In order to achieve a competitive advantage, the Coastal Haven Hotels, a chain o

Question

In order to achieve a competitive advantage, the Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market share. Which of the following strategies is most likely to do so? Multiple Choice Lower prices but eliminate several of the features that have come to define Coastal Haven properties for consumers, such as complimentary meals and in-room massages Take advantage of economies of scale and scope by opening a chain of lower-priced economy hotels that leverage the Costal Haven brand image. Raise prices without increasing spending on customer service or resort features Maintain prices but significantly increase spending on customer service and other amenities.

Explanation / Answer

Ans: Take advantage of economies of scale and scope by opening a chain of lower-priced economy hotels that leverage the Costal Haven brand image.

Economies of scale provide cost reduction and economies of scope meant to lower the average cost of the company. To make competetive advantage in market one need to have normal price and better service or product to attract customers.

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