The business essay below has been submitted to us by a student in order to help you with your studies.

Strategic analysis of hilton hotels & resorts

1. Introduction

This research provides the comprehensive analysis of strategic positions and policies of two hotels “Hilton Worldwide” and “Four Seasons”. Both of the hotels are very successful and famous within different types of travels and actually they are competitors.

In order to understand deeper the nature of hotels, the historical background, organizational structure, missions, values, vision, and goals are introduced and analysed.

The analysis of strategic position of hotels should be informative and critical therefore it is important to take into consideration the expectations of stakeholders of each hotel and the macro environmental analysis will be introduced according to current circumstances and market situation.

Afterwards, the some theory about strategies levels will be explained and introduced on the practical example of “Hilton Worldwide” and “Four Seasons”. The strategies of both hotels will be critically analysed from different points of view and possible prospect for development of both hotels are evaluated.

The conclusion is made according to the research, information gathered and individual perception, attitude and thoughts.

2. Organizational Structure


Hilton Worldwide offers business and leisure travellers the finest in accommodations, service, amenities and value. Since Conrad Hilton bought his first hotel in 1919 in Cisco, Texas, they have expanded geographically, produced original hotel and travel concepts, and developed innovative technologies to enhance the guest experience. Today Hilton Worldwide is the leading global hospitality company, spanning the lodging sector from luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels.

With more than 3,600 hotels in 81 countries, our trusted portfolio of hotel brands includes the Waldorf Astoria, Conrad, Hilton Hotels & Resorts, Doubletree, Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations.Since our founding 90 years ago, Hilton's commitment to creating exceptional guest experiences remains unchanged, and our more than 130,000 team members continue to bring the highest quality of service to the world's visitors.

The hotel organizational chart


Four Seasons Hotels and Resorts was founded in 1961 and has sought ever since to make personal service its distinguishing competitive advantage. Experience since then would indicate that personal service can and does fulfil Porter's dictum. Service which is both highly reliable and emotionally satisfying fills a broad range of important needs for affluent travellers in a way that is difficult to do. Unlike physical assets, service is the product of people, systems and culture, which are dynamic and created over longer periods of time. Over nearly 50 years, Four Seasons Team has built an unrivalled depth of reliability, trust and connection with their guests. As the company has grown from one hotel to 84 in 34 countries,their deeply instilled culture, personifiedbythe employees, continues to get stronger.


2.1. Mission, Values, Vision, Goals and Objectives

While searching for the mission statements of the two companies, it was found that there are several versions for the Hilton and none for the Four Seasons. The reason is that they have combined their beliefs, values and operating principles which further will be presented.


The first Mission statement of the Hilton was:

1.“To create rewarding customer experiences that build long term loyalty to our Family of Brands, drive business to our hotels, and spread the warmth of Hilton hospitality worldwide.”

Further, the second statement was more business oriented:

2.“We provide business and leisure travellers with a choice of excellent hospitality products that offer good value for money, while assuring a good return to owners and shareholders and inspiration to employees.”

Finally, the nowadays official mission statement imposes its worldwide high status:

3. “We will be the preeminent global hospitality company - the first choice of guests, team members and owners alike.”

Giving the team members consistent, quality training is critical to this mission. To overcome this problem Hilton established Hilton University, an online learning portal which is accessible to all Hilton employees. This mission includes the following program:

  • Enhance the guest experience;
  • Engage all the employees;
  • Improve Operational efficiency;
  • Advance building design;
  • Strengthen partnership;
  • Serve the communities;
  • Protect global environment;
  • Enrich the family of brands


The Values of Hilton are stated in an original way, by applying for each letter one value.

H Hospitality - We are passionate about delivering exceptional guest experiences.

I Integrity - We do the right thing, all the time.

L Leadership - We are leaders in our industry and in our communities.

T Teamwork - We are team players in everything we do.

O Ownership - We are the owners of our actions and decisions.

N Now - We operate with a sense of urgency and discipline.


The Vision of Hilton Hotel is “To fill the earth with the light and warmth of hospitality.”

Their Vision is to be the luxury hotel choice for discerning travellers, creating a world that celebrates individuality in every sense.

