Wyndham Hotels and Resorts

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Table of Contents
Introduction..........................................................................................2
i) Strategic position of Wyndham.......................................................2
ii) Stakeholders....................................................................................7
iii) Role and influence of stakeholders..............................................8
iv) Development and recommendations of organizational strategy 10
Conclusion..........................................................................................13
References..........................................................................................14

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Introduction
This report is based on the strategic analysis of US based multinational hotel and resort chain
named Wyndham Hotels and Resorts. Wyndham is operating in 26 different countries
across the globe including Canada, United Kingdom, Mexico, Austria, Australia, Netherlands,
and Colombia etc. (Wyndham Corporate Website, 2015). This report entails SWOT analysis,
PESTEL analysis, Porters five force analysis and the value chain analysis of Wyndham
Hotels and Resorts. In addition to this, the report also carries a detailed discussion on the
stakeholders of the company along with the role and influence of the mentioned stakeholders
of company. Lastly, suggestions and recommendations have been given regarding the ways in
which stakeholders interests can be fulfilled in an improved manner.

i)

Strategic position of Wyndham

SWOT analysis:
SWOT analysis is one of the most commonly used strategic evaluation tool that helps a
business concern to identifying internal and external factors that are impacting the company
(Fine, 2009). The internal factors are based on the company strengths and weaknesses
whereas; external factors are the threats faced by a company and the opportunities that it can
avail (Bertelsen, 2012). Strengths and weaknesses of a company are considered to be
controllable factors, however; Hallin&Marnburg, (2008) mentioned that opportunities and
threats are considered to be uncontrollable factors.A brief SWOT analysis of Wyndham hotels
and resorts is presented below:

Strengths
Highly experienced top management is one of the greatest strengths for Wyndham
Hotels and Resorts. It can help the company to take effective decisions that can
give benefit in long-run.
Workforce is highly skilled, devoted and persistent to achieve company goals and
objectives. As per Warner, (2010) highly skilled workforce is a competitive
advantage for any company, which can be sustained for long.
Wyndham Hotels and Resorts have a strong financial backing and enjoys a healthy
financial state.

Weaknesses

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 The company has experienced low brand recognitions as compared to other hotel
and resort chains and specifically it has been unrecognized by the leisure and

business travelers.
Opportunities
The company can diversify its products and services, acquiring increased market
share and customers (ONeill and Mattila, 2010)
Market expansion is yet another very dominant opportunity for the company as it
has more opportunities towards expanding its business operations in the Asian
countries.

Threats
The company is facing fierce competition from worlds famous hotel chains such
as Hilton, Marriot, and Hyatt Palace etc (ONeill and Mattila, 2010)

PESTEL analysis
PESTEL analysis is considered to be an important tool that plays an important role to identify
and evaluate macro-environmental factors impacting a business organization (Warner, 2010).
Sheehan, (2011) explains that PESTEL stands for political, economic, social, technological,
environmental and legal factors. PESTEL analysis for Wyndham Hotels and Resorts is
discussed below:

Political Factors
Political stability in any country influences the foreign investment and also the
businesses running from within the country (ONeill &Mattila,2010). The
international trade agreements and also the alliances among various governments
usually affect the country-country tourisms and also the trade vests of businesses and
individuals (Hallin&Marnburg, 2008). The business of Wyndham may get affected by
political changes either at country level of global. Terrorism is one of the major
problem and issue being faced by tourism industry in current era (Heyden&
Parkinson, 2015). Increased terrorist attacks or threats directly influence the reduction
in world tourism hence, directly impacting the hotels and resorts business (Redaction,
2015).

Economic Factors:

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Hospitality and tourism industry is considered to be the 5th largest industry in UK and
it is one of the major areas that play an important role in the economic development of
any country (Watson, 2008). Wyndham is providing with large number of
employment, hence playing a great role in reducing unemployment. In addition to
this, after the recent recession, the purchasing power of people is steadily rising due to
which Wyndham has the opportunity to expand its business (PWC, 2015).

Social Factors:
With the changing trends, people are more likely to demand high valued products and
services (Hallin and Manburg, 2008). The company needs to maintain a strong
position in the market and high quality services along with cost reduction in order to
provide price conscious customers with affordable prices. Moreover, in this fast paced
world, people prefer easily approached companies; hence there are an increased
number of people preferring online reservation systems. Due to globalization, there is
more number of diversification in the customers, hence requiring fast responsiveness
to demands of customers (Warner, 2010).

