1

Executive Summary: Marriott International, Inc.

After conducting an in depth analysis of Marriott International, Inc. it can be concluded that it would be most beneficial to the firm to continue with its current strategy of

differentiating offerings. Extensive research on Marriott as a company, the hotel industry, current trends, and several other strategic aspects displayed throughout this summary led to this conclusion. The following four analysis served as the main cornerstones to this conclusion.

Industry Analysis: By conducting a competitive factors framework analysis, it is evident that Marriott International is performing better in maximizing the most key CSFs than Hyatt,

Starwood, and Hilton by varying degrees. Yet this variance is slight, which exemplifies how competitive and tight knit this strategic group truly is, hence the high degree of rivalry. Marriott’s success in this CFF stems from the firm’s ability to seize the most important opportunities being

franchising, developing environmentally friendly hotels, and properly handling the increase in demand for hotel rooms. Also, mitigating the threat of undifferentiated offerings is crucial for

Marriott to focus on to set them apart and gain an advantage over competing firms in the luxury strategic group. Each of these CSFs supports their current strategy of differentiating offerings. Internal Analysis: As indicated in the IFF portion of the chart, a total score of 3.0 out of 4.0

was awarded to Marriott International, Inc. This indicates that Marriott’s management and executives are utilizing their available resources and capabilities (R&Cs) efficiently and

effectively while also mitigating the detrimental effects of the R&Cs that the firm does not possess. This high total score in the IFF was mainly attributed to Marriott’s success in its distribution systems, environmentally consciousness, and diversified brand portfolio while also

properly mitigating the threats brought upon by struggling sales growth. In addition, Marriott’s ability to legitimately address all aspects of VRIOS has led to this overall success as a firm.

Success in each of these essential aspects furthers Marriott’s current strategy to differentiate

their offerings. Strategy Formulation Analysis: Each strategy gives Marriott the option to either increase

profits or increase market share. Their current strategy along with alternative strategies appealing to younger more advanced generations and investing in customized offerings

results in the same competitive advantage with regards to the B-C framework. Each strategy results in an increase in benefits which then leads to the option of increased price to increase profits or competitive price to increase market share. The other alternative strategy of increasing

expansion efforts maintains benefits, but decreases costs. This gives Marriott the option to keep a competitive price to increase profits or decrease price to increase market share. Overall, each

of these strategies result in the option for Marriott to either increase profits or increase market share, which is ideal for the firm when deciding which of these strategies to pursue1 2. Strategy Viability Analysis: The current strategy earned the most success overall and should

be maintained as a pursued strategy. This strategy of pursuing differentiated offerings addresses the firm’s strengths and opportunities while also mitigating the main threats. This

strategy is consistent with the company’s mission to pursue excellence and put the people first as well as its long-term objectives of providing strong and consistent product leadership and experiencing steady market share growth. This indicates that this strategy is properly consistent

and aligned with all of the various aspects of Marriott mentioned throughout this analysis. In

conclusion, Marriott International’s current strategy of differentiating offerings is the most

aligned, sufficient, and viable strategy that has the least probability for failure and the best

chance for success and thus should be pursued.

2

Industry Analysis Analysis Description: An industry study utilizes the strategic management process through

external analysis. An external analysis examines the opportunities, threats, issues, and challenges that exist in the environment of a firm. Together these key components are called

critical success factors (CSFs). These CSFs are constructed through each of the player and trend analyses that are derived from various analytical frameworks. Player analyses include value chain analysis, value net analysis, strategic group mapping analysis, strategic canvas

analysis, and co-opetitive forces analysis. Trend analyses include industry evolution analysis, DTLC analysis, political social trends analysis, international trends analysis, economic and

demographic trends analysis, and issue impact analysis. Industry Description: The hotel industry provides offerings by accommodating its customers with a room to stay in over some short-term period with the addition of living essentials such as

clean water, toiletries, bathroom facilities, and a bed. The key activities, derived from the value chain analysis, related to all firms in the hotel industry are booking reservations and increasing

customer turnover rate3. In addition, key relationships, derived from the value net analysis, in the hotel industry are identified through the dissecting of the customers, suppliers, competitors, and complementors of various firms in the industry. By analyzing the hotel industry, three main