They offer Luxury as unique as every guest. As the most modern luxury hotel, they created a proud & prestigious heritage with a very contemporary attitude. At its heart, Hilton is all about offering unique experiences for discerning travellers. Individuality sets them apart from its competitors. From guests to team members to the hotel and resorts, Hilton is all about providing places where people can truly be themselves because according to them that is the real luxury today.


Hilton's Hotel's Strategic objectives which are central to its overall business plan are;

  • Definition of Hilton brand;
  • How central people and organization are to the business;
  • Having a balanced score card and
  • Driving the business to forward.

According to their website, the Four Seasons Hotel does not have a mission statement per se, but they have their corporate values. In brief, they say:

"The company's guiding principle is the Golden Rule, and as such Four Seasons strives to have a long-lasting, positive influence on the communities where we operate and on the people we employ and serve around the world. We believe that this is integral to our success as a company. This commitment is expressed consistently in our actions, through three main areas of focus. "

3. Thestakeholders'expectations

The stakeholders are group of people who affect or be affected by the actions of the business as a whole. This is people who are involved in the business and without this people the organization could not exist.

While we are talking about 5 star hotels the expectations of the shareholders of both hotel are quite similar because both of the hotels aim to achieve excellent performance, benefits, high income, ideal customer satisfaction and etc.

Customers of both hotels expect to receive the high scale service which will correspond to the price which they have paid for self-satisfaction and quality. They expect personnel to be polite, react fast to the requests and wishes.

The service should be set and lead according to the star number and true hotel recommendations. The customers should feel themselves safe,   informed and satisfied. The service should be organized in the way to convince clients to prolong their stay or make them to come back.

The employees of both hotels expect the sustainability of the brand and working environment. The workplace should guarantee stability, possibility for self-development and future promotion. Pleasant and appropriate working environment is necessary in order to make perfect performance results.

The salary of employees should correspond to the job requirements and its execution. In spite of this, salary should motivate employees to do their best in order to satisfy clients and make them to come back. Moreover, employees are willing to be fairly rewarded and trained according to the new system or requirements.

The partners of both hotels expect fare and reliable relationships and cooperation. The benefits should be agreed and truly divided between both parties. They expect right and appropriate conception of united future work.

The shareholders of both hotels expect high profit from hotels operations, well organized working system, and accurate execution of personnel tasks; complete output of employees, minimum expenses with maximum profit, one of the main goals of shareholders is brand recognition and effective marketing in order to have loyal and satisfied customers.

The hotel service and operation level should correspond to the expectations and requirements of stakeholders and customers too. The shareholders do not have limits of expectations because the hotel should always aim to gain competitive advantage within hotels of same category.

Hitlon CoRstrategy

In  the  late  nineties,   Dieter  Huckestein,   president  for  the  hotel  division  of  Hilton  Hotels Corporation, decided to implement a Balanced Scorecard system throughout the organization.   The methodology was implemented to align hotel operations with strategic objectives, driving fulfillment of organizational goals.  A vehicle to execute and communicate corporate strategy while improving profitability, the Balanced Scorecard offers a robust performance framework for performance monitoring and initiative tracking.  This has since developed from a spreadsheet based quarterly report to a comprehensive, 100% web-based enterprise performance management solution.

Explains  Huckestein,   “The  Balanced  Scorecard has  become  an  integral  part  of  our  operating  philosophy.  It's embraced by all our brands system-wide and motivates team members to achieve higher levels of performance by keeping everyone focused on results. Now it is fortified with enhancements such as ‘drill-down' reports so each operating department can track its own individual scorecard by allowing hotels the ability to instantly extract and aggregate relevant financial, customer and team member loyalty data while comparing performance with industry benchmarks and the competition.”

The CorVu solution has already improved customer ratings and profitability, helped to achieve greater levels of operational effectiveness, maximize revenue, increase customer loyalty levels, and increases the power of the Hilton brands.  The system is essential to keeping management on top of performance; principal users include the president, senior level executives, hotel managers, and other operations managers, with over 3,000 users in total. 

Four Seasons stakeholders

Those people deliver the service that has become Four Seasons' trademark.  “We have, over the years, gotten people to understand the importance of it,” Mr. Sharp says. “With business or leisure travel, time is of the essence. We have to prove that we can help make the most of that.”

