The Marriott Corporation is in the following businesses, among others: Hotels of

Question

The Marriott Corporation is in the following businesses, among others: Hotels of different types Long-stay residential hotels Luxury resorts Time-share properties Airline catering Institutional food services Franchised operations Credit card tie-ins Travel operations Given the above listing, would you say that Marriott’s business lineup reflects a strategy of related or unrelated diversification? Explain your answer in terms of the extent to which the value chains of Marriott's different businesses seem to have competitively valuable cross-business relationships.

Explanation / Answer

Marriott is currently spreading its business rapidaly, looking at the diversified profile of Marriott, it is clear that it is spreading in unrelated business diversification.

Unrelated diversifications, are one when a compnay/brand, diversified in a business which is not related to its current chain of business. like Marriott is hotel chain where as moving into airline catering or credit card tie ins are totaly unrelated business, that why we can say that it is in unrelated business. however this can give advantage to the Marriott group, as all the other businesses are though not related however a person who is traveling will prefer to take services from one vendor, like staying in marriott customer will like to opt for options which are provided by the group in travel persepective.

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