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The Goodnight Inn's Strategy

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Submitted By SRL77
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The GoodNight Inn’s Strategy
Abstract:
Anton Cahoon is the manager of the motel GoodNight Inn. During the first two years of operation occupancy levels have remained far below average level for the motels classification. Therefore, he wants to make a change and explore opportunities to increase the occupancy levels and profitability.
We will use the following framework to help analyze and evaluate the possible strategies Anton should follow, ultimately coming to a final marketing strategy and reasons for pursuing that strategy:
Background:
Customers: He currently does not focus on a target market, instead relying on people to find his motel as they head towards the tourist area.
Company:
From the aspect of the motel itself, GoodNight Inn has its own advantages and disadvantages. It is located at the edge of a very small town near a rapidly expanding resort area and about one-half mile off an interstate highway. It is equipped with 60 rooms, standard bath facilities, and free cable TV. However, there is no swimming pool or any other nonrevenue-producing additions or services, including a restaurant.
Competitors:
Anton’s main aim has always to try to avoid direct competition as he cannot compete with other hotels with the services and facilities he currently offers. Instead he chooses to avoid all the “unnecessary expenses” and compete on price.
GoodNight Inn is faced with four types of competitors at present. They are listed as follows: 1) Several nationally franchised full-service resort motels. 2) A Best Western, a Ramada Inn, and a Hilton Inn. 3) Mom-and-pop. 4) Limited-service, lower-priced motels. 5) Bed and breakfast facilities.
Options available: Anton now is confronted with two options, one of which is to make some minor changes in the way he operates his motel. The other option is to join either the Days Inn or Holiday

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