The article, “Marriott to Buy Starwood Hotels, Creating World’s Largest Hotel Company”, says that Marriott International bought Starwood hotels and resorts worldwide, making them the largest hotel company. This is a big news in the industry as this will change the face of the hotel industry completely.
At first, Starwood, owner of Westin, W and Sheraton, was one of Marriott’s competitors. All the hotels were competing to get the top spot in the list of the best hotels in the world, but now that Marriott bought Starwood, their competition has reduced, making it easier for them to increase sales since their company has expanded, hence the total sales, from all the hotels they own, add up.
Being the largest hotel company means having majority of the market share as they own the biggest part of the market, this adds to their advantage majorly as now their competitors will not able to compete at such a level since they are comparatively much smaller.
Owning such a big company comes with its own cons too. One of the main disadvantages would be lack of control as now the organizational structure is much longer and spread out that it would take a while for a message from the higher management to reach the lower management, leading to inefficiencies and delays in their services.
Being the largest hotel company does have its pros and cons, but the fact that there is no other competitor quite as large as Marriott now and since it has more benefits than losses, it just makes it worth the takeover, therefore I believe that they were given a chance and they took it!
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https://passwordchallenge.marriott.com/marriott/
