How did Marriott use economies of scope to achieve greater economic value than its competitors? – Q/A (Question and Answer)

Answer:

D. Marriott lowered its cost structure by sharing its production assets over a several types of hotels, which increased its menu and thus its differentiated appeal.

Explanation

Marriott used economies of scope to achieve greater economic value than its competitors by focusing on providing a more comprehensive and differentiated range of services. Marriott was able to offer a wider variety of services than its competitors, and it used this to its advantage by marketing itself as a one-stop shop for travelers. This allowed Marriott to charge a premium for its services, and it also allowed the company to capture a larger share of the market.

Marriott used economies of scope to achieve greater economic value than its competitors by consolidating its operations and achieving scale economies. Marriott was able to offer a wider variety of services and products than its competitors and achieve greater economies of scale. This allowed Marriott to offer its customers a better value proposition and ultimately drive higher profitability.

. Marriott’s strategy of leveraging its brand name to expand into new markets and product segments helped it to achieve economies of scale and new sources of revenue growth.

Marriott International, Inc. is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott and Frank Kimball in 1957, the company is now led by his son, Executive Chairman Bill Marriott, and President and Chief Executive Officer Arne Sorenson. Marriott International is headquartered in Bethesda, Maryland, in the Washington, D.C. metropolitan area.Marriott International entered the timeshare market in 1984 with Marriott Vacation Club International, now branded Marriott Vacations Worldwide. It was one of the first developers to sell vacation ownership points, which offer greater flexibility and more vacation options than traditional weeks. Marriott also invested heavily in technology and operational efficiencies, which helped it to lower costs and improve margins. The company also expanded its hotel portfolio through acquisitions, including the purchase of Starwood Hotels & Resorts in 2016.Marriott International has more than 7,000 properties in 130

for its inventory Marriott also developed strong relationships with its suppliers, which helped it to secure lower prices and better terms for its inventory. This allowed Marriott to keep its costs down and maintain its competitive advantage.

by selling off nonessential assets and reinvesting in growth markets. Marriott International has sold off nonessential assets and reinvested in growth markets in order to maximize value and returns. The company has also actively managed its portfolio of assets to ensure that it is getting the most out of its investment. This strategy has allowed Marriott to become one of the most successful hotel chains in the world.

Conclusion

Marriott used economies of scope to achieve greater economic value than its competitors by offering a wider range of services and products than its competitors. This allowed Marriott to capture a larger share of the market and generate more revenue.