strategic groups were formed. These groups are labeled as luxury hotels, suitable hotels, and economic hotels. Such strategic groups were formulated through the strategic group mapping

process. The luxury hotel strategic group includes Marriott International Inc., The Starwood Hotels & Resorts, The Hyatt, and Hilton. These strategic groups are separated mainly by the pursued competitive advantages of these different firms. What separates the luxury hotel

strategic group from the rest of the firms in the analysis is the group’s striving for a differentiation advantage. Regarding player analyses, in the luxury hotel strategic group all

players share identical key activities in terms of reserving rooms and increasing customer turnover and thus are ultimately undifferentiated. Also, players are grouped and distinguished based on their sought after competitive advantages, which results in the creation of strategic

groups separated by mobility barriers. In addition, several key relationships exist amongst the firms and customers, suppliers, competitors, and complementors that need to constantly be

maintained and improved. Regarding trend analyses in the luxury hotel strategic group, hotels are in the maturity phase of industry evolution, but moving towards the reconfiguration stage due to a lack of diversification and undifferentiated offerings resulting in a need for innovation. Also,

consumers are becoming more environmentally conscious so as a reaction firms are establishing environmentally friendly and sustainable hotels. In addition, the global economy is picking up,

which results in a rise in demand for hotel rooms and the ability for customers to spend money. Overall, the hotel industry is in a state of revival and growth4 5 6 7. Competitive Factors Framework: The competitive factors framework analysis examines the

CSFs pertaining to the focal firm of a specific strategic group within an industry8. When conducting a CFF analysis, each CSF is assigned a weight in percentage form based on its

relative importance. In addition, there are ratings for each firm’s individual performance with regards to each CSF on a 1-4 scale. The firm with the highest rating is doing the best job managing the critical success factors with respect to the other firms in the strategic group by

taking advantage of opportunities and mitigating threats and challenges9 10. Based on their importance weight and consistent appearance through the external analysis the four most

important critical success factors for the hotel industry were identified below in a partial

competitive factors framework.

3

The 2 most relevant external CSFs to the firm’s current strategy of differentiating offerings are discussed further below11.

1. Franchising: Franchising was identified as a trend in the luxury hotel strategic group through the co-opetitive forces analysis. Franchising in the hotel industry involves allows large

companies to expand their portfolio, expand their market share, and gain a larger customer base. Franchising leads to an extensive brand name as the main firm is able to offer different levels of hotels and does not have to rely on one class of customers for revenue12. Franchising

has been and continues to be extremely important in the hotel industry, hence its 20% weight. It is the most impactful way firms can gain a competitive advantage in this very tight strategic

group. Marriott International was assigned a rating of 4 because it operates under 18 different names to date13. The other brands in the luxury strategic group were assigned lower scores because of the lack of hotel brands and locations compared to Marriott14 15 16. By franchising

aggressively, Marriott is furthering its current strategy to differentiate their offerings. Each one of the four firms in the luxury hotel strategic group is clearly taking advantage of this

opportunity on some level to expand their brand portfolio, increase market share, and gain a larger customer base through the utilization of franchising, hence the large weight assigned. 2. Undifferentiated Offerings: The threat of undifferentiated offerings amongst the firms in the

luxury strategic group was identified through several analyses including the value chain

analysis, strategic group mapping analysis, industry evolution analysis, and co-opetitive

forces analysis. This threat is extremely important to the firms in the strategic group because each firm is competing against each other over the same customer base, with the same offerings, striving for the same differentiation advantage through product leadership. This external CSF is

given such an important weight of 25% because without any differentiation or product leadership, each one of these luxury firms are basically interchangeable, which is exactly what

these companies want to avoid. Mitigating the threat of undifferentiated offerings thus also directly furthers Marriott’s current strategy to differentiate their offerings. Marriott must implement forms of innovation in order to head into the reconfiguration phase so that this

differentiation can occur. All firms received low ratings because there is still such similarity in their offerings17 18 19 20. Overall, each firm stands to utilize creativity and innovation in order to

attain the desired competitive advantage of differentiation through product leadership, as the firms in the luxurious strategic group are still extremely closely rivalled21. Conclusion: By conducting a thorough competitive factors framework analysis, it is evident

