Analysis of Starwood Hotel Resort

Running head: ANALYSIS OF STARWOOD HOTEL RESORT 1
Analysis of Starwood Hotel Resort
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ANALYSIS OF STARWOOD HOTEL RESORT HOTEL 2
SECTION I - Industry Summary: an analysis of the Starwood Hotel Resort Industry
Industry profile
1. Industry classification
Hotel industry has been doing good for the past periods. This been making hotel
industries to do excellently in the hospitality field. Therefore, an industry refers to the general
commercial activity or rather business enterprise which might be distinguished from others
for instance the entertainment industry otherwise tourist industry. Starwood Hotel Resort
industry is classified under tourist and hospitality.
2. Size and Growth
The rise of travel has created an increase in demand leading to more competition from
hotel brands. The rise in demand for hotels has almost tripled from the year 2006. Hotels are
now able to begin surcharging their services to travellers leading to a steady increase in
revenue. In the next five years there will also a rise in leisurely travel from the generation of
baby boomers. This new generation of traveller who is known for their forever young attitude
have created a new demographic for hotels and brands. In increase in demand for the hotel
services typically shall enlarge the size and growth hotel industry in future.
3. Governments regulations
Most of the governments have been posing various regulations to govern hotel
industries that are existing within the nation. It very significant for the government to control
such hotels when it comes to the operations of such industries. The regulations has been
leading such hotels when it comes to the competition that is very significant in the operation
of the hotel industry (Gildersleeve, 2009). The government should provide favourable
conditions for the operations hotel industries. When the government conditions are not

favourable for the hotel industries then in that matter, there shall be perpetual losses that will
be realized in the industry.
SECTION II: Company Analysis
Company Profile
Industry classification
Starwood Hotel and Resort is classified under hospitality and tourism industry. The
company provides an exceptional range of products. The range of brand that are being
offered by the company include Sheraton, Element, Aloft, Tribute Portfolio, the Luxury
collection, Westin 4 points by Sheraton among others. All the brands are having their
presence within most of globes great attracting destinations. For instance, the four points by
Sheraton attains all that the customer might be searching for in terms of fashion at affordable
prices. The bran has what matters most when it comes to comfortable beds, stylish rooms and
fresh coffee as well as the delicious breakfast.
Size and growth
Starwood Hotels & Resorts International is very aware on how keep shinning within
the hospitality industry. It is classically one of the international's biggest hotel corporations
which have approximately 1,126 properties within nearly 100 nations. Starwood's hotel realm
incorporates posh brands like Westin together with Sheraton. The company operates
approximately one hundred hotels together with luxury resorts throughout its St. Regis
alongside Luxury Collection sections. Besides, the company similarly have its 40 W Hotels
that are offering ultra-modern technique. Other brands that the company is handling
incorporate Four Points that is oriented in value services, Le Méridien that is classically
inspired by Europeans, Aloft which is provides self selection services together with an

Element that is providing an extended stay for most of the visitors. Starwood vacation tenure
runs nearly 16 time-share resorts. Last year, that is the year 2015 Marriott accepted to buy
Starwood at $12.2 billion. Starwood is looking forward towards its global expansion for its
geographical reach globally.
Certainly, the spectacular economic development in Europe, Asia, Middle East, Latin
America together with Africa is typically spurring the need for the brand of Starwood
internationally. The firm operates and manages hotel business within three distinct hotel
sections. These sections include America, Europe as well as Africa. The company has its
loyalty program that states that "Starwood Preferred Guest". This program is an often guest
enticement marketing program is used by the company to attract the customers. This has
been permitting members towards earning and redeeming points for room stays, room
improvements together with flights. Starwood employs the use of multi-media advertising
programs that incorporates radio, television, internet together with print advertisements
towards driving guests towards its properties. This has been seen to be providing more
customers to for the company.
On financial performance, the company’s income went down during the fiscal year
of 2014 when compare to the fiscal year of 2013. The company indicated approximately
$5.99 billion for its income in the fiscal year 2014 when compared to $6.2 billion that was
realized during the 2013 financial year. The firm’s profits similarly went down during the
2014 financial as compared to the year 2013. The company similarly reported the net
returns of $634 million in the 2014 financial subsequent to the net income of approximately
$636 million that was realized in the 2013 fiscal year.
Starwood has its growth focus in China, Africa, Europe, South Asia, India alongside
Latin America. The management of Starwood anticipate towards having one hundred hotels

