Marriott's Customer - Focused E- Business Strategy (Page 2)

Abstract

This case discusses the customer-focused e-business strategy of Marriott International (Marriott), a world leader in the hospitality industry. It examines the way in which Marriott focused on providing better customer service by using IT proactively and through the facilities on offer through its website. The case describes in detail the e-business strategy of Marriott that aimed at transforming it from a property-centric to customer-centric company. The benefits Marriott derived from launching its website and other IT initiatives are also highlighted.

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By installing eCRM applications, Marriott was able to offer several new services that enhanced its hospitality services. The company's website, www.marriott.com became one of the most frequently visited sites in the hospitality industry, giving clients access to the services offered by the entire Marriott chain of hotels and resorts. ll these initiatives boosted the company's ability to serve its clients, and also contributed to its own strong financial performance. For the financial year ending 2001-02, the company reported revenues of $84.41 billion (bn) and a net profit of $2.77 bn (Refer Exhibit I).

BACKGROUND NOTE

In 1966, the company ventured overseas, acquiring an airline catering kitchen in Caracas, Venezuela. In November 1967, its name was changed to Marriott Corporation (Marriott).

In 1982, Marriott acquired Host International, a leading hospitality services provider in the US, becoming the largest operator of airport terminal food, beverage and merchandise facilities in the US. In the 1980s, Marriott acquired several companies including American Resorts Corp. (vacation business, 1984), Gladieux Corporation (food service company, 1985), Service Systems (contact food service company, 1985), Howard Johnson Company (hotels & inns, 1985) and Residency Inn Company (1987). With the acquisition of Saga Corporation, a diversified food service management company in 1986, Marriott became the largest food service management company in the US. ....

        Case Code   ITSY035
   Case Length    10 Pages
              Period    1998 - 2004
 Organization     Marriott International
        Pub Date     2004
Teaching Note    Not Available
     Countries    USA
      Industry    Hospitality

Issues

• The importance of a customer-focused e-business strategy in the hospitality industry.

• The role of IT in integrating different business processes to make them more customer-oriented.

Customer-focused, e-business, strategy, Marriott International, world leader, hospitality industry, IT, website, property-centric, customer-centric company.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.