that Marriott International is performing better in maximizing the most key CSFs than Hyatt, Starwood, and Hilton by varying degrees. Yet this variance is slight, which exemplifies how

competitive and tight knit this strategic group truly is, hence the high degree of rivalry. Marriott’s success in this CFF stems from the firm’s ability to seize the most important opportunities being franchising, developing environmentally friendly hotels, and properly handling the increase in

demand for hotel rooms. Also, mitigating the threat of undifferentiated offerings is crucial for Marriott to focus on to set them apart and gain an advantage over competing firms in the luxury

strategic group. Each of these CSFs supports their current strategy of differentiating offerings.

External CSFs

Key Trends - Opportunities: Marriott Hyatt Starwood Hilton Ave

20% 4 2 2 3 2.8

20% 4 4 1 2 2.8

10% 4 3 3 2 3.0

Key Trends - Issues / Challenges / Threats:

25% 1 1 2 1 1.3

75% 3.0 2.3 2.0 2.1 2.3

1 Relative importance of each CSF to the strategic group.

2 How well each company is able to take advantage of or addess each CSF.

Competitive Factors Framework: Luxury Hotel Strategic Group

Weight 1

Firm Ratings 2

Partial Performance Rating

a Franchising

b Development of environmentally friendly/sustainable hotels

c Increase in demand for hotel rooms

f Undifferentiated offerings

4

Internal Analysis Analysis Description: In relation to the strategic management process, internal analysis is just one aspect of the strategy crafting step of the SMP that focuses within the focal firm22. VRIOS

Analysis is the approach to internal analysis that involves the combination of several frameworks and approaches collectively designed to provide a thorough exploration of the focal

firm’s resources and capabilities (R&Cs). The acronym VRIOS entails: Value creation (take advantage of opportunities), how Rare it is (degree of commonality amongst rivals), how Inimitable it is (likelihood of imitation), how controllable it is by the Organization (degree a firm

is organized to exploit the full competitive potential), and how Sustainable it is (holds value over time). It is essential to coverall all aspects as a full VRIOS for an effective internal analysis23.

Company Description: Marriott International, Inc. is a leading global hospitality company encompassed in a diversified hotel brand categorized in the luxury hotel strategic group24. The company’s key offerings are a clean and satisfied short-term stay. The key activities include

booking reservations and customer turnover25. Marriott International was founded in 1971 and is currently headquartered in Bethesda, Maryland26. There are 18 brands operating under Marriott

International that total over 4,000 locations holding nearly 700,000 rooms in 78 countries around the world27. With this wide ranging diversified portfolio of hotel brands, Marriott International can serve virtually and market of people, but mainly focuses on the middle to upper class

customers. Marriott’s top competitors, also located in the luxury hotel strategic group, are Starwood Hotels & Resorts, Hyatt Hotels Corporation, and Hilton Hotels & Resorts28. Marriott

has attained great success in the hotel industry by means of a strong balance sheet, sound

management, and a history of industry leadership29 30 31 32 33. Modified Internal Factors Framework/VRIOS Worksheet: The table below is a synthesized

combination of two vital frameworks being the VRIOS and the IFF. The IFF is used as a summary to capture the key findings of the analyses, being the key R&Cs of the organization. Similar to the CFF, the IFF in the internal analysis involves weighing and rating the key R&Cs of

the focal firm. In addition, the performance of the focal firm is then assessed with regards to how well it is taking advantage of each existing R&C and handling each missing R&C. Each aspect

of VRIOS is addressed in the chart34. Based on an assessment of their importance and their repeated appearance in the six analysis approaches of the external analysis, four existing and missing R&Cs were identified as most important to Marriott and are provided below.

Ket R&C Weight Rating Valuable Rare Inimitable Organizational Sustainable

Many/Strong

Distribution

Systems

20% 4.0

Very valuable. Reach wide

variety of customers.

M it igates threats: of not

being able to reach

customers & depending on

one customer group.

Relat ively rare. Not all

f irms in luxury strategic

group pursuing. None

have accomplished as

many distribut ion

channels as M arriott .

Not easily imitable.

