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Case Analysis
Case Analysis
22
COYOTE CASE
AREAS CONSIDERING
1. Establish a brand-new external space and increase prices for the higher segment's target
market.
Pros: Cons:
- Increases earnings while keeping costs flat - Time and resources spent on a new target
- Improves brand perception market
- A new objective might boost demand - The new approach could be confusing
- Increases advantages perceived - Learning by doing
- Alternative standards
DECISION
Coyote Loco had a fixed seating capacity, revenue management analysis recognized that its financial
performance was a function of not only how many seats were occupied from one hour to another but
also how much revenue was earned per available seat hour, a measure referred to as RevPASH
RECOMMENDATION
2. Enhanced control over the table. The managerial capacity to keep track of which course a
table is in and forecast the future whenever the table will be accessible for the following party
needs to be improved. An automated tracking method and optimized server-host connectivity
should lead to more effective table maintenance.