Holiday Inn Case 06

Holiday Inn Case 06 - Jocelyn Bellemare Business Policy and...

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Jocelyn Bellemare Business Policy and Strategy 10/5/2011 Holiday Inn Major Issues in 1970's low growth low profitability threat of future low profitability lost customers to competitors whose strategy was focus differention: focused on specific market segments customers wanted either luxury or low price and Holiday Inn was in the middle As of 2000 added Crown Plaza, Embasy Suites, and Hampton successful at first in the 90's but revenues began to fall as of 2000 competitors quickly imitated the Holiday Inn, taking their market share this was not a defensable strategy, they had no way to protect themselves against imitation, they were no longer differentiated come 2000 Additional Information how demographics are changing location: when traveling and staying overnight, people now usually fly as oppose to taking interstates. This made their footprint obsolete success of competitors economy: 1970's: inflation, growth, prosperity 2000: starts to slow where they are in their life cycle Holiday Inn:
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