How do some companies achieve high growth?

Abstract

Wonders why, in an atmosphere of intense competition, some companies achieve sustained high growth in profits and revenues. Highlights the example of Formule 1, a chain of budget hotels in France, launched in 1985, which beat off the no‐star and one‐star hotels, costing between 60 and 90 francs, and with 2 stars at double the price. Demonstrates that Formule 1's basic premise was ‘a good night's sleep for a low price’ — e.g. no need to provide restaurants, lounges, receptionists outside check‐in and check‐out times (automated tellers are used at other times), giving basic accommodation at the standard of two‐star hotels for one‐star price! Catalogues that Formule 1 has now built over 300 hotels in Europe, Africa, Australia with Asia next for development — a success story for others to envy, copy, or ignore at their peril.