Reference no: EM132781520

Question 1. A competitive strategy focuses on the who, the what, and the how when it comes to the competitive side of the business (Parnell, 2008). 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 in the car (Parnell, 2008).

Hampton Inn has a low-cost differentiation strategy (Parnell, 2008). 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 (Parnell, 2008).

Question 2. Hampton Inn should not use the same competitive strategy that Motel 6 uses. Hampton Inn has higher quality rooms and services compared to Motel 6. Hampton Inn offers a variety of services, including continental breakfast, fresh coffee, and even a grab-n-go breakfast bag (Worldwide, 2016). The low-cost-differentiation strategy works well with the variety of services offered by Hampton Inn. In contrast, Motel 6 uses a low-cost generic strategy, since they do not distinguish services against competitors. Due to the different amenities offered by Hampton Inn and Motel 6, different marketing and price strategies must be utilized.

Both chains are able to continue to provide excellent customer service allowing them to remain in the market. Customers looking for higher quality will choose to stay at Hampton Inn, where those looking for a place to simply sleep will choose Motel 6.