1. CLUB MED: MAKING A COMEBACK 2. HONDA IN EUROPE 3. ANHEUSER-BUSCH INTERNATIONAL, INC.: MAKING INROADS INTO BRAZIL AND MEXICO 4. VOLKSWAGEN AG NAVIGATES CHINA 5. WAL-MART OPERATIONS IN BRAZIL: AN EMERGING GIANT 6. LOUIS VUITTON IN JAPAN: THE MAGIC TOUCH 7. STARBUCKS COFFEE: EXPANSION IN ASIA 8. GAP INC. 9. MOTOROLA: CHINA EXPERIENCE
10. iPOD IN JAPAN: CAN APPLE SUSTAIN JAPAN’S IPOD CRAZE? 11. NTT DoCoMo: CAN i-MODE GO GLOBAL? 12. THE FUTURE OF NOKIA 13. MAYBELLINE’S ENTRY INTO INDIA 14. YAHOO! JAPAN *15. AOL GOES FAR EAST *16. DANONE: MARKETING THE GLACIER THE UNITED STATES *17. BMW MARKETING INNOVATION *18. HERMAN MILLER, INC. VS. ASAL GMBH *19. NOVA INCORPORATED: TWO SOURCING OPPORTUNITIES ´ *20. CERAS DESERTICAS AND MITSUBA TRADING COMPANY *21. THE HEADACHES OF GLAXOWELLCOME *22. BENETTON *23. TWO DOGS BITES INTO THE WORLD MARKET: FOCUS ON JAPAN *24. ABC CHEMICAL COMPANY GOES GLOBAL *25. DAIMLERCHRYSLER FOR EAST ASIA *26. SHISEIDO, LTD.: FACING GLOBAL COMPETITION *27. SMS PACS *28. DAIMLER-BENZ AG: THE A-CLASS AND THE MOOSE-TEST *29. PEPSI ONE *30. UNISYS *31. FORD MOTOR COMPANY AND DIE DEVELOPMENT *32. CITIBANK IN JAPAN *33. KAO CORPORATION: DIRECTION FOR THE 21ST CENTURY *34. PLANET HOLLYWOOD: THE PLATE IS EMPTY *35. HOECHST MARION ROUSSEL: RABIPUR RABIES VACCINE ∗ Indicates
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622 • Case 1
Club Med: Making a Comeback
CLUB MED: MAKING A COMEBACK
´ Club Mediterranee (Club Med), a corporation in the allinclusive resort market, manages over 140 resort villages in Mediterranean, snow, inland, and tropical locales in over 40 countries. Its resorts do business under the Club Med, Valtur, Club Med Affaires (for business travelers), and Club Aquarius brand names. Club Med also operates tours and two cruise liners: Club Med 1 cruises the Caribbean and the Mediterranean, and Club Med 2 sails the Paciﬁc. The company ´ also arranges specialized sports facilities. Club Mediterranee’s clientele is about one-third French, with the rest being mainly from North America and Japan. Club Med found that its all-inclusive price is not as widely accepted today as it was in the past and that consumers’ preferences have changed. Vacationers are not willing to spend large amounts of money for vacations that include many activities they are not using as much as they had been in the past. This change in preference poses a problem for the company because Club Med’s competition has been able to customize travel packages for each consumer at prices that vacationers feel more comfortable with. Although it appears easy for Club Med to customize travel packages, the company is at a disadvantage compared to its competition. Most of the competitors are found in a small number of locations, whereas Club Med has resorts scattered all over the world. Currency devaluation and political boycotts are some of the situations that Club Med faces worldwide on an ongoing basis. These external factors are reducing the company’s ability to increase sales and gain new customers. BACKGROUND AND HISTORY ´ Club Mediterranee, otherwise known as ‘‘Club Med,’’ was originally founded by a group of travelers, headed by Gerald Blitz, in 1950. However, through the years, as this group was increasing in size, it was becoming increasingly more difﬁcult to manage. Blitz, therefore, took the opportunity to turn this ‘‘association’’ into a business, with the aid of Gilbert Trigano, in 1954. Trigano sought to establish this organiza´ tion, and by 1985, Club Mediterranee S.A. was transformed into a publicly traded company on the Paris Stock Exchange. Club Med Inc. became the U.S.-based subsidiary of Club ´ Mediterranee, headed by Trigano’s son Serge. Today, Club Med encompasses over 114 villages, on six continents, and 33 countries (see Exhibit 1). In addition, Club Med has two cruise ships. The Club Med style can be best described by the sense of closeness found...