Ritz Carlton Hotel Business Strategy

Subject: Company Analysis
Pages: 7
Words: 1656
Reading time:
7 min
Study level: College

SWOT Analysis

External Environmental Scan


  • The current wave of globalisation is encouraging more people to travel from one place to another. Ritz Carlton Hotel can target new destinations across the globe into to achieve its business potentials.
  • Many managers and organisational leaders are having more meetings. Such business conventions have created a new opportunity for Ritz Carlton Hotel.
  • More people are having wedding ceremonies today than ever before. Many hotels have been using this opportunity in order to boost their profits. That being the case, the hotel can focus on this opportunity in order to improve its business performance (Marriot Brands, 2015).
  • New markets are emerging in different parts of the globe such as Latin America, Europe, and Asia.
  • Ritz Carlton can also open new branches in countries with growing economies.
  • Many countries in the world are promoting the best security measures for different international hotels (The Ritz-Carlton Story, 2015). This development will make it easier for the hotel to attract more stakeholders.
  • The ongoing wave of social responsibility is supporting the needs of many communities. Every company engaged in corporate social responsibility (CSR) can achieve its goals within the shortest time possible.


Several threats are affecting the performance of Ritz Carlton. The firm should address such challenges in order to emerge successful. Some of the threats affecting the firm are presented below.

  • The increasing number of hotels in the developing world threatens the performance of this firm.
  • Ritz Carlton is forced to compete with different hotels across the globe. Some of the leading competitors include “the Hong Kong and Shanghai Hotels, Four Seasons Hotel Incorporation, and Resorts Worldwide” (Yeung, 2006, p. 271).
  • The recession experienced in different parts of the world might affect the firm’s profitability.
  • New entrants are also joining the hospitality industry. Such entrants are using their innovative skills to attract more customers.
  • Terrorism continues to affect the performance of many hotels across the world.

Internal Environment Scan


Ritz Carlton has numerous strengths that make it a leading provider of quality services. The hotel has also created a powerful brand. The strengths of Ritz Carlton support its business objectives. The firm’s major strengths are presented below.

  • Ritz Carlton is present in over 20 countries. The hotel’s global presence makes it a leading provider of quality services.
  • The firm operates several training centres. Such centres support its business goals and potentials.
  • The organisation has competent employees who provide quality services to different customers.
  • The firm is a subsidiary of Marriot International Group (Yeung, 2006). This attachment gives it a powerful image. This strength makes it easier for the hotel to compete with other firms across the globe.
  • The firm provides quality services to its customers (Yeung, 2006).
  • The hotel uses appropriate communication approaches, taglines, and strategies to inform more customers about its products.


  • Many customers believe that Ritz Carlton’s products are expensive. This notion discourages more customers from purchasing Ritz Carlton’s services.
  • The “current economic status experienced in the globe might affect the spending power of many potential customers” (Yeung, 2006, p. 4).
  • The “rate of employee turnover has been increasing within the past few years” (The Ritz-Carlton Story, 2015, para. 3).

Strategic Recommendation

Ritz Carlton remains a popular brand in different parts of the globe. The hotel has been attracting many customers from different corners of the world (Ritz Carlton, 2014). The firm has remained profitable and successful. However, the above opportunities can be used to formulate a new strategy that can produce the best results. The proposed strategy should focus on new markets such as Latin America and Asia. These developing markets can support Ritz Carlton’s business objectives (The Ritz-Carlton Story, 2015). The firm should also lower its prices in order to become the best choice for many tourists. The issue of security must be taken seriously in order to attract more customers. A new mission will ensure the hotel focuses on the needs of more customers.

Growth of the Global Hospitality Industry.
Fig 1: Growth of the Global Hospitality Industry.

Company Strategy Analysis

Mission Statement, Vision, and Strategic Intent

Ritz Carlton has over “80 resorts and luxury hotels in 26 countries” (Ritz Carlton, 2014, para. 3). The company’s main goal is to provide adequate hotel services to many customers. The firm encourages its workers to identify new strategies that can improve the experiences of different guests. The hotel uses the slogan “Let Us Stay With You: It’s Our Pleasure” to attract more customers. The hotel uses a powerful strategy in order to support the needs of its stakeholders. This business strategy has made it easier for Ritz Carlton to achieve its business potentials.

Ritz Carlton’s main goal is to provide quality services to its customers. The firm empowers its workers in order to offer competitive services. The firm provides “appropriate accommodation, food, and services that fulfill the needs of different customers” (Ritz Carlton, 2014, para. 3). The company’s vision is “to inspire life’s most meaningful journeys” (Ritz Carlton, 2014, para. 5). Ritz Carlton’s mission is to “provide genuine care and exceptional services that can result in profit leadership” (Ritz Carlton, 2014, para. 5). Ritz Carlton focuses on the most appropriate services in order to emerge successful (Ritz Carlton, 2014). This mission has been supporting the firm’s business objectives (Marriot Brands, 2015). The firm also uses its vision to attract more customers from different backgrounds.

