Question: pls help in solving the case study. the course is innovation. Case Study In the mid-1980s, the budget hotel industry was suffering from stagnation and

pls help in solving the case study. the course is innovation.
pls help in solving the case study. the course is
pls help in solving the case study. the course is
pls help in solving the case study. the course is
Case Study In the mid-1980s, the budget hotel industry was suffering from stagnation and overcapacity. Hotel International's cochairmen challenged the company's managers to create a quantum leap in value for customers. The managers were urged to forget everything they knew about the existing rules, practices, and traditions of the industry. They were asked what they would do if Hotel International were starting fresh. "There were two distinct market segments in the budget hotel industry. One segment consisted of no-star and one-star hotels, whose average price per room was between $15 and $25. Customers came to those hotels just for the low price. The other segment was two-star hotels, with an average price of $50 per room. Those more expensive hotels attracted customers by offering a better sleeping environment than the no-star and one- star hotels. People had come to expect that they would get what they paid for: either they would pay more and get a decent night's sleep or they would pay less and put up with poor beds and noise." Hotel International's managers "began by identifying what customers of all budget hotels - no-stars, one-stars, and two-stars wanted: a good night's sleep for a low price. Focusing on those widely shared needs," Hotel International's managers "saw the opportunity to overcome the chief compromise that the industry forced customers to make. They asked themselves the following four questions: 1. Which of the factors that our industry takes for granted should be eliminated? 2. Which factors should be reduced well below the industry's standard? 3. Which factors should be raised well above the industry standard? 4. Which factors should be created that the industry has never offered? The first question forces managers to consider whether the factors that companies compete on actually deliver value to consumers. Often those factors are taken for granted, even though they have no value or even detract from value. Sometimes what buyer's value changes fundamentally, but companies that are focused on benchmarking one another do not act on, or even perceive, the change. The second question forces managers to determine whether products and services have been over designed in the race to match and beat the competition. The third question pushes managers to uncover and eliminate the compromises their industry forces customers to make. The fourth question helps managers break out of the industry's established boundaries to discover entirely new sources of value for customers." In answering these questions, design a new strategy for Hotel Interational. 1. Identify the industry Hotel International is competing in. 2. Describe the chief compromise the industry forces customers to make? 3. Describe the widely shared needs of customers and noncustomers? 4. Assess and describe the objective the CEO presented to the project development team? 5. Indicate on the strategic canvas the region representing industry standards 6. Construct and complete the value grid. 7. Complete the Strategic Canvas by constructing the value innovation curve relative to the value curves as seen on the drawing and explain your strategic logic in respect to the three criteria: divergence, focus and compelling tagline (create a compelling tagline for new strategy)? Industry Key Success Factors avg. 1 hotels avg. 2 hotels Eating facility Architectural aesthetics Lounges Room size Availability of receptionist Furniture & amenities in rooms Bed quality Hygiene Room quietness Price Low High Relative Level

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