Very dif f icult ,

expensive, & t ime

consuming to establish

the number, variety, &

quality of brands as

M arriott .

Very organizat ional. Utmost

importance to highest

ranking members of the

organizat ion. Controlled

and benefit ted most by

executives and upper level

managers.

Very sustainable.

Stable, cont inue to

grow, and even

expand further with

more hotel brands.

Support ing R&Cs

are numerous and of

a wide variety.

Environmentally

Conscious12% 4.0

Valuable. Appeals to the

overall “ green” trend in

society. Fueled by rapid

advances in technology.

Establishes sustainable

buildings. Benefits from the

increase in environmentally

conscious consumers.

Relat ively rare.

M arriott has 56 LEED

cert if ied hotels, much

more than rivals. Rarity

may decrease in the

future.

Fairly inimitable.

Dif f icult , expensive, and

t ime consuming to copy

this R&C because of

vast amount of

technology.

Fairly organizat ional.

Technology, environment, &

innovation sectors, but st ill

involves executives.

Very sustainable.

Highly likely

support ing R&Cs &

investments will

come about as a

result : (green),

posit ive attent ion.

Diversified Brand

Portfolio12% 3.5

Extremely valuable. Appeals

to wider variety & greater

number of customers.

M it igates threats: relying on

one class of customers.

Relat ively rare.

M arriott ’s 18 brands

much more than rivals.

Rivals aware of this

R&C, trying to pursue

more brands and catch

up, rivals are st ill

behind.

Highly inimitable.

Dif f icult , expensive,

t ime consuming,

resource exhausting for

rivals to attain the level

and breadth of success

as M arriott .

Highly organizat ional.

Pinnacle of M arriott 's

organizat ional chart.

Decisions regarding

branding, franchising, &

expansion come from the

top executives. Utmost

importance to the most

powerful people in the

company.

Highly sustainable.

Highly likely

support ing R&Cs &

further investments

will result .

Struggling Sales

Growth12% 2.0

Extremely valuable.

Challenges f irm's ability to

market to its target

customers, pricing model,

quality of offerings, & overall

business model.

Rare. M arriott 's sales

growth decreased

signif icant ly from 2011-

2012, no other rivals

f irms' sales decreased.

Relat ively inimitable.

Inevitably cost t ime,

money, & resources to

improve sales.

Extremely organizat ional.

M arket ing, advert ising, &

f inance. Concern to

executives of M arriott .

Not very

sustainable. Some

further investments

into R&D, market ing,

& pricing may occur.

Partial

Performance Rating56% 3.0

5

35 36 37 38 39 40 41 42 43 44 45 46 47 48

Of these four top R&Cs, the two most worth mentioning are elaborated upon below. 1. Many/Strong Distribution Systems: The many and strong distribution systems of Marriott

International were identified through the value chain and value net49 50. In the hotel industry, distribution is best accomplished through the occupation of numerous brands by a parent company. Marriott International has utilized this R&C through the firm’s 18 different hotel

brands51 52 53 54. This is the most important R&C with a 20% weighting, which signifies that abundant and strong distribution channels are extremely important to hotel chains such as

Marriott. Possessing such well diversified and stable distribution channels serves to be very valuable. It allows firm to take advantage of the opportunity to reach a wide variety of customers. It mitigates the threats of not being able to reach customers, having to depend on one

hotel or customer group for revenue, and customers going to competitors55 56 57 58. Marriott International leverages this strength in an extraordinary manner, earning it a rating of 4. Marriott

has taken advantage of this R&C very well as it possesses the most distribution channels, 18, of any of the firm's competitors by a substantial margin. Also, the firm's online reservation system was one of the first of its kind and has only improved in recent years59 60 61 62.

