Marriott International (MAR) is famous due to its large number of brands that control different hotels with different ranges of budget. The organization is operating and controlling 19 brands running 4,175 lodgings. In 2015, Marriott International has turned into the world’s biggest in the network after obtaining of Starwood Hotels and Resorts Worldwide (HOT). The joined organization has a market share by a number of rooms, of over 15% in the US. This is higher than Marriott’s nearest rivals, Hilton Worldwide Holdings (HLT) and Wyndham Worldwide Corporation (WYN), which have a household piece of the pie of ~10% and ~9% separately
Ansoff Matrix Marriot
The major purpose of the ANSOFF matrix is to represent the organization’s current position in terms of its target market and services offered to them. Although, by using this structure, the management of Marriot may easily discover its existing market situation and the services they offer to their present customers (Condry, 2013). The Ansoff framework also helps the managers to identify and measure the combination of four intensive growth strategies that may help the Marriot Inc. to expand its business operations at both domestic and an international level (KHO, Stulz and Warnock, 2009)
Market Penetration
Marriot hotel is striving towards the growth and development of its market share and revenues through market penetration strategy. The company is using this plan because it intends to grow its business through the production of existing services in the existing industry/market. For example, a number of various growth plans may be executed by the hotel during the market penetration process such as reducing the cost of per night stay in hotel rooms to meet customer requirements (McAusland and Millimet, 2013). Although, the brand equity of Marriott hotel gives indications to penetrate various markets by producing a wide range of services at cheap fares. This plan would help to reach customers at a wide extent as well as to meet their entertainment requirements. Marriot hotel provides products the same as other hotels like rewards, benefits, and common facilities.
Product Development
It is the next growth plan that is based on product development. By using this plan, Marriott hotel may easily expand its business growth through the introduction of the latest and technological services in the current market to grab the eye of new clients. Suppose, Marriot hotel must enhance its technological system to provide online rendering services to the clients, which allows them to easily reserve the hotel rooms and their amenities. The other paradigm of product development strategy is that the Marriott hotel must focus on providing Spas facilities to its customers. This would be a favourable step of Marriott to increase its growth because its target audience is usually based on Alit class customers who always prefers to have leisure and luxury services first. Furthermore, Not exactly a year after an underlying idea declaration, reservations open this month for sea journeys on ships in The Ritz-Carlton Yacht Collection. Three uniquely manufactured yachts are set to cruise in 2020, with a limit of 149 staterooms each, or in visitor perspective, 298 passengers. These enormous yachts are still fairly little as cruising vessels, adding to their first-class appeal at 24,000 gross tonnages each. Marriott has revealed that charges for a seven-day agenda will begin at $5,600 per individual.
Market Development
The most effective growth plan among the four is market development. Marriot must execute a market development strategy to achieve a leading position in the competitive market (Chen, 2010). However, under this growth plan, the organization may increase its market by developing its existing services in a completely fresh environment. It could be a successful plan for Marriott international because the firm must emphasize production in a new style like stylish packaging and different modes of distribution in India and other Asian nations. It enables the company to offer its services more easily in other market places.
Diversification
Diversification is the last and most risky growth strategy of the Ansoff matrix. By implementing this plan, Marriot may create fresh items in a completely new marketplace to acquire new market consumers (Folsom and et.al., 2012). This strategy is usually based on the launch of totally new services in a new place. For instance, Marriot hotel should split its business in other cities of Pakistan like Multan, Bahawalpur, Murree and many others.