Starwood

transcript

STRATEGIC MANAGEMENT

TABLE OF CONTENTS

EXTERNAL FACTORS

INTERNAL FACTORS

RECOMMANDATIONS

External analysis

STRATEGY PESTEL wExternal analysis

P Divided nation

Politically stable

FTA with America, Europe and ASEAN

E Economic crises from 2008Controlled by huge company

15th largest economy

S Population: 50 million

Korean Wave

Trend-conscious teenagers

T Advanced technology

Internet

E High pollution

Urbanization

Green growth

L Mixed legal system

ICCT jurisdiction

Partnership with Ko-rean company

PESTEL wExternal analysis

South KoreaHypercompetitive market

STRATEGY Industry analysis wExternal analysis

Value: $5.6 billion in 2011

Volume: 1,907 hotels in 2011

Segmentation- Leisure travels: 85.1% - business travels: 14.9%

4.4% of the

Asia Pacific mar-ket

ChinaJapanSouth Korea

Industry analysis wExternal analysis

STRATEGY Porter’s 5 forces wExternal analysis

Threat of new

Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitutes

CompetitiveRivalry 33

PORTER 5 FORCES wExternal analysis

AttractiveNew market

Lifestyle hotel

STRATEGY Porter’s 5 forces wExternal analysis

ImplicationPESTEL wExternal analysis

Market analysis

Key success factors

Market analysis wExternal analysis Market Analysis wExternal analysis

Market analysis

Key success factors

Market analysis wExternal analysis

Product Differen-tiation

Cost control

Advertising

Customer Service

Market Analysis wExternal analysis

Population: 3,586,068 Income: 2,076,424.99₩

One 5stars hotel Five 4stars hotel

BusanMarket analysis wExternal analysis Market Analysis wExternal analysis

Increasing number of

tourists in Bu-san

Market analysis wExternal analysis Market Analysis wExternal analysis

Mapping of Strategic Groups

Existing market segmentationPrice

Ser-vices

Internal analysis

STRATEGY Corporate description wInternal analysis Corporate description wInternal analysis

STRATEGY Corporate description wInternal analysis

8th largest corporate9 Luxury/upscale brands

Parental developer company

Corporate description wInternal analysis Corporate description wInternal analysis

STRATEGY W hotels description wINTERNAL ANALYSIS

Upscale brand

Lifestyle ho-tels

Target: trend-setters

43 hotels brand

W Hotels description wInternal analysis

STRATEGY W hotels description wInternal analysis

W Seoul the 1st in Asia

Value chain description wInternal analysis W Hotels description wInternal analysis

ORLD IDE EXPANSION

Expected Existing

STRATEGY Value chain description wInternal analysis

Supportactivities

Primary activities

Firm infrastructure

Human resource management

Technology development

Procurement

Inboundlogistics Opera-

Outboundlogistics

Marketing&

SalesService

Human resource manage-ment

Market-ing&

Service

Margin

Value chain description wInternal analysis

STRATEGY Value chain description wInternal analysis

Michaelangelo L’Acqua& Amanda Ross

Partnership with

Suppliers

STRATEGY Company capabilities & re-sources

wInternal analysis

VR I NV

Financial support from the corporateNumber of W Hotels worldwide: Repartition of risksVertically integrated: Starwood Real EstateCentralized departments: Economies of scale

Localization of its propertiesDesign of its hotelsNumber of partnershipsCapacity to attract artists

Culture of Starwood Database on consumersSPG Starwood Assets LibraryPatents: storage, designInformation system & technological resource

