hile a long political transition may slow public investment. The central government’s deficit narrowed in first half of FY23 (Oct 2022- Mar 2023) to 6.7 percent of GDP from 9.6 percent the same period last year. A smaller deficit reflected the falling government expenditures to 22.8 percent of GDP, down from 25.8 percent last year as spending need for COVID relief waned. However extended cost-of- living support measures through social benefits, subsidies, and price controls have constrained fiscal consolidation and maintained fiscal deficit at above the 2019 pre-pandemic level. Despite recent economic recovery, revenue collection has remained relatively low at 15.8 percent in the same period. Public debt rose to 61.2 percent of GDP at the end of March 2023, 20 percentage points higher than the pre-pandemic period, and remained sustainable. Continued price controls applied to energy and public transport helped contain cost of living pressures, but such controls tend to be an inefficient method of redistributing income, are often regressive in their impact and may delay efficient reallocation of resources and dist

1. Marriott
Internation
al:
Porter's
Five Forces
Analysis

2. Marriott Rivalry
among Existing
Competitors
Marriott Threat of New
Entrants
Bargaining Power of
Buyers
Marriott Bargaining
Power of Suppliers
Marriott Threat of
Substitute Products
or Services
Marriott and Porter's Five Forces
Analysis

3. 01. Marriott Rivalry among Existing Competitors
Competition in Lodging Operations:
Marriott International faces fierce competition from
international travel companies like Booking.com,
Airbnb, and Vrbo, affecting service, pricing, brand
recognition, and safety. With a 16% market share in
the U.S. hotel industry and 4% global market, Marriott
International faces challenges in service, pricing,
brand recognition, and safety.
What are some of the challenges faced by Marriott
International in the lodging industry?
Competition in Franchising Operations:
Brand affiliation is prevalent in the US to attract
guests and franchisees, with 72% of hotel rooms in
2022 being brand-affiliated. Marriott International
faces competition from Hilton, IHG Hotels & Resorts,
Hyatt, and Best Western Hotels & Resorts. Hilton
Hotels and Resorts, one of the world's leading hotels,
reported a record revenue of $4.3 billion in 2021,
while Holiday Inn and Hyatt are other leading complete
hotels.
Which hotel brands are competitors of Marriott
International in the franchising operations?
How has Marriott addressed competitive rivalry in the
hospitality industry?
Marriott has implemented strategies such as brand
differentiation and enhancing its loyalty program to
differentiate itself from competitors and build a
loyal customer base.

4. 02. Marriott Threat of New Entrant
The high initial investment required in the leisure
and hotel industry, including capital, human
resources, and expertise, poses a significant barrier
to entry for new competitors. The industry requires
heavy infrastructure, including buildings, appliances,
and facilities, and requires trained staff and
expertise. Even during crises, COVID protocols were
required, with 25.3% of hoteliers adopting self-
service check-in technology during the pandemic and
15% planning to adopt mobile keys in 2022.
What is the impact of high initial investment on the
threat of new entrants for Marriott International?
The hotel industry is increasingly adopting COVID
protocols, such as self-service check-in technology
and mobile keys, to stay competitive. Marriott
International has implemented these measures, giving
them a competitive advantage. However, new competitors
face increased barriers due to the digital nature of
business and digital meetings.
How does the adoption of COVID protocols and
technological advancements affect the threat of new
entrants for Marriott International?
How does the impact of COVID-19 on business and the
shift to digital meetings and seminars affect the
threat of new entrants for Marriott International?
The COVID-19 pandemic has significantly impacted the
hotel industry, including Marriott International, by
decreasing demand for traditional services and
discouraging new entrants, as Marriott serves both
individual and corporate clients.

5. Large Pool of Various Supplies: Being a purchaser from
large pool of supplies and suppliers, in such scenario
suppliers do not hold substantial bargain power as
suppliers are scattered and belong to different industries
globally. Majority of products and raw material is identical
and consist of not product differentiation also decrease and
bargain power of suppliers.
Efficient Supply Chain-Cost Cutting Measures (COVID-19
Effects): Due to COVID-19 lockdowns various cost cutting
measures adopted by Marriott International with the
efficient supply chain management to reduce the
operational cost to maximum level for a better survival,
which further reduces the supplier’s bargain power.
Marriott as Established Brand: Marriott International is
an established brand keep attracting suppliers to remain a
Marriott supplier, also bulking buying from a trusted
customer are the factors decreasing supplier bargain
power.
03. Marriott Bargaining Power of
Suppliers

6. Individual Customer Base- Excessive Knowledge of Alternates: Digitalization, lifestyle shifts, and changing business
models are increasing customer bargain power, leading to a shift in consumer preferences and potentially influencing
industry patterns.
Business and Corporate Customer Base: This customer base has less options or tied with the hotels via large contracts
with a long term relationship but due to businesses are adversely affected costing cutting measures and economic
conditions are pressing customers to indirectly influence such industry also.
Increasing Buyer’s Bargain Power– Use Digital Mediums: Increasing Use of digital mediums and developing digital
mediums expertise also increasing buyer’s bargain power.Digital Meetings via Zoom or Google Meet are more adoptable
rather than big physical summits.
Price Sensitivity – Switching Cost (Current Economic Scenario): Price sensitivity in this era, when internet offers
excessive alternate options with prices and tight general economic conditions after COVID influence and increase the
buyer’s bargain power.
Changing Travelling and Life Style Patterns (Digitalization Influenced): The customer's decision to choose between
physical or digital meetings is influenced by changing travel and lifestyle patterns.
04.Marriott Bargaining Power of Buyers

7. COVID 19 Pandemic Effects & Economic Conditions (Recession – Ukraine
Russia War): COVID 19 effects the general life style patterns, also affected
the businesses and economic growth which are substituting the services
offered by Hotel Industry. Currently global recession and increasing war
trends may further impact the hotel industry which can be avoided by
major business model changes.
Shift in Life Style Patterns: Any new trending and excessively changing life
style patterns which are continuously influenced by one and another factors
in a series from increasing use of Social Media Channels (Facebook,
Twitter), Digital Medium and Media Technologies (Zoom Meet, Google Call,
Youth Tube Live Streaming), Android Phones and trends of using Apps can
substantially offer substitution services and products for leisure to travel
and stay possibilities.
05. Marriott Threat of Substitute Products or
Services

8. THE COLLECTIVE STRENGTH OF
THESE FORCES DETERMINES THE
ULTIMATE PROFIT POTENTIAL
IN THE INDUSTRY