Starwood (Swot, Pestel, Efe)

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Starwood focuses on developing lifestyle hotel brands at an accessible price point supported by innovative marketing. However, it is overly dependent on the US market and vulnerable to economic downturns given its portfolio of mid-scale and upscale brands.

Starwood's main strengths are its strategy of developing distinctive lifestyle brands and growing demand for individualized travel experiences. Its main weakness is an overdependence on the US market and vulnerability to economic downturns given its portfolio.

Starwood has opportunities to expand its luxury brands internationally and offer accessible luxury through its aloft brand. However, luxury spending cuts could hurt it as most of its brands are luxury, and seasonal tourism is not constant.

SWOT Analysis of Starwood Hotels and Resorts Worldwide, INC.

2007
Strengths
Starwood Hotels & Resorts Worldwide
Inc's strategy focuses on the development
of lifestyle brands at a leisure price point
supported by innovative marketing that
makes an emotional connection with
clients. (Ref. Pg 285)
Growing consumer demand for an
individuated travelling experience is
generating potential for hotel operators to
develop distinctive brands, properties and
services. (Ref Pg 284-288)
Weaknesses
Starwood is overly dependent on the U.S
market (Ref. Pg 287)
Mid-scale and upscale hotel brands leave
Starwood Hotels & Resorts Worldwide
vulnerable to any potential global
economic downturns. (Ref Pg 290-291).
Opportunities
Starwood has been able to expand their
luxury brands in both domestic and
international markets (Ref. Pg 283)
The aloft brand presents an opportunity
for Starwood Hotels & Resorts Worldwide
to offer accessible luxury. (Ref. pg 286)

Threats
Luxury spending may be cut back, which
would hurt the company as its brand
portfolio has more luxury hotels than mid-
priced ones. (Ref. Pg 291)
Due to the seasonal nature of the industry,
the tourism flow is not constant (Ref. Pg
287)


PESTEL Starwood Hotels and Resorts Worldwide, INC. 2007
Political
There is existence of political tension
between the U.S and Asian countries like
China (Ref pg 286-287)
Political stability persists in the U.S up to
now relative to other countries (Ref. pg
286)
Economical
The adverse impact of the economic crisis
of 2008 (Ref. Pg 287-288)
Starwood is controlled by a very large
company (Ref.pg 288)
Social/Socio-cultural
On average there is a rise in the number of
trend-conscious teenagers (change is
consumer taste) (Ref. pg 290-291)
There is also the aging populations whose
needs also need to be satisfied (Ref. pg
289)

Technological
There have been recent developments in
the field of sophisticated technology (Ref.
Pg 290)
The growing use of internet and
telecommunications is significant for
marketing purposes ( Ref. pg 291)
Environmental
There has been an increase in urbanization
in the U.S ( Ref pg.283)
Pollution in general is still increasing
despite environmental laws and
regulations (Ref pg 288-291)

Legal
Laws and Regulations become obstacles
for many future plans of Starwood (Ref. pg
289)
Partnerships with Asian countries involve
unfamiliar laws and regulations (Ref. Pg
291)


EFE Matrix of Starwood Hotels and Resorts Worldwide, INC. 2007

Key External Factors Weight Rating
Weighted
Score
Opportunities
Expansion of outlets locally and domestically 0.2 3 0.6
Participation in joint venture 0.15 3 0.45
Leadership in luxury brand image 0.1 2 0.2
Development of unique products and services 0.05 4 0.2
Threats
Competitors technology and pricing 0.15 4 0.6
Cultural conflicts 0.1 3 0.3
Availability of substitute 0.2 4 0.8
Less global coverage than competitor 0.05 2 0.1
4= the response is superior
3= the response is above average
2= the response is average
1= the response is poor RATING
Total 1.00 3.25

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