Technological Factors:
As said by Barron, (2008) Technological advancements gave rise to more
convenience and ease in carrying out business operations. Wyndham has adopted
variety of technologies, due to which the companys supply chain has become more
efficient and effective (Aquino, 2012). As per Parsippany, (2015) Wyndham is using
strong CRM software and tools to manage its customer database and strong customer
relations. Moreover, online reservation facility has been very effective in customer
acquisition and retention due to increased customer satisfaction.

Environmental Factors:
In todays world, customers are demanding environment friendly products and
services, due to which Wyndham has to carefully identify and evaluate ways in which
its business operations can be made environment friendly (Stewart, 2009).The
company is highly focused in integrating environment and sustainability, human
rights and ethics, community support & responsiveness and responsible corporate
governance and business practices into its culture.

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The company is highly focused in fulfilling its corporate social responsibilities by

keeping special focus on the:

Environment
Human rights and ethics
Community support
Health
Customers

Legal Factors:
The company is following the laws of minimum wage rate of every country in which
it has set its operations (Stewart, 2009)

Porters Five Force Analysis

According to Grant, (2013) Porters five forces model is an analysis tool of a business
organizations surrounding competition and business development approaches. Following is
discussed the porters five forces analysis of Wyndham Hotels and Resorts:

Threat of New Entrants:

Threat of new entrants is potentially high, because the hospitality industry of UK is
well established and profitable, which attracts new entrants (Watson, 2008).

Threat of substitutes:
Threat of substitutes is high to normal, as there are generic and budgeted competitors
providing services at comparatively low cost. These substitutes include Inns, Guest
houses, private rentals etc. (PWC, 2015).

Bargaining power of suppliers:

Bargaining power of supplier is moderate as hospitality market has become quite
saturated, leading towards moderate power to the suppliers (PWC, 2015); moreover
Wyndham has a strong relationship with its suppliers which gives it a competitive
advantage (Aquino, 2012).

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Bargaining power of buyers:

Bargaining power of powers is high because market is saturated and buyers can have
a number of options to fulfil their needs and wants (PWC-UK Hotel Industry
Forecast-2016, 2015).

Degree of Rivalry
Threat of rivalry is high as there are many big names operating in the hospitality
industry and giving a strong competition to the Wyndham (Aquino, 2012).

ii)

Stakeholders

Stakeholder of Wyndham hotel and resorts can be divided into two categories, which are
internal stakeholders and external stakeholders. The internal stakeholders of Wyndham
include the top management, middle management, and lower management along with the
workers. Moreover, company owners are also the internal stakeholders of the company. On
the other hand, external stakeholders of company include the customers, the entire
community, government, and suppliers.Employees of Wyndham are interested in gaining
maximum tangible and intangible rewards in exchange of their efforts in achieving company
objectives and goals (Wyndham Corporate Website, 2015). Investors and owners of
Wyndham are interested in making maximum revenue and profits (El Gayar, Saleh, Atiya, ElShishiny, Fayez Zakhary& Mohammed Habib, 2011). Customers of Wyndham demand value
for money products and services, while the government ensures that company is in
compliance with the laws and rules set by it (Samori&Sabtu, 2014). Suppliers are interested
having a mutual beneficial business relationship, while the communities are interested in the
impact of the company business activities (Wyndham Corporate Website, 2015).

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iii)

Role and influence of stakeholders

Stakeholders are the people who have certain interest in the business of a company. Whether
it is employees or the customers, the shareholders or the community, each person has her/her
own motto behind being interested in a company (Friedman and Miles, 2006). Majorly,
employees, customers, suppliers, community, government and the shareholders are the people
having interest in a business. Following is the roles and influence of the stakeholders of
Wyndham.

Government:
Government has a major impact on the business operations of the company as the
formation of a business, its mission and vision, and its policies are entirely based upon
the governmental status and laws (Kerr and Foster, 2011).

Customers:
Customers are of the key importance to Wyndham, as without customers no company
can survive. The customer changing trends, demands and preferences are of key
importance to the company (Cowan and Kinley, 2014). The company has therefore
established database and CRM system to understand the customer needs and provide
them with efficient and effective services.

