Recommendations And Justification For Strategic Options Marketing Essay


From the previous three years hospitality business environment is now more ambitious and competitive for the entrepreneurs because of the impact of globalization. Therefore, it is mandatory for every businessman to build up and implement a thorough and profitable strategic planning for the survival of these business. "A strategy indicating the opportunities to propose, specific goals, and the types of competitive advantages those are to be developed. "

(Dibb et al. , 2006) "So strategy prep is the overall planning that facilitates the goodness of management strategies. Of import provision goes after-school your day to day activities of your governance or activity. It provides you with the big picture of what you are doing and what your location is going. Strategical planning offers you lucidity in what you actually want to attain and the way to go astir reaching it rather than a program of activity for day to day operations. " (Janet Shapiro et al. , 1998). "Strategical management is a continuous process that estimates and controls the activities of the organizations in which the organization is engaged. It also helps to assess its potential competitors keeping in view the organizations established goals and strategies to achieve the organizational overall targets. The implementations of these strategies are evaluated on regular basis of course, if these strategies aren't working in the business environment to attain the organizational goals then these are changed by new strategies.

Stephan P. Robbins and Mary Coulter (2009: 180) tell us: "Every organization needs a mission-a affirmation of its purpose. " This quest induces the professionals to take advantageous actions to do this mission. For example, the mission of Brook Hotels is "Brook Hotels is committed to knowing our guest's needs. " This statement provides clues to what this organization sees as their purpose. They achieve this, by development and providing innovative dare and first-class hospitality products served by devoted attached highly disciplined exciting people. By doing this, they always strive to create and maintain prominent profits and value and to honor their sociable and biology duties to the fullest. The managers usually take notice of the two environments in the situation analysis. External research of hotel, therefore the managers know that what your competition does and the actual labor supply is similar to in locations where it performs. Therefore, managers examine both the specific and general environment to start to see the positive and negative developments (opportunities, threats) of the hotel and then create and develop the strategies consequently. Internal evaluation of hotel provides you the important info of the hotel resources (financial, physical, individual and intangibles resources) and functions (skills and capabilities to do the activities). These resources and capabilities give the hotel a competitive advantage. Tools that can be in use to judge acceptableness include imagine if analytic thinking neutral functions. After evaluation all the strategies will be carried out in a developed organizational composition and design in a manner that the company goes towards the profitability. As we realize that the hospitality industry is attaining at the maturity due to a huge number of competitors and the effect of globalization. Therefore, in order to survive in that competitive environment, everyone have to work out on the effective strategic formation and implementation. Thus, it is very important to truly have a good strategy because organization can only gain the ecological growth if they have good ideas for the consumers as they are the only way to obtain all the revenues help in creating a good reputation in the industry.

4. Company Introduction

The Hilton Hotels Firm is regarded worldwide in hospitality industry. It owns over 514 hotels worldwide with over 176, 257 rooms. Regarding to Forbes, it is ranked as the 43rd major private company in the United States. It had been founded by Conrad Hilton in 1919 in Cisco, Texas. The corporation has highly regarded hotel brands. Their brand portfolio includes:




Embassy Suites Hotels

Hampton Inn, Hampton Inn & Suites

Hilton Garden Inn

Homewood Suites by Hilton, and

The Waldorf Astoria Collection

Hilton is guided by the ideas of Conrad Hilton, where the company aims to:

Consistently delight customers

invest in team members

Be mindful of the environment

Deliver impressive products and services

Give back again to the areas that are served

Expand the category of brands

Continuously improve performance

Provide a wholesome, protected climate for associates, guests and customers

Create a culture of pride

Strengthen the devotion of constituents

Hilton lately, have aimed to target those aged between 25 to 55, and for that reason to become more desirable to the younger audience. A lot of the Hilton brand hotels are franchised to indie companies.

4. 1 Vision

Hospitality is focused on the individual with Hilton; we pride ourselves on our unique service culture. Yes I Can! Is our company-wide school of thought which promises that each visitor will be cured with an optimistic service frame of mind at every point of contact? The hotel supervisor, the waiter, the receptionist, the porter - everyone takes on a essential role in delivering a memorable visitor experience.

