Marriott SWOT Analysis [Update 2022] ❤️

Marriott SWOT Analysis 2022

The hospitality industry is vast. There are numerous fish in the ocean, including some huge and others small. It’s among the industries that have seen the fastest growth over the past decade. 

The ones who are able to provide high standards of service and customer satisfaction are the ones to have become the kings of this industry. 

To make a brand in the field, you must be proficient in their skills and possess an excellent understanding of what’s required and how. 

It takes a lot of hours of work and nights of sleep to establish a successful business in this industry. 

The creation of an image that is based on the quality of services and customer care, as well as trustworthiness, takes time. 

There are many major brands that started this process some time ago and have since earned an image that is similar to what they are today. 

Some of the most well-known names include Hilton Hotel and Resorts, Hyatt Hotel Corporation, Marriot, IHG, and Wyndham.

One of the largest brands around the globe is Marriot. It was founded in the year 1965 in the form of an airport motel named “Quality Inn” in Washington DC that was shut down later. Nowadays, it’s called Marriot Hotels and Resorts which offers high-end full-service. 

According to the most recent reports that there are 582 resorts and hotels with more than 205,053 rooms that are distributed across 131 countries across the world. 

Their revenue for the year 2020 was estimated as US $13.770 billion which decreased by 34.08 percent. 

The chain faces a lot of competition on the market and has some formidable competition too! Let’s learn about its business strategies using SWOT analysis. SWOT is a term used to describe strengths potential, weaknesses, opportunities, and threats.

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SWOT Analysis of Marriott

The SWOT assessment can be used to evaluate the performance of a business as a whole, or an individual project within the department. 

The SWOT assessment is typically utilized at the organizational level to assess whether an organization is in line with its growth trajectory and benchmarks.

It is also utilized to assess whether an individual project, like an online marketing campaign – is operating in line with its objectives.

Strengths In The SWOT Analysis of Marriott

Strengths are the best thing that a business can do within its range of operations that can give it an edge over its rivals. These are the Marriott’s strengths :

❤️ Marriott’s way of life: The biggest strength of the hotel chain is its strict adherence to operating standards. The code of conduct for employees was designed specifically by the top management team and each employee is required to adhere to it until the last point. Many of these rules are based on the ability to be resourceful.

❤️ The presence of HTML0 across the globe: Marriott International has a presence in more than 122 locations across the globe. It has more than 600 hotels under its umbrella, with 1.2 million rooms.

❤️ Concentrate upon innovation: Marriott’s operational philosophy is focused on innovation, and the majority of its processes and systems attempt to combine the two to provide a complete price for value.

❤️ Drive to gain an advantage in competition: Research indicates that Marriott is among the most competitive companies in the industry and strives to keep reinventing itself in order to keep up with the competition.

❤️ Positive energy: Marriott’s run to the top was an uphill battle and they were constantly frightened by the failure. The company was not frightened by the failures and managed to keep a positive attitude which is among its key strengths.

 Weaknesses In The SWOT Analysis of Marriott

They are utilized to indicate areas where the company, as well as the image, requires improvements. One of the major shortcomings in Marriott is:

❤️ Ineffective protection of data Consumers are suspicious of and avoid companies that fail to safeguard their personal information. In 2018 The guest reservations database for Marriott’s Starwood was breached and the personal data of as many as 500 million individuals were exposed, which included names addresses, addresses, phone numbers, numbers for passports, and so on.

❤️ Poor positioning: Marriott is marketed and structured as a family-oriented business, from its marketplace through management. It is believed that the direction of this business is in the younger single millennials, which is why Marriott’s focus on family is an important weakness.

❤️ Negative Publicity This Service business is susceptible to perceptions of the general public. Marriott’s reputation was tarnished in 2017 when it decided to save only clients of St. Thomas after Hurricane Irma and to keep non-guests off the cruise ship, even though it was empty.

❤️ Civil Lawsuits Lawsuits involving the laws tend to cast companies in a negative way. Marriott was in court for blocking customers’ Wi-Fi in response to security concerns. It was fined $600,000.

❤️ Too strict: Although strictness is essential to success but putting pressure on the necks of employees is a certain way to reduce morale productivity, efficiency, and productivity. Marriott demands that employees adhere to its code of ethics strictly and fired one employee back in the year 2018 after they ‘liked’ the tweet that was offensive to China.

Opportunities In The SWOT Analysis of Marriott

Opportunities refer to the opportunities within the context surrounding the company on which it could capitalize to improve its earnings. The opportunities are diverse and are:

❤️ The change in consumer behavior: People around the globe are more willing to stay in luxurious hotels even with their families. This is a trend that has seen a rapid increase in the developing world – and is an opportunity that hotel chains can’t afford to ignore.