2. Environmentally Conscious: This key existing R&C was identified through the DTLC analysis63. Environmental consciousness entails implementing business practices that minimize a

firm's negative effect on the environment, while attempting to develop and execute sustainable ways of conducting business. This R&C is fueled by rapid advances in technology that allow hotel firms to implement "greener" strategies in an attempt to establish sustainable buildings that

minimally effect the environment in a negative way. Marriott International has implemented these strategies before any rival firm did, with more variety and volume than others, and with the

most overall success64. In today's increasingly environmentally conscious society, anything involving a movement towards being "greener" or more sustainable serves as a very important trend, thus this R&C is assigned a 12% weight. This R&C is driven by the opportunity to appeal

to the overall trend in society of an increased importance and value on conducting business in the most environmentally friendly way. This R&C tries to benefit from the increase in

environmentally conscious consumers, so firms are looking to take advantage of this opportunity and appeal to this growing customer base and ultimately add value in that way. Marriott possesses the most environmentally conscious facilities when compared to rivals. The firm has

56 LEED certified hotels, substantially more than any other hotel chain65 66. Marriott has taken advantage of this R&C more than any other competing firm by a far margin, thus earning them a

4 rating. Marriott has appealed to the increasingly environmentally conscious consumer very well as it is head and shoulders above the competition, which furthers their current strategy67. Conclusion: As indicated in the IFF portion of the chart, a total score of 3.0 out of 4.0 was

awarded to Marriott International, Inc. This indicates that Marriott’s management and executives are utilizing their available resources and capabilities (R&Cs) efficiently and effectively while

also mitigating the detrimental effects of the R&Cs that the firm does not possess. This high total score in the IFF was mainly attributed to Marriott’s success in its distribution systems, environmentally consciousness, and diversified brand portfolio while also properly mitigating

the threats brought upon by struggling sales growth. In addition, Marriott’s ability to legitimately address all aspects of VRIOS has led to this overall success as a firm. Success in each of these

essential aspects furthers Marriott’s current strategy to differentiate their offerings.

6

Strategy Formulation Analysis Analysis Description: Strategy formulation analysis entails conjoining the external analysis

and the internal analysis in order to support the development of strategy alternatives for the focal firm. The process entails identifying potential alternative strategies. Next, a strategy canvas

analysis and strategy statement analysis are conducted to interpret further analysis of the potential strategies. Completing these steps helps the analyst identify and understand the level of success each strategy will have in the firm’s competitive industry.

Strategy Statement Analysis: Strategy statement analysis is the analysis used to assist an analyst in evaluating strategies for completeness. A strategy is considered complete when it can

explain what a firms has available (what got- R&Cs), address its current context (what matters- arenas), and seek to pursue some form of competitive advantage (what get- competitive

advantage). In other words, a complete strategy entails an explanation of what the firm has that

it seeks to leverage, what dimensions of competition it seeks to position itself against, and what it hopes to accomplish as a result. Finally, a fourth component entails determining what specific

type of strategy is involved (how do it- strategy type). Strategy statement analysis requires clearly defining and succinctly capturing each of the four aspects with regards to the potential alternative strategies, to ensure that each is a compete strategy68. Provided below is a completed

strategy statement analysis conducted for Marriott International.

Marriott International competes in the luxury hotel strategic group, which is

characterized by a high degree of rivalry with little differentiation of offerings amongst the top firms. Thus, current strategy Marriott is pursuing is aimed at differentiating their offerings. Based on a comprehensive strategic analysis of Marriott International and the major hotel

industry focusing on the luxury strategic group, in addition to a strategy formulation sequence, three potential alternative strategies were identified for the company and are elaborated on

further below as well as the current strategy69 70 71 72 73.

Strategy Arenas R&Cs Strategy Type Competitive Advantages

Alternative

strategies

Arenas into which R&Cs

are to be applied

R&Cs the strategy seeks to

leverage or address

Specific type of strategy (e.g.,

intensive market penetration) B-C explanation of the strategy

Innovation. Technological

advancement. Product

leadership. Personalization.

Raise focus and attention in

younger demographics.

[B- same, P- same, C- decr (inc p ro fs) OR B- same,

P- decr, C- decr (inc mark share)] Market

d ivers ificat ion. Incr scope o f o fferings . More

availab ility and quality o f b rands , lower cos ts , larger

mark share, more p ro fits , g reater b rand recognit ion.

[B- inc r, P - inc r, C- sa me (inc r profits ) OR

B- inc r, P - sa me , C- sa me (inc r ma rk

sha re )] Inc r pe rc e ive d va lue , highe r

pric e /highe r profits OR c ompe titive

pric e /gre a te r ma rke r sha re .

