Business Development
Name:
Institution:
Business Development
Question a
Marriot International 2019 annual Report outlines the development of franchising business within the company. Under the report, Marriot outlines the contribution of the franchisee’s entities to the company’s growth and development. The main contributions include increasing company revenues by offering initial fees, royalty fees, lodging fees, and advertisement fees to Marriot company. The royalty fee consists of four to seven percent of the room revenues and two to three percent of the food and beverage revenue for all brands related to the company (Marriot International, 2020). The cost of the franchising business aligns with the franchising fee presented in chapter 16.
Question b
Brand portfolio entails the development of the various brand lines upon which a company extends its services to meet the demands of different consumers within its market. Marriot international has adequately utilized the brand portfolio strategy to ensure its competitiveness within the U.S market. The company has developed several brands under its name, that is Luxury, Premium, and Select, which offer different services related to different types of consumers (Marriot International, 2020). The move has facilitated the company’s growth in the U.S by increasing the demand for company services. The growth has facilitated the ownership of a wide range of hotels categorized under the three brands within the U.S, which serves as the company’s primary market.
Question c
Marriot company incurs intense competition within its U.S market from other companies offering similar services, more so companies that contain online platforms from which consumers can book short term rentals of homes and apartments at the expense of hotel rooms. Similarly, hotels with strong brands present competition in the franchising business, limiting the Marriot company’s market share. However, Marriot International brand is recognized within the market, which offers the company a competitive advantage. In relation, Marriot International retains 16% of the U.S market since its preferred by hotel owners for franchising business owing to its strong guest preference and quality of lodging facilities (Marriot International, 2020).
References
Marriot International. (2020). Financial Information. Retrieved on September 8, 2020, from http://media.corporate-ir.net/media_files/IROL/10/108017/marriottAR19/10k-item1- p1.html
Marriot International. (2020). Financial Information. Retrieved on September 8, 2020, from http://media.corporate-ir.net/media_files/IROL/10/108017/marriottAR19/10k-item1- p2.html
Marriot International. (2020). Financial Information. Retrieved on September 8, 2020, from http://media.corporate-ir.net/media_files/IROL/10/108017/marriottAR19/10k-item1- p4.html