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Marriot International

Executive Summary
This strategic plan outlines the path forward for Marriott International in navigating the
complexities of the global hospitality industry. Through comprehensive analysis of stakeholders,
internal and external environments, and core competencies, the plan focuses on enhancing
customer experiences, leveraging digital technologies, fostering sustainability, and empowering
employees. By implementing strategic recommendations centered on market expansion,
innovation, and risk management, Marriott aims to sustain its competitive edge and drive long-
term success in the dynamic global marketplace.
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Company Overview
Marriott International stands as a powerhouse in the global hospitality industry, boasting a
diverse portfolio of over 7,800 properties spanning across 139countries and territories.
Established in 1927, Marriott has evolved into one of the largest and most recognizable
hospitality brands worldwide, offering a wide range of lodging options from luxury resorts to
budget-friendly accommodations under its various brands including Marriott Hotels, Sheraton,
Ritz-Carlton, and Courtyard by Marriott. With a commitment to exceptional service and
innovation, Marriott has become synonymous with luxury, comfort, and reliability for millions
of travelers around the world. Its robust loyalty program, Marriott Bonvoy, further solidifies its
relationship with customers, offering exclusive benefits and rewards for frequent guests.
Operating under a franchise and management model, Marriott collaborates with property owners
and developers to expand its global footprint while maintaining operational standards and brand
integrity (Marriott International, 2024).

Current Issues, Trends, and Challenges in the Global Hospitality Industry

According to Aksoy et al (2022), the global hospitality industry is experiencing a period of rapid
transformation, driven by various factors such as technological advancements, shifting consumer
preferences, economic volatility, and regulatory changes. Several key issues, trends, and
challenges are shaping the landscape of the industry.
1. Digital Disruption- The emergence of online booking platforms, mobile apps, and
virtual concierge services has transformed the way customers research, book, and
experience hospitality services. Marriott must continuously invest in digital technologies
to enhance customer engagement, streamline operations, and stay competitive in the
digital age (Batabyal & Das, 2019).
2. Shift in Consumer Preferences- Millennial and Gen Z travelers are increasingly seeking
unique and personalized experiences over traditional amenities. Marriott must adapt its
offerings to cater to diverse preferences, including experiential travel, wellness-focused
accommodations, and eco-friendly initiatives (Batabyal & Das, 2019).
3. Sustainability and Social Responsibility: Environmental sustainability and corporate
social responsibility have become integral aspects of the hospitality industry. Marriott
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faces pressure to adopt sustainable practices, reduce carbon footprint, and support local
communities while balancing profitability and social impact (Aksoy et al, 2022)

Challenges
1. Geopolitical Uncertainty and Travel Restrictions
Geopolitical tensions, natural disasters, and global health crises, such as the COVID-19
pandemic, disrupt travel patterns and pose significant challenges to Marriott's operations.
Navigating travel restrictions, border closures, and health regulations while ensuring guest safety
and business continuity remains a top priority for the company (Aksoy et al, 2022).

2. Labor Shortages and Talent Acquisition

The hospitality industry often faces challenges in recruiting and retaining skilled staff,
particularly in areas such as housekeeping, food service, and guest relations. Labor shortages,
coupled with high turnover rates and increasing wage demands, present operational challenges
for Marriott in maintaining service quality and employee satisfaction (Goyal,
A.I.S.H.W.A.R.Y.A. & Goyal, 2010).
3. Rising Operating costs
Fluctuations in energy prices, inflationary pressures, and regulatory compliance requirements
contribute to rising operating costs for hospitality businesses like Marriott. Balancing cost
efficiencies with quality standards and guest expectations poses a continuous challenge for the
company to maintain profitability amidst economic uncertainties (Batabyal & Das, 2019).
4. Environmental and Infrastructure challenges
Sustainable development and environmental conservation are becoming increasingly important
considerations in the hospitality industry. Marriott faces challenges related to energy efficiency,
waste management, and infrastructure resilience in mitigating environmental impact and
promoting sustainable tourism practices across its global operations (Aksoy et al, 2022).

Vision and Mission Statement

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Marriott International’s vision statement is to be the world's leading hospitality company,

enriching the lives of our guests, employees, and communities through exceptional experiences,
innovation, and sustainable practices."
Mission Statement
Marriott International’ mission statement is to provide unparalleled hospitality experiences that
inspire and delight guests at every touchpoint. The company is committed to delivering
exceptional service, fostering a culture of inclusivity and empowerment, and contributing
positively to the communities in which they operate.