Four Seasons has garnered every important award for service excellence. Employees have voted it one of Fortune's “100 Best Companies to work for” in each of the past 10 years.

“What distinguishes Four Seasons is the service element, the people element.”Mr. Sharp said the people element only works when employees are empowered.  “We can build beautiful buildings. Everybody else can too,” Mr. Sharp says: “How our employees serve their guests is the thing that can't be copied.” Employees are chosen through a behavior-based interview process that includes at least four interviews before the final hiring decision.  “You're getting to know about their attitude,” Mr. Sharp says. “You're trying find out what they expect from the company, what they are looking for. Are we able as a company to give them that? So you're really trying to develop an understanding of their personalities. “It's a huge commitment, but we believe it's the right way to do it,” says Ms. Dubois du Bellay.

4. Macro-environmental analysis


External weaknesses and strengths, opportunities and threats refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization.

Economic environment

During the financial crisis 2009 Hilton Hotel went through a challenging Macroeconomic environment Moreover, different virus dangerous diseases influenced the hotels, number of tourists staying in hotel reduced significantly what was reflected on the revenue.

Legal Environment

Hilton Hotel Corporation recently joined three major strategic alliances with the intention to create 15 more hotels in the Caribbean and Central America, 25 in Russia, and at least 15 hotels in UK throughout the coming years. These strategic alliances made the legal environment quite complex but still it will reinforce their position as the premier global hotel company. Apart from these alliances Hilton already involved in many other strategic alliances and also involved in franchising which complicated its legal environment but favorably affected its revenue.

Technological Environment

Hilton is a technologically developed corporation. Hilton made its recruitment process more effective by making it available online. It facilitates its traditional learning and classroom training by an alternative flexible method of e-learning which is available at all location and for all team members. They has 24*7 reference ware, online coaching and mentoring, virtual classroom environment and Hilton University discussion forum. They offer more than 100,000 online courses. The potential customers of Hilton can get any information or booked for Hilton's services online. Hilton hotel offer technologically facilitated room for their customers.

Social Environment

Hilton hotel owns, manages, develops and/or franchises hotels, hotel-casinos, resorts, and vacation-ownership resorts. In addition, it enjoys worldwide recognition thanks to its many overseas facilities and gaming operations. And through its various subsidiaries, it also has interests in designing and furnishing hotels and providing computer reservations for both hotel rooms and rental cars. These activities create lots of job opportunity as well as economic progress for a social community.

Political Environment:

The existing definitions of political risk focus on the concept of political risk
from two different perspectives (Carbon, 1979). One group views political risk in terms of governmental or sovereign interference actions. The second group identifies political risk as occurrences of any political events imposed upon the firm. The examples are violence, terrorism, and guerrilla groups. A hotel like Hilton is unusually vulnerable to political risk due to substantial investments in fixed assets.


Risk of Entry from potential Competitors: the risk of entry from potential competitors is relatively low because of the high initial cost of establishing a hotel business and the fierce competition among the existing hotel corporations. Threats of substitute products: Services that can alter the choice of the consumers against Hotel Hilton are Small lodges, Business hotels, Boutique hotels, eco-friendly hotels. But as Hotel Hilton holds a strong competitive advantage of wide range of branches this threat can be considered as moderate. Bargaining power of the supplier: this can be considered low in terms of hotel Hilton as they have a number of available suppliers for the resources to operate their business. Bargaining power of the Buyer: Hotel Hilton has diversified consumer segment. As the global hotel companies expanding their business rapidly, consumers are getting more opportunities to choose their desired services from different hotels. So the bargaining power of the buyers is quite high. Rivalry among the existing competitors of the market: Hotel Hilton is now facing hardship to win the battle against its competitors in the global hotel business. Marriott International (MAR), Starwood Hotels & Resorts Worldwide (HOT), Wyndham Worldwide (WYN), Four Seasons Hotels , Accor S.A, are some of the names of competitors of Hotel Hilton. So we presume that Hilton has high rivalry with its competitors.

Four Seasons

Political / Legal Sector

A company will not be able to gain success if they will not consider legal and political sector as part of their strategy. Four Seasons Hotels and Resorts put high effort in t he business ethical questions. The company believes that only the legal way is the right way. They also make sure that all their services will be useful in response to their social responsibilities.

