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business environment in which firm operates. Such type of analysis helps business to
(Hensmans, Johnson and Yip, 2013). However, it is essential for entrepreneur to understand
business environment in which they are operating and develop interaction with its
achieve desired goals. In the present portfolio analysis, two organizations have been
chosen that are operating in the same industry. Intercontinental Hotel Group and Marriott
hotel have been undertaken which are prominent hotels of UK and recently through
carrying out research, it has been assessed that Marriott is facing issues in losing market
share because of implementing ineffective strategies (Hill, Jones and Schilling, 2014).
Hence, IHG implements effectual strategies that help them to develop their brand
image in the market and make good product and service decisions in order to attract
consumers towards the firm. Also, different strategic tools have been undertaken such as
Ansoffs matrix, Porter generic strategies etc. All such strategic tools helps in identifying
the key strategic issues faced by companies in international market and also affects the
development of overall industry (Kim and Mauborgne, 2013). However, comparing and
contrasting the strategic choices made by firm in order to attain desired results. Also, it can
be stated that strategic choices assist companies in meeting their vision, mission and
objectives.
owns 4800 hotels across 100 countries. Its headquartered is situated in Denham, UK.
Business possesses around 710000 rooms and thus, includes varied hotel brands operating
under it such as Crowne Plaza, Holiday Inn and Hotel Indigo etc. Company operates in
worldwide market and thus later it joined forces in the privatization of Army Lodging
program in order to render best quality services and experiences to soldiers as well as their
families. Such type of program provides effective hospitality services to US Army (Elbanna,
2010). Therefore, it is essential for hotel to maintain its service and product quality along
with overcoming issues in order to gain consumer satisfaction. For this, effective strategic
choices have been made by firm such as Ansoffs matrix and Porters Generic Strategies in
BACKGROUND OF MARRIOTT, UK
Marriott International, UK is an American diversified hospitality company that helps
in managing and franchising a broad portfolio of hotels that involves varied facilities such
as lodging etc. Company owns more than 4087 hotels across 80 countries and it possesses
more than 697000 rooms. However, due to tough competition in the marketplace, business
faces issues such as decreasing market share and thus, it is essential for firm to enhance its
product and service quality in order to attain desired results (Ghezzi, 2013). Management of
firm implements different strategic choices such as Ansoffs and Porter Generic strategies
so that problems faced by firm could be identified and thus, it includes effective strategies
STRATEGIC ANALYSIS
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Ansoffs matrix
Market It helps business to Thus, here marketers of firm While, Marriott always
the current market schemes and benefits so that them different offerings
2005).
and Jain, 2007). instance: firm provides high provides similar products
(Ghemawat, 2003).
Market It assists business to IHG launches new program of Here, Marriott does not
development expand its products providing quality products and aim to focus on new
(Kehoe and Perri, well as their families. Such product line. If, it
business tries to grow thus, focuses mainly on adopts such strategy and
in analyzing the strategic choices made by business in order to achieve competitive edge
over its rivals. For instance: Marriott management fails in making crucial decisions
regarding market development and only focuses upon the current market or existing
customers. Thus, such strategic option results into the failure of business and leads to
decline in market share. On the other hand, IHG hotel undertakes market development
tactic and provides best quality services to its new segment of clients i.e. US Army officials
and their families which helps in increasing the market share of firm and impacts upon the
Furthermore, hospitality firms are required to employ effective quality products and
services so that best decisions can be made in regard to service delivery and consumer
satisfaction. For instance, Marriott faces issues in enhancing consumer base and
profitability because still it focuses upon the existing product range and client base i.e. high
class people. The marketing team of business develops different strategies in order to
attract and retain existing customers but does not focus upon new clients to increase the
market share. Thus, it faces issues and such decision impacts upon the company's
that it does not influence the business activities and expand its operations in worldwide
STRATEGIC ANALYSIS
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Thus, it has been assessed that the decision taken by Marriott International to not
expand its market segments and focus upon existing customers proves to be a failure in
terms of gaining market share. While, Intercontinental Hotel Group focuses upon the
decision to extend its market segment by providing additional services to army officers and
their families that results into enhancing the market share and profitability. It also assists
business to increase the brand image of firm in market and give tough competition to rivals
and achieve successful outcomes. Therefore, it can be assessed that business is required to
focus upon strategic planning and make appropriate decisions in regard to support the
companies and develop their mission, vision and objectives so that set goals can be
achieved (Stonehouse and Houston, 2013). In addition to this, if firms are not able to make
effective decisions regarding expanding the market segment or developing the product
suitable for hospitality firm to undertake effectual decisions in regard to enhance the
consumer base and offer them best quality products and services in regard to achieve
businesses such as IHG undertakes decision to expand the market share led them into Blue
Ocean because for this they do not have to fight with the rivals to overcome the market.
Here, they achieve success with the help of their effective strategy implementation and
thus goals can be attained. However, such strategic moves helps firm to create a leap in
value for company, its customers and employees while unlocking new demand and also
making the competition irrelevant (Kim and Mauborgne, 2013). While, it is essential for
order to grab a greater share of existing demand. However, as the market space gets
crowded, prospects for profits and growth reduces. For instance, implementing varied
strategies makes the companies to raise cut throat competition and turns the ocean bloody
red. Thus, as per Ansoff matrix, IHG is doing much better than the Marriott hotel and
expands its market share by focusing upon the needs and wants of target consumers
(Ghezzi, 2013).