in operation within Asia Pacific area reaching next year. Starwood similarly plans towards
increasing its functioning hotel footprints within Latin America by 51% for the period of the
subsequent five coming years. This shall open total of seven fresh hotels yearly within the
area. Starwood has been expanding within Europe areas too in which the company anticipates
to open above sixty new hotels together with resorts all over by the end of the year 2020. The
company has merged up with Marriott. This shall finally lead to the globe's largest hotel
having nearly 5,600 hotels alongside nearly 1.2 million rooms within on hundred nations
globally. The competitors for Starwood Company include Accor, Whm Llc among others.
Company profitability
Factors affecting profitability
At the level of microeconomic, performance typically is a straight outcome of
controlling a variety of economic reserves together with their resourceful usage in
operational, speculation as well as financial activities of the company. To optimize profitable
outcomes of Starwood Resort, an exclusive focus is supposed to be provided to an
appropriate grounding of executive pronouncements (Musschoot, 2015). These are supposed
to be anchored in multifaceted information concerning the growth of every type of activity in
the corporation .The synthetic image of the firm’s financial standing together with its
performance is attained from the yearly financial statements of the company. This has
therefore turned out to be the major source of information which is allowing qualitative
analysis concerning the manner in which resources of the company are employed in the
period of the value creation process. For the Starwood Hotel and Resort to run on a long-
standing routine, then the company is supposed to develop, implement and maintain the
policies, measures as well as coherent strategies from financial and economic viewpoint.

These are some of the factors that might affect the profitability of Starwood Hotel and Resort
Company:
1. The competition level which the firm is facing is a significant factor that should be
considered. When the company has the monopolistic power then such firm normally
tend to little competition capability. For this reason, demand shall be significantly
inelastic hence enabling the company to augment its profitability through increasing
the prices of its products or rather the services that are being offered.
2. If company’s market is incredibly competitive then its profitability shall be low. This
is owing to the fact that the client will simply buy products from the firms that are
selling their products cheaply. Similarly essential is the notion of contestability.
Marketplace contestability is referred to how uncomplicated it is for new company to
enter the similar market of hotel and resort as like the Starwood Company. When the
entry modes are not complicated then firms shall often face competition threats, even
whenever it is barely “hit and run competition”. Certainly, this shall reduce the
profitability of the company.
3. The demand strength is also a factor affecting the profitability of the Starwood Hotel
and Resort. For instance, the demand shall typically be higher whenever the product
that the company is offering typically is trendy, e.g. when the Starwood Hotel and
Resort is providing trendy products and services in their daily operations then they are
likely to make more profits as compared to other firms that are venturing into the
similar business. Have been very profitable.
4. The economic state .When there is economic growth within the country then the
demand for the products shall similarly increase. An increase in demand for the
company products certainly increases the profitability of the company

5. Successful advertising operation may cause the demand for the company products to
increase thus making its products to be significantly inelastic; nevertheless an
increased income for Starwood will call for covering advertising costs. Substitutes, if
there are many substitutes or substitutes are expensive then demand for the product
will be higher. Similarly complementary goods will be important for the profits of a
company.
Degree of the company concentration
The lower concentration of the company's suppliers indicates that there several many
having restricted power of bargaining. Lower concentrations for suppliers has been
positively affecting Starwood Hotels and Resorts(Zulu, 2015). The lower concentrations
Starwood Hotels and Resorts shall typically bear the long-standing helpful impacts on the
company's entity that incredibly shall provide the company its value addition. When there is
high degree of concentration for the suppliers of Starwood Hotels and Resorts then the
company might never perform very well when it comes to profit making capability.
Price factors
There are several factors that are determining the manner in which hotel rooms
incredibly being priced. In this section, I am going to outline some of the factors that
Starwood Hotel and Resort might consider for pricing their rooms for their customers. The
rates for the hotel rooms typically vary significantly, and there is regularly various confusions
the manner in which these prices are being determined . When any customers is looking for a
good hotel online, then such customer is likely to get various hotels at different prices. There
has been many reasons behind such fluctuations when it comes to the prices of hotel room .
Below are some of the factors which influence how Starwood Hotel Resort is supposed to set
its rates for the hotel rooms :