Employees:
Employees of any company are usually interested in monetary and non-monetary
benefits such as compensation, rewards, recognition, career development, promotion
and training (Bertelsen, 2012). Wyndham is providing its employees with a friendly
and safe working environment; moreover many employee retention strategies have
been used by the company in order to retain them for a longer period of time (Kang,
Stein, Heo& Lee,2012). Career section at Wyndham Corporate Website, (2015)
elaborates that employee suggestions and viewpoints are given importance by the
company and a democratic management style is used to have a flexible yet highly
productive working environment.

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Community:
As said by Whitson, Ozkaya and Roxas, (2014) Due to global warming and increasing
noise pollution and air pollution, people are demanding environment friendly products
and services, due to which Wyndham is constantly working on ways in which the
business operations of company can be molded into environment friendly business.
Wyndham operates its business operations with the motto of travelling together for
a better world. As per the CSR report of the company, Wyndham is aimed to reduce
its environmental impacts by preserving the natural resources.

Vendors:
Every organization is dependent on its suppliers to fulfill the needs and demands of
their target market timely, by developing and providing them with high quality
products and services (Fine, 2009). WyndhamHotels and Resorts have to rely upon its
suppliers for the purpose of essential raw materials and other things that are required
by the company to produce the end product (Parsippany, 2015). Wyndham has
maintained strong relationship with its suppliers, in order to ensure that the company
can deliver products and services to its customers effectively and efficiently (Aquino,
2012).

iv)

Development and recommendations of organizational strategy

In order to meet the needs of the stakeholders of Wyndham in the most improved and
effective way, following are the strategies that can play an important role in doing so.
Ansoff matrix
Ansoff matrix is considered to be a useful tool that is used by business organization to
strategically plan strategies regarding the company growth and increased profitability (Kotler
and Armstrong, 2006).

Market development
Wyndham can use the market development strategy in order to expand its business
operations in different Asian countries. This expansion strategy can be highly
beneficial to the company as according to The WTTC Global Summit, (2015)
Asian countries such as Malaysia, Maldives, Hong Kong, Thailand has high growth

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rate in tourism industry, due to which company can gain high profitability and
increased market share in these countries. Moreover, as mentioned in the strengths of
the company, it can easily have the essential funding for this expansion strategy due to
healthy financial status.

Market Penetration:
Market penetration is another useful strategy that can be used by Wyndham Hotels
and resorts in order to increase its market share along with having more revenue. The
company can target different customer segments, particularly the price
conscious customers, by reducing the prices. As per Bertelsen,
(2012) reducing price helps the companies to target new segment of
the customers, who can afford medium or low price; and typically
such segment is always larger than the other segments. However, in
order to maintain profitability, the company can cut down a few of
its services which are provided to the customers at the set prices. In
addition to this, as defined in the weakness that company lacks recognition in the eyes
of business and leisure travelers, therefore Wyndham can conduct aggressive
advertising through business magazines, TV advertisements, Public relations and
social media marketing, in order to gather the attention of such customers, hence
increasing the company sales and eventually profitability. In addition to this, the
company can also get involved in strategic alliances for the purpose of creative
marketing and hence capturing the attention of people and generating high level of
awareness.

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Source:(Grant, 2013)
Porter generic strategies
As argued by Sheehan, (2011) Porters generic strategies are highly important strategies for
marketers, and are really helpful in gaining competitive advantage from the competitors
through three types of strategies. These strategies include Low cost leadership strategy,
differentiated strategy and focused strategy.

Differentiation strategy
As Wyndham Hotels and Resorts is a service industry, therefore it is highly necessary
and significant to have good customer relationships. Due to market saturation and
many different players in the market, Wyndham have to differentiate itself from the
competitors in order to gain a competitive advantage. For this purpose, company has
to ensure that it is providing its customers with exceptionally good customer service.
In addition to this, building a two way communication forum between customers and
the company management is also a vital part of the differentiation strategy (Sheehan,
2011). For the purpose of high quality customer services, Wyndham have to provide

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its employees with regular training sessions and motivational elements in order to
boost up the employee morale and hence gain high quality customer satisfaction as a
result of high quality customer services. Moreover, Wyndham should include many
customer insights and feedback in its business operations as possible, in order to
become a highly customer centric company with an efficient setup of customer
services, due to which it can get a competitive advantage from the competitions.