[B- inc r, P - inc r, C- sa me (inc r prof) OR B-

inc r, P - sa me , C- sa me (inc r ma rk sha re )]

Inc r pe rc e ive d va lue , highe r pric e /highe r

profits OR c ompe titive pric e /gre a te r

ma rke r sha re .

Intensive market penetration

Intensive market penetration.

Reduce threat of high degree

of rivalry. Raise value of firm.

Product diversification

strategy. Defensive strategy.

Strong brand recognition.

Strong financial position. Strong

existing franchising prescence.

Innovation. Technological

advancement. Product

leadership.Raise attention toward

customized offering

advancement. Reduce threat of

high degree of rivalry.

Uniqueness. Customization.

Technological advancement.

Product leadership. Superior

offerings. Set market trend.

[B- inc r, P - inc r, C- sa me (inc r prof) OR B-

inc r, P - sa me , C- sa me (inc r ma rk sha re )]

Inc r pe rc e ive d va lue , highe r pric e /highe r

profits OR c ompe titive pric e /gre a te r

ma rke r sha re .

Product diversification

strategy.

Strategy Statement Analysis: Marriott International, Inc.

Increase

Expansion

Efforts

Invest in

Customized

Offerings

Current

Strategy:

Differentiate

Offerings

Appeal to

Younger/

Advanced

Generatoins

Raise investment in

international markets. Broaden

prospective location search.

7

1. Increasing Expansion Efforts focuses on leveraging Marriott’s existing franchising success to further that initiative as well as developing hotels in untapped international locations. This

alternative strategy will help diversify the market, but also Marriott’s brand portfolio, locations, and customer base. This will result in a larger market share, more profits, and greater brand

recognition. The effect on the B-C framework is mentioned above74. 2. Appealing to Younger and Advanced Generations seeks to allow the firm to use its vast and numerous distribution channels and brands to reach out and raise attention of younger

demographics. This alternative strategy also helps Marriott pursue the differentiation competitive advantage by taking the initiative to reach out to these non-ordinary customers to luxury hotels.

This will require innovation, technological advancement, and brilliant marketing in order to touch these younger and more advanced generations in an attempt to lure them toward Marriott. This would address one of Marriott’s rare weaknesses of lacking a diversified customer base, in

terms of age, by mainly catering to those over 30 years old. This poses as a challenging but attainable alternative strategy for Marriott to pursue. The effect on the B-C framework is

mentioned above75. 3. Investing in Customized Offerings seeks to leverage Marriott’s advanced technology, innovation, and personalization skills in order to minimize the weakness of little evolution in the

firm’s offerings and mitigate the threat of demand for customization. While being a defensive strategy, this alternative strategy is also a product diversification strategy, thus it can also be

used to appeal to more technological inclined and personalized customers. The effect on the B-C framework is mentioned above76. 4. Differentiating Offerings (Current Strategy) seeks to propel Marriott’s products and services

beyond the quality and uniqueness of its rival hotel brands. This strategy aims at setting Marriott apart from the competition by providing offerings and an experience to its customers that is

exceptional, one of a kind, and memorable. By executing this initiative, Marriott expects customers to be much more inclined to recommend their brand to others potential customers, as well as remain loyal to the brand themselves. As an intensive market penetration strategy, the

firm is aiming to increase market share and raise the value of the firm in addition to reducing the threat of a high degree of rivalry. Marriott has been striving to execute this strategy through

technological advancement, customization, and setting market trends in order to ultimately provide superior offerings. The effect on the B-C framework is mentioned above77. Conclusion: Each alternative strategy gives Marriott the option to either increase profits or

increase market share. Their current strategy along with alternative strategies appealing to

younger more advanced generations and investing in customized offerings results in the

same competitive advantage with regards to the B-C framework. Each strategy results in an increase in benefits which then leads to the option of increased price to increase profits or competitive price to increase market share. The other alternative strategy of increasing

expansion efforts maintains benefits, but decreases costs. This gives Marriott the option to keep a competitive price to increase profits or decrease price to increase market share. Overall, each

of these strategies result in the option for Marriott to either increase profits or increase market share, which is ideal for the firm when deciding which of these strategies to pursue78 79.