Marriot International values and resources and competencies required for global
strategy
Values
Excellence- Marriott is committed to delivering excellence in every aspect of its operations,
from customer service to hotel facilities. This commitment to excellence drives the company to
constantly innovate, improve, and exceed guest expectations (Wickham, Wong & O'Donohue
2011).
Integrity-Integrity is at the core of Marriott's business practices. The company values honesty,
transparency, and ethical behavior in all interactions with guests, employees, partners, and
communities (Marriott International Inc, 2024).
Inclusion-Marriott believes in creating inclusive environments where diversity is celebrated and
all individuals are valued and respected. The company fosters a culture of inclusion that
embraces different backgrounds, perspectives, and experiences (Marriott International, 2024).

Sustainability-Marriott is dedicated to environmental sustainability and social responsibility.

The company strives to minimize its environmental footprint, support local communities, and
promote sustainable tourism practices across its global operations (Marriott International, 2024).
Teamwork-Collaboration and teamwork are essential to Marriott's success. The company values
the contributions of its employees and encourages open communication, cooperation, and mutual
support among team members (Wickham, Wong & O'Donohue 2011).
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Global Network-Marriott's extensive global network of hotels and resorts provides a significant
resource for global strategy. With properties in over 140 countries and territories, Marriott has a
wide-reaching presence that allows it to cater to diverse markets and customer segments.

Talented Workforce- Marriott's workforce is a key competency that drives its global strategy.
The company employs skilled professionals across various functions, including hospitality
management, customer service, marketing, and technology, who contribute to Marriott's success
through their expertise and dedication (Marriott International, 2024).

To address the challenges of digital disruption and sustainability & social responsibility,
Marriott International can leverage its resources and competencies through a VRIO analysis
(Value, Rarity, Imitability, Organization). Applying VRIO analysis to Marriott International's
efforts to tackle digital disruption and sustainability & social responsibility provides a structured
way to assess how the company can leverage its resources and capabilities for strategic
advantage.

According to Wickham, Wong and O'Donohue (2011), Marriott's strong brand reputation is a
valuable asset in attracting and retaining customers amidst rising competition from digital
platforms like Airbnb. The brand’s trust and loyalty built over years make it a formidable player
in the market. For sustainability and social responsibility, these resources allow Marriott to
implement eco-friendly practices that appeal to a growing segment of environmentally conscious
consumers, thereby creating additional value. Moreover, the Marriott Bonvoy loyalty program
provides significant value by encouraging repeat business with exclusive benefits, which digital-
only competitors struggle to match. Integrating sustainability into this program can further
incentivize responsible travel behavior (Wickham, French & Wong, 2020).

According to (Ertuna, Gu and Yu (2022), Marriott’s technological infrastructure, featuring

advanced digital technologies such as AI for personalization and seamless mobile experiences, is
crucial for competing with tech-savvy disruptors. These technologies also support sustainable
operations, such as energy management and carbon footprint tracking, appealing to
environmentally conscious travelers.
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According to Wickham, French and Wong (2020), Marriott’s extensive global network and
unique customer experiences are rare assets that provide a competitive edge. A vast portfolio of
properties and personalized services are difficult for new entrants to replicate quickly, giving
Marriott an advantage in market presence and customer satisfaction. This rarity is also significant
for sustainability initiatives; implementing global sustainability practices and offering unique
eco-friendly experiences set Marriott apart from its competitors.
.

Marriott's brand loyalty and reputation and operational efficiency are challenging for
competitors to imitate. While digital competitors might develop advanced platforms, replicating
Marriott’s long-established trust and efficient global operations is difficult. Similarly, the
comprehensive and integrated approach to sustainability that Marriott has cultivated over the
years is not easily copied, providing a sustainable competitive advantage reporting (Ertuna, Gu
& Yu, 2022). Marriott’s leadership and management expertise are critical for navigating
digital transformations and driving sustainability initiatives. Effective organization ensures that
Marriott can capture the value of its resources and capabilities. Strategic alliances and
partnerships, such as with tech companies and environmental organizations, enhance Marriott’s
competitive positioning and support its sustainability goals (Wickham, French, & Wong, 2020).

