Marriott SWOT Analysis | SWOT Analysis of Marriott
Company Name: Marriott International Inc.
Founded by: Alice and J. Willard Marriott
CEO: Arne M. Sorenson
Year established: 1927
Headquarter: Bethesda, Maryland. USA
Number of Employees (Dec. 2019): 1740,000
Type: Public
Ticker Symbol: MAR
Market Cap
Annual Revenue (end 2019): US$20.97 billion
Profit (Net income) (end 2019): US$1.27 billion
Products & Services: Le Meridien | Westin Hotels and Resorts | Sheraton Hotels and Resorts | Ritz-Carlton Hotel Company | Starwood | Aloft Hotels | Courtyard | Four points | Gaylord Hotels | Delta Hotels | Fairfield | Renaissance | Elegant Hotel | Group Residence Inn
Did you know?
The Marriott family started the business as a root beer beverage stand and later they extended into a restaurant that hotel and lastly grew to an international company with 100s of hotels chain and resorts across the globe.
Marriott SWOT Analysis | SWOT Analysis of Marriott
In order to establish an effective or successful business from start, a lot of hard work, courage, resilience, and useful strategies are required to make it popular globally. It’s a vision of every businessman but only a few people can do this. Marriott International Inc. is a big example for us.
If you want to start a business in the hospitality industry, you should learn from Marriott SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. With this analysis, you can effectively grow your business and its operations. Here is the SWOT analysis of Marriott:
Marriott SWOT Analysis | SWOT Analysis of Marriott
Marriott’s Strengths:
1- International Presence:
International presence and operations expand profits or revenues but also increase stability. Currently, Marriott operates in 127 countries and regions globally. If one profit from one portion decreases, Marriott can rely on another section.
2- Market Management:
As we know, Marriott is the leading hotel chain internationally with more than30 brands, 81 hotels, and $25.1 billion assets. It has 6500 properties providing over 1.2 million rooms. It enjoys the entire advantages of economics due to its leading name.
3- Outstanding Reputation:
Marriott is listed 44th for assortment, 100th just companies, 243rd world’s best employers, and 38th best employers for women. Recently, the Fortune ranked Marriott 151st in the list.
4- Strategic Joint Ventures:
In order to grow business, you need to merge different companies or sectors. Marriott recently merged with Alibaba.com and allow their millions of users to book openly without down payments.
5- Advantageous Acquisitions:
Marriott exploits its operations with many advantageous brands like Ritz Carlton, Starwood, Bulgari Hotel, and Gaylord. In this way, Marriott expands its portfolios and revenues.
6- Devoted Customers:
Most of Marriott’s customers can’t even think about to choose any other hotel for accommodation. This kind of loyal fan-base is the real success of the Marriott. This is only possible with professional services and loyalty programs.
7- Strict Decorum:
Marriott is best known for its handling regarding sensitive issues or problems. The company is not only taking care of cleanliness and etiquette but also very punctual in services and deliveries. This type of strict code of conduct guarantees the success of the business.
8- Extremely Modern:
Marriott always offers innovative technologies in the service. From Homes Venture to Wallet-free experience and Villas, Marriott uses innovation in all the sectors.
Marriott SWOT Analysis | SWOT Analysis of Marriott
Marriott’s Weaknesses:
1- Useless Data Security:
People don’t trust companies that fail to keep their data. In 2018, Marriott’s Starwood was hacked and almost 500 million people were disclosed, as well as names, addresses, mobile numbers, passport numbers, etc.
2- Poor Positioning:
The backbone of Marriott’s success is family-focused business from management to market. But this approach can be the biggest weakness of Marriott due to the future of young people.
3- Unconstructive Publicity:
Marriott experience a huge backlash in 2017 due to its pronouncement to save its hotel guests from St. Thomas following Hurricane Irma. This kind of negative publicity can damage the brand name and reputation.
4- Lawsuits:
Lawsuits can spoil the company name. Marriott was prosecuted for jamming consumers’ private Wi-Fi due to citing security concerns and was charged $600000.
5- Too Strict:
Etiquettes and strictness are necessary for success, but breathing down the employees can destroy the company’s productivity and efficiency. Marriott never compromises on the code of conduct. The company fired a worker on liking a tweet that insulted China.
Marriott SWOT Analysis | SWOT Analysis of Marriott
Marriott’s Opportunities:
1- Shifting Demographics:
The company should revise its family-centered policy and grow its fan-base by showing as a youthful brand. They need to change their habitual services and endorse modification and innovation in hospitality.
2- Focus on Rising Markets:
It’s a massive opportunity for Marriott to establish more hotels and chains in emerging economies. The trend is increasing in rising economies so it’s a big chance to promote their services.
3- Diversify Offerings:
In order to expand the business, you need to understand the basic needs of customers. Customize their services according to the customer’s demand. Marriott should think out of the proportion to get huge fan-following and profits.
4- Develop into Concerned Sectors:
Marriott should focus on linked projects like tourism, catering, real estate, and many more. They should think about to provide houses for hire such as Airbnb. These opportunities will make Marriott as a famous international brand.
Marriott SWOT Analysis | SWOT Analysis of Marriott
Marriott’s Threats:
1- Global Pandemic:
Marriott experience a huge loss of 92 % due to the novel Coronavirus. If the lockdown remains for another 5 to 6 months then Marriott will suffer a lot. This loss is very huge and breaks the backbone of Marriott.
2- Hard Competition:
There’s a huge competition in the hospitality industry due to the presence of Hilton, Novotel, and many more. They can reduce the sales and profits of Marriott if they get a huge response.
3- Alarming Recession:
Most of the companies are downsizing due to the outbreak of COVID-19. This drastic effect can damage the company’s name and profits and can be destructive for them.
4- Trade Tension:
Famous companies like Marriott are badly affected due to flying operations. Tourism is completely banned and the government is focusing on bigger companies to increase tariffs. This thing will also break the revenue system.
5- Danger of Terror Attacks:
Marriott is dependent on its fame and five-star accommodation facilities. These things will attract customers from different countries. But there’s a risk of terror attacks because terrorists always target five-star hotels with a huge number of foreigners.
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