4. 2 Mission

We provide concern and free time travellers with a get of first-class hospitality products that offering good financial value while reassuring good return to owners and shareholders and motivation to employees.

4. 3 Worth of Hilton Hotels

H - Hospitality: The business is passionate about delivering exceptional guest experiences

I - Integrity: To do the right thing all time

L- Control: To keep its leadership in the industry and also in its communities

T- Team work: To execute the responsibilities in teams

O- Ownership: To be the owners of the activities and decisions considered.

N- Now: To operate with a sense of urgency and discipline (Hilton, 2010)

5. PESTEL Analysis

PESTEL analysis identifies the external factors to business, depending on the market Ecological and Legislative factors are included. PESTEL examination measures the marketplace potential by indicating the regions of growth. Political factors include legislation, international legislation, regulatory physiques, government policies, federal terms and change, funding, grants and initiatives and lobby teams. The economic factors comprise home market, international situations and movements, taxation issues, seasonal issues, market and trade cycles, circulation issues while others. The sociable factors include lifestyle styles, demographics, consumer attitudes, opinions, multimedia views, brand, company, technology image, consumer purchasing habits, fashion and role models, fighting technology development, associated and centered technologies, substitution technology solutions, maturity of technology information and communication among others.

Political Factors: - Taking into consideration the political factors Hilton Hotels have encountered many political barriers coming to success. One particular occurrence is the Arab boycott of American companies. Arab countries have boycotted businesses with countries that businesses with Israel even though the issue had not been immediately related to America. A lot of the American companies like Ford, IBM and Hilton were blacklisted by the Arabs. Hilton Hotels extended to broaden its business in Israel and Egypt along with promoting peace in your community. Hilton Hotel received no danger from Israel after opening its hotel in Egypt.

Economic Factors: - The web is not severely alive to the reliable financial cycles. However, it is observed that the tourism or hotel sales are dejected anticipated to unnatural economical changes in those countries that customers are booking and reserving the products. These changes include in economic growth, interest levels, rising prices or money fluctuations that can eliminate tourism group' s cost advantages and can have an adverse outcome on the margins. Hilton has formed alliances with various organizations and also strategic agreements to continue its prosperity.

Social Factors: - Sociology changes and changes in customers' attitudes towards new technology and internet in particularly will have complete wallop on internet and hospitality industries respectfully. Time customers are Thomas More capable and progressive in the use of engineering technology. The interpersonal system of rules aspect moldiness includes the bigger mixing machine and persuasion procedures through with which the pursuits of the dissimilar public groups connect to each other and with the technology. Hilton has figured its services ideal for all the sectors. It has procedures for theatres, convention rooms for business delegates, U-shaped bedrooms and panel rooms, dinner halls public gatherings and other similar activities.

Technological Factors: - Hilton has implemented electronic marketing as part of its technology drive. The rooms booked over the net for the Hilton hotel accounts for half billion dollars. Hilton has developed its own system of technological department for controlling the international procedures worldwide. Hilton is among the few hotels that use internet for reservation rooms. Hilton has merged with various businesses like Starwood for enlargement and also because of its technologic benefit. Hilton International use computer systems in their primary information physical handling centers of advertising and statistical circulation, front office, back-office, and drinks control. Information solutions are dispersing in eight key areas of hotel trading functions like selling, circulation, reservations and gross sales, telecommunications, visitor accounting, room management, back-office, food and refreshments, control energy management and safety and security. Merchandise circulation is a critically important mathematical function of Hilton International. Information technologies, such as computerized reservations systems and video brochures, aid hotels in selling and distributing their bed nights. For Hilton the work of information systems to nexus neurotic their leading office, again office and beverages departments may be needed for the businesslike and cost-effective getting of their services. However, it target not be decent to warranty the sales contract of hotel bed evenings without links to international offering and statistical circulation networks building bed nights cannot be sold.

