PEST Analaysis Essay Example

market area provides easy accessibility to various amenities and entertainment options. One of the essential features of the Hotel is technology, which is crucial in meeting the changing demands of customers. The Hotel strives to stay ahead of the global travel industry by providing access to technological tools like the Internet, television, and radio in every room.

When conducting a Porter Five Forces Analysis, it is important to consider the power of suppliers. As a Hilton International hotel situated in the heart of the city's economy, there is a possibility that the Hotel holds enough leverage to increase pricing. However, the tourism and travel industry is highly competitive, and effective marketing tactics such as product, price, promotion, and place are crucial to sales performance. Despite having the ability to drive up prices in the market, the Hotel is more likely to offer competitive pricing while emphasizing high-quality services as their strategy for attracting and retaining customers.

2. The Hotel has chosen to base its pricing on market rates, limiting the buyer's ability to set prices. However, the buyer can still select the hotel based on their preferred services and lifestyle.

3. Due to fierce competition in the travel and tourism sector, Hilton has implemented a strategy of situating some of its lower-tier brand hotels in nearby cities to gain an advantage over its rivals.

Hilton International as a group employs a strategy to combat competition by establishing several low brand hotels in every city where a Hilton Hotel is located. This approach ensures continuous earnings for the entire group. The lower class hotels, such as Marriot Hotel or Hampton Inn, are managed and operated

as a single unit with Hilton, rather than competing against it.

The absence of substitution poses no danger. The market may face a potential entry of newcomers beyond control. Despite this risk, Hilton International's market tactic allows for economies of scale. While it may not generate profits or attract customers, the Hotel Group's other brands are accumulating them for the company. Question 2: Create a SWOT analysis for the organization using the analysis from Task One to identify opportunities and threats.

SWOT Analysis: Hilton has significant opportunity to gain a comparative advantage and market scale over its competitors based on the findings of the PEST and Porter’s Five Forces analyses. The Hotel has advantageous positioning in political and economic matters, as well as consideration for demographic and social lifestyle needs of customers, resulting in it being a top choice for businesspersons and travelers. However, a potential internal threat may arise as the Hotel could become a monopoly hotel in the country, while external threats seem minimal due to its surrounding sister hotels.

Hilton hotels face intense competition from numerous rivals. In answering question 3, which requires evaluating an organization's service using three of five characteristics of services (namely, variable, inseparable, intangible, perishable, and lack of ownership), it can be observed that Hilton Hotel's service offerings encompass a mix of these characteristics. Specifically, the services provided by Hilton Hotel are variable as they cater to different types of clients including businesspeople and individuals. The services offered are also inseparable as certain services like shuttle transportation to and from the airport are tied to the hotel experience. Additionally, the hotel's services are both intangible, non-perishable and perishable. Finally,

ownership of the services provided by Hilton Hotel rests with the organization. For business clients, the hotel provides conference rooms and an executive lounge while for individuals, there are amenities like a hair and beauty salon as well as a health club. The hotel also has a gift shop and offers free internet access to guests.

The Hilton Hotel chain offers a range of amenities including conference rooms, internet access, restaurants and bars. Customers are encouraged to support management in environmental and safety issues. While some services, like the gift shop, are tangible, much of what is offered is intangible and valued based on individual needs, preferences, taste, and feelings. In terms of segmentation and targeting, the organization utilizes demographic, geographic, psychographic, and behavioral factors to promote and distribute particular services to specific customer groups.

The main hotel is situated amidst six other hotels of lower standing, namely Marriot, Regents, Court Yard, and Hampton Inn. Its aim is to attract both business people and those looking for leisure or a combination of the two. The Hotel utilizes several channels to promote its services including through its affiliated restaurants, government establishments, businesses, other organizations as well as travel and tourism industry platforms. It provides not only accommodation but also conference and meeting facilities catering specifically to business travelers. Furthermore, it tailors its products and services to meet the specific needs of groups or individuals while responding promptly to their requests in order to provide optimal customer satisfaction.

The Hilton hotel employs a multifaceted marketing strategy to enhance response time and satisfy customer needs. This includes utilizing various communication channels, generating materials like brochures and comment forms in advance,

and incorporating information systems. Additionally, they leverage e-commerce platforms and media outlets such as newspapers, magazines, and the internet for advertising purposes. The hotel's cutting-edge technology facilitates top-notch tourism services, while their visionary leadership distinguishes them from competitors. By constantly adapting to changing circumstances and offering new prospects for clients, they retain current customers while attracting fresh ones.

Due to the large number of competitors in the tourism industry, it is necessary for businesses to constantly adapt and innovate by offering new services and opportunities for customers. Implementing organizational changes can improve their status and attract a larger customer base, ultimately allowing them to thrive in the competitive market. Hill & Jones (2001) Strategic Management. 5th Edition.

Boston, MA: The fourth Canadian edition of Principles of Marketing, written by Philip Kotler, Gary Armstrong, and Peggy H. Cunningham, was published by Houghton Miffin in 1992.

Retrieved on November 20, 2007 from http://www.mindtools.com, this source discusses Porter's Five Forces, which can help evaluate the balance of power in a business situation. The source was published by Prentice Hall Canada Inc. in Scarborough, ON.

The PEST market analysis tool can be found at http://www.businessballs.com/pestanalysisfreetemplate. This information was retrieved on November 22, 2007.The text inside the is simply "htm".