• Room-demand and occupancy -Customers demand and room availability probably
are the major contributing elements towards the prices of hotels. When it is in the
period of the busy seasons or rather when there is an event or a conference that is
occurring within the hotel or in the city the hotel is placed. For this reason,
Starwood Hotel Resort are jacking their room prices since the management are very
aware that demand shall be incredibly higher. During this peak, Starwood Hotel
Resort similarly frequently implement definite restraints like the minimum resides.
Nevertheless, in the period of the off-seasons when there the number of visitors
moves down and the demand for rooms goes down, then the hotel shall often reduce
the prices otherwise provide special packages or rather deals for the customers.
• Hotel location - Most of the Starwood Hotels and Resort Centres are centrally
situated, in a walking distances of restaurants shops as well as tourist attractions
centres. For that reason, the probability that these hotels are typically going to be
charged priced highly when compared to hotels that are in remote areas is very high.
• Room type- Starwood Hotels classically provide no less than three various types of
rooms for the customers to from. These room types incorporate family room, standard
as well as suite. Additional sumptuous amenities shall classically the rooms to be
pricey.
• Competition-The management of Starwood Hotels typically are look towards seeing
whatever the competition is doing in the market. For this case, the management is
attempting to ensnare clients with improved stay and deals competitively priced;
however, the company still need to make some profits at the end of the day.
• Season-In the period of high seasons, most of the Starwood Hotels are booked highly
simply because there is high demand for the rooms. In contrast, a client is likely to get

good deals for Starwood Hotel rooms during off-seasons this is simply because of low
demand that is being witnessed.
Company Vision; Mission; Guiding Principles
The vision statement of Starwood Hotel and Resort outlines that corporation backs local
businesses which are typically possessed as well as being run by the minority groups The
Starwood company certainly is has been actively partnering with firms that are possessed by
minorities owing to the beliefs that these associations are valuable towards every party that is
being involved and might assist small firms to be successful. Equivalent treatment
irrespective of race otherwise social class for sure is at the centre of every value of the
Starwood Hotel and Resort Company. Besides, the vision of the company is to fill the globe
with warmth as well as the light of hospitality. This typically is done through making the
hotel to become the first priority hotel for most of the guest globally The mission of the
company certainly is to be the most excellent international hospitality corporation. These are
some of the values of the Starwood Hotel Resort:
• Hospitality- The company is very passionate concerning delivering outstanding guest
understandings.
• Integrity-Starwood Hotel and Resort Company typically is the right thing, every
period of the hour. The company maintains high integrity throughout the company
operations.
• Leadership-Starwood Hotel Resort certainly is the leader within the hospitality
industry alongside the communities that is serving.
• Teamwork- The company staff members are team players for everything that they are
doing.

• Ownership- Starwood Hotel and Resort Companies are the owners for the decisions
and actions that the company is making
• Now-The company workers operates the sense of discipline and urgency.
The major guiding principle of the Starwood Hotel Resort company is the ability to offer
high quality services for the clients that are using the services of the company. The company
provides quality services for the clients thus attracting them to continue using their hotels.
External Environment Evaluation (using Porter’s Five Forces)
In accordance with Porter (2001), the use of internet typically has been making
technology which might be employed in the contexts of excellent business strategy within
whichever organization. Even though Internet changes industry structures as well as the
levels of competitive ground regularly dampening profitability within the hotel industry. The
use of internet may be employed towards encouraging and promoting better profitability
when appropriately implemented within the company operation.
Certainly the five forces which influence competitiveness that are typically given out
within the work of Porter (1980) includes; barriers towards entering into any business ,
threat that are caused by substitutes, the power of bargaining for both sellers and buyers
together with the rivalry that is existing amongst the available competitors. In the year 2001,
Porter deemed these issues in the internet technological light. The impact of internet for sure
has been insightful specially when it comes to hotel industry. In accordance to Porter every
elements possess diverse impact or rather relevance on various commercial activities .For that
reason, in this section am going to discuss the Porters five factors with regard to the
Starwood Hotel and Resort as well as how the forces impact on the hotel industry. Porter
point outs that the greater inconsistency concerning internet is that the advantages that the