Economic Sector

In the last years Four Seasons secured its continuous economic growth.
Through the Management for excellence strategy imposed by Taylor, the company as been able to established an economic stability to continue to serve and offer people from different agencies and sectors private or public, locally and globally.

Sociocultural Sector

Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company.Culture environment is one of the important principles that influence the organization. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture.

In Four Seasons Hotels and Resorts, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees form different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. As part of the strategic change imposed which is the Management for Excellence, Four Seasons Hotels and Resorts has been able to allow each and every human resources regardless of their culture to voice out their opinion to further enhance the corporation's structure. And on the other hand as part of the society of the Four Seasons Hotels and Resorts the members of the company always ensures that they would efficiently have a facility and technology that would be able to carry out services that would eventually satisfy all their clients.

Technological Sector

The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (1993) .As mentioned earlier, the company establishes a website which is responsible for making their organization competitive in terms of innovativeness.

Environmental Sector

Since we know that Four Seasons hotel is paying a high attention on protecting the environment we can say that this hotel chain is the leading one in this sector. They are paying high attention on the location of the hotels and the materials what they are using for building too. They also pay attention on the power sources what they use for to be able to run the hotels. They cannot solve the electricity problems only with the power of the sunshine but they are try to use it as much as they are able to.

5. Hilton Hotel and Four Seasons Strategies

Strategy is the aimand objective of an organization planned and developed for a long-term: which achieves goals of the company through its configuration of resources within a challenging environment, to meet the needs of markets, stakeholders and to satisfy customer's needs. Strategy can also be defined as “the determination of the basic long-term goals and objectives of enterprise and the adoption of range of action and the allocation of resources required for carrying out those goals. Company's strategy answers the following questions:

-Where is the business aiming to get to in the long-term?

-Which markets to target and how?

- Who are the competitors, how to compete with them?

SWOT and PESTEL analysis should be taken into consideration while establishing the strategy. There can be differentiated several strategies that might be implemented. They can be divided into international corporate level strategy and business level strategy.

Corporate strategy deals with overall purpose and scope of the company in order to meet the needs and expectations of both stakeholders and customers. This strategy is very dependent on investors and requires strategic decision-making. In other words, this strategy can be called as ‘mission statement' of the company. At the corporate level, strategies are generally developed with the intention to align business practices with the organization's mission statement. The mission statement is a document of why the organization is in business, how it will do business and for what reasons. The main focus of leaders at the corporate level is to enhance stakeholder value by developing the organization in accordance with its mission statement. The launch of new products or expansion into new markets is the components of corporate strategy.

Business level strategy reveals the methods and approaches to succeed among competitors and to target appropriate segments. It concerns strategic decisions about the variety of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities. Business level helps to gain efficient position for the company in the market. This strategy aims at creating an outstanding value perceived by the customers by appealing pricing or product differentiation. There are three approaches that can be applied by business level strategy: low cost, differentiation and focus. The low cost approach concentrates at the most attractive cost for a consumer; it should not necessarily be lowest price, but the cost competitive to the competitors. A company can use such a position to either lower its prices and gain market share and sales from rivals or keep its prices at the present market level and make relatively more profit per unit sold. The key concept is that cost and price are independent choices, and this strategy is focused on cost.

The differentiation approach focuses on developing a unique product or a perception of a unique product that customers are willing to pay a premium for. Differentiation might be created in anything, in package of the product, the better quality, appealing price or some additional feature of the product that competitors do not have.  A company seeking to follow a differentiation strategy should attempt to develop and enhance its resources and products that promote customer responsiveness, quality, and innovation.

And the third approach named focus. A firm attempting to implement a focus strategy is serving the needs of a limited group or niche segment very well. A firm with a focus strategy must carefully consider its target market and what they desire.

