Analysis of Hilton Hotels’ Business and Corporate Level Strategies: A Comparison to Marriott International
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Write a 6-8 page paper in which you do the following:
The company is Hilton Hotels
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
Use at least three quality references. Note: Wikipedia and other websites do not qualify as academic resources.
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Hilton Hotels is one of the largest and most well-known hotel chains in the world, with more than 6,000 properties across 117 countries. The company has a strong presence in both the luxury and mid-priced hotel markets, and is known for its high-quality service and amenities. In this paper, I will analyze the business-level and corporate-level strategies of Hilton Hotels, and compare these strategies to those of the company’s main competitor, Marriott International.
Business-level Strategy
One of the key business-level strategies that has contributed to the success of Hilton Hotels is its focus on customer service. The company has a long-standing reputation for providing high-quality service to its guests, and has implemented various programs and initiatives to ensure that it maintains this reputation. For example, Hilton Hotels has implemented a program called “Hilton Honors,” which rewards loyal customers with points and benefits that can be used at any of the company’s properties worldwide. This program has been successful in attracting and retaining a large customer base, and has helped the company to differentiate itself from its competitors.
Another business-level strategy that has been important to Hilton Hotels is its focus on innovation. The company has a history of introducing new products and services that are designed to meet the changing needs and preferences of its customers. For example, Hilton Hotels has recently introduced a new line of luxury hotels called “Conrad Hotels & Resorts,” which are designed to cater to the needs of luxury travelers. This new product line has helped the company to expand into new markets and attract new customers, and has contributed to the company’s overall growth and success.
In my opinion, the business-level strategy of customer service is the most important to the long-term success of Hilton Hotels. Providing high-quality service to its customers is essential for building a strong brand and attracting repeat business, and is an important differentiator for the company in a highly competitive market. I believe that this is a good choice for the company, as it has proven to be effective in driving growth and profitability over time.
Corporate-Level Strategy
At the corporate level, Hilton Hotels has pursued a strategy of expansion and diversification. The company has grown significantly over the past few decades through a combination of organic growth and acquisitions, and has expanded into various markets around the world. This has allowed the company to diversify its revenue streams and reduce its dependence on any one market or product line.
One of the key corporate-level strategies that has contributed to the success of Hilton Hotels is its focus on global expansion. The company has a strong presence in many international markets, and has a diverse portfolio of properties in a variety of locations. This has allowed the company to tap into new sources of demand and take advantage of favorable economic conditions in different parts of the world.
Another corporate-level strategy that has been important to Hilton Hotels is its focus on brand management. The company has a number of well-known hotel brands, including Hilton Hotels & Resorts, Waldorf Astoria, and DoubleTree by Hilton, and has worked to maintain the quality and reputation of these brands over time. This has helped the company to attract a loyal customer base and differentiate itself from its competitors.
In my opinion, the corporate-level strategy of expansion and diversification is the most important to the long-term success of Hilton Hotels. By expanding into new markets and diversifying its revenue streams, the company has been able to achieve consistent growth and stability over time. I believe that this is a good choice for the company, as it has helped the company to remain competitive in a rapidly changing industry.
Competitive Environment
Hilton Hotels’ main competitor is Marriott International, another large global hotel chain with a strong presence in both the luxury and mid-priced hotel markets. Marriott has a similar focus on customer service and brand management, and also has a loyalty program called “Marriott Bonvoy” that rewards loyal customers with points and benefits. However, Marriott has a slightly different corporate-level strategy, with a greater focus on acquisitions and partnerships. The company has made a number of high-profile acquisitions in recent years, including the acquisition of Starwood Hotels & Resorts in 2016, which gave Marriott a significant presence in the luxury hotel market.
In terms of business-level strategy, both Hilton Hotels and Marriott International have a strong focus on customer service and brand management. Both companies have implemented loyalty programs and have a reputation for high-quality service. However, Hilton Hotels has a slightly stronger focus on innovation, with a number of new product lines and initiatives designed to meet the changing needs of its customers. This may give Hilton Hotels a competitive advantage in certain markets.
At the corporate level, Marriott International has a slightly different strategy, with a greater focus on acquisitions and partnerships. This has allowed the company to expand quickly and diversify its revenue streams, but it may also expose the company to additional risks. Hilton Hotels, on the other hand, has pursued a more organic growth strategy, which may be more stable but may also result in slower growth.
In terms of long-term success, it is difficult to determine which company is more likely to be successful. Both Hilton Hotels and Marriott International have strong brand recognition and a long history of success in the industry. However, Hilton Hotels’ focus on innovation and customer service may give it a competitive advantage in certain markets, while Marriott International’s focus on acquisitions and partnerships may allow it to expand more quickly and diversify its revenue streams.
In slow-cycle markets, it is likely that both Hilton Hotels and Marriott International would pursue more conservative strategies, focusing on cost-cutting and maximizing efficiency in order to maintain profitability. In fast-cycle markets, both companies may focus more on innovation and new product development in order to stay ahead of the competition. However, Hilton Hotels’ focus on customer service and brand management may give it a slight advantage in fast-cycle markets, as these strategies can help the company to build a loyal customer base and differentiate itself from its competitors.
In conclusion, Hilton Hotels has pursued a combination of business-level and corporate-level strategies that have contributed to its long-term success. The company’s focus on customer service and innovation at the business level, and its focus on expansion and diversification at the corporate level, have allowed it to remain competitive in a rapidly changing industry. While Marriott International has a slightly different corporate-level strategy, both companies have strong reputations and are well-positioned for long-term success.