Lim, Alix V.

BSA-2
MGT 4N T2
PERFORMANCE TASK 1

Title of the Case: From Holiday Inns to the Intercontinental Hotels Group

Time Context: Early 1950’s - 2010

Perspective: Kemmons Wilson / Chief Executive Officer

Central Issue: The market fragmented into different groups with different needs. Holiday Inn’s
position was attacked from all directions and as occupancy rates dropped and competition
increased, profitability declined.

Statement of Objectives:
1. To meet customer’s needs in terms of quality accomodations with reasonable rates..
2. To meet the need of every segment of the lodging market anywhere in the world.

Areas of Consideration:
1. Market conditions changed: Holiday Inn missed the change in the market and failed to
respond quickly and appropriately.
2. Emergence of several competitors: The increasing number of direct and/or indirect
competitors affects the organization’s ability to sustain and expand the customer base.

Alternative Courses of Actions:

1. Market penetration strategy.
2. Building competitive advantage through differentiation in combination with the cost
leadership strategy to achieve growth objectives.

Decision Matrix:

Alternatives
Variables
Market Penetration Strategy Differentiation strategy

Risks 4 3

Costs 2 2

Benefits 5 5

Ease of Implementation 4 3

Total 15 (highest) 13

Conclusions: The main problem of Holiday Inns is the adjustment conditions in the market
environment.

Recommendations: First, Holdiay Inns should prioritize acquiring dominance in the market to
help customers capture market transitions and meet their particular needs. An action plan or
Gantt chart will be provided. Second, Holiday Inns should positions its service and product
offerings in a way to stand out and be different from the available competitors.

Action Plan: Market Penetration Strategy

Activities Objectives Division Persons Costs Time

Responsible

To adopt new To develop a Company Chief An estimation 1 month

technology service that executives Information of ₱xxxx
standard to will meet the Officer
enter a new requirements
emerging of the market
market. in terms of
function and
price.

Develop To increase Senior Senior An estimation 2 months

marketing awareness Executives Manager of ₱xxxx
toolkit and and
communicati relevance of
ons services in
programme the market.

Review To explore Company CIO, Senior An estimation 4 months

service services executives, Manager of xxxx
engagement strategy and Senior
and process direction. executives

Gantt Chart Year 2022

Activities Jan Feb Mar Apr May Jun July

e

Creation of
service message x
block solution

Develop
marketing toolkit
and x x
communications
programme

Review service
engagement and
process x x x x