To tackle digital disruption, Marriott can enhance its digital platforms, leverage AI for
personalized services, and explore partnerships with alternative lodging platforms. For
sustainability and social responsibility, Marriott can implement comprehensive sustainability
practices, invest in local communities, and provide transparent sustainability reporting (Ertuna,
Gu & Yu, 2022). By leveraging its valuable, rare, and hard-to-imitate resources, along with its
organizational capabilities, Marriott is well-positioned to address these challenges and maintain
its competitive edge in the hospitality industry.

Formulation of global strategies for Marriott International Inc

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Objectives and strategy formulation

For Marriott International, formulating global strategies begins with setting clear objectives that
align with the company's mission, vision, and values. These objectives typically encompass key
areas such as revenue growth, market expansion, customer satisfaction, and sustainability goals.
Marriott conducts extensive market research and analysis to identify emerging trends,
competitive landscapes, and customer preferences across various regions.

Using SWOT analysis and PESTEL model, Marriott develops strategic initiatives and action
plans to achieve its objectives. These strategies may include portfolio diversification, brand
differentiation, digital transformation, and sustainability initiatives. In addition, Marriott's
leadership team collaborates closely with key stakeholders, including senior management,
department heads, and external consultants, to refine and finalize the strategic roadmap.

Strategy Implementation

Once the global strategies are formulated, Marriott focuses on effective implementation to
translate plans into action and achieve desired outcomes. This involves allocating resources,
defining roles and responsibilities, and establishing performance metrics (KPIs) to track
progress. Marriott's organizational structure and culture play a crucial role in facilitating strategy
implementation, ensuring alignment and accountability across departments and regions (Peng,
2022).
Moreover, Marriott invests in employee training and development programs to equip staff with
the skills and knowledge needed to execute strategic initiatives successfully. Then lastly, through
regular communication, feedback mechanisms, and performance reviews help monitor
performance and make necessary adjustments to ensure strategic goals are met (Peng, 2022).

Approaches to Strategy formulation

Marriott employs various approaches to strategy formulation to adapt to changing market

dynamics and achieve competitive advantage:
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 Market-driven Approach: Marriott analyzes market trends, customer preferences, and

competitor strategies to identify opportunities for growth and differentiation. This
approach involves tailoring products and services to meet specific market demands and
capitalize on emerging trends (Shi et al, 2010).
 Resource-based Approach: Marriott assesses its internal resources and capabilities, such
as brand reputation, global network, and technological infrastructure, to identify strengths
and weaknesses. By leveraging core competencies and mitigating weaknesses, Marriott
develops strategies that maximize value creation and sustainable competitive advantage
(Shi et al, 2010).
 Collaborative Approach: Marriott engages with key stakeholders, including customers,
employees, suppliers, and industry partners, to co-create strategies that address shared
challenges and opportunities. Collaboration fosters innovation, enhances buy-in, and
ensures alignment with stakeholder interests (Shi et al, 2010).

Barriers and Resistance to strategy implementation

Despite careful planning, Marriott may encounter barriers and resistance during strategy
implementation. Common challenges include:

 Organizational culture: According to Ertuna, Gu and Yu (2022), resistance to change

within the organization can hinder strategy implementation. Marriott addresses this by
fostering a culture of agility, adaptability, and continuous learning, where employees are
encouraged to embrace innovation and overcome resistance to new ideas.
 Resource Constraints: Limited financial resources, competing priorities, and operational
constraints may impede strategy implementation. Marriott prioritizes resource allocation
based on strategic priorities, risk assessments, and return on investment analysis to
optimize resource utilization and minimize constraints (Wong &Wickham, 2015).
 External Factors: External factors such as regulatory changes, economic downturns, and
geopolitical tensions can disrupt strategy implementation. Marriott monitors external
environments closely, anticipates potential challenges, and develops contingency plans to
mitigate risks and adapt to unforeseen circumstances (Wong &Wickham, 2015).
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By addressing these barriers proactively and leveraging its strengths and resources effectively,
Marriott International Inc can successfully formulate and implement global strategies to achieve
its long-term objectives and sustain competitive advantage in the dynamic hospitality industry.
Using the PESTEL tool, its evident that political, economic, social, environmental and legal
factors do affect Marriott International operating globally. Its important that the company aligns
all these factors before developing and implementing its global strategies.

