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Hilton Hotels & Resorts And Marriott Hotels: Competitive Strategies Get Essay Help

Table of Contents
Introduction Body Conclusion Bibliography


In general, competitive strategy refers to a game in which separate actors aim for the same object. Nevertheless, in a market context, competitive strategy develops when numerous market actors strive to attain the same target from strategically distinct locations. Consequently, a competitive organization is portrayed as cost-effective, highly differentiated in its product offerings, more efficient in its transactions, reorganizing its transactions in response to market demands, and keeping positive relationships with its agencies (Giovanni, 2012).

Main body

Companies in the present day are modifying their rivalry by utilizing data to defeat rivals (Kaplan and Norton, 2007). Consider the travel and tourism industry company Hilton Hotels & Resorts. Over time, its market environment has become dynamic and competitive. Every day, the company encounters novel situations, such as the opening of a new hotel, the introduction of a new holiday package, and promotions for the new products (Hilton Canada, 2012). Moreover, there are variances in the performance of particular enterprises within the same industry in terms of size, items offered, people, organization, location, and history (Gordon, 2004). Using client preferences and tastes as a guide, Hilton Hotels & Resorts use this differentiation strategy to attract consumers from a variety of geographies and who have diverse product preferences.

According to Grant, Halldorsson, Kotzab, and Teller (2009), the lowering of product volumes in the market, the increasing sophistication of technology, the shortening of product life cycles, the rise in consumer demands, and the increase in competition from other firms are causing businesses to reduce costs. With the rise of other firms in the position of Hilton Hotels & Resorts, for instance, the hotel's operations have been enhanced, rated according to social status, and the overall cost has decreased over time (Hilton Canada, 2012). This cost leadership strategy has allowed individuals from lower socioeconomic strata to utilize Hilton Hotels & Resorts' facilities. The organization raises its profit margins as a result.

Moreover, enterprises must offer new items to the market at the appropriate moment, alter their means of distribution, and increase product promotion in response to changes in competition and organizational regulation in order to remain competitive (Akhter, 2003). This has led Hilton Hotels & Resorts to offer other hotels the option of franchising for a fee, allowing it to acquire a focus on specific targeted areas in various regions of the world (Hilton Canada, 2012).

The organization's competitive strategy is related to the market in which it operates. The phrase market structure describes the interaction between buyers and sellers. The table below illustrates the distinctions between various market structures.

Table of Differences Between Market Structures

Ideal competition Monopoly Monopolistic competition Oligopoly

Illustration of organization Truck agriculture Local telephone service Computer industries like dell Auto industry

Including Ford

Produced items or services by the organization Vegetables, tomatoes, and corn.

Internet services Calling services Currency transfer

Computer and notebook Laptop and computer accessories

Automobiles and automobile parts

No barriers to entry

Technology Geography Administration

Product specialization Non price completion


Interdependence behavior Pricing practices

Numero of businesses Numerous One Several

elasticity of demand to price Unaffected by particular companies Determined by the business Distinctive among industry products vendors colluded together

Exist economically profitable outcomes? Yes Yes Yes Yes

Oligopoly describes the competitive landscape in the hotel sector, particularly among hotels with comparable star ratings, such as Hilton Hotels & Resorts and Marriott Hotels. Every hotel in the same rating considers every other hotel in the same rating to be a formidable rival with a significant impact on the customer's decision. Therefore, in order for the firm to succeed, they propose to work together by secretly conspiring on product prices. Generally, price collusion happens to thwart competition (Gray, 2008).

Consequently, hotels and resorts in the same oligopoly market face price wars infrequently, and when they do, they last very briefly. Typically, these hotels and resorts follow the pricing practices of their competitors. As a result of their pricing reliance, these businesses prefer to compete on product offerings, brands, and special services to capture customers' affection (Gray, 2008).

When hotels are graded based on their size and amenities, monopolistic competition enters the market. For instance, Hilton Hotels & Resorts are five-star hotels, and the market has monopolistic competition when compared to hotels with lower ratings. This is due to the fact that one-star and five-star hotels provide identical products with different packaging or branding and at different rates. In addition, the hotels are in different locations than their competitors, employ various payment methods, and have distinctive designs. Consequently, no company can affect the costs of brands with a different grade. In addition, there is a moment when hotel output exceeds need, and clients stand to gain from the wide range of hotel ratings (Gray, 2008).

Under monopolistic competition in the hotel sector, similar items are typically supplied at a narrow price range because if a hotel with higher ratings raises its brand prices too much, consumers would abandon its services for those of a lower-rated hotel. In addition, when these hotels seek to maximize their profits, they ensure that their marginal cost and marginal income are identical (Gray, 2008).

However, the hotel business cannot be categorized as monopolistic or perfectly competitive. This is due to the fact that in a completely competitive market, there are several well-informed buyers and sellers. As a result, they purchase from stores with the lowest prices, and businesses respond by lowering their pricing to avoid losing customers. This contradicts the hotel industry. In addition, neither buyer nor seller is believed to have the ability to influence prices, products are of comparable quality, and neither brand names nor advertising are required. This established competition for the money of purchasers will see sellers and buyers battle for the lowest pricing (Gray, 2008).


In a monopoly market, there is only one vendor, which is not conceivable in the hospitality industry. Generally, monopolies in this area have been combated through government tourism efforts that offer fresh opportunities for competition alongside the potential monopoly. In monopoly, the supplier determines prices, and customers have no choice except to comply. However, in the hotel industry, in order to alter prices, client behavior must change (Gray, 2008).


Strategic Planning, Hypercompetition, and Knowledge Management, Business Horizon 2, no. 2 (2003): 19-24.

Handbook for Research on Competitive Strategy, by Giovanni B.D. Edward Elgar Publishing Limited is located in Cheltenham, United Kingdom.

Modern Competitive Strategies, authored by Gordon W. Gordon in 2004. New York, United States of America: MacGraw-Hill International.

Grant D. B., Halldorsson A., Kotzab H., & Teller C. (2009). Management of Supply Chains and Hypercompetition. Logistic rest.,4, 5-13.

Gray E. C. (2008). Economics: Theory and Application. New York, United States: MacGraw Hill

R. S. Kaplan and D. P. Norton (2007). Using the Balanced Scorecard as a System of Strategic Management. Harward Business Review, 5, 1-10.

Hilton Canada (2012). Canada Hilton Hotels & Resorts Franchise Disclosure Document by Hilton International Franchise LLC.

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