Both Hilton and Four Seasons Hotels strategies are rather complex as Hotels offer various range of products and facilities, and the hotel itself is an ‘amalgam' of services. Hotels are applying some of the aspects of both corporate and business level strategies. First of all, Hilton Hotels and Four Seasons are both developing their markets and expanding the territories, newly opened hotels appearing all around the world. Recently in 2011 new Hilton Hotel emerged in New York, Namibia and Mumbai. In 2010 Four Seasons emerged in Saint Petersburg and Beirut. Afterwards, Four Seasons Hotel in London introduced an additional facility - a new astonishing Spa at the top roof of the hotel. Hilton gives an example of market diversification strategy: they also stepped in the gambling market as they build and buyed several casinos in Nevada and in other states and the acquisition of the Las vegas Hilton and the Flamingo Hilton marked the launch of a consistent strategy. During 2000, the company formed a joint venture withHilton Group plcto strengthen and expand its Conrad Hotels unit overseas. The company signed an agreement the following year with Hotels Camino Real S.A. de C.V. The partnership added the Camino Real hotels and resorts in Mexico and Texas to Hilton's brand portfolio. In terms of growth, Hilton is focused on strengthening its 10 world-class brands, as well as growing the management in franchise business through brand management. The company is actively working to expand its management business and franchise business worldwide.

Four Seasons have a strong differentiation approach according to several aspects. Over its history,Four Seasonswould make four strategic decisions that formed the pillars of its business platform. The first was about quality. Rather than being all things to all people,Four Seasonswould focus on one thing: being the best in each location, with medium-sized hotels of exceptional quality. The second key strategic decision that formed the business platform was about service. True luxury is defined not by architecture or décor, but by service. SoFour Seasonsmust make the quality of our service our distinguishing feature and a competitive advantage. The third of the four strategic decisions that formed the business platform was about culture. 'We treat others - all others: customers, employees, partners, suppliers - as one would wish to be treated'.(Issy Sharp)

6. Prospects of development for Hilton Hotel and Four Seasons

This section will explain the future prospects for development of Hilton Hotel Worldwide and therefore of Four Seasons Hotel. Some methods of developing the business are internal (organic) development, M&A (mergers and acquisitions), or strategic alliances with other companies. Both Hilton Hotels and Four Seasons Hotels are having different development strategies, which make them ones of the largest hotel chains in the world.

For example, Hilton Worldwide and Cornell University School of Hotel Administration recently have announced Strategic Alliance for Hospitality Innovation and Research. According to Joe Strodel, Jr., director of corporate and foundation affairs,

"Hilton Worldwide is known for its leadership across the global hospitality industry—including its products, services, technology, and sustainability initiatives—making it an ideal research partner for Cornell.This alliance with Hilton Worldwide will allow the school to explore new, innovative ways to advance the industry even further." 

Under the alliance, Hilton Worldwide will:

  • become a senior partner of the Center for Hospitality Research and collaborate with the school on several dedicated research projects;
  • become an industry fellow of the Center for Real Estate Finance, which creates knowledge about real estate and the impact of capital markets on commercial real estate;
  • place Kevin Jacobs, senior vice president, corporate strategy and treasurer, Hilton Worldwide, on the Center for Hospitality Research's advisory board;
  • have a seat on the Center for Real Estate Finance advisory board; and
  • sponsor the school's premier industry events, including the Cornell Icon of the Industry Awards Dinner.

"This strategic alliance extends the collaboration between two organizations with names that are synonymous with excellence in hospitality," said Paul Brown, president, global brands and commercial services, Hilton Worldwide. Further he continued that

"Cornell and Hilton have strong ties that date back more than a half century when Conrad Hilton purchased the hotel company of E. M. Statler, one of the school's principal benefactors and an industry icon. We are very proud to continue to build on that foundation and expand our historic relationship."

Another forthcoming plan in development area of Hilton Worldwide is franchising.  reports on Mr. Nassetta's lofty plans for growth in India and worldwide.

“We need to set up for the next several years simply because fundamentals are good in most parts of the world,” said Mr. Nassetta. “Demand is growing at a fairly rapid pace as most economies around the world are growing. So, we are seeing pretty good growth in demand for lodging.”

While the recent crises in Japan and the Middle East have certainly impacted the hospitality industry, Hilton does not expect them to stop the current momentum. In terms of growth, Hilton is focused on strengthening its 10 world-class brands, as well as growing the management in franchise business through brand management. The company is actively working to expand its management business and franchise business worldwide. In order to continue to grow they have to work with partners that need to access capital through the debt and equity markets in order to build these properties, for this reason they are deeply focused on accessibility capital because if the outsiders can't access capital then Hilton Worldwide can't grow.