Assess the strategic performance of a global hospitality for Marriot International

Assessing the strategic performance of Marriott International involves a thorough examination of

its operational, financial, and strategic aspects within the global hospitality industry. This
involves considering a range of evidence including financial reports, market data, industry
benchmarks, and strategic outcomes relative to the company's goals. In addition, an organization
should analyze its resources and capabilities before implementing its strategy into action.
According to Wong and Wickham (2015), a company's dynamic capabilities help in the analysis
of the firm's performance. Marriott International's resources, capabilities, and weaknesses have
been discussed with attention for the SWOT analysis. At the moment, it functions in nearly 127
nations. Strategic partnership and collaboration and highly innovate are the main strengths of the
company. Currently, Marriott is focused on family-centric enterprises. The growing proportion
of millennials in the workforce has led to the perception that family-centric corporate practices
are inadequate. Additionally, rather than expanding into new markets, Marriott International is
primarily focusing on the high-income segment. This is a significant organizational weakness as
well. Marriott can seize the opportunity if it concentrates on the rising economies. The company
employs a sizable number of highly qualified workers. They are also viewed as an excellent
opportunity for Marriott. Marriott International is currently facing a serious threat from a global
epidemic. The COVID 19 pandemic brought the tourist and hotel industry to a halt, which is why
Marriott is currently experiencing a sharp decline in profits.

1. Financial Performance
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-Revenue Growth and profitability

Marriott's revenue has shown significant resilience and growth, especially post-pandemic
recovery phases. In the fiscal year 2022, Marriott reported revenues of approximately $21.7
billion, a substantial increase from $10.6 billion in 2020. This indicates strong recovery and an
ability to capitalize on renewed travel interest.
According to their 2022 Annual Report, Marriott’s net income rose sharply to $1.9 billion from
$377 million in 2020. This recovery in profitability highlights effective cost management and
operational efficiency. In addition, Marriott continues to maintain a significant market share
within the global hospitality industry. As of 2022, Marriott operates or franchises over 8,000
properties under 30 leading brands, spanning 139 countries and territories, illustrating a strong
global presence and brand diversity.
2. Strategic initiatives

-Digital transformation
Marriott has been investing in digital technologies to enhance customer experience and
operational efficiency. Initiatives such as the introduction of contactless check-ins, mobile
room keys, and personalized mobile experiences cater to the modern traveler’s expectations
and have been well-received based on customer feedback and tech adoption rates (Wong, &
Wickham, 2015).

-Sustainability Efforts

Marriott has committed to several sustainability goals, including reducing landfill waste by
45% and responsibly sourcing its top 10 product purchase categories by 2025. Such
initiatives align with global sustainability trends and appeal to increasingly eco-conscious
consumers (Marriott International, 2024)

-Diversification and Expansion

The strategic expansion into new markets, especially in Asia and Africa, and the addition of
new properties in underrepresented areas in Marriott’s portfolio, such as luxury and lifestyle
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segments, have bolstered its market reach and diversified its revenue streams (Marriott
International, 2024).

3. Operational Efficiency
 Employee Training and Retention
Marriott International's commitment to operational efficiency is clearly evident in its robust
approach to employee training and development. The company invests heavily in comprehensive
training programs that equip employees across all levels with the necessary skills and knowledge
to excel in their roles. These programs cover a range of topics from customer service excellence
to technical skills and compliance, tailored to the diverse needs of the workforce (Wong &
Wickham, 2015). Marriott places a strong emphasis on career advancement, offering internal
promotions and leadership development tracks that help retain talent and build a resilient
leadership pipeline. The company also prioritizes cultural sensitivity and diversity training,
preparing staff to effectively interact with a globally diverse clientele. This focus on employee
development ensures that Marriott staff are not only well-prepared but motivated to provide
exceptional service, reflecting the company’s high standards.
 Supply Chain Management
On the supply chain front, Marriott International manages its operations with meticulous
attention to detail, ensuring that all its properties are well-equipped while managing costs
effectively. Strategic sourcing is a key component, with Marriott negotiating with suppliers to
secure contracts that deliver both cost savings and maintain high quality. Effective inventory
management practices are implemented across its hotels to optimize stock levels, reducing waste
and storage costs. Marriott's supply chain strategy also emphasizes sustainability, opting for
suppliers who follow environmentally friendly practices and sourcing locally to reduce
environmental impacts. Advanced supply chain management technologies are employed to
automate ordering processes and forecast demand accurately, ensuring seamless operations that
support consistent, high-quality guest experiences across its global network (Wickham, French,
and Wong, 2020).
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4. Market positioning