internet creates includes enabling information to be available easily for the customers,
trimming down the buying hassles as well as marketing that permit most of the clients
towards establishing whatever is concerning interest. The items that are catching the interest
of the buyers are the items that are making the companies to attract more customers to the
company for more profit benefits The significant determinant concerning the profit potential
for the Starwood market is a built-in power of sellers and buyers that are using the company
products.
1. Threats of Substitute Commodities
In an hotel company there is typically another tavern barely imminent somewhere.
Most of the hotels seem to have price varieties having altering levels of amenities and
services. The unvarying challenge shall often be towards getting guests to have your hotel as
his/her priority over a competitor who is offering the similar service. The use of internet
enables general marketplace to be greatly well-organized when enlarging the potential size
of market alongside generating fresh substitution risks. Given the effectiveness concerning
such threat typically is an outstanding internet existence which is absolutely significant for
most of the hotel and resort firms. The other partial threat is the fact that other hotel chains
might erode the client base having a freshly prepared internet advance or rather marketing
movements.
2. Bargaining Power of Buyers
Many business persons are opting for hotel in support of their business travels
incredibly are savvy clients and such customers are typically well at ease with the technology
that the use of computer has brought.. It has turn out to be incredibly easy for these business
persons to go for such services online then move swiftly to book the hotel rooms. people are
no longer needing travel and tour agents, business travel experts otherwise middlemen of

whichever category towards determining wherever they shall stay throughout their journey.
The model for Porter forecasts the exclusion of intermediaries in any business organization.
Starwood Hotel and Resort certainly is felt online by most of the clients. The company has
set its online booking services very active thus making smooth running of the company.
Besides, most of the tourists are to a greater extent having capability of using internet
towards satisfying the model of Porter. Tourists are extremely more frequently bonding
jointly in a new manner. They are getting the businesses of internet such as cheaphotels.com
that shall negotiate or rather discovering bargains in favour of them. All these processes
normally change the power of bargaining towards the end users like the model of Porter
forecasts and these similar liberties lessen the cost of controlling such that loyalty of the
customers is an issue that is coming pass only when a certain hotel employs its one time
chance whenever the client stays in an hotel to genuinely make an impression the clients
having an exceptional together with precious differentiator. Starwood Hotel and Resort has
been employing the use of internet towards making most of the clients to access most of the
services that are being offered by the company through bargaining.
3. Rivalry amongst the existing competitors within the market
There has been a great rivalry that is existing amongst the competitors within the hotel
industry. The rivalry for sure has been fierce since most of the hotel industries are scrambling
for customers. When prospective clients are able to know about the Starwood Hotels online,
then the use of internet seems to be reducing the differences amongst competitors within the
same field. People are tending to seek the most excellent prices in support of the excellent
experiences and such tendency typically is meant to trim down the prices that the company

providing for its services so as to make such company to be more competitive. The use of
internet makes Starwood Hotel and Resort to cover a broad geographical region. Therefore,
the market for Starwood typically turns out to be broad thus augmenting total number of
competitors that are present. Fixed and variable costs might be extremely diverse in regions
that are incredibly expensive towards living and working thus making such regions to be
greatly hard for Starwood Hotel to reduce its prices particular levels
4. Barriers to Entry
An initial venture into the hotel corporation creates a bigger barrier towards entering
such industry though particular barriers towards entering hotel marketplace are abridged
through the use of internet. The presence of interne in hotel operations usually trim down the
costs of marketing somehow and provides fresh competitors towards accessing potential
suppliers together with most of the resources that can be employed in the hotel in support of
profit making. Even the breakfast and bed may employ the websites concerning larger chains
to towards comprehending the major marketing ideas alongside luring the customers to use
the services of the Starwood Hotel Resort. Controlling costs are typically meant to make the
consumers not to pay exorbitant costs for the services of the company.
The major barrier to the entry by other firms typically is differentiation. Most of the
hotel industries which are capable of differentiating themselves through their locations, by
services offered, amenities otherwise various qualities that they employ when it comes to
attracting as well as keeping potential customers. The other obstacle for entry by other clients

