Business Management

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Hilton Group Presentation Module: Strategic Management (MGT3170) Tutor: Stephane Bignoux Seminar: Thursday, 9am Group members Student Number Syarifah Nadzlira Myra Syed Abdul Rahman M00470174 Syed Nadim Armani Syed Abdul Rahman M00470173 Adefolaju Adeosun M00295266 Suna Balman M00242429 Company Background • • • • • • • Founded in 1946 by Conrad Hilton and based in McLean, VA It is a leading global hospitality company Owns, manages and develops hotels, resorts and timeshare properties, and lodging properties Acquired by The Blackstone Group on 24th October 2007 It is now the subsidiary of The Blackstone Group, an American private equity firm Well known for its award-winning…show more content…
This is because these factors are the ones which are more likely to impact Hilton’s growth potential. The factor which has the least impact towards Hilton is threat of new entrants due to its established brand name § Hotel industry has high degree of rivalry due to the large number of competitors using similar strategies. Hilton has a large number of competitors such as Marriott, Wyndham Worldwide and Intercontinental § Diversification: Hotels increase their diversification to differentiate themselves from other players. Recently Hilton diversified their operations into a lifestyle brand to attract active travellers who has high interest in gaining experience while staying healthy and productive (Euromonitor, 2014) § Exit barriers: Hotel’s assets tend to be very specific to the industry which makes it harder and costly to divest. Therefore hotel owners sometimes find ways to find effective ways to manage their assets, such as through franchising and acquisitions. This makes the intensity of rivalry stronger between competitors Power of suppliers § Technology: Due to the increasing need of a sophisticated technology systems, well known hotel such as Hilton should be able to provide their guests with the best possible service and equipment (Marketline, 2011) § Staff: As a labor intensive industry, the quality of the
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