PESTLE Analysis and SWOT Analysis of Marriott Hotels

PART 2

PESTLE Analysis

PESTLE analysis framework is used by companies to evaluate the affect of micro environment which is an uncontrollable factors on the business functions and performance. The PESTLE analysis is mentioned below with relation to Marriott Hotels:

Political factors: It is stated that the political conditions of United Kingdom is stable which assist companies to carry out its operations and activities considering policies & strategies. In context to Marriott Hotels, the higher authorities encounter with International relations, political instability, taxes which impacts on its market position and reputation as well.

Economic factors: This factor involves inflation rate, foreign exchange rates, currency fluctuations which impacts on overall development and growth rate of an organisation. UK economic presence is high that helps company to raise opportunities and achieve growth in an appropriate as well as innovative manner (Erbakanova, 2016). With reference to Marriott Hotels, United Kingdom economic factors assist company to enhance sales and gain high profit. In addition to this, the population of UK has high purchasing power due to which Marriott innovation and services is easily adopted by the people which leads to raise in their profitability and market share as well.

Social factors: This factor involves customer behaviour, lifestyle, opinions, trends, values, beliefs, culture and so on. In relation to Marriott Hotels, it operates on international level in the hospitality industry. So it is important for company to consider and analyse the requirements of customers and then offer its services accordingly. Change in preferences, demand, market trends as well as taste of customer might affect negatively on Marriott and due to which customer can shift towards other substitute services.

Technological factor: Nowadays, Technology is changing rapidly which is needed to be adopted by hospitality industry in order to remain sustainable at marketplace. Change in the technology affect the buying behaviour of customers also as people prefer to buy those services and product which is more innovative and new in market (Gehrels, 2016). With reference to Marriott Hotels, it offers digital payment, online booking facilities to its customers. The company have website which provide accurate information about hotel in a defined manner. In addition to this, Marriott is also trying to adopt facility such as automatic check-in & check-out which saves the time of customer as well as company also.

Legal factors: This factors involves various legislations which is needed to be followed by higher authorities of Marriott in order to carry out operations smoothly and effectively. This laws are related to the safety and health of employees as well as customers. The senior management team abide this laws in order to remove it out from any fines and penalty by government. In addition to this, it will also raise goodwill of the company at marketplace.

Environmental factors: It consist of environment protection, carrying out business in an ethical way that affects on the goodwill of an organisation within the market. In context to Marriott Hotels, the higher authorities ensures that activities played by them did not affect or harm environment & community.

SWOT Analysis

This framework is adopted by companies to analyse its srength as well as weakness that helps them to develop effective strategies effectively. SWOT analysis of Marriott is discussed below:

Strength:

• Marriott Hotel maily focuses on providing innovative services to customers which attracts large audiences that kedas to enhacement in its sales & profitability level (Sen and Bhattacharya, 2019).
• Marriott have high market presence in hotel industry due to which it has large customer base and market share as well.

Weaknesses:

• The organisation is mainly focuses on families as compare to other segment due to which its sales is declined (Solnet and et. al., 2016).
• Marriott is basically focus on expansion due to which its is not able to maintain standardization in its service.

Opportunities:

• The company have the opportunity to enter into geographical market and raise its market presence which affec on its sales positively (Sharma and Sharma, 2019).
• The company can aligned with airlines or hotel chains in order to increase its market share and repotation globally.

Weaknesses:

• Competitors such as Novotel, Hilton declines the level of its sales and might affect negatively on its market position.
• Marriott focuses on family which acts as a big threat as it gives an opportunity to its competieors to cover other segment and raise teir market presence as well as market share.

Current & Potential Trends within the Hospitality Sector

There are various trends which exist in the hospitality sector is mentioned below with relation to company:

• Nowadays, customer prefer to visit or book those Hotels which offers safety & security to them. The senior management of Marriott Hotels should give assurance to customer regarding their safety and offers them secured environment due to which they can build its goodwill in the market.
• One of the trend is changing in Technology continuously. Marriott Hotel can adopt innovative technologies in it services which assist them to sustain in market for longer time period and to compete with its rivals efficiently (Singh, 2019).
• The other major trend is Globalisation. Marriott offers its services globally so it is important for them to have efficient labour, resources & technology who can solve their problems and cope up with customers effectively.

CONCLUSION

From the above study, it has been analysed that the fast growing sector in hospitality industry is Hotel sector which adopts innovative technologies in its operations that leads to raise in their sales as well as profitability level. By the assistance of PESTLE analysis, a company can measure the impact of uncontrollable factors on its performance & efficiency whereas SWOT analysis assist an organisation to identify their weaknesses and strength and develop effective strategies which improves their level of sales and profit as well.

You can also get more samples from below - 

Hospitality Consumer Behaviour | Royal Lancaster London

Hospitality and Business Environment for Cardiff Marriott Hotel

Hospitality Provision in Travel and Tourism Sector

Hospitality Operation and Management by Hilton Company