typically is the kind of expertise that various hotels provide when it comes to service
provisions. Unfortunately, within most of the mobile community, workers often leave a
particular of chain to go and work for another chain of hotel company. In this sense, these
workers typically carry along with them the know-how in reference to experience or rather
the training that they have along with them to other firms. It is normally within these field of
professionalism together with differentiations which the Starwood Hotel and Resort is
capable of making the major impact for its customers and in this manner on its outcomes
concerning its level of profit making. In actual fact several established hotels posses’
synergies that are lying in between their well-known businesses alongside their online
technologies.
5. Bargaining power of suppliers
Whereas the bargaining power for suppliers typically is never a considerable threat in
any ,hotel business it might bear impacts particularly within the regions of labour .Having the
population that is aging, there are less number of individuals that are ready occupy service
industry vacancies together with hotels that might attract outstanding staff members that are
having greater chances of offering exceptional and excellent experiences to their customers.
As the component of their strategy for internet usage every chain of Starwood Hotel Resort is
having a unit for recruiting employees. This in other has been of great assistance to the
company since most of the services that these workers are providing are of great assistance to
the company in improving their service delivery. Certainly other supplies which are required
by Starwood Hotel and Resort are similarly easier towards attaining via the channels of
internet whether such services are originating from the suppliers or rather from the Starwood
Hotel chains.
6. Identification of Differentiators

Starwood Hotels and Resorts appear to be having a simplest navigation within their
website whenever it turns to scheduling the journeys towards Florida. Besides, Starwood
Hotels and Resorts, possess supplementary limited properties as compared their contenders.
They have properties exterior of their renowned chain hotels that are found globally. For
instance, Starwood Hotels and Resorts has been running Walt Disney World Swan together
with Walt Disney World Dolphin hotels. Starwood Hotel and Resort similarly possess
several high end hotels that are within their Luxury Collection Brands that might create a
centre of attention to a person in search of anything a little diverse within their travels
before going throughout the similar custom within the standard chain hotel.
Through Starwood Hotels and Resorts a person is able to generate memories which proceed
to an existence of even in the customers accommodations having alternatives for instance
sumptuousness cottages within the island that are found in Key West particularly in
Florida.
Analysis of Internal Environment (using SWOT)
Strengths
As a company, Starwood hotel and resort has realised great success in its dealings.
This company has so many strengths as far as its operations are concerned. This is despite the
problems and weaknesses that they encounter on the daily basis. As a business company, it
has realised strength through their massive investments that they have made. The company

has greatly invested in other hotels such as the Sheraton brand hotel. This is one of the best
hotels worldwide. The hotel has its branches in almost all parts of the world. This makes it
stronger than the other hotels that exist in the other parts of the world. This hotel has really
boosted the ability of the Starwood and resort. The company has invested billions of dollars
in this hotel. They have used all these to help in renovating and opening new branches of this
hotel. Through this, the company has really developed the Sheraton brand hotel. They have
also enhanced its fame in all the other parts of the word. This surely shows that they have
done a good job so far. They have been able to give it some strength globally. Through this,
they have also helped in renewing the image that was possessed by the Sheraton brand hotel.
This is a great strength that Starwood has realised as a company which is set to be good in
terms of its business operations.
The other strength that Starwood has realised is having the ownership over the hotel.
The company has gone a big way in selling the properties that they have had. They have done
this so that they may get a long term contract at the same value as the properties that they
have sold. This is a policy that they have applied so that they may realize a success in
whatever they are after. They have named this policy the sales and lease back policy. This
policy has helped the company in reducing the amount of money that they might spend in
running their activities. This has really helped them in reducing the amount that they use in
maintaining these building. The company has also been able to sell out its leases. They have
done this without discrimination(Ortega, 2016). They have sold those that are owned by the
joint ventures as properties. Through this, the company has dominated the hotel business. It
is, therefore, clear that the company has received so much strength by being the owner of the
hotel.

