Hotel Chains SWOT Analysis
The intent of this paper is to analyze the strengths, weaknesses, opportunities and threats (SWOT) of Hilton Hotels, Intercontinental Hotels, and Marriott Hotels. A SWOT analysis is useful in that it encapsulates the major strategic areas of a company, capturing it's core competencies or strengths, relative to both opportunities and threats present in its environment. There are many reasons why organizations rely on SWOT analysis frameworks, yet the most common one is to crystallize its strengths and weaknesses relative to opportunities in the market. Companies rely on SWOT analysis to also validate assumptions about opportunities versus threats present in their environments. The framework of a SWOT analysis also gives companies an opportunity to capture what strategies are working well today and their link to future opportunities. SWOT also often brings together qualitative and quantitative aspects of a company's strategy for a more thorough analysis of the current conditions and probable future ones as well. Most importantly, SWOT analyses deliver the long-term combinations of strengths and opportunities to overcome any weaknesses and threats. While a SWOT analysis is a picture of what's happening at a specific point in ti
OpportunitiesExpansion into China and IndiaReports and research indicate that travel and tourism in India and China is expected to grow at twice the rate of the growth in rest of the world. Moreover,InterContinental has been present in China, the fastest growing market, for almost 20 years. The Hilton Honors is another major contributor to overall growth across all company brands. The company's strong brand name and its unique brand strategy help the company to stay ahead of its peers. This business strategy is a less capital-intensive model that generates higher average returns on assets than real estate-based models. The encouragement of domestic travel presents the greatest opportunity for those in the industry. IHG Is Also Strong in the Soft Drinks BusinessIHG also is a majority shareholder in Britvic, which is one of the two leading manufacturers of soft drinks (by value and volume) in the UK. Thus, Marriott is well placed to benefit from growth in the ChineseSigns of recovery of the business travel marketThe business travel market, which was affected by lower transactions in weak economic conditions, is showing signs of recovery. Similar demand factors will propel the market for these products: a growing middle class with increasingly high levels of disposable income and cheaper air travel with the opening up of the airline industries, and, on the supply side, a lack of clean, safe, comfortable and branded hotels. The company caters to both business and leisure travelers. Furthermore, China is expected to become the number one tourist destination by 2015. Specifically the fact that hotel room prices in highly development destinations like Anaheim, California, home of Disneyland, or Orlando, Florida, home of DisneyWorld are plummeting below the cost per room that Hilton, Intercontinental, or Marriott faces from local and global competitors in these key markets. This lack of geographic spread in its revenues is a major weakness for the company. This negative Return on Equity is troubling, especially since IHG has only had a 3. Intercontinental Hotels (IHG) SWOT Analysis StrengthsWide Geographical SpreadInterContinental Hotels Group owns, leases and manages more than 3500 hotels in about 100 countries.
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