Asia Hotel Chain V United States Hotel Chain

Hotel industry is one of the major sectors in the leisure industry across the globe that accounts for a significant percentage of the global Gross Domestic Product and a huge portion of jobs across the globe. The global hotel industry has experienced tremendous growth and development in the recent past despite various economic challenges across the world. As this industry becomes more geographically diverse, its projected revenue by 2012 was $567.5 billion (Szulanski, Zee & Raver, 2009). One of the unique segments in the global hotel industry is the luxury hotel segment that is characterized by premium room rates, comprehensive luxury amenities, luxurious design aesthetics, and a high-end clientele. The luxury hotel segment comprises several players that are defined by brand position, business models, and number of rooms. The Mandarin Oriental Hotel Group and Marriot Hotels & Resorts are two examples of the key players in the luxury hotel segment.

The Mandarin Oriental Hotel Group v. Marriott Hotels and Resorts

The Mandarin Oriental Hotel Group and Marriot Hotels & Resorts are two leaders in the global luxury hotel segment that have achieved considerable competitive advantage over their rivals through brand position, suitable business models, and number of rooms (Szulanski, Zee & Raver, 2009). In addition to having brand portfolios that cover several customer segments, these key industry players have experienced tremendous growth since their inception despite being founded in different regions i.e. Asia and the United States. Actually, The Mandarin Oriental Hotel Group and Marriott Hotels and Resorts have established individual sets of luxury hotels in several countries across the world based on their respective flagship brands.

The Mandarin Oriental Hotel Group is a global hotel chain that opened its flagship brand in Hong Kong in 1963 under the name, The Mandarin (Susie, 2012). However, the company was established as a hotel management firm in 1974 following the acquisition of a 49% interest in the Oriental Bangkok. The Mandarin Oriental Hotel Group was birthed in 1985 in order to incorporate the two names into a common flagship property and brand. Since its inception, this brand of hotel chains has more than 15 fully-owned hotels and 13 managed properties in several countries worldwide.

In contrast, Marriott Hotels & Resorts is a flagship brand of Marriott International, which is an American diversified hospitality firm that manages and franchises a wide range of hotels and related lodging facilities. The company, which was founded by J. Willard Marriott in the 1950s, is headquartered in Washington D.C. and has experienced tremendous growth since inception. Upon inception, this hotel chain started with two motels and has developed to an extent that it operates more than 505 hotels and resort across the world (Marriot International, n.d.). Actually, the company currently has over 4,200 properties in 80 countries and territories worldwide (Marriot International, n.d.).

Despite being some of the major industry players in the global hotel sector, these hotels have some major differences in relations to their operations. These differences have contributed to different brand position and different successes in various regions across the globe. There are two major areas in which these two companies differ as explained below.

Leadership and Management

The growth and development of these key players in the global hotel industry is attributed to excellent leadership and management by their top executives. In essence, The Mandarin Oriental Hotel Group and Marriot Hotels & Resort have throughout their years had effective leadership and management. The effective leadership and management of these companies is reflected in their growth and profitability through the years.

The Mandarin Oriental Hotel Group's management has mainly focused on developing the brand in a manner that is consistent with its vision, mission, and core values (Szulanski, Zee & Raver, 2009). Following recognition of the need for a particular mindset and resources for effective functioning in the luxury hotel business, building the company's brand has been the main focus of the organization's top executive or management. The focus on building the brand has provided the framework for its customer segmentation and distribution activities. This focus is attributed to the company's belief that branding is a major asset towards superior marketing and operations. In essence, the managerial philosophy for the group is that good brands generally provide a price premium, which helps in building trust among customers and translates into obtaining and retaining customers. Therefore, gaining a brand position in customers' minds is a crucial aspect of the organization's management and operations.

In contrast, Marriott Hotels and Resorts' management practices have been based on strategic reorganization that took place in the early 90s in order to enhance its growth and profitability (Wood & Brotherton, 2008). The company's management has a strategic vision for promoting growth, which includes prudent acquisition of other companies in the hotel industry. The other aspect of the group's management that differs from that of The Mandarin Oriental Hotel Group is diversification. Marriott's management and leadership have diversified in operating and managing a series of hotels and associated lodging facilities such as Renaissance Hotels, Residence Inn, Protea Hotels, Gaylord Hotels, Autograph Collection Hotels, Moxy Hotels, and Springhill Suits. Diversification seems to be the company's main focus to an extent that it is currently one of the most diversified hotel companies across the world with product brands that clearly depict its market strategy of obtaining travel business in nearly all segments of the hotel industry.

Teamwork

The other essential ways with which The Mandarin Oriental Hotel Group differs from Marriott Hotels and Resorts is with regards to teamwork. Marriott Hotels and Resorts has achieved numerous results for being the best company to work for because of excellent teamwork within the organization's workforce such as rising to fourth place in 20 Best Big Companies to Work For by Sunday Times (Butler, 2009). The company's management philosophy has been centered on taking care of its employees even during hard times. Moreover, it focuses on treating all its employees equal through the principles of dignity and respect. As part of its commitment towards treating employees equal, the hotel chain ensures that all organizational activities are carried out based on the strong principle of teamwork. Teamwork is further promoted through conducting periodic confidential opinion survey, which enhances employee engagement in organizational activities and processes (Butler, 2009).