Identify the Competitive Strategy for the following organization and give reason for your answer.

Holiday Inns founded the market for average price, average quality motel rooms. But in the 1970s the chain ran into trouble because it failed to see that the market was fragmenting, creating the need for different kinds of products, ranging from luxurious resort features to basic, no-frills accommodation. Holiday Inns had undifferentiated product and average costs. In the 1980s the company fought back by differentiating to offer a range of products, from the inexpensive Hampton Inns chain to the luxury Crowne Plazas. These moves were successful, and led to a temporary advantage, but by the late 1990s, Holiday Inns was again in decline. The firm needs to find a new strategy to ensure that it prospers in the highly competitive hotel industry.