This shift will see marketing spend abroad increase significantly in 2011. The UK, as Hilton Worldwide's second-biggest market after the US, will see a significant portion of that money, but expenditure will rise ahead of growth in emerging markets such as China and India.

In China - perhaps the most crucial target market strategically - the Hilton brand itself is the one showing by far the greatest growth, being the longest established of the 10 around the world. Across all its brands, Hilton Worldwide has 17 resorts in China, which will grow to 50 in the next two years, then 100 over the next four to five years, according to Brown. Of these, 30% will operate under the Hilton brand. The pipeline of hotels in development currently consists of 64 resorts.

Given that China is now the second largest economy in the world, Hilton's focus on the territory is neither surprising nor unique. Hilton Worldwide lags behind some of its rivals in establishing a footprint in China. InterContinental claims to be the largest group by number of rooms and the business has ambitions to reach 250 properties in China within five years, while Marriott also aims to double its portfolio there to 120 by 2015.

But Hilton Worldwide has a strategy to make its own mark in China and beyond. The marketing plan that it is unleashing on a global scale has been the result of a wide-ranging reappraisal of Hilton Worldwide's branding, a review known internally as Hilton 360 and one that Brown suggests is as comprehensive as any performed by a company of this size. From it, his team has formed a long-term approach to communicating the company's objectives.

The strategy involves increased activity within the existing “Stay Hilton. Go everywhere” campaign. This even means that the creative work for its campaigns is almost all complete for that entire period, notwithstanding any twists of fate and accompanying adaptations.

Therefore they asked the help of the MDG advertising company, which is a full-service South Florida advertising agency, with offices in Florida and New York, which specializes in developing targeted franchise marketing solutions, exceptional online executions, and solid branding and media buying strategies that give franchises a real competitive advantage. MDG Advertising handles creative, media, and interactive marketing for Coverall, one of the world's leading commercial-cleaning franchising companies, with a global network of more than 90 support centres and 9,000 franchisees.

Meanwhile, the Four Seasons Hotels and Resorts made a formal announcement declaring the company's decision to officially enter a deal with the 3C Company. The alliance would be working towards setting up a new five-star hotel here.

"It is a proud moment for the company to commence our hospitality foray by associating with none other than the leading hospitality chain of Four Seasons Hotels and Resorts," said, Vidur Bharadwaj, Director, 3C Company. The project is estimated to involve a whopping investment worth Rs 1,800 crore. Going by the information, the proposed project would be located at the 12.5 acre ‘Delhi One' project and get operational latest in a time frame of about four years. In addition, the agreement also states that Four Seasons Hotels would not be initiating any new property in Noida and Delhi for a time period of 25 years.

Also, Christopher Wong, Senior Vice President, Four Seasons Hotels and Resorts, declared that this marks a significant milestone of our growing operations in India. This enhances their geographical reach within the country.

7. Genuine and Potential strategic options

If we look back (above) to thestrategies what the two companies implemente we can say:

Both of the companies  concentrated with a high attention to the growing method. Hilton developped a lot of hotels in the US and than they started to move to Europe.
They gained huge amount of revenues implementing computer technologies first and the ener of gambling market was a very important step of hiltons chain life. There biggest advantage was that they was one of the first hotel chains in the world and they can raise a lot of money from diversified activities what make them able to win mergers and acquisitions. There expansion was succesfull thanks to the enter of different markets and the strategies  what they used properly. Most of the money was from the casino industries  what could provide money supply for the expansions and the acqusitions. The disadvantage of there diversifing market was in there case the attention what they could pay on the hotel industry. There was demand decrease in the market what they react a bit slowly thanks to the high attention given to the casino market but the new CEO could handle the situation and bring back Hilton hotel corporation to the track.

