Club Med Magic
Brand Name, 30 years of experience Exceptionally Satisfied Customers Unique Vacation concept First movers advantage, difficult to compete with
Large Customer Base
Word of mouth
Economies of Scale
25% GMs become repeat GMs
Difficult for competitors to match
How successful is Club Med?
What do you conclude from its financial
Consistently Increasing Net Income High market Share (>40%) High occupancy
What are the nonfinancial measures of the
company‟s performance, and what do you conclude from them?
High Customer Satisfaction 100+ villages
Expected Value of a customer
An average guest generates $1,015 of revenues, It has
been decreasing with time. This results into $54 of net income per customer, this has been increasing with time About 25% of the new GMs become repeat GMs. They take an average of 4 extra vacations 65% of new GMs come primarily because of word of mouth publicity.
Threat of new entrants
Broad market appeal, might allow competitors to create
Example: Single oriented image, might cause