chapter 5 daily assignement

chapter 5 daily assignement - new differentiated chains...

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Caitlin Vodopia 9/8/2010 1. Holiday Inn’s business model and strategies had to change over time because their profitability was declining. Their profitability started to decline because new hotel chains were entering the market and differentiating themselves, segmenting the market and going after particular segments of customers. Customers found it more attractive to go to the hotel chain that matched their specific needs, whether it be they be looking for luxury, basic, or self caterer rooms, instead of going to Holiday Inn which simply offered an average room for average price. To stay profitable, Holiday Inn had to segment the market with new chains like Crowne Plaza, Hampton Inn, and Embassy Suites. These
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Unformatted text preview: new differentiated chains appealed to particular market segments and increased profitability. 2. The strategy behind Six Continents Hotels is to compete in the global marketplace by offering a custom experience to every traveler on every occasion anywhere in the world. They are attempting to have a distinct, unique room and amenities to please any customer. Six Continents added Holiday Inn and its chain of hotels in hopes to gain a competitive advantage by capturing their market segments around the world. Six Continents would be considered a focused differentiator....
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