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In: Operations Management

Analyze the current market position of  Marriottby conducting following analyses: a. External analysis (PESTEL and Five forces...

Analyze the current market position of  Marriottby conducting following analyses:

a. External analysis (PESTEL and Five forces models).

b. Internal analysis with the VIRO model.

Explain why the company reaches this current market position by comparing to its historical

market performance.

Solutions

Expert Solution

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Marriott PESTLE Analysis looks at various external factors such as political, economic, social and technical aspects as well as legal and environmental factors. PESTLE analysis is an essential framework for businesses like Marriott, helping to understand and continuously improve market dynamics.

1.Economic factor: - Marriott mainly offers luxury and premium services; in the case of an economic slowdown, there may be a decrease in turnover.

2. Social factor: - Marriott has classified its hotel into 3 parts; Luxury, premium, and Solution. Marriott offers a loyalty program called "Marriott Bonvoy" to keep its customers and attract more customers, which aims to offer free hotel accommodation and additional discounts for customers.

3. Technological factor: - Marriott should focus on continuing technology to reduce their operating costs and customer retention.

4. Environmental factor: - Marriott claims to comply with various environmental laws and regulations applicable in the countries where it regulates.

The five power models analyzed consist of the power of buyers, the power of suppliers, the threat of new participants, the threat of substitutes, and the degree of competition.

1. The power of buyers: -Businesses are always trying new ideas to secure diverse customer groups ranging from the middle class to the premium sector.

2. Supplier power:-In this industry, the supplier's power can be regarded as moderate, mainly due to circumstances that benefit the supplier.

3. Threats of new participants:

Recently, the hospitality industry has experienced significant growth, but new participants will be attracted. The industry is heavily influenced by tourism and travel trends.

4. Threats of substitutes: -Alternatives can meet the basic functions of the dorm, but the hotel offers better benefits such as dining and bathrooms.

5. Degree of competition:-

The competitive threat in this industry can be considered moderate, mainly due to financial and logistics factors.

B. VRIO analysis concluded that Marriott International had a competitive advantage in key industries. There are three resources that provide a sustainable competitive advantage and one that has a temporary competitive advantage.

1. Previous strategy:-

The previous strategy played an important role in shaping Marriott's unique skills. The use of technology to improve customer service has been an important part of Marriott's strategy.

2. Current strategy:-

Marriott's current strategy includes continuous process innovation and business globalization. They use technology to continually improve the technology or process.

3. Representation barriers:

One of the main obstacles to emulating Marriott's unique powers is the cost of imitating them.

4. Adapt to change:

Marriott has successfully adapted to industry trends. I was able to implement the latest technology to provide efficient service.

Marriott International is the third-largest hotel chain in the world. There are 30 brands. It is a multinational hospitality hosting business that manages and travels various hotels and related facilities


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