Starwoods growth hinges on expanding into emerging markets like China

Categories: BusinessHotel

Starwood's market share must either remain the exact same or grow in the future. With strategies to continue broadening into emerging markets like China and continuing to extricate their property ownership and approach a more management/franchise focus their earnings should continue to increase over the next few years. Starwood contends by concentrating on their trademark name. They desire the name to stimulate thoughts of comfort, design, fantastic service, and a home far from home for the more glamorous clients and organisation travelers.

Significant impacts on the circulation of market share are going to be technology, accessibility, and the economy. With the development of travel sites that help seek the finest costs while likewise providing information on facilities and star ratings, hotels will need to be more conscious of their standings on these sites to continue to dominate in their section of the marketplace. Having your hotels in the best locations, available to the customers where they require them is going to be a big impact on market share.

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Once again lots of brands are broadening into new markets like China to try and keep up with the shift of tourists. In doing this they want to catch that revenue flow moving to those markets. The last element, the economy, is an ever changing problem. With the slump in America lots of hotels are turning to other markets to keep revenues can be found in. Naturally like America, brand-new and emerging markets are also subject to economic swings in the future so the industry must stay familiar with those swings and prepare for when they may strike.

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Financial Efficiency:

The list below ratios were used to compare Starwood Hotels' monetary efficiency to the market: Operating Profit Margin, Return on Capital Employed, Sales/Profit/ Fixed Assets, Present Ratio, and Gearing. As you will see Starwood Hotels financial efficiency mimics that of the economy with the decline after 2008 and the slow rise back up through the previous couple of years. For the next few years there is a forecast that these numbers will continue to get much better as the American market comes out of the economic crisis and as Starwood moves into emerging markets.

Starwood competes almost solely on its brand name and what it stands for. Focusing on business and upscale travelers they create an ambiance specifically tailored to this clientele. With chic interiors and extra services offered they provide the qualities this specific audience seeks out in their travels, helping Starwood be the top competitor in the luxury lodging industry. Competitive Position:

Starwood Hotels’ position in the market place is in the luxury hotel market, which they dominate. With hotel brands such as the W, Westin, Sheraton, and ALoft you can physically see the difference in appearance right away with high end decorations and top end comforts. However, they underperform in the everyday hotel market where Intercontinental dominates. Because Starwood is so focused on luxury, great comfort, and that brand name they miss out on the large market share of the everyday travelers who want great comfort but also seek out great prices as well.

Updated: Apr 29, 2023
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Starwoods growth hinges on expanding into emerging markets like China. (2017, Jan 03). Retrieved from

Starwoods growth hinges on expanding into emerging markets like China essay
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