Marriott International is a preeminent player in the global hospitality industry, recognized for its
extensive network, diverse brand portfolio, and commitment to quality and innovation. Operating
over 7,000 properties across more than 130 countries, Marriott enjoys a significant market
presence, catering to both business and leisure travelers. The company’s brand portfolio spans
luxury, premium, and select-service segments, including iconic names such as Ritz-Carlton, St.
Regis, W Hotels, and Courtyard by Marriott. This diversity enables Marriott to attract a wide
range of customers, from affluent travelers seeking luxury experiences to budget-conscious
guests looking for reliable and affordable accommodations. Marriott’s strategic positioning is
bolstered by its robust loyalty program, Marriott Bonvoy, which boasts millions of members
worldwide. This program enhances customer retention and loyalty by offering exclusive benefits
and personalized experiences. Additionally, Marriott’s continuous investment in digital
transformation, including mobile apps and AI-driven personalization, underscores its
commitment to enhancing guest experiences and operational efficiency. The company's strong
reputation for service excellence further solidifies its competitive edge in the hospitality market
(Marriott International, 2024).

5. Customer Satisfaction
Marriott International significantly enhances customer satisfaction by leveraging advanced
technologies to create a seamless and personalized guest experience. The company's extensive
use of mobile applications allows for functionalities like mobile check-ins, room access via
smartphones, and digital service requests, streamlining guest interactions and providing
unmatched convenience. Further, Marriott employs artificial intelligence and data analytics to
offer personalized recommendations and services tailored to individual preferences, such as
room features and dining options. Room customization technologies enable guests to adjust
settings like lighting and temperature for optimal comfort, and AI-driven communication tools
ensure efficient and timely responses to guest inquiries. Additionally, in response to health and
safety concerns, Marriott has integrated contactless technologies and systems to maintain high
standards of cleanliness, enhancing guest reassurance and safety. The integration of these
technological advancements not only meets the immediate needs of travelers but also fosters
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long-term loyalty by aligning with the digital expectations of modern consumers, solidifying
Marriott's position as a leader in the global hospitality industry (Wickham, French & Wong,
2020).

Conclusion and recommendations

In conclusion, Marriott International Inc has demonstrated strong strategic performance in the
global hospitality industry, with a focus on financial stability, market leadership, operational
efficiency, and sustainability. The company's commitment to innovation and organizational
development has enabled it to adapt to changing market dynamics, leverage emerging
opportunities, and overcome challenges effectively. However, there are areas where Marriott can
further enhance its organizational development and innovation to sustain its competitive
advantage and drive future growth.

Strategic Options and Recommendations for Development and Innovation

1. Invest in Digital Transformation

Marriott should prioritize investments in digital technologies, such as artificial intelligence, data
analytics, and automation, to streamline operations, personalize guest experiences, and improve
efficiency. By leveraging digital solutions, Marriott can enhance customer engagement, optimize
revenue management, and stay ahead of competitors in the digital age (Guerra-Montenegro et al,
2021).
2. Focus on Sustainability and Environmental Innovation
Marriott should integrate sustainability into its innovation strategy by developing eco-friendly
products, services, and practices. This includes investing in renewable energy, waste reduction
initiatives, and sustainable building design to minimize environmental impact and promote
responsible tourism practices (Aksoy et al, 2022).
3. Promotion of Open Innovation
Marriott should embrace open innovation by collaborating with external partners, startups, and
industry experts to source innovative ideas, technologies, and solutions. By fostering a culture of
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collaboration and co-creation, Marriott can accelerate innovation, drive creativity, and address
complex challenges more effectively (Wong & Wickham, 2015).
4. Enhancement of employee Development
Marriott should invest in employee training and development programs to enhance skills in
digital literacy, customer service, leadership, and sustainability. By empowering employees with
the necessary skills and knowledge, Marriott can foster a culture of innovation, creativity, and
continuous learning that drives organizational growth and success. In addition, Marriott focus on
reducing the turnover rate of employees. Employees must be satisfied within the organization.
Employee rewarding program must be initiated within the organization this can reduce the
turnover rate of employees. Satisfaction of employees and reducing the turnover rate of
employees can be done by implementing training programs for the employees (Batabyal, and
Das, 2019). The objective of the training program is to help the employees understand the issues
that Marriott is currently facing.
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