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Magnolia Hotels’s Business Strategy Case Study

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Magnolia Hotels’s Company Overview


Magnolia Hotels is a hotel management company offering accommodations for both leisure and corporate travel in Denver, Houston, Omaha, Dallas.

http://www.magnoliahotels.com/

Country: Colorado

Foundations date: 1993

Type: Private

Sector: Consumer Services

Categories: Travel


Magnolia Hotels’s Customer Needs


Social impact:

Life changing:

Emotional: provides access

Functional: organizes, integrates, reduces effort, reduces cost


Magnolia Hotels’s Related Competitors


Starwood Marriot International AirBNB Expedia HotelTonight Hilton

Magnolia Hotels’s Business Operations


Acquiring non customers:

Acquiring non customers who traditionally did not seem to be the target of customer value proposition. Customer acquisition refers to gaining new consumers. Acquiring new customers involves persuading consumers to purchase a company’s products and/or services. Companies and organizations consider the cost of customer acquisition as an important measure in evaluating how much value customers bring to their businesses.

Barter:

Without currency, it is a kind of trading in which products or services are traded. Typically used during periods of high inflation or scarcity of money, barter has become a popular method of negotiating agreements such as offers to purchase excess products in return for advertising space or time. With the introduction of the internet, bartering shifted from a largely person-to-person transaction to a primarily business-to-business one, where every day, commodities ranging from manufacturing capacity to steel and paper are bartered across international boundaries.

Cross-subsidiary:

When products and goods and products and services are integrated, they form a subsidiary side and a money side, maximizing the overall revenue impact. A subsidiary is a firm owned entirely or in part by another business, referred to as the parent company or holding company. A parent company with subsidiaries is a kind of conglomerate, a corporation that consists of several distinct companies; sometimes, the national or worldwide dispersion of the offices necessitates the establishment of subsidiaries.

Discount club:

The discount club concept is built on perpetual high-discount deals utilized as a continual marketing plan or a brief period (usually one day). This might be seen as a reduction in the face value of an invoice prepared in advance of its payments in the medium or long term.

Make more of It:

The business invests time and money in developing in-house expertise and development that may be used both internally and outside to sell goods or services to clients or third parties. AWS was created to meet Amazon's cloud computing requirements. They quickly discovered that they could offer their services to end-users. At the moment, AWS accounts for about 11% of Amazon's overall income.

Pay as you go:

Pay as you go (PAYG) business models charge based on actual consumption or use of a product or service. Specific mobile phone contracts work on this principle, in which the user may purchase a phone card that provides credit. However, each call is billed separately, and the credit balance is depleted as the minutes are used (in contrast to subscription models where you pay a monthly fee for calls). Pay as you go is another term for pay & go, pay per use, pay per use, or pay-as-you-go.

Why Magnolia Hotels’s Business Model is so successful?

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