The Starwood Company has also developed some programmes. They have come up
with the loyalty program. This program has gained some fame in the hospital and tourism
industries as a whole. It has also attracted so many clients to the company. This is because of
the fact that they can get some benefits from the company. The hotel and resort has also
developed some innovative programmes to their customers. They have also entered in
partnership with other companies in the same field. The Starwood Company has also
developed the Starwood credit card. They have done this through the partnership that they
entered with the American Express.
All these strengths have really improved the effectiveness of this company. They have
been able to improve their services. This has served as a great motivation to the company.
They have therefore resulted into looking for some serious strength that will continue to give
them power to dominate the market.
Weaknesses
The Starwood Company has also realised some weaknesses in their undertakings.
This is because they have not been able to sort out some of their objectives. These
weaknesses have really demoralised their efforts to improve their services. Despite all these,
they have tried to have them solved (Karjodihardjo, 2015). The Starwood hotel and resort
have had the following weaknesses in so far as their activities are concerned. They include
the fact that U.S is market oriented and the luxury brand hotel is also causing much
competition.
To begin with is the Luxury brand hotel. The collection of this particular company
mainly consists of the mid scales, the up-scales and luxury. They have however, not been at a
position to provide the leisure activities. They have also not been in a position to come up

with some economically stable hotels that can help them in doing their business. Their
customers are also not able to afford the cost of their luxury brand. It is also evident that most
of their competitors also have some of their brands. They possess the brands like the Ibis and
the holiday Inn Express. Their Ibis is also used by the Accor Company whereas the holiday in
express is possessed by the IHG. Both of these companies are the key competitors who
challenge this company. They have really disadvantaged Starwood Company in the market
area. This has made the company to lose value in the market. This competition has therefore
been a source of weakness.
The issue at the US is another thing that has made the company to be more weak and
unstable. The company has most of its branches in the United States. The company, therefore,
depends so much on this. This serves as a very huge challenge and weakness especially when
it comes to the issue of moving to other locations. They are unable to change their locality
when it comes to matters of business (Gildersleeve, 2009). They feel that their new location
will never satisfy their pursuit for economic success. This has really back set them. It is,
therefore, clear that if the economy of the US goes down, their business will surely decline in
a big way. This is a weakness that must be looked at in a very deep angle if they are to
prosper. The company must do its best to ensure that they do away with the weaknesses so
that they might move on. If this is done, then the company will surely succeed. This is
because of the fact that the upturns and downturns that might occur to the economy of the US
will affect their businesses directly.
Opportunities
Starwood Company has also secured some important opportunity in their businesses.
This is despite the fact that they have also had so many challenges and weaknesses. They
have been able to use these opportunities to upgrade their practices. This has really added

them more strength to venture into business activities that they have not been able to handle
due to the drawbacks. Some of the opportunities that they have had are the facts that they
have had a lot of brand, their market has expanded and they have attracted a wide range of
travellers.
To begin with is the issue of having a lot of brand that they have secured. The
company has improved on their brands to the general public. Their brands have really
increased over the past years. This is because their customers can now have the opportunity
to access their new structures. This has become the case in places where customers cannot
afford the luxury brand. The advantage has been transferred to these new modelled structures.
These structures are very well designed and are of high quality. The company has also used
technology to come up with these brands. This has now helped the company in a big way.
Thanks to this issue of new technology.
Another opportunity that they have been able to secure is the fact that they have
expanded their practises. The company has done their part in ensuring that their expansion
objective is achieved. They have done their best in promoting their business in most parts of
the world. Their businesses in Asia have really thrived in the market. These new locations
have now emerged to be their centre of focus. This is because the economy of the countries in
the Asian continent has really increased. Countries such as China have emerged to have one
of the best markets worldwide. Actually, the market of China has been ranked as the second
largest. This has made the company to venture into the market. In that connection, the
Starwood Company has decided to concentrate much on this market. They believe that it will
greatly help them. Therefore, they should act as fast as possible so that they can find
themselves into the market.