Properties Cultures Database on consumers

Company capabilities & resources wInternal analysis

STRATEGY SWOT analysis wInternal analysis

Strengths Weaknesses

SWOT Analysis wInternal analysis

Weaknesses

Dependence onUS market

Opportunities

High competitionDownturns in travel

Threats

1. Corporate level

2. Business unit level

3. Operational level

tRecommendations

CORPORATE LEVELCorporate Strategy

Directions BCG Matrix GE McKinsey Matrix

MarketPenetration

New prod-ucts

& Services

MarketDevelopment

Conglomer-ate

Diversification

Existing New

1 Aloft

2ElementW Hotels

Corporate StrategyDirections BCG Matrix GE McKinsey

Matrix

Stars QuestionMarks

CashCows

High LowMarket share

Market growth

StarsAloft

W hotels

Cash cowsSheraton

WestinFour points

Q MLe Méridien

Lux.CollectionSt. Regis

Element

Corporate StrategyDirections BCG Matrix GE McKinsey

Matrix

High LowIndustry Attractive-ness

Busi-ness

Strength

Investmentand growth

Selectivegrowth Selectivity

Selectivegrowth

Selectivity Harvest /divest

Harvest /divest

Selectivity

SheratonWestinFour

pointsLe Meri-

dienLuxury collec-tion

W hotelsAloft

ElementSt Regis

BUSINESS UNIT LEVELHigh

Low HighPrice

PerceivedProduct/service

benefits

Hybrid Strate-gies

DifferentiationStrategies

Low-priceStrategies Non-competi-

tiveStrategies

Low HighPrice

PerceivedProduct/service

benefits

Hybrid Strate-gies

DifferentiationStrategies

Low-priceStrategies Non-competi-

tiveStrategies

BUSINESS UNIT LEVEL

Widen target

OPERATIONAL LEVEL

New Hotel

New Market

New Customisation: Movie section

Non equity Alliance

Access AllianceOKHOW

W BUSAN

OPERATIONAL LEVEL

Why BUSAN?

Biggest International Film Festival in Asia

5th biggest container port of the World

Free Trade Zone

2nd city in South Korea

Thank you for your attention

References• MQKinsey Quaterly: We are all marketers now

through: https://www.mckinseyquarterly.com/Were_all_marketers_now_2834• MarketLine, COMPANY PROFILE Starwood Hotels &Resorts Worldwide, Inc., 16/07/2012• MarketLine, MarketLine Industry Profile Hotels & Motels in South Korea, 08/2012• Market Line, Market Line Industry Profile Hotels & Motels in Asia Pacific, 08/2012• Starwood Preferred Guest’s New, ‘Go-To’ App Unites All Starwood Brands Using Innovative

State-Aware Interface, Starwood Hotels & Resorts Worldwide, Inc., Business Wire (English), 03/14/2012

• Starwood Brochure2011, through Starwood.com• Case Study: Starwood Hotels & Resorts Worldwide, Inc.• Starwood 2006, by Aaron Brenner• STARWOOD HOTELS&RESORTS(HOT) 10-K, Annual report pursuant to section 13 and 15(d)• Filed on 02/21/2012, Filed Period 12/31/2011• Starwood Full Annual report, 2012• STARWOOD HOTELS & RESORTS WORLDWIDE, INC, Hotel Results - Same Store Owned

Hotels (1)• For the Three Months Ended, June 30, 2005

References• Starwood.com• Whotels.com• http://www.tutor2u.net/business/strategy/resources.htm• http://www.hospitalitynet.org/news/4027097.html• http://llenrock.com/blog/top-10-largest-hotel-groups-in-the-world/• http://www.druid.dk/conferences/summer2002/Abstracts/STIEGLITZ.pdf• http://development.starwoodhotels.com/news/1/267-

starwoods_digital_innovation_dominates_l2_digital_iq_index_r_travel• http://www.facebook.com/Wseoulwalkerhill/photos_stream• http://www.isixsigma.com/community/awards-and-standards/starwood-hotels-resorts-

tops-best-places-work-list/• http://bus8020kelly.alliant.wikispaces.net/file/view/Understanding+Dynamic+Capabilities.p

df• http://www.wikiwealth.com/five-forces-competitor:starwood-hotels-and-resorts:patents-l• http://www.patentbuddy.com/Company/Profile/STARWOOD-HOTELS-RESORTS-WORLDWID

E-INC./1926874

References• http

://www.freepatentsonline.com/article/Information-Management-Journal/214101210.html• http://www.starwoodhotels.com/whotels/about/partners/index.html• http://insathope.blogspot.fr/2010/07/w-hotels.html• http://fr.wikipedia.org/wiki/Pusan• http://fr.wikipedia.org/wiki/Festival_international_du_film_de_Pusan• http://english.busan.go.kr/05business/01_01.jsp• www.visitkoreayear.com• http://enpio21.blog.me/150142171059• http://www.hani.co.kr/arti/english_edition/e_business/531259.html• http://www.ktv.go.kr/program/contents.jsp?cid=403899• http://www.hotelmanagement-network.com/news/newsstarwood-and-youngshin-to-

launch-aloft-hotel-in-south-korea• http://www.ehow.com• blog.naver.com/busut0723/110087916801• Busan people

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