Ecological Factors: - Hilton NY has presented eco-centric initiatives as part of its two-years of celebration of making clean ability with fuel cell technology. Hilton New York has performed various leading-edge initiatives throughout the hotel. (Organic Fertilizer Waste material Vector Decomposition System) This system was setup to reduce the 8 a great deal of moist rubbish which is roughly add up to 5000 foods produced on the average at the building every day. This system facilitates the employees to dispose of table and kitchen scraps into product which is a size of breasts freezer. This technique eliminates practically 400 hand bags of garbage per day. (Water Purification System) Hilton New York has deployed an on-site normal water purification system created by the Natural Normal water. The Natural water system is connected to the existing normal water source. This water system of rules has eliminated practically 12 000 expendable goblet and plastic containers from paper usual change of location in the hotel.

Legislative Factors:- The hoteliers in US are about to expect lobbying and assemblage action that will sensing travel companionship taxation and greeting card loan provider check which are important issues to the lodging production according to the North american Hotel and Lodging connection. The association believes that this move will certainly bear an impact on the industry. Chris Nassetta the CEO of the Hilton Hotels has same that it is a larger menace than people are supplying it credit for. Building companionship professionals fearfulness the execution of the this statute legislations as they would no choice but to brand up what they consider as incomprehensible gross by levying high monetary value onto hotels.

6. SWOT Examination of Hilton Hotels

Hilton hotels firm is also dealing with the function of Sept eleven so on all Major building corporations. This tragic homo event also delivered a economically annihilating blow to the touring industry as a unit and the building industry specifically. In order to fully restore and prosper in the arriving later years Hilton mustiness determine its overall all strengths and weaknesses as it moves ahead done the new millennium. The favorable grind analytic thinking sheds any easy on any of the pitfalls and opportunities that await the Hilton Hotels.


Hilton Hotel Firm is a well-established company and industry head in the hospitality industry.

It is well diversified over the industry with hotels in the top quality, business and mid-priced classes in their product mixture.

It also offers solid integration features such as getting the companies that make its furniture and has invested in online reservation travel enterprises


It may be two narrowly targeted making it exposed to a downturn in the global economy and other world-wide misfortunes that can limit global travel such as the bird-flu and a significant terrorist hit.

It may be defenseless to staff' attacks and split down on undocumented employees in the U. S. The majority of its holdings are in the U. S.


It should provide a range of characteristic and expert services to the high end guests and high whitecaps such as wedding planning & hosting, spas that specialize in personal services and fitness trainers.

It should look to grow into or buy a cruise line.

A cruise ship is bit more than a hotel that floats this might essentially match what it presently doing with its leased properties

Gaming activities would spurt regulation, etc.

Take good thing about emerging markets, especially with business category and mid-priced markets.


It must be careful not overstretch its labors to mix amusing and betting

The hold off of credit and other part effects of bets can slowly but surely chew profits.

September 11th was a major blow to the hotel industry. An identical event could result in another down flip.

By studying countrywide and local industry movements Hilton Company will can be used to return good thing about opportunities that will permit growth piece identifying threats that may have an impact on profitableness. Growing in the hotel and cordial reception make will include a continuing concentrating on gambling International enlargement and exploitation all press to market its products to prospects. One advisable strategy for Hilton is to point out the grandness of family in every its hotels like the gambling and gambling casino locations. Las Vegas has worn out millions to catch the attention of families by adding children's destinations as well spring as the traditional casinos for the individuals. A lot of the hotels wealthy person at affair a little country devoted to colonnade video games. However some hotels have luxuriant arcades plot areas and child attention centers encouraged for those vacationing with children Hilton Hotels Corporation, 2007. Hilton needs to ensure they may be right field in the middle of this demographic of parents vacationing with children. Spell the centering can stillness be on the senior high school dollars that are tossed around in the casinos by the parents it'll be critical that the edifice have the facilities usable that testament attract parents with children to check on at the property. Since location is a greater requirement and trip clip has become mostly of the multiplications that young families are capable to spend superior clip jointly, Hilton essential capitalize on this software industry section.