The other opportunity that exists is the growing number of clients. The Starwood
Company has realized a drastic increase in the number of those people who are prone to
travelling. They have realized this because so many travellers have been attracted through the
social networking sites. They therefore use this as a way of attracting the different tourists.
The company is also in a position to attract more customers who have never used their
services. All these have been made possible by the use of social media. They can advertise
these brand names through the media so that the target group can be reached as fast as
possible. They tend to do this within the time that they have been able to get.
This opportunity will therefore help the company to improve. This will only happen if
they develop the strategies that are necessary for evaluating these practises. They therefore,
have a huge task of ensuring that they handle this issue the best way possible. The company
will greatly move forward through these opportunities. It is vital for the appropriate means to
be used in developing these strategies.
Threats
The company has also encountered several threats to their activities. These have really
affected the Starwood hotel and resort company. These have come into existence due to the
factors such as the behaviour of the consumers and the downturns of the travel industry. The
company must, therefore, device the ways to curb this situation if they are to succeed in doing
their business.
The first threat that the company has encountered is the issue of how the consumers
behave towards their practises. The traveller often changes the way they behave towards
some aspects of their services. Their upscale and luxury collection has mostly relied on the
consumers. Therefore, if the consumers change their behaviours, these things will also be

affected in a great way(Callahan, Stetz and Brooks, 2011). The company has therefore tried
to ensure that they improve these services so that their customers can positively react towards
the changes. This spending on luxury can really affect the performance of the business if now
we looked at. It therefore means that the company must try its level best to ensure that this
practise does not haunt them.
The final threat that the company has experienced is the issue of downturns that affect
the travelling industry. The tourism and travel industries have experienced so many
unexpected and uncertain recessions. These have come as a result of issues like large fuel
prices, terrorism and economic conditions. There have also been some serious accidents that
have been caused by the weather issues. The issue of political stability has also been a threat
to the company. The company must, therefore, ensure that they are able to plan well for these
set of drawbacks if they are to be in a good position to pursue their goals. This issue has also
made the creditworthy of this company to change a great deal. The company is no longer able
to cope up with these issues. This issue has also affected the way the Starwood hotel and
Resort Company has been investing. The company’s investment in the tourism industry has
really de creased due to these issues. The company can no longer come up with the proper
renovations schemes as they used to have. This really threatens their ability to build in more
branches in the different parts of the world.
These threats really make life very hard for the company. This is because they prevent
the company from planning their next move. The company must therefore, develop the very
strategies that will help in improving their services. It will require the company official
themselves to take good care of itself so that they may be in a position to handle the issues.
All these issues, if handled well, will ensure the company is in a position to do well.
Competitive Analysis

1.Value chain analysis
This is typically an influential tool that is meant for Starwood managers towards
identifying the major activities in an organization that creates the value chain in support of
Starwood Hotel and Resort . Besides, Starwood Hotel and Resort certainly have prospective a
sustainable competitive advantage in support of the organization. In that case, competitive
advantage for Starwood Hotel Resort company for sure is lying on the ability towards
performing vital activities together with value chain excellently when compared to the
company competitors. Starwood Hotel and Resort normally engage its suppliers through its
online platforms . The online platform has been assisting the company in its logistic issues
hence making the company to be very competitive compared to its competitors.
2. Rivalry Analysis
The rivalry intensity for the hotel industry is incredibly high. There are handful of the
major players of all those competing within the hotel industry. The Starwood Hotel and
Resort certainly competes with hotels such as Hilton and Accor hotel owing to the similar
brands that the company is dealing in. These companies tend to compete globally. The
products that such firms are dealing in are very perishable in that in a night when the room is
empty then the revenue can never be recovered. Therefore most of the companies are
attempting very hard to attain more customers possible to make their products not to go bad
every time. This makes the rivalry to intensify. The firms that are in this industry normally
have loyalty programs that make them to compete favourably with the others within the
hospitality industry (Dai, 2015). The rivalry that is happening within the hotel industry for
sure has gone very far and Starwood Hotel Resort is striving hard to remain appropriate
within the market.
3. Financial Analysis

