Should Hampton by Hilton use the same competitive strategy that Motel 6 uses? Why or why not? Note that the question is not whether Motel 6 should use the strategies that Hampton uses

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Should Hampton by Hilton use the same competitive strategy that Motel 6 uses? Why or why not? 

Note that the question is not whether Motel 6 should use the strategies that Hampton uses

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Should Hampton by Hilton use the same competitive strategy that Motel 6 uses? Why or why not? 

Ans) Every business organizations become successful when they analyze and counter the competitive strategies. These strategies provide strength to the organisations. Hampton Inn should not use the same competitive strategy as Motel 6.

Motel 6 uses a low-cost strategy:

Motel 6 takes things down to the basics with small rooms and basic amenities. They are generally located directly off the interstate, and are located conveniently for people looking for somewhere to stay for the night after a long day.

Hampton Inn used a low-cost differentiation strategy: 

Hampton Inn’s focus is to offer customers more amenities and larger rooms for an average cost. Hampton Inn hopes the value of the cost and the amenities will encourage their guests to stay longer. Hampton Inn’s target guests are people staying for more than a day. If Hampton Inn used the low-cost strategy, they would not have the money to spend on the larger rooms and extra amenities needed to attract their target customers.

 

 

 

 

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