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Conclusion
In this competitive dynamic business environment, it has become extremely important for
businesses to regularly identify and evaluate both the internal and external factors that have
an impact on the business activities. Wyndham Hotels and Resorts is a US based
multinational Hotel chain that is situated in around 26 countries all over the world. Due to
increasing competition and globalization, it is important for the company to monitor its
current business conditions through SWOT analysis and should also keep check on the
macro-environmental factors along with the industry analysis. In addition to this, in order to
increase its market share and gain more revenue and profitability, Wyndham has to
implement growth strategy of market penetration and market development. Lastly, using
differentiation strategy of high quality customer services, the company can gain a competitive
advantage over its competitions and hence can meet the needs of all its stakeholders in an
improved and effective way.

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References

Aquino, J. (2012). Wyndham Hotel Group's Targeted Emails Break Records, Available at:
http://www.destinationcrm.com/Articles/Columns-Departments/REAL-ROI/WyndhamHotel-Groups-Targeted-Emails-Break-Records-79906.aspx
Bertelsen, B. (2012). Everything you need to know about SWOT analysis. [Newmarket, Ont.]:
BrainMass Inc.
Barron, P. (2008). Education and talent management: implications for the hospitality industry.
International Journal of Contemporary Hospitality Management.20 (7).p.pp. 730742.
El Gayar, N.F., Saleh, M., Atiya, A., El-Shishiny, H., Fayez Zakhary, A.A.Y. & Mohammed
Habib, H.A.A. (2011).An integrated framework for advanced hotel revenue
management.International Journal of Contemporary Hospitality Management. 23. p.pp.
8498.
Fine, L. (2009). The SWOT analysis. [Place of publication not identified]: Kick It.
Friedman, A. and Miles, S. (2006). Stakeholders. Oxford: Oxford University Press.
Cowan, K. and Kinley, T. (2014). Green spirit: consumer empathies for green
apparel.International Journal of Consumer Studies, 38(5), pp.493-499.
Grant, R. (2013). Contemporary strategy analysis. Hoboken, N.J.: Wiley.
Heyden, T. and Parkinson, J. (2015). How terrorist attacks affect tourism, accessed online
from http://www.bbc.com/news/magazine-33310217
Hallin, C.A. &Marnburg, E. (2008). Knowledge management in the hospitality industry: A
review of empirical research. Tourism Management.[Online].29 (2).p.pp. 366381.
Available from: http://www.sciencedirect.com/science/article/pii/S026151770700043X.
Stewart, V. (2009).How Important Is Government Policy In Driving CSR In The UK?

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Kang, K.H., Stein, L., Heo, C.Y. & Lee, S. (2012). Consumers willingness to pay for green
initiatives of the hotel industry.International Journal of Hospitality Management. 31.
p.pp. 564572.
Kotler, P. and Armstrong, G. (2006). Principles of marketing. Upper Saddle River, N.J.:
Pearson Prentice Hall.
Kerr, J. and Foster, L. (2011).Sustainable consumption - UK Government activity. Nutrition
Bulletin, 36(4), pp.422-425.
ONeill, J.W. &Mattila, a. S. (2010). Hotel Brand Strategy.Cornell Hospitality Quarterly.51
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(2015).

UK

Hotels

Forecast

2015,

available

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http://www.pwc.co.uk/industries/hospitality-leisure/uk-hotels-forecast/overview-ukhotels-forecast-2015.html
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Management

Wyndham

Launches

System

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Industry Leading, Automated

Cloud-Based

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Revenue

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Available

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forecast/uk-hotels-forecast-2016-overview.html
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Whitson, D., Ozkaya, H. and Roxas, J. (2014).Changes in consumer segments and

preferences to green labelling. International Journal of Consumer Studies, 38(5),
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Wyndham Corporate Website, (2015); Website Link: http://www.wyndham.com/

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Appendices
SWOT Analysis
Strengths

Weaknesses

Experienced management
Highly skilled workforce
Strong financial background

Low brand recognition

Opportunities

Threats

Diversification
Market expansion

Strong brand names - competitors

PESTEL Analysis
Political

Economic

Global terrorism

Employment creation
Purchasing power of clients

Social

Technological

Demand of luxury products in low cost

Use of online reservation systems

supply chain
Improved online reservation/bookings
Increased ecommerce and social
media marketing
Legal

Environmental
Demand of environment friendly
products
Sustainability initiatives

Use of technology for effective

Wage rate laws

Consumer laws

Porters Five Forces

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Stakeholders Analysis

ANSOFF Matrix
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Market Development
Expansion in Asian countries
Strong financial background to support
expansion

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Market penetration
Target customer segments with
different pricing
Corporate Deals
Customized solutions for businesses