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Cost and Differentiation: Hotel Example

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Highways Motel - COMPANY A
Budget Beds - COMPANY B
Road Warrior Rooms - COMPANY C
Royal Resorts - COMPANY D

1. Use the Cost and Differentiation Handout to describe your competitive "drivers" of cost and differentiation.

2. Describe your target market.

3. Is your strategy based on cost, differentiation, or focus?

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Solution Summary

The Solution uses the four examples to discuss target markets, cost, and differentation.

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https://www.i7marketing.com/blog/small-business/3-ways-sustain-competitive-advantage-focus-strategy

https://www.littlehotelier.com/blog/running-your-property/types-of-travelers-small-hotels-should-target/

Highways Motel - COMPANY A Budget Beds - COMPANY B Road Warrior Rooms - COMPANY C Royal Resorts - COMPANY D 1. Use the Cost and Differentiation Handout to describe your competitive "drivers" of cost and differentiation (see Handouts link to your left). 2. Describe your target market. 3. Is your strategy based on cost, differentiation, or focus?

In reference to the hotel industry, the larger hotel chains such as Motel 6 operate within economies that allow them to concentrate their focus strategy to sustain a competitive advantage within their industry. I use Motel 6 as an example as it's considered the "budget" leader within its industry, and it uses a focus strategy that will be suggested for all four of the motels in this summary. All three of the exclusively "budget-conscious" motels including Highways Motel, A Budget Beds, and Road Warrior Rooms could follow the focus strategy model utilized by Motel 6. In regard to "Royal Resorts", their focus must cater to specific ...

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