8

Strategy Viability Analysis Analysis Description: Strategy viability analysis is a method analysts utilize to validate which

strategy is most viable to the focal firm. There are several key components that need to be checked in order to determine the viability of a strategy. Overall, for a strategy to be viable it

must be aligned with the structure of “what matters, what got, and what get80.” This structure is the basis for any strategy. For a strategy to be viable all of these aspects must be true81. First, a strategy must be consistent with the firm’s mission statement and long-term objectives. It is also

required that a strategy is in alignment with the firm’s current strategy or goals in order to be implementable. Next, the analysis requires the analyst to check the compatibility with its R&Cs,

Arenas, and CSFs. This essentially tries to determine how well each strategy matches these various components. The next step in the strategy viability analysis is to determine each strategy’s ability is in alignment with the company as a whole82. Analysts evaluate each strategy

along numerous analyses in order to justify each strategy’s viability with the focal firm. Based on the overall score of these analyses, decision makers choose a proposed strategy in an attempt to

advance the firm’s overall success83. In essence, strategy viability analysis is aimed at determining which strategy is the most viable strategy. Risk Matrix Graphic: The risk matrix graphic is a visual framework that puts into perspective

the various proposed strategies with regards to being aligned with the present approach, the intended focus, and the probability of failure. Such a tool clearly maps out where each strategy

lies in relation to each other and is extremely useful in visually putting in perspective the alternative strategies so that a logical decision can be made. Below is the risk matrix graphic conducted for the four strategies discussed throughout this portion of the analysis.

This risk matrix shows that the current strategy of differentiating offerings has the least probability of failure when compared to the other alternative strategies. Obviously this strategy

was closest to the current strategy and present intended focus. This strategy has proven to be the least risky, most aligned with Marriott’s goals, and has the most potential for success.

9

Summary Strategy Viability Analysis: In the final summary strategy viability analysis below, overall scores are given to each strategy based on the final scores from each of the

various strategy viability analyses. Throughout the analysis, the current strategy pursued by Marriott International Inc. is to differentiate offerings84.

Conclusion: After conducting a full extensive strategy viability analysis several conclusions can be drawn. The current strategy earned the most success overall and should be maintained as a pursued strategy. This strategy of pursuing differentiated offerings addresses the firm’s

strengths and opportunities while also mitigating the main threats. This strategy is consistent with the company’s mission to pursue excellence and put the people first as well as its long-term

objectives of providing strong and consistent product leadership and experiencing steady market share growth. The current strategy adheres to the various current political, social, and technological trends as well by attempting to cater to each customer in a unique, personal, and

advanced fashion. This indicates that this strategy is properly consistent and aligned with all of the various aspects of Marriott mentioned throughout this analysis. Increasing expansion

efforts posed as the most viable alternative strategy to the current as it also fulfilled most of Marriott’s long-term objectives and overall company values. This alternative strategy also performed above average in the remaining aspects of the summary strategy viability analysis, but

it was simply not as viable a strategy as the current. Investing in customized offerings was neither a pure “hit or miss”, but rather in the middle of the road overall as an alternative strategy

to pursue. While this alternative strategy succeeded in being consistent with the company’s mission, it failed to match with the company’s overall CSF profile. Appealing to younger and

more advanced generations matched the company’s R&C profile, but failed to be consistent

with the long-term objectives, have sufficient arenas of opportunity, and align with the company’s approaches. Ultimately, this proved to be the least viable alternative strategy and

should not be pursued. In conclusion, Marriott International’s current strategy of

differentiating offerings is the most aligned, sufficient, and viable strategy that has the least

probability for failure and the best chance for success and thus should be pursued.

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References

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77 Cummings, J. L., Creating Value (New York: Ming Press, 2011), Ch. 16: Strategy Formulation Analysis, p. 1 -21. 78 Cummings, J. L., Creating Value (New York: Ming Press, 2011), Ch. 2 p. 1-12. 79 Cummings, J. L., Creating Value (New York: Ming Press, 2011), Ch. 16: Strategy Formulation Analysis, p. 1-21. 80 Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Fall 2014, Lectures. 81 Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Fall 2014, Lectures. 82 Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Fall 2014, Lectures. 83 Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Fall 2014, Lectures. 84 Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Fall 2014, Lectures.