SWOT ANALYSIS: strengths, weaknesses, opportunities and threats

Universidad de Valencia, Facultad de Economía

Teacher: Elisabet Mora Perez

“Promotion of tourism organizations”

Group: P2

Members of the group: Marija Peric, Phuong Khanh Ha, Patricia Jardel and Marisa Alba

Date: October 3, 2022

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ACTIVITY IN GROUPS

1. Perform a SWOT analysis applied to the tourist brand you have selected for the final group
report). You can reuse strengths and weaknesses identified in the qualitative analysis of task
2.

A SWOT analysis is a tried-and-true management paradigm that enables a company

to compare its operations and performance to those of its rivals. One of the top names in the
travel and hospitality industry is Hilton Hotels and Resorts.
In order to strengthen its position in the market, Hilton Hotels and Resorts might use
SWOT analysis to concentrate on developing its strengths and opportunities while resolving
its weaknesses and threats. Let's begin the SWOT analysis of Hilton Hotels and Resorts:

Hilton Hotels and Resorts Strengths

BRAND IMAGE
Worldwide, Hilton Hotel operates a number of hotel brands. Around the world, there
are more than 3,750 of its hotels spread across 84 nations. They include "Hilton, Doubletree,
Embassy Suites Hotels, Hilton Garden Inn, Hampton Inn and Suites Hotels, Homewood
Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations," among others.
Because of its excellent brand, the hotel has amassed a sizable clientele. It enjoys a
competitive advantage over rivals thanks to its excellent brand. As a result, it draws in more
customers thanks to its well-known brands. Its brands give it access to a large global
customer base, which translates into profitable sales.

RANGE OF SERVICES
One of the biggest hotels in the world, Hilton offers a variety of lodging options, from
luxury to extended-stay. For people traveling on business or for leisure, it offers hotels like
the Waldorf-Astoria Collection in the heart of different cities. On another hand, for customers
who might want to remain at the hotel for an extended period, it offers the Homewood Suites.
As a result, the hotel's broad range of services enhances and stabilizes its market share in the
event of hazards specific to a single category.

EMPLOYEE BENEFITS
The Hilton hotel has earned a reputation for treating staff members well. It's because
the corporation is aware that their employees are their greatest asset. The hotel business
therefore offers them benefits including health and insurance coverage, educational assistance
programs, The ComPsych Guidance Resources, employee purchase programs, employee
assistance programs, the Hilton Honors Program, savings plans, and travel programs.

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MANAGEMENT SYSTEM AND TECHNOLOGY
In the hotel and hospitality sectors, Hilton uses the best management and performance
evaluation system. It has an impact on how well the business operates as a result. It responds
to the motivational training and development, promotion, pay raise, and other programs.
The latest technical developments that potentially enhance the guest experience have always
been quickly accepted and implemented by Hilton. The brand wants to keep on top of
developments in online booking and payment methods.

PRIZES
Since 2017, Hilton Hotels and Resorts has been identified as one of the world’s most
ethical companies. They promote ethical behavior in all of their hotels and offer to their
employees training and communications tailored to their role, language and location of the
hotel. The company constantly tries to encourage its members so they can feel safe and
supported in their workplace.

Hilton Hotels and Resorts Weaknesses

CUSTOMER REVIEWS
On numerous social media sites, several Hilton hotel guests have posted negative
comments about the chain. With negative reviews and ratings on sites like Booking and
Tripadvisor, Hilton has a reputation issue. The customer feedback reveals that several hotels
had poor interactions with customers.

DATA BREACH
Two credit cards' security was breached when Hilton gained access to the business'
cash register. The corporation ultimately had to pay a $700,000 penalty. Many people became
skeptical of the company's security measures as a result.

FLEXIBILITY
As we have said before, Hilton Hotels is a big company with over 3,750 hotels spread
across 84 nations. Due to its large size, it’s more complicated to make important decisions.

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Hilton Hotels and Resorts Opportunities

DEVELOPING MARKETS

Marketing efforts at Hilton Hotel and Resorts should target new markets such as Asia
and Latin America. They have a lot of space to expand. Although the investment wouldn't be
huge, it would bring in a lot of money for the business. Australian Market also can be one of
the interesting markets to explore. When it comes to tourism, Australia has emerged as one of
the nations with the largest economies in the world.

MARKETING (DIGITALIZATION)
For the marketing and promotion of its goods and services, Hilton should make use of
various social media channels, including Facebook, Twitter, Instagram, Tiktok, LinkedIn, and
others. The chain hotel brand should, above all, improve the efficiency of the room. A lot of
new clients would be attracted by simplicity and convenience. Therefore, Hilton Hotels &
Resorts have to invest in digitalization and make a better use of technology.

CUSTOMER SERVICES
Innovation in customer services.

Hilton Hotels and Resorts Threats

COMPETITION
Over the past two years, stable profitability has increased the number of players in the
market, which has decreased profitability as well as overall sales. Some of Hilton's primary
rivals are Marriott International, Intercontinental Group, Hyatt Hotels, Shanghai Hotels, and
others. They are extending their business and seeing fast growth in the hotel sector. If the
chain hotel brand doesn't keep up with its speed, it could pose a serious threat to the
corporation.

ECONOMY AND POLITICS

Economic and political turbulence in most countries.

2. Present the SWOT analysis in a chart. Assign a weight to each considered factor according
to the importance of their influence for the Company studied and give the final punctuation
for strengths, weaknesses, opportunities and threats. Based on that justify if the situation is

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favorable or unfavorable for the Brand. (You have an example of a SWOT chart that you can
apply to your specific case).

STRENGTHS Weight WEAKNESSES Weight

Brand image —------------------------ 7 Customer reviews ---------------------- 7

Range of services ---------------------- 8 Data breach------------------------------ 9

Employee benefits --------------------- 6 Flexibility --------------------------------5

Management systems ------------------ 5

and technology

Prizes ------------------------------------ 5

Total Total

31 21

OPPORTUNITIES Weight THREATS Weight

Developing markets —---------------- 9 Competition —------------------------- 9

Marketing (digitalization) —--------- 6 Economy and politics —-------------- 10

Customer services —------------------ 8

Total Total

23 19

=> According to the chart above, in terms of strengths with the

highest point, we can see that Hilton is particularly doing well in five
aspects: brand image, range of services, employees benefits,
management systems and technology and prizes. This distinguishes
the company from other competitors in hospitality industry. Hilton
especially exceeds in range of services with different hotels sizes at
different locations all around the world. As for weaknesses, the

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biggest problem facing the company is its weak security, however,
this can be improved, as well as customers’ reviews and flexibility. As
a result, Hilton can turn their weaknesses into opportunities that they
can invest in and be a game changer in the industry. Last but not least,
considering two of the threats which are competitors and economics
and politics, this is the case for many other companies in the industry
so we believe as long as Hilton carefully plan out their strategies and
stick to their objective and image, the company will continue doing
well and developing. In conclusion, this whole situation is favorable
for Hilton.

Bibliography

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19-11-29

Department, S. M. (n.d.). Hilton SWOT analysis matrix (strengths, weakness, opportunities,

threats). Fern Fort University. Retrieved October 3, 2022, from
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Editor, eH. (2020, February 28). Hilton again recognised as one of the world's most ethical
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