Carrying out financial analysis of organization for sure is certain through comparing
a single particular organization to the other of the similar industry otherwise through
comparing data for various financial years in which the company has been on operation . In
the case of Starwood Hotel and Resort, so as to carry out company's evaluation to the second
technique can be employed when doing the financial analysis. Therefore, as from the year
2008 up to the year 2009 certainly there was a considerable reduction in an exchange of
equity . This made the equity for the company to go down from 20.3% up to 3.8% showing
that Starwood Hotel and Resort was never capable of generating return in support of
shareholders . This typically made Starwood company to some extent through the asset
reduction return as from 5.20% during the year 2007 up to 1.90% in the year 2008
attaining -1.30% during the year 2009. These indicate that Starwood Hotel Resort did not
economically employ its assets towards generating the profit that the company was making
during that year.
SECTION III Company Analysis
A. Problem Identification
Despite the fact that, Starwood Hotel Resort is a globally-renowned organization
having global acknowledgment, there is often a vacancy for improvement towards increasing
the organizations general profitability in support of the subsequent years to come. Subsequent
to exploring the history of the company concerning its expansion and profit making
techniques, certainly I have recognized the following problems that might for sure be
affecting the company. The problem include advancement in technology that has been taking
the world swiftly and marketing the products of Starwood Hotel occasionally is usually hard
for the company to market its products. The world is for sure going digital, therefore, it is
therefore very significant when the Starwood Hotel Resort promotes its products online.

Online marketing of the hotel products typically will be helpful when the company markets
its products through the internet. Technological advancement is a major challenge that has
been a problem to most of the hotel industries globally (Andoh, 2008). Nowadays, the hotel
industries are being run through the use of internet since most of the customers would like to
be well acquainted to with the services that they are reading through the web pages of such
industries. Booking of rooms is also being done online. This is making most of the hotel that
have not yet adopted the issue of online booking to typically run big losses since their
services are not accessible tom the customers online.
B. Generation of Alternatives for Problem Resolution
If Starwood opts that they need to consider other alternatives regarding problem
identification smaller adjustments can be made to ensure the same success. Starwood Hotel
Resort has to be capable of keeping up their level of service across the board expanding into
new markets. It would be pleasing towards seeing what it would be like for Starwood Hotel
Resort expand into a new country that has yet to be developed. If they were to join forces
with a local company or hire a manager from that area, they would be able to tailor their hotel
to fit the cultural environment of their expansion. To continue their long-term success,
Starwood Company has to start developing more technological advances things that not copy
or try to imitate that of the competition. Today, Starwood is now urging their customers to
download the company application as a way to enrich their stay. Having the application
allows customers to keep easy track of their points, make reservations from their phone, even
check into their hotel rooms. Soon, we will see fewer people and more machines creating
checking in, delivering, food, and assisting the clients. Today, this concept sounds foreign,
but it is only a matter of time until this idea takes off as the new trend in the hospitality and
tourism industry.
C. Strategic Recommendations

For Starwood Company to remain appropriate within this ever-transforming market,
the company supposed to put many concentrations in various generations. Now that they are
expanding into a different type of brands it would be significant for them to continue to focus
on the actual needs of the client. This will substantially differentiate them from the
competition. Creating a team that solely concentrates on the technological advances for this
brand such as things that go beyond the use of phone applications would increase the success
of this company. In a generation that is run on technology, it is important to continue to
create new distinct products. Looking at Apple as an example, they are the leader in
innovation with their new products changing how we interact with devices; Starwood needs
to follow in suit. As generations continue to evolve, we will see consumers gearing towards
companies who focus on efficiency(Agorastos, Zarotiadis and Pazarskis, 2006). The
challenge with this is that there may be a large shift in the quality of customer service on a
computer screen will replace many of these face-to-face interactions something that Starwood
is internationally known for, their care of duty when it comes to their clients. Starwood also
needs to consider joining forces with local companies to feature local cuisine at their brand
hotel chains. The level of consistency in their hotel rooms are perfect for the traveller who is
looking for the similar product from different countries, but Starwood should consider
keeping their level of service the same, but should consider bringing in new products from
host countries to create a full experience for the guest.

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Dai, X. (2015). Aranica: Commercialization of a Drone Mapping and Sensing Technology.
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Soininen, S. (2015). A Service Catalogue for an Environmental Consulting Start-
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Analysis of Starwood Hotel Resort

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Analysis of Starwood Hotel Resort