scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 984
1 Case Overview Red Roof Inn is in an excellent example of how a company can grow in just 20 years based on a good idea and finding a segment of the market not being fully served When Jim Trueman started the company in 1973 he wanted to offer a simple no frills room with just the bare necessities to be clean and comfortable Full service hotels are costly to build and operate and all of their facilities and services are not always fully used Red Roof Inns offered something that was then new but it soon won over many customers The most customers are now business travelers during Monday to Friday Most business travellers that stay at Red Roof are sales peopleTheir incomes range from 15000 to 60000 but for many years they and their employers have been very concerned about travelling expensesThis makes the price range of 30-40 per night offered by Red Roof very attractiveThis was a main reason behind Red Roof being able to grow from its one location in 1973 to 209 in 1993 Even though Red Roof built up to 209 locations in a short time and fast rate -- averaging 15 new motels per year for many years -- for the last three of four years they have stopped expanding Many new entrants to the budget motel market have almost created an over-supply of roomsThis will keep pressure on low prices at the same time as larger hotels like Holiday Inn and Marriott are either trying to regain the business market with lower prices or setting up low-price budget chains Red Roof Inns will face many of these challenges At the same time they have succedded in also attracting a steady market of weekend travelers tourists and seniors who they have set up a discount program for They will now assess all of these factors against their broader plans and marketing strategies 2Situation Analysis In 1993
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA