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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
3
33.5
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
Market analysis wExternal analysis
Mapping of Strategic Groups
Market Analysis wExternal analysis
Market analysis wExternal analysis
Existing market segmentationPrice
Ser-vices
Market Analysis wExternal analysis
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-
tions
Outboundlogistics
Marketing&
SalesService
Human resource manage-ment
Market-ing&
Sales
Service
Margin
Mar
gin
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
R
IN
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
STRATEGY SWOT analysis wInternal analysis
Weaknesses
Dependence onUS market
SWOT Analysis wInternal analysis
STRATEGY SWOT analysis wInternal analysis
Opportunities
SWOT Analysis wInternal analysis
STRATEGY SWOT analysis wInternal analysis
High competitionDownturns in travel
Threats
SWOT Analysis wInternal analysis
1. Corporate level
2. Business unit level
3. Operational level
Str
ate
gic
M
an
ag
em
en
tRecommendations
Str
ate
gic
M
an
ag
em
en
t
CORPORATE LEVELCorporate Strategy
Directions BCG Matrix GE McKinsey Matrix
MarketPenetration
New prod-ucts
& Services
MarketDevelopment
Conglomer-ate
Diversification
Existing New
Exis
tin
gN
ew
1 Aloft
2ElementW Hotels
Corporate StrategyDirections BCG Matrix GE McKinsey
Matrix
CORPORATE LEVELCorporate Strategy
Directions BCG Matrix GE McKinsey Matrix
Stars QuestionMarks
CashCows
Dogs
High
Low
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
CORPORATE LEVELCorporate Strategy
Directions BCG Matrix GE McKinsey Matrix
High
Low
High LowIndustry Attractive-ness
Busi-ness
Strength
Investmentand growth
Selectivegrowth Selectivity
Selectivegrowth
Selectivity Harvest /divest
Harvest /divest
Harvest /divest
Selectivity
SheratonWestinFour
pointsLe Meri-
dienLuxury collec-tion
W hotelsAloft
ElementSt Regis
BUSINESS UNIT LEVELHigh
Low
Low HighPrice
PerceivedProduct/service
benefits
Hybrid Strate-gies
DifferentiationStrategies
Low-priceStrategies Non-competi-
tiveStrategies
High
Low
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