Strategic Planning and International Hospitality Enterprises Five Forces Model SWOT Analysis Strategic Planning of Hilton Hotel

1. STRATEGIC PLANNING AND
INTERNATIONAL HOSPITALITY
ENTERPRISES

2. Hospitality Industry
Hospitality industry is one of the
fastest growing industry globally. It
consists of broad catagories of field
which includes hotels, restaurants,
theme parks, transportation, and
many industries within the field of
tourism industry.

4. Strategic Planning
The process of defining organization’s
strategy or direction and making suitable
desisions on allocating its resourses to
persue the strategy is strategic planning.
For the modern hospitality enterprises,
strategic planning is the key to its survival,
success and development.

5. Mission and Objectives
The mission statement is a broad but simple
statement that expresses the business’s
defined vision. The mission statement puts
the vision into words and sets the tone for
the business’s goals. The mission statement
is supported by objectives. The objectives
are designed to make the mission statement
an achievable one.

6. Environmental Analysis
Environmental factor has a huge impact on
hospitality industry. From changing weather
to changing governments, all these factors
can impact it deeply. Hence, the
enviornmental scanning plays the vital role.

7. Threats of
New Entrants
Bargaining
Power of Buyers
Bargaining Power
of Suppliers
Threats of
Substitutes
Competitive
Rivalry
Strategic Planning with
Porter’s Five Forces Model

8. Threats of new entrants
As Hospitality industry is one of the fastest growing
industry, the competition is severe. So there is a huge
possibility of new competetors to enter the market if the
entry barriers are low. Then then they pose a threat to the
ones who are already competing in the market.

9. Bargaining Power of Buyers
Bargaining power of buyers refers to the pressure consumer
can creates to the business to get them provide high quality
products, better customer servce and in low price. Due to the
rapid deveploment of the technologies in communication field
the bargainig power of buyers in hospitality industry is very
high. For example, tourists are the main consumers in
hospitality industry. They are capable of using technologies like
internet and increase their bargaining power because they can
find many alternatives there.

10. Bargaining Power of Suppliers
Bargaining power of suppliers refers to the pressure supplier
can creates in the market by raising price, lowering quality or
reducing the availability of the products. If there are few
suppliers and many buyers then bargaining power of suppliers
is high.

11. The threat from substitute can occur when the similar type of
product is available in the market with comparatively low price
as well as same standards. The substitute product is cheaper in
price and the switching cost is low. For example, it is cheaper to
travel Nepal for a tourist than to visit some country in europe.
With the same amount of money he can spend in many things in
Nepal than in Europe.
Threats of Substitutes

12. Competitive rivalrary refers to competition between firms within
an industry to pressure on one another and limit each other’s
profit potential. For the hospitality industry, most competitors
are categorised according to similarity of price and services.
For example a hotel can reduced the intencity of rivarly by
reducing the price or by improving the servises.
Competitive Rivarly

13. STRENGTHS
Brand image
Skilled workforce
Good systems
Monopoly of the brand
Strong customer loyalty
Improvement in product
Location of the market
WEAKNESSES
Slow internal decisions
Minimum resourses
High cost base
Transportation time
Deficiency of experts
Location of the market
Level of debt
Internal Analysis
SWOT Analysis

14. THREATS
Industry reputation
Global competition
Hostile legislation
Product limitation
New competition
Price war
Declare taxation
SWOT Analysis
OPPORTUNITIES
Booming Economy
Good design product
Credit facilities
Government policy change
New technology
Developing market
No strong competition
External Analysis

15. Strategic
Planning of
Hilton Hotel

16. Hilton Hotels
Hilton is one the leading global hospitality company. Form
90 years, Hilton has been offering business and leisure
travellers the finest in accommodations, service,
amenities and value. More than 3,300 hotels are located in
77 countries.

17. Mission and Objectives of Hilton
To be the most hospitable company in the world – by
creating heartfelt experiences for Guests, meaningful
opportunities for Team Members, high value for Owners
and a positive impact in our Communities.

18. Five Forces Analysis of Hilton
Because of the flexible international barriers it is very easy to establish new
hotels near the area where Hilton lies.
Threats of new entrants:
Bargaining power of the Hilton suppliers:
According to Hilton Worldwide 2014-2015 Corporate Responsibility
Report, Hilton purchases from more than 4000 suppliers globally. Hence the
bargaining power of Hilton supplier is low.
Bargaining power of the buyers:
In most of the sectors of hospitality industry, bargaining power of the buyers
is high. Hilton trys to tackle it in different ways like, building large base of
consumers, innovating new ideas and prodects etc.
Contd…

19. Five Forces Analysis of Hilton
Direct substitutes for staying in Hilton hotels includes people staying in the
homes of friends and relatives and people renting apartments for short
periods of time.
Threats of substitute products:
Compititive rivalry:
Marriott, Sheraton, Hyatt Regency, Radisson Blu, Renaissance, Westin, Sofitel
and other premium segment hotel chains are the compititive riralry of Hilton.
Hilton can tackle such compitition by building a sustainable differentiation,
and collaborating with competitors to increase the market size rather than
just competing for small market.

20. STRENGTHS
Skilled workforce
Strong portfolio
High level of service
WEAKNESSES
High levels of debts
Lack of flexibility due to its
large size
Transportation time
Internal Analysis
SWOT Analysis of Hilton
External Analysis
OPPORTUNITIES
Market expansion
Focusing on research and
development
THREATS
Terriosm
Loss of key personnel
New competition

21. THANK YOU