The above mission statement is inadequate towards making Ritz Carlton a leading player in the hospitality industry. The firm should use its strengths and opportunities in order to become a leading player in the industry. The above SWOT Analysis indicates that Ritz Carlton has unique strengths that can make it more successful. Such strengths explain why the firm supports the needs of many clients. A new mission statement will ensure the firm attracts more customers (Estis, 2012). The firm will also remain profitable. The proposed mission is presented below.

  • New Mission: To provide quality products that can fulfill the changing needs of many clients while making the universe more sustainable.

A new vision will also ensure the firm is on the right path towards business success. The proposed vision is presented below.

  • New Vision: To become the leading provider of meaningful services that can support the needs of all people.

The proposed mission statement supports the changing needs of many global customers. For instance, many companies are engaging in CSR in order to make the surrounding environment more sustainable. This mission will ensure the firm promotes quality practices that can result in sustainability. This mission statement is effective because it explains how the firm is committed towards transforming the universe. The mission will also attract more customers who want to live in a sustainable environment. The proposed vision will encourage more people to purchase Ritz Carlton’s services. The hotel will focus on best services that can fulfill the expectations of every potential customer (The Ritz-Carlton Story, 2015). The chart below can be used to improve different services depending on the level of demand.

Revenues in the Hospitality Industry.
Fig 2: Revenues in the Hospitality Industry.

This new mission shows that the company will be focusing on specific business values. Some of these values include “quality, proper service, and sustainability” (Estis, 2012, p. 3). The company should also focus on the needs of different communities. The important goal is to provide quality services while ensuring that its business remains acceptable. The objective of this new mission is to ensure Ritz Carlton attracts more global customers. The mission will also make it easier for the firm to achieve its profits (Ritz Carlton, 2014). The proposed vision will ensure this hotel provides quality services to different global customers (The Ritz-Carlton Story, 2015). The concept of specialisation will ensure every customer gets what he or she deserves (The Ritz-Carlton Story, 2015). This approach will eventually make Ritz Carlton profitable and successful.

Assessment of the Firm’s Strategy

Many business organisations use specific generic strategies in order to become more competitive. Ritz Carlton uses a powerful generic approach known as differentiation strategy. This strategy “makes it easier for companies to distinguish their services from those of different competitors” (Ritz Carlton, 2014, para. 6). Ritz Carlton uses this strategy to offer expensive services. Many people believe strongly that Ritz Carlton offers better and superior services. That being the case, the firm attracts more visitors who want quality products and services.

The firm uses a powerful differentiation strategy in order to achieve its goals. The firm has developed unique products that can fulfill the needs of every targeted visitor. Many customers acknowledge the quality of Ritz Carlton’s products. The firm uses an upward differentiation approach to market sophisticated services to the customers. Such services are usually expensive thus attracting specific customers (Robison, 2014). This customer segmentation strategy supports the company’s business goals.

The above segmentation strategy has made it possible for Ritz Carlton to achieve its business goals. However, the firm should embrace new generic strategies in order to become more profitable. For instance, Ritz Carlton can use a downward differentiation approach. The strategy will ensure the company offers cheaper services to more customers (Robison, 2014). The company will also attract more clients from different parts of the world. This proposal will ensure the company offers cheaper services to its customers. The hotel can also “use large-scale strategies to deliver quality products to its customers” (Motivating Employees, 2015, para. 7). This strategy will reduce the hotel’s expenses (Robison, 2014). This generic strategy will eventually reduce the prices of different products. The firm will eventually reduce its prices in order to become a market leader.

In conclusion, Ritz Carlton uses a proper generic strategy in order to achieve its goals. The company “can embrace new strategies in order to deal with competition” (Motivating Employees, 2015, para. 4). A “dynamic generic strategy will ensure every customer gets quality services from Ritz Carlton” (Motivating Employees, 2015, para. 4). These approaches will eventually make Ritz Carlton a leading provider of sustainable services.

Reference List

Estis, R. (2012). Managing Mystique: How Ritz-Carlton Delivers Amazing Customer Service. Web.

Marriot Brands. (2015). Web.

Motivating Employees. (2015). Web.

Ritz Carlton. (2014). Web.

Robison, J. (2014). How The Ritz-Carlton Manages the Mystique. Web.

The Ritz-Carlton Story. (2015). Web.

Yeung, A. (2006). Setting People up for Success: How the Portman Ritz-Carlton Hotel Gets the Best from its People. Human Resource Management, 45(2), 267-275. Web.