7. Analysis of the Strategic Options

After analyzing the internal and external environments, it is important for Hilton Hotel Organization to recognize the strategic options that exist. Thus giving them the chance to select the the most suitable proper option for the organization. The proper options are evaluated on the following criteria:

The required resources

The degree to control over future strategies

The speed with which a change in the positioning of SBUs can be achieved

Strategic options



Expectation of the company

Risk involved

Market Penetration

Gain market talk about for advantages

Superior resources and skill drive to adopt this option

Increase return by using the current strategies

Low risk

Market Development

Current market is saturated, chance to enter new section, new physical areas

Current product stock portfolio can be utilized.

Increase return utilizing the current strategies

Medium risk

Demographic Segmentation

Focus on years and low income group to get competitive advantage

Skilled force to adopt this program using current product portfolio

Increase return by using the current strategies

High risk

Backward Integration

Become a furniture manufacturer

Skilled force to look at this program with new product line

Increase return growing new strategies

Medium risk

Joint venture

Obtain local management to lessen risk

Distinctive skilled power with new and existing product

Increase return expanding new strategies

Low risk

Recommendations and Justification for Strategic Options

After an internal and external examination of Hilton Hotel Company and analysis of the proper options the next growth approaches for the company are recommended.

Market Penetration

Acquisition of motels

Market development


Demographic segmentation

Backpackers: 18-28 years, no children. Drawn to exciting activity, consider themselves vacationers not visitors, generally well-educated and cost mindful.

Empty Nesters: Parents whose children have flown the family nest, between 43 and 58 of age, well-educated and medium disposable income.

Backward Integration

Distribution of furniture manufacturer

Joint Venture

Expansion of businesses apart from the european world



Company strengths

Level of importance

Market Penetration

(Acquisition of motels)

Very high

Highly recognized brand name in the western world


[Company does not have motels in US and UK ]

Market Development

Obtain the marketplace of

(Excursionists )

Very high

Highly recognized brand in the european world

Very high

demographic segmentation

(Backpackers and (Empty Nesters)


Highly recognized brand name in the european world


Backward Integration

(Dealer of furniture)


Highly recognized brand in the european world


Joint Venture

(Get some good investments in Pakistan)


Highly recognized brand name in the european world



Marketing is the lifeblood for just about any business organization that can be thought as the collection and coordination of interrelated activities. The degree and the impact of marketing planning decides the success or inability of your business organization as they assist in the analyzing the markets and also the needs of the customers. The founder of Hilton hotels is the Conrad Hilton that was renamed as Capital Hilton in the entire year 1977. Many famous guests have considered Hilton band of hotels as home away from home which was trademark for customer service and hospitality. Hilton group of hotels have been affected by the politics controversies in the centre East but it didn't confine its development in your community. The organization continued to open up its hotels in Egypt and Israel amidst controversies and also marketed peace along the way. Apart from politics and legislative factors remaining of the PESTEL factor didn't affect the Hilton hotel's business around the world. The marketing planning lived up to the objectives of the goals of the Hilton Hotels. The marketing procedure utilized by Hilton is geocentric to a great degree. The hotel chains in the US failed to appeal to the guests at the start of 2002 getaway season later they managed to balance the information. So that it can be concluded that the Hilton group of hotels is carrying out to standards of its reputation but there is enough opportunity for the American structured organization to build up further.


Cathy A. Enz, Hospitality Strategic Management Principles and Circumstances: 2nd Edition

Stephen P. Robbins, Mary Coulter, Rules of Management: 10th Edition

Philip Kotler, John T. Bowen, James C. Makens, Marketing for Hospitality and Tourism: 5th Edition

Gerry Johnson, Kevan Scholes, Exploring Corporate Strategy: 6th Edition

Johnson G, Scholes K, Whittington R. , 2008, Exploring Corporate Strategy, 8th Edition, FT Prentice Hall, Essex.

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