Marriot International is a company that has used generic business-level strategies successfully. Marriot is a worldwide franchisor and operator of hotels and lodging facilities. They are a top player in the Hotel industry and will continue to be for many years. Based on multiple competitive advantages, which include uniqueness, cost, and extent of their competitiveness. Marriott International, Inc. pursues multiple business level strategies. Marriott’s vast portfolio of brands allows them to have a strong presence in the market. This is part of their differentiation strategy
.
Differentiation Strategy
Marriot International uses the differentiation strategy to develop a product and service that uniquely satisfies a customers needs. By providing multiple lodging options, from moderately priced to premium priced, the Marriott has earned a reputation for innovation and quality. The value added provided by the company’s uniqueness allows it to charge a higher premium for upscale hotels.
Cost Leadership Strategy
Marriott International also offers brands that are aimed for a lower budget. Brands such as SpringHill Suites, and Courtyard target the upper moderate price tier segment, while Fairfield Inn targets the lower moderate price tier. The company excels in efficient cost production that enables to charge a low price compared to its competitors while still making a reasonable profit. The Marriott strives to keep costs low while catering to a broad range of customers.
Franchising Strategy
In order to be a global competitor, Marriot International adopted the strategy of franchising and managing hotels instead of becoming a full owner. In 2009, about 46 percent of the hotel rooms in the company’s system were operated under management agreements, 52 percent operated under franchise agreements, while only 2 percent were leased or owned by the company. In a franchised property, the company foregoes direct control over employees and strives to build upon maintenance and internal operations. This reduced a great financial risk for the company while still allowing global growth. It was also beneficial during tough economic periods.
Overall, Marriott's business strategy involves adapting to diverse cultures, optimizing pricing and profitability, and continuously seeking new business opportunities .
Marriot International uses the differentiation strategy to develop a product and service that uniquely satisfies a customers needs. By providing multiple lodging options, from moderately priced to premium priced, the Marriott has earned a reputation for innovation and quality.
A classic business-level strategy is lowering prices to make your products more appealing to customers than competitors' offerings. Specific goals that contribute to this strategy include reducing overhead expenses, augmenting inventory control, and making shipping more efficient.
Strategists often refer to three levels of strategy: corporate level strategy, business level strategy, and functional level strategy. But, they are missing a fundamental level that is key for successful strategy execution: operational level strategy.
A differentiation strategy allows a company to compete in the market with something other than lower prices. For example, a candy company may differentiate its candy by improving the taste or using healthier ingredients.
Marriott's business model centers around providing hospitality services and accommodations to a diverse range of customers, including travelers, corporations, and event organizers. They generate revenue through hotel operations, brand development, and customer loyalty programs.
Companies that follow a broad differentiation strategy apply the “prestige for masses” approach. Examples of such companies are BMW and Apple. These brands focus on developing innovative products for the broad market.
Gold Elite: 25 elite night credits per calendar year. Platinum Elite: 50 elite night credits per calendar year. Titanium Elite: 75 elite night credits per calendar year. Ambassador Elite: 100 elite night credits per calendar year and at least $23,000 in qualified spending per calendar year.
Summary : There are only five business strategies: cost, quality, distribution, technology, and intellectual property (IP). All business strategies break down into these five, or some combination of them. As a general principle, focusing your organization on one is the easiest to execute.
Introduction: My name is Chrissy Homenick, I am a tender, funny, determined, tender, glorious, fancy, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