By adopting such strategy, it stated that the proposed strategy helps in developing
is also considered as a much more market focused tool as it proposed business strategies in
order to perceive value by consumers and price to customer rather than cost to firm. There
are four strategies of Porter Generic Strategies such as differentiation, cost leadership,
differentiation strategy states that uniqueness available in the products and services that
helps in providing value to consumers and allows business to charge premium prices. For
instance, IHG is a luxurious hotel and targets upper middle class travelers and thus it
undertakes differentiation strategy. Business also charges premium prices for its products
and services delivered to consumers. On the other hand, Marriott undertakes the cost
leadership strategy and thus sells its products at the average industry prices in order to
attract more number of business travelers and earn higher profits margins as compared to
rivals. Such strategy helps them to enhance market share and attain competitive advantage
best advantage of firm as well as consumers. Also, business efficiently creates additional
sustainable competitive advantage that helps them to achieve desired goals. Moreover, it is
significant for business to develop strategic analysis so that best results in the form of high
market share and profits can be achieved. However, it helps IHG and Marriott to expand its
business operations and provide best products and services to consumers (Hill and Jain,
2007). IHG adopts differentiation strategy and thus provide unique quality products and
services to customers that attract them to consume the same and enhance the sales and
profitability of firm in market. While, Marriott adopts cost leadership strategy that assists
them to stand out of crowd and provide best suitable prices in regard to retain consumers
for long term and achieve desired goals. Hence, it is crucial for hospitality firms to adopt
Branding
However, it is essential for businesses to pay proper attention on its branding which
can be done through adopting effectual marketing strategies such as online promotion, e-
mail marketing, and mouth publicity. For instance, IHG adopts online marketing and
provides advancements on different social media sites to attract high class consumers who
regularly travel. However, such strategy is effective in order to enhance customer base and
sales in market. On the other hand, Marriott adopts effective marketing tactic such as
mouth publicity as well e-mail or message marketing in which it sends messages to prospect
clients and provide them detailed regarding the booking offers and available discounts
(Ghemawat, 2003). Thus, undertaking such type of marketing strategy helps firm to achieve
desired outcomes.
product and market decisions in regard to enhance sales and profitability. However, it is
essential for business to analyze the target segment and then undertake effective product
and market decisions so that best results can be attained. Fr instance, IHG adopts decision
regarding targeting army officials and their families and provides them best quality
products and services in order to satisfy their needs. Therefore, it is essential for firm to
obtain crucial decision regarding developing the product line and market related decisions
so that set goals can be achieved (Johnson, Lenartowicz and Apud, 2006). On the other
hand, Marriott International focuses upon existing market base i.e. upper middle class
consumers so that product and market related decisions can be made effectively and
efficiently.
STRATEGIC ANALYSIS
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However, adopting best strategic choices helps in supporting the firm in order to
meet their vision, mission and objectives. Thus, it is essential for hospitality organization to
choose best strategic choices that is suitable in order to imply the same and achieve
competitive advantage over rivals. Developing strategic decisions helps firm to meet the
vision, mission and objectives. For instance, IHG mission is to provide best quality services
to its guests and it can be attained through implementing strategic decisions such as Porter
Generic and Ansoffs matrix to attain results (Kennerley and Neely, 2003). Thus,
implications of identified choices help in achieving competitive advantage within firm and
enhance their market share and profits. Moreover, implementing effective market
strategies helps business to overcome strategic issues faced by industries at global level
Here, it can be assessed that the decisions made by firm highly affects the products,
crucial decision and develop best products, services and market to achieve results. For
instance, if firm focuses on such factors it helps them to enhance the competitive
advantage. While, if they are not able to undertake such options it disrupts the competitive
edge gained by firm and rivals become the options for customers. It is essential for IHG
develops its market segment for Army officials and their families thus, they need to focus
upon that they should not leave the existing consumers and affects the operations of firm
effective research and thus analyze the business environment in which the firm operates.
Further, it led firm to formulate business strategy so that best decisions can be made in
order to achieve organizational goals. Further, comparing two hospitality firms such as IHG
and Marriott International assists that former adopts market development and product
development strategy in order to enhance the consumer base and achieve high profits.
While, Marriott focuses upon existing products as well as target consumers so that they
STRATEGIC ANALYSIS
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Elbanna, S., 2010. Strategic planning in the United Arab Emirates. International Journal
of Commerce and Management. 20(1). pp.2640.
Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision.
51(7). pp.13261358.
Haley, T. G., 2006. The logic of Chinese business strategy: East versus West: part II.
Journal of Business Strategy. 27(2). pp.4353.
Hensmans, M., Johnson, G. and Yip, G., 2013. Strategic Transformation: Changing While
Winning. Palgrave Macmillan Publication.
Hill, C. W. and Jain, A. K., 2007. International business: Competing in the global
marketplace. NY: McGraw-Hill/Irwin.
Hill, C., Jones, G. and Schilling, M., 2014. Strategic Management: Theory: An Integrated
Approach. Cengage Learning.
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