In terms of Four Seasons they start their business in Toronto and they start their expanding in the beginning. They first moved to Europe (London) they realized well that the market segment of the grand hotels are full so they need to do something else to be able to be successful in the market. So they figured out to change their target group and implement a no frills strategy. After the success of this strategy they continiously expand to all over the world. there were a lot of inter business strategy changes too. There were four main pillars of the strategic change. The first was about the quality. It was an important issue. They were the first hotel chain who belived that middle size hottels should provide quality like the grandhotels. with that step they bring the hotel industry a huge change. They started to concentrated on the service too that was the second step.  They made a high quality service in order to gain competitive advantage. The third step was the culture strategy. Meaning they decided to handle everyone with the same importance and quality.  The last step the fourth one was about the Brand. they make the brand name equal to quality and presented it well to the audience. They were the first hotel chain who developped a new service segment what was the hotel with full spa service. They could pull out a lot of revenues from it since they were the first who made that innovation in the hotel industry.  As Hilton Four Seasons is made acquisitions too. They did it in order to be able to enter the asian market. They were the first hotel who started to make online marketing  what also bring them a lot of revenues.

In comaprison we can say that both of the companies concentrated mostly on expanding. They both started in the west and than they started to conqure Europe, Asia and the other continents as well. But they get the revenues for the expansion from different fields. While Hilton entered a new market what was casino market, Four Seasons  rather developet its own market. Hiltons advantage was that they were one of the first and they had a lot of money from the casino market. Four seasons rather payed more attention on the hotel industry and the strategy change such as in london where they made a target group change, or the acquisition in Asia in order to enter a new market. There also brought a huge amout of revenue from developping new segments and services. To sum it up Hilton made huge acquisitions and take money out of casinos to supply the expansions , while Four seasons concentrated on the Hotel industry and the development of new strategies. Both of the companies need a lot of resource to be able to expand. They need to have money supply to be able to support the growth and they need to spend a lot of the revenues on market research and development in order to hold their position in the market.

There are advantages for both ideas like for Hilton they were able to make a lot of money from different markets but there is a hiddent disadvantage in it that they cannot concentrate to the different markets the same. Four Seasons had a huge advantage when they entered to new segments such they did in London, but the disadvantage is that they are only in the hotel industry what can be dangerous if something bad happens within that sector.

8. Conclusion

In conclusion, it is obvious that for success and efficient operation of the company a clear strategy is required. Moreover, the company should identify achievable vision and objectives. In order to reach those objectives the company should find out its strengths, weaknesses, opportunities and competitors and evaluate the situation of external environment, applying PESTEL analysis.

Strategy is about planning to reach a vision which differentiates a company from its competitors in a positive way. It encompasses overall direction as well as the many detailed activities that occur in a company. Strategic success generally depends on possessing an enlightened and unique vision as well as doing the many things needed to achieve the vision well. If one focuses too much on the activities often the vision is lost, likewise if the focus on the vision is too intense then the operational matters are neglected resulting in across the board problems in personnel, quality, poor productivity, and so on.

During the long time both hotels was developing considered and appropriate strategies in order to achieve set goals and visions. Both hotels have paid high attention to develop suitable strategy which allows them to be successful in their target markets and achieve its revenue and profit objectives over time. The knowledgeable and skilled professionals was working out this process providing the best ways, creative ideas, innovations, diversification and uniqueness in every work sphere in order to expand, rich goals and gain profit.

Both hotels formalize strategy development process and conduct it on a periodic basis and make sure that their strategy is updated and aligned with changes in the market, changes that are going on with their competitors, changes that are going on with their customers in terms of specific needs, preferences, and overall requirements. So, both hotel do good work on strategy, therefore, they are more successful than other hotels that neglects this important area. Strategy is all about setting the foundation for understanding how to be successful in a market and how to win.

After the recovering from financial and Japan crisis hotels had felt some impact on the business although in spite of this hotels still expect future expansion, income growth and substantial success. The business industry of both parties is quite withstanding and balanced as it is possible to notice from the rich historical background, rather stable financial positions, resistance to various external and internal influencing circumstances, exalted aims and limits, and long term success. Therefore, proceeding from gathered information about strategy of both parties and the succeeding consequences and results which we can see from the implementation of strategies, we can boldly say that both hotels do not need to follow different strategies and the existing strategies are the one which prosperously coincide with the expectations and goals of hotels.

Request Removal

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to request removal:

Request the removal of this essay

More from UK Essays