1. Evaluate Marriott International’s business position using Porter’s Five Forces

3. New substitutes such as Airbnb on the rise, but these lack the certainty of booking with Marriott
Strong branding helps
Most of supplies – food / fixtures / fittings can be sourced from anywhere – therefore supplier power is low
Rise of consumerism & demand for higher quality / luxury hotels
There ARE alternatives at top end, but people seem to want to pay high prices
RIVALRY There is rivalry – nearest = Hilton, but Marriott has 50% more rooms
Purchased Starwood eliminating competitors
Wide brand portfolio to suit all tastes
Quality & branding are focus of rivalry
Competition at top end – Hilton
Large barriers to entry – cost
Marriott will have managerial / purchasing EOS

4. Evaluation – Marriott’s Business Position
Strong position in market – holds largest market share
Rivalry is probably most important force in determining business position
Has eliminated competition by buying Starwood reducing intensity of rivalry
However, large capacity entails large fixed costs, so need high levels of occupancy to keep average costs low and maintain profitability
Vulnerable to market changes – e.g. growing trend of Airbnb and other online room booking sites
Also vulnerable to changes in economy – particularly as growing emphasis on luxury end – income elastic
Overall – strong market position, global company helps spread risk