Starwood SWOT Analysis?
I need help coming up with a SWOT (Strength, Weaknesses, Opportunities, Threats) of Starwood Hotels & Resorts.
So Basically what are Starwood's Strengths, there Weaknesses, Opportunities, and threats that impact the company.
- Anonymous1 decade agoFavorite Answer
Starwood Hotels & Resorts Worldwide Inc
Luxury brand positioning – Starwood Hotels & Resorts Worldwide Inc's strategy focuses on the development of lifestyle brands at a leisure price point supported by innovative marketing that makes an emotional connection with customers.
Strong pipeline development – Starwood Hotels & Resorts Worldwide is aggressively pursuing a growth strategy to further consolidate its presence in foreign markets and capitalise on the booming travel and tourism industries of emerging markets in Asia-Pacific, Middle East and Africa and Latin America.
Individuated experience – the growing consumer demand for an individuated travelling experience is generating potential for hotel operators to develop distinctive brands, properties and services. The launch of aloft and Element by Starwood Hotels & Resorts Worldwide is set to further capitalise on this trend.
Hotel ownership – Starwood Hotels & Resorts Worldwide is focused on selling off its owned, leased and consolidated joint venture hotels, often in return for long-term management contracts. Such a strategy has worked well, helping it to endure the economic upheaval and quickly expand its portfolio.Loyalty programme – The Starwood Preferred Guest programme is well-recognised in the travel and tourism industry. It continuously enhances the benefits of its members to boost overall brand loyalty and increasingly attract new customers.
IT solutions – Starwood Hotels & Resorts Worldwide is upgrading its properties with technology that not only creates multipurpose, multi-functional interiors but also entertains travellers. A good example of this relates to the introduction of Microsoft Surface at Sheraton Hotels. The new technology offers guests a virtual concierge and entertainment experience.
Domestic market focus – espite international expansion, Starwood Hotels & Resorts Worldwide remains heavily reliant on the US, making it sensitive to the changing fortunes of its domestic market.
Luxury brands – mid-scale and upscale hotel brands leave Starwood Hotels & Resorts Worldwide vulnerable to any potential global economic downturns, particularly given that economy travel accommodation is gaining increased penetration in major destination markets.
Dynamic growth in emerging markets – improving economic conditions, developing infrastructures, the development of the urban middle class and growing foreign tourism are driving strong growth in emerging markets such as India and China – key target markets for Starwood Hotels & Resorts Worldwide.
Diverse target market – facing maturity and intense competition in key markets, most notably the US, is forcing travel accommodation operators to diversify their consumer base beyond the business travellers and attract a wider range of travellers. This coupled with the fact that consumers have less and less time to spend quality time with family led Starwood Hotels & Resorts Worldwide to develop a programme entirely dedicated to families in 2008.
Accessible luxury – in the midst of such an unstable economic environment, the aloft brand presents an opportunity for Starwood Hotels & Resorts Worldwide to offer accessible luxury to travellers.
Consumer confidence – general economic and business conditions which adversely impact the income levels of potential travellers coupled with a rising lack of confidence in strong markets like the US, can have a negative impact on Starwood Hotels & Resorts Worldwide's operations, particularly given its strong presence in North America. Luxury spending may be the first thing to be cut back, which would hurt the company as its brand portfolio has more luxury hotels than mid-priced ones.
Potential downturns in travel – rising fuel prices, environmental concerns, political instability, terrorist threats and economic downturns all have the potential to dampen the performance of tourism flows and, consequenlty, the performance of travel accommodation as a whole.
Credit crunch – there is a fear that the global travel and tourism industry will see a corresponding slowdown in revenue as consumers spend and travel less in the short term. Starwood Hotels's holiday ownership business is dependent on the availability of consumers willing to enter into credit agreements, and, therefore, a general spending reduction will result in a drop in revenue. This also applies to potential investment from prospective hotel owners and franchisees looking to fund construction, renovations and investments.Source(s): www.euromonitor.com
- 1 decade ago
Are you referring to a specific hotel/brand/or location? You should contact your Regional Franchise Director for help with this assignment. I assume you are getting ready for an upcoming meeting. If you are a competitor you should be able to answer these questions yourself.