Strategic Management
Strategic Analysis of Marriott International, Inc. Lauren Renner April 28, 2010 MGMT 458-002H Honors Capstone
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Corporate Headquarters 10400 Fernwood Rd. Bethesda, MD 20817 www.marriott.com
Executive Summary Marriott International, Inc. is a leader in the global lodging industry. With more than 3,000 properties in 68 countries and countless achievement awards, they are not only a wellknown but also a well-liked brand. The global financial crisis hit the hotel and lodging industry hard because of a sharp drop in business and leisure travel. Regardless of the steep drop in profitability over recent years, Marriott has plans to launch two new brands in 2010, double presence in Europe by 2015, and focus on driving incremental revenue by cutting costs at the property level. The following document discusses these strategic moves. It also addresses opportunities Marriott has to further capitalize on their strengths by extending their expansion plans into the mid-level hotel segment to take advantage of the industry’s fastest growing population and by utilizing low-cost, high-impact promotions to allow room rates to remain competitive and continuously evaluate market conditions as the world gradually climbs from this economic downturn.
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Company Overview Marriott International, Inc. (NYSE: MAR) is a global hotel chain dedicated to operating and franchising hotels and other lodging facilities. The Marriott family’s first endeavor was a small root beer stand on the streets of Washington, DC in 1927. Marriott’s first hotel was the Key Bridge Marriott close to the DC area which is constantly out of date due to its high demand for occupancy because of its still enviable location. From there Marriott has grown to become the leading hotelier that we know today. On October 8,, 1993, Marriott International was established as a spinoff of the Host Marriott Corporation and took over the role of managing and franchising hotels.1 The headquarters, still
Renner |2
Corporate Headquarters 10400 Fernwood Rd. Bethesda, MD 20817 www.marriott.com
Executive Summary Marriott International, Inc. is a leader in the global lodging industry. With more than 3,000 properties in 68 countries and countless achievement awards, they are not only a wellknown but also a well-liked brand. The global financial crisis hit the hotel and lodging industry hard because of a sharp drop in business and leisure travel. Regardless of the steep drop in profitability over recent years, Marriott has plans to launch two new brands in 2010, double presence in Europe by 2015, and focus on driving incremental revenue by cutting costs at the property level. The following document discusses these strategic moves. It also addresses opportunities Marriott has to further capitalize on their strengths by extending their expansion plans into the mid-level hotel segment to take advantage of the industry’s fastest growing population and by utilizing low-cost, high-impact promotions to allow room rates to remain competitive and continuously evaluate market conditions as the world gradually climbs from this economic downturn.
Renner |3
Company Overview Marriott International, Inc. (NYSE: MAR) is a global hotel chain dedicated to operating and franchising hotels and other lodging facilities. The Marriott family’s first endeavor was a small root beer stand on the streets of Washington, DC in 1927. Marriott’s first hotel was the Key Bridge Marriott close to the DC area which is constantly out of date due to its high demand for occupancy because of its still enviable location. From there Marriott has grown to become the leading hotelier that we know today. On October 8,, 1993, Marriott International was established as a spinoff of the Host Marriott Corporation and took over the role of managing and franchising hotels.1 The headquarters, still