❤️ Unexplored industry: Marriott was recently featured in the press for its unwavering support for the LGBTQ community as well as its special deals for couples who are same-sex. With these trending issues, this could be a chance to the chain hotel.

❤️ With the rise of global travelers in comparison to the past decade, the number of travelers traveling for work as well as pleasure has risen significantly. Through the tie-ups with airlines, hotel chains can capitalize on this opportunity to benefit.

❤️ The emphasis is on personalization: Today customers want personalized attention, and most times, they are prepared to fork out for such. This means that hotels can charge a premium for each personal service they provide.

 Threats In The SWOT Analysis of Marriott

Threats are the factors that exist that can hinder the expansion of the company. The most common threats are:

❤️ Global Pandemic: Marriot has already lost 92% of its revenue because clients decreases because of the pandemic. If the disease persists or if it comes back in a subsequent round, Marriott’s profits will continue to decline.

❤️ Stiff Competition Hotel and restaurant industry is extremely competitive. For example, from Hilton and Hilton Novotel, and many others, well-known hotel chains could decrease Marriott’s shares of the market significantly if given an opportunity.

❤️ A looming recession: Countries are sliding deeper into recession, with millions of jobs being eliminated within a relatively short time. The negative consequences of the recession, in general, have proved previously to be especially damaging to businesses that operate in the industry of hospitality.

❤️ Trade Tension With the growing acceptance of the isolationist ideology, multinational conglomerates as well as businesses like Marriott is an ideal target for tariffs by angry populist governments. If Marriott is utilized as leverage or pawn to win the battle for trade rights, the company could earn make a significant amount of its profits.

❤️ The threat of terrorist attacks It is a 5-star lodging facility that draws customers from a variety of nationalities. Terrorists are targeting hotels with a high percentage of foreigners.

Limitations of SWOT Analysis for Marriott International

While it is true that the SWOT analysis is extensively used to plan strategic strategies, However, the analysis has some limitations.

  • Certain aspects or capabilities of an organization can be both a strength as well as a weaknesses at the same time. This is among the most important limitations that SWOT analysis has. Changes in environmental regulations could be and a risk to the business, but however it could also be an opportunity in the sense that it allows companies to be on the same level or even gain an advantage over competitors when it is could develop its product more quickly than its competitors.
  • SWOT is not able to show you how to gain competitive advantages and therefore it shouldn’t be a complete solution.
  • The matrix serves as an initial point of reference for discussions on how suggested strategies can be implemented. It also provided an evaluation window, but not any implementation plan that is based on strategic competitiveness. Marriott International
  • It is a static analysis and analysis of the existing conditions and a small number of potential modifications. When circumstances, capabilities threats, strategies, and circumstances alter, the dynamic of the competitive landscape cannot be analyzed in a single table.
  • SWOT analysis could make a firm over-emphasize one external or internal element in formulating strategies. There are interrelations between the most important external and internal elements that SWOT cannot reveal that can be vital in formulating strategies.

Weighted SWOT Analysis of Marriott International

Given the above-identified weaknesses of the SWOT analysis/ matrix, the management of corporations has decided to assign an appropriate amount of weightage for each of the strengths and weaknesses of the company. 

They also consider the likeliness of events that will occur in the near future and what the effect can be on the performance of the company.

This technique is known as the Weighted SWOT analysis. It’s better than basic SWOT analysis as With weighted SWOT analysis Marriott International managers can focus on the most important elements and ignore the less crucial ones. 

It also eliminates the problem of a long list which is when organizations make an extensive list, but none of the elements are considered to be crucial.

Marriott and its Competitors

When a brand rises in the marketplace and its competition rise. The same is true for Marriott. It’s a household brand in the marketplace and everyone knows about it. 

Everyone would like to be on the same level where Marriott remains. Many businesses are providing an uphill battle with this huge fish. Let us know about them.

Recommendations for Marriott

Here are some suggestions for Marriott to boost their market position based on experts:

  • They should seek out more individuals around the world because it will broaden their workplace and improve team morale.
  • They should work to make their businesses more efficient and diverse.
  • They must focus on the education of their workforce with great care instead of strict guidelines.

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After careful examination of the swot analysis for Marriott, we’ve come to the conclusion that Marriott is the world’s biggest chain of hotels and restaurants. 

The recession in the economy, as well as security concerns as well as lawsuits, and terrorist threats, are just some of the major problems. Marriott should enhance its security and expand its operations in emerging economies.

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