Club Med case write.docx

Club Med case write.docx - Club Med case write-ups Student...

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Club Med case write-ups: Student: Xiaowen Hong Student number: 1003205514 Company: Club Med. Inc. --- a subsidiary of Club Mediterranee in U.S. Date: 1987 Company history background: 1950 --- founded by Gerard Blitz and his friends as a nonprofit sports association; 1954 --- Gilbert Trigano (Blitz’s close friend) joined in as a managing director and transformed the association into a business; 1972 --- a subsidiary of Club Mediterranee was formed by Serge (Gilbert Trigano’s son) in U.S.; 1985 --- Jacques Giraud took place of Serge in U.S. subsidiary and Serge baked to headquarter at Paris Issues on this case: real strengthens and weakness in Club Med. Inc. SWOT analysis in this case: Internal and controllable (strengthens and weakness) --- see in Exhibit 13 in case Club Med Strengths: - GOs; - “Family spirit” of company’s culture; - Understanding customer needs; - Innovator; - All-inclusive concept; - “float” (customer pays before the vacation); - Marketing and distribution strategy; - Size of economies scale; - Wide choice of destinations; - Excellent locations; - Low capital-intensity (funding from government); - Ability to manage in diverse international settings; - Service concept appeals to broad market; - Experience; - Open communication throughout company leadership Weakness: - Subject to political problems in countries where villages located; - Subject to foreign-exchange fluctuations - GO turnover; - Cultural differences between managements and employees - Communication difficulties due to the remoteness of villages - Singles-oriented image; - Broad market appeal could allow competition to specialize; - Spartan accommodations External and uncontrollable (opportunities and threats) Opportunities: Potential market shares increase in various countries especially in North
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America; High rate of first new customers become repeated customers based on selected market research results; Increasing rate on turnover of vacation package due to the increasing number of air agencies; Threats: Two main competitors (Jamaica-based Jack Tar Village company and Superclubs organization) came out with strong competitive advantages in AI resorts; Customers have more options on vacation packages due to the new competitors which may lead a decrease on potential customers in the future; Case Questions: Club Med 1. In what areas has Club Med developed a competitive advantage?
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  • Fall '14
  • TarunDewan
  • Club Med, All-inclusive resort

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