Analysis of the Marketing Strategy of Economy Chain Hotel Industry - Essay Example

Its target market is the students, commerce travelers, and its local populace. Investment in the Chinese economy hotels has been on the rise in the previous decade both by the locals as well as successional entrants of major famous international brands. Globalization has led to the increase in the popularity of economy hotels in China. It is with no doubt that this industry is an essential and social-economic drive for any country in the world. A good example to support this fact is the manner in which the industry has employed millions of people around the world, either directly or indirectly. There is intense competition in the hotel industry, which will require an entrepreneur willing to venture into this industry to formulate strategies that will offer a competitive advantage over other hotels in the industry.

This competition can be attributed to globalization and other complicated environmental forces that management has to be aware of. Management can engage in quality improvement programs in order to overcome the risks and risks and threats they are likely to experience (Hasan and Kerr, 2003). Quality is therefore a crucial factor to consider in the hotel industry for the purpose of achieving a competitive advantage. Service and product quality can paramount to improved business performance if implemented (Reichheld & Sasser).

Other studies have also suggested that there is a close relationship between business performance and customer behavior (Cook & Verma, 2002; Zeithaml & Bitner, 2003). Disciplines of marketing and strategic management have provided a theoretical for the relationship between the success of a business, which is referred to as business performance and quality programs that are put in place (Deming, 1986; Garvin, 1988; Shapiro, 1983; Bolton and Drew, 1991; Heskett, Sasser and Schlesinger, 1997). Theoretical models such as SWOT analysis, perpetual mapping and Michael porter’s five force model, product life cycle, basic competitive strategies, and the marketing mix are used to assess the situation of an industry in terms of success.