Porter’s Five Forces Analysis of Hilton Hotels 

Hilton Worldwide is a chain Hotels and restaurant business and an American hospitality brand. Conrad Hilton started the hospitality business in 1919. Today, we’ll discuss Porter’s five forces analysis of Hilton Hotels; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Substitutes and Competitors of Hilton Hotels

• Starwood
• Ritz-Carlton
• IHG
• Mandarin Oriental
• Hilton Hotels and Resorts
• Marriott
• Accor
• Four Seasons
• Hyatt

Unique Features of Hilton Hotels

• Worldwide network of chain Hotels and restaurants
• Luxury stay and lodging experience
• Beach bonfire
• High-quality service

Porter’s five forces analysis of Hilton Hotels would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Hilton Hotels Porter’s five forces analysis of Hilton Worldwide chain Hotels restaurant business as follows;

Porter’s Five Forces Analysis of Hilton Hotels

Let’s discuss the Porter’s five forces analysis of Hilton Hotels as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Hilton Hotels

The bargaining of suppliers is Moderate and lower in the Hilton Worldwide chain Hotels restaurant business as a competitive force in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Hilton Hotels Porter’s 5 forces analysis of Hilton Worldwide chain Hotels restaurant business are as follows;

I-Large Suppliers

Hilton Hotels deals with a wide range of suppliers to diversify the risk factors and ensures the smooth supply of food supplies, utensils, and other materials and equipment. The easy availability of suppliers and raw materials decreases the bargaining power of suppliers.

II-Uniqueness of Supplies

Some suppliers offer high-quality unique items and materials to the customers. Hilton Hotels and other client Hotels are aware of their quality commitment, and they dictate the terms and conditions of the deal.

III-Low Switching

Overall, raw supplies, cooking materials, equipment, and edible items are readily available in the market. It gives significant bargaining power to the chain Hotels brand Hilton Hotels; the company could easily switch from one supplier to another without incurring any cost.

Bargaining Power of Buyers in Hilton Hotels

The bargaining of Buyers is Higher in the Hilton Worldwide chain Hotels restaurant business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Hilton Hotels Porter’s five forces analysis of the Hilton Worldwide chain Hotels restaurant business are as follows;

I-Information Access

Customers have easy access to the key information about various Hotels and restaurants offering services in the area; thanks to the internet and technology. They don’t rely on anyone, and they can easily find the relevant information whatever they want.

II-Variety of Options

Guests have multiple Hotels and restaurant options of various brands. They all offer a unique lodging and food experience to the customers, and they want to try out something new and different every time they go out shopping. However, it increases the bargaining power of buyers and guests.

Threat of New Entrants in Hilton Hotels

The threat of new entrants is lower in the Hilton Worldwide chain Hotels restaurant business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Hilton Hotels Porter’s five forces analysis of Hilton Worldwide chain Hotels restaurant business are as follows;

I-Worldwide Network & Investment

Hilton Hotels has established a network of over 584 Hotels and restaurants in various countries across the world. Building one luxury Hotel or a chain of Hotels requires heavy capital investment and compliance with legal requirements, and it pushes away many new potential entrances.

II-Marketing & Brand Loyalty

Hilton Hotels has been operating its business in the hospitality industry for the past over 100 years. The company has established a very large database of loyal customers by providing high-quality hospitality service experiences to the customers.

Threat of Substitutes to Hilton Hotels

The threat of substitute products and brands is higher in the Hilton Worldwide chain Hotels restaurant business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the Hilton Hotels Porter’s five forces analysis of Hilton Worldwide chain Hotels restaurant business are as follows;

I-Share Economy & Rental Platforms

Airbnb and other online rental lodging platforms are a great threat and alternative to the hospitality brand Hilton Hotels. Customers could easily find the available lodging in the area along with the reviews of customers. Easy access and availability of online rental lodging services increase the threat of substitution rate.

II-Low Cost Local Hotels

Along with online rental lodging platforms, there are many low-cost Hotels and restaurants available in almost every city and town. They offer quality stay experience to the visitors and guests at an affordable price range and it further increases the substitution rate.

Competitive Rivalry in Hilton Hotels

The competitive rivalry among chain Hotels restaurant businesses is very high in as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in Hilton Hotels Porter’s five forces analysis of Hilton Worldwide chain Hotels restaurant business are as follows;

I-Tough Competition

The Hotels and hospitality industry has become highly competitive over the years with multiple competitors in the market. Hilton Hotels is facing tough competition with other chain Hotels brands like Ritz Carlton, Marriott, Hyatt, and other local and rental platforms. The hospitality industry has reached the market saturation level, where there is very little room left for any newcomer.

II-Brand Loyalty

It becomes highly difficult for the chain hospitality brand to maintain its market share in the presence of tough competition. In order to manage the tough competition and industry rivalry; Hilton Hotels is focusing on brand loyalty and building long-term relationships with customers.

Conclusion: Hilton Hotels Porter’s Five Forces Analysis |5 Forces Analysis of Hilton Hotels

After an in-depth study of Porter’s five forces analysis of Hilton Hotels; we have realized that Hilton Worldwide is the world’s chain Hotels brand. If you are learning about the Hilton Hotels 5 forces analysis of Hilton Worldwide chain Hotels restaurant business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.