Business & Marketing Essay: Global Marketplace and Forms of Business Ownership

Global Marketplace and Forms of Business Ownership
Student’s Name
Institutional Affiliation
Global Marketplace and Forms of Business Ownership
Answers as they relate to Marriott International Inc.
Number of countries it operates in: Marriott International Inc. operates in 131 countries and territories around the world.
Number of properties globally: Marriott International Inc. has 7,484 properties
Number of brands: 7 Marriott International Inc. has 30 brands for all its properties.
Number of hotel rooms: As of June 30, 2020, the company had an accumulation of 1,400,693 rooms for all its properties.
The percentage of hotels that are franchised: 510,000 rooms are in development thereby translating to 36.4% of the rooms being under development.
Marriott’s top two competitors globally: The InterContinental Hotels Group (IHG) operates around 842,759 guestrooms in about 100 countries globally is the top competitor for Marriott followed by Wyndham Hotels & Resorts.
Why Multinational Hotel Companies have Entered the Global Marketplace
The multinational hotel companies have entered the global market place for three primary reasons. The first reason is to acquire a large market share in the industry (Li & Gammelgaard, 2014). Global presence gives multinational organizations to acquire larger markets at the expense of their concentrated counterparts (Jalilvand et al., 2018). The second reason is the diversification of risks. By operating in multiple geographic locations, these organizations limit the chances of complete failure if one market segment fails. Ultimately, multinational organizations enjoy economies of scale. With such resource security, they can exploit the risky internationalization strategies without affecting their major operations much. The move for internationalization is, hence, a matter of organizational strategy (Li & Gammelgaard, 2014). Ultimately, the industry is becoming highly competitive, something that requires diversification. With the above motivations in place, the organizations have been encouraged to operate internationally.
Some of the Benefits and Drawbacks of being a Franchisee
Franchises are characterized by various benefits and drawbacks. The first benefit of franchising is that the franchisee does not need to have experience in business management to run one (Jalilvand et al., 2018). Most of the franchises are run to mirror the operations of their larger counterparts. As such, the owning entities provide the necessary training to the franchisees whenever necessary. The second benefit for a franchise is the low startup capital. Entrepreneurs who intend to operate in large industries may fail to achieve their goals with capital limitations. However, franchising makes it easy for such individuals as the cost of owning one is much less than starting up a new one. More costs are eliminated in expenditures for training. Ultimately, franchises have a higher success rate compared to other business startups. Franchises begin with an established reputation and image, proven management and work practices, access to nat...