Porter’s Five Forces Analysis of Marriott International 

Marriott International is a chain of hotels, property, hospitality, and lodging service-providing American multinational company. The chain hotel brand started its hospitality business in 1927. Today, we’ll discuss Porter’s five forces analysis of Marriott International; 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 Marriott International 

• Taj Hotel 
• Accor
• IHG Hotels and Resorts
• Four Seasons 
• Wyndham 
• Hyatt
• Choice Hotels 
• Hilton 

Porter’s five forces analysis of Marriott International 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 Marriott International Porter’s five forces analysis of luxury hotel business as follows;

Porter’s Five Forces Analysis of Marriott International

Let’s discuss Porter’s five forces analysis of Marriott International as a competitive forces in strategic management and they’re as follows; 

Bargaining Power of Suppliers in Marriott International

The bargaining of suppliers is Moderate in the luxury hotel business as a competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Marriott International Porter’s five forces analysis of luxury hotel business are as follows;

I-Supplies & Material 

Some of the main materials and supplies that Marriott International would require from suppliers to perform its daily operations are as follows; 

• Food and beverages 
• Raw fruits and vegetables
• Furniture 
• Cooking equipment 
• Cleaning supplies 
• Furniture 
• Marketing and traveling agents 

II-Suppliers Availability 

The abovementioned ingredients, supplies, components, and supplies are easily and readily available to the chain hotel brand Marriott International in various countries worldwide. The easy availability of suppliers decreases their bargaining power to negotiate over the price. 

III-Long Term Contracts 

Many suppliers and vendors in the hospitality market prefer to build long-term contracts with the top leading brands like Marriott International. It is because they have a consistent supply order and they don’t have to look for new clients every day. On the other hand, the hotel brand receives quality supplies without any disruptions. 

Bargaining Power of Buyers in Marriott International

The bargaining of Buyers is Higher in the luxury hotel business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Marriott five forces analysis of Marriott International are as follows;

I-Multiple Lodging Options 

While looking for food and lodging services in the premium category, customers have multiple options of chain hotel brands in every category; luxury and resort. The easy availability of a variety of hotel and hospitality options increases the bargaining power of customers. 

II-Price Sensitive 

A vast majority of customers’ market is highly price sensitive. In fact, they could easily find low-priced and affordable lodging and hospitality hotels and brands. They also offer a unique customer experience to their guests and visitors. It further increases their bargaining power. They could easily switch from one brand to another without incurring any cost. 

Threat of New Entrants in Marriott International

The threat of new entrants is Moderate and lower in the luxury hotel business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Marriott five forces analysis of the luxury hotel business are as follows;

I-Mass Scale 

Marriott International has established a very large network comprising over 8000 chain hotels in various countries across the world. The new investor could easily enter the hotel business, but they can’t compete with the mass-scale giant hotel brand. In fact, they can’t sustain any type of mega international threat like economic recession and pandemic. 

II-Brand Recognition 

Marriott International has established a strong brand reputation by operating its business in the hospitality industry for a century. Decades of experience and quality service have allowed the company to earn the trust and confidence of customers in the market. 

III-Regulations 

The main threat for the new entrants is to pass and comply with the legal requirements and safety protocols. While complying with legal requirements, increases the operational cost, and low-scale operations won’t make them profitable.

Threat of Substitutes to Marriott International

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

I-Online Rental Lodging Platform 

Technological development and internet connectivity have laid the foundation of online rental lodging platforms like Airbnb. In fact, they have become very popular among the young customer market and it increases the threat of substitution rate to the chain hotel brand Marriott International. 

Competitive Rivalry in Marriott International

The competitive rivalry among luxury hotel businesses is very high as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the Marriott Five Forces analysis of the luxury hotel business are as follows;

I-Tough Competition 

Marriott International is facing tough competition from competitive brands like Hilton Worldwide, Hyatt International, and others in the hospitality industry. They have established a worldwide network of chain hotels and target wealthy and rich clients in the global market. Their market presence has made it difficult for the hotel brand to maintain its position in the market. 

II-Improved Experience 

In order to gain a competitive edge, Marriott International focuses on providing a unique, classic, and luxury experience to its guests and clients. In fact, the company offers them various types of loyalty programs to retain existing customers and attract new ones. 

Conclusion: Marriott International Porter’s Five Forces Analysis |5 Forces Analysis of Marriott International

After an in-depth study of Porter’s five forces analysis of Marriott International; we have realized that Marriott International is the world’s leading hotel brand. If you are learning about the Marriott International five forces analysis of the luxury hotel 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.