Research On The Market Entry And Strategy Of Economical Chain Hotel In Our Country

With the improvement of people' living standard,more and more people choose to travel.At the same time,relevant data shows that the general populace has become the main body of tourism in our country.This has greatly increased the people demand for budget hotels.The great demand attracts many companies trying to enter budget hotels market.However,market entry is influenced by many factors.The diversity of factors has greatly increased the complexity of the market entry.Therefore,combing the influenced factors of budget chains hotel' market entry,and researching the market entry strategy with the main factors is very necessary.It can provide some reference for the potential entry enterprise.This paper uses the theory of industrial organization and game theory to analysis the potential enterprise's market entry strategy.Through analyzing the current development of China's budget hotel chains and the market structure,we make a research on the influence factors of market entry of our country economy hotel chain enterprise.On this basis,in view of the two main factors,including the incumbent firms store expansion and brand spreading,we use case and game theory to analysis potential companies and incumbent farms' behavior.At the same time,we discuses the potential market entry strategy of the enterprise.Through the research,this paper thinks that(1)China's economy hotel chain market structure is monopoly competition,but most of the eastern provinces' market structure is oligopolistic,the market concentration of capital city and tourist city is significantly higher than the market concentration of other second-tier cities.(2)The potential enterprises should choose different production scale according to different market structures to enter the market.The potential enterprises should take smaller output to enter market in more participants and market leader in the market,acting as the role of the market follower.(3)In more participants and no market leader in the market,the potential enterprises should take larger output to enter the market,trying to become the market leader;In only a handful of enterprise competition's oligopoly market,the potential enterprises should take as the potential size of production into the market;(4)The potential enterprises should adopt the strategy of differentiation to enter the market according brand diffusion behavior of incumbent firms.Although the budget hotel chain companies adopt the strategy of brand spread,but its brand homogeneity is moreserious.The potential companies can satisfy the target customers' segments,differenting the decorate style or providing different services to enter market.