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Analyze case 9, Good Night Inn

Anton Cahoon is in an interesting situation. There are a lot of factors at play that he can use to his advantage as well as some that he should look to avoid. Fortunately he is in position with many opportunities rather than one without any choices. His competitors are not choking him out of the market; however they are negatively impacting his revenue. He can also take the “If you can’t beat em’, join em’” approach by affiliating with either Holiday or Days inn.

Being that Goodnight Inn is currently losing money, cash is of concern and he must make a decision fast. Regarding his consumers, he has many different target markets that he can tailor his business to. As it stands now, there are a few avenues he can take that will be relatively inexpensive and increase his customer base. Some of these options are related to his advertising and booking systems, which are the main appeal of affiliating with a national chain.

The strengths and weakness that Anton will encounter are Half mile from interstate High traffic, interstate are 10 miles from tourist “destination” area, in the vicinity of several metropolitan areas, standard rooms suitable for most customers, low employee cost, price 40% below full-service hotels, patrons happy with their experience, and being in a growing area. The weaknesses are currently losing money, lack of restaurants, and same price as resort area motels, and people drive off after initial impression.

My recommendation for The Goodnight Inn would be that it needs to position itself as a cost effective facility providing comfort & convenience with unmatched customer attention. The Goodnight Inn must leverage their competitive edge - attention to personalized service. While anyone staying should expect reasonably good service, the Goodnight Inn should attempt to set itself apart from the competition by providing an exceptionally high level of service. This will be done...