Strategy in Business

Every business needs to change their strategy over time for them to remain competitive in the market and this can be seen in the case of Holiday Inn. The Holiday Inn has changed its strategies over the years mainly because of the changes in the business environment that the Holiday Inn exists in. In the early 1960's Holiday Inn focused on mass accommodation; they mainly focused on providing services for the average traveler market segment that were willing to pay an average service for an average product. Ten years later in the 1970s, most clients had different needs; some of them wanted and were willing to pay an extremely higher price for a high quality service while others wanted low-priced hotel services. Holiday Inn didn't change their strategy correspondingly and were affected by other competitors in the market such as Hyatt. Their profits were decreasing so they had to think back and decided to upgrade their services to suit people who pursue high quality accommodations. They began to cater to different clients in the market with different needs. Another occurrence that led to Holiday Inn changing their strategy was in the year 2000 when the rapid increase in intense global competition in the hotel industry began to appear once again. This resulted in the Holiday Inn taken over by the International Six Hotels Chain. To their advantage, they became one of the largest hotel chains in the industry with different hotels all over the world and over 3,200 branches globally.

The needs of clients had changed drastically over time, which called for Holiday Inn to tailor to their services and suit the different market segments. All of these strategies lead to superior profitability and a positive brand name in the market.

...