Marriott SWOT Analysis

SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following illustrates Marriott SWOT analysis:

Marriott SWOT Analysis

Strengths in Marriott SWOT Analysis

1. Diverse portfolio of brands. Marriott International has 30 brands[1] in its portfolio appealing to the needs and wants of a wide range of customer segments. The company has something to offer every type of traveller, from budget-minded backpackers to luxury-seeking executives. This diversity gives the hotel chain substantial competitive advantage. Specifically, it allows the company to reach a wider range of customers. A traveller looking for a budget-friendly hotel is just as likely to book a room at a Fairfield Inn by Marriott as a traveller looking for a luxury hotel is to book a room at a Ritz-Carlton.

2. Global presence. Marriott is the largest hotel chain in the world and operates properties in 138 countries and territories[2]. Such a global presence gives the company a number of advantages. For example, global presence gives the company a competitive advantage over smaller hotel chains. Smaller hotel chains typically do not have the resources to expand into new markets and build new hotels. Marriott’s global presence allows the company to quickly and easily expand into new markets and compete with local hotel chains.

Second, the hotel chain’s global presence allows it to leverage its brand recognition. Marriott is one of the most well-known and respected hotel brands in the world. Travellers from all over the world recognize the Marriott name and trust the brand. This global brand recognition gives the company a significant advantage over its competitors.

Lastly, strong international presence allows the company to diversify its revenue streams. If one market is struggling, Marriott can still generate revenue from other markets. For example, during the COVID-19 pandemic, the travel industry in China was hit harder than the travel industry in the United States. However, Marriott was able to weather the storm relatively well due to its global presence.

3. Strong loyalty program. The company’s strong customer loyalty program, Marriott Bonvoy, is another one of its greatest strengths. Marriott Bonvoy is one of the largest and most successful hotel loyalty programs in the world, with over 177 million members. The program offers a range of benefits such as points for every dollar spent at Marriott brand hotels, elite status tiers with additional benefits, such as early check-in, late check-out, and room upgrades. Also the membership grants access to Marriott Experiences, which offer unique and memorable experiences for members.

4. Asset-light business model. Marriott owns a relatively small number of hotels and instead focuses on managing and franchising hotels to third-party owners. This approach allows the hotel chain to grow rapidly without having to make a large upfront investment in capital. Light-asset business model also reduces the risk. If a hotel is underperforming, Marriott can simply terminate the management or franchise agreement. This is much easier than it would be to sell a hotel that Marriott owns. Moreover, Marriott’s light-asset business model allows it to focus on its core competencies. Marriott is a leader in hotel management and marketing. The company can focus on these core competencies and leave the real estate and development aspects of the business to third-party owners.

Weaknesses in SWOT Analysis of Marriott

1. Labour issues. Labour issues are a weakness for Marriott International. The company has faced a number of labour challenges in recent years, including strikes, protests, and unionization efforts. These challenges have the potential to disrupt Marriott’s operations, damage its reputation, and increase its costs.

One of the biggest labour challenges facing Marriott is the unionization movement among its employees. In recent years, there have been a number of successful unionization efforts at Marriott hotels around the world. These unions have been able to negotiate better wages, benefits, and working conditions for their members. Another related challenge is the issue of employee dissatisfaction. Many Marriott employees are unhappy with their wages, benefits, and working conditions. This dissatisfaction has led to strikes and protests at Marriott hotels around the world.

2. Brand image damaged due to data breach. Marriott customer data breach was a major event that had a significant impact on the company’s brand image. The breach occurred in 2018 and affected over 500 million guests, making it one of the largest data breaches in history. The data that was compromised included names, addresses, passport numbers, and credit card information. The breach has weakened Marriott brand image to a considerable extent.

Marriott International Inc. Report contains a full version of Marriott SWOT Analysis. The report illustrates the application of the major analytical strategic frameworks in business studies such as PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Marriott. Moreover, the report contains analyses of Marriott leadership, organizational structure, business strategy and organizational culture. The report also comprises discussions of Marriott marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Annual Report 2022, Marriott International Inc.

[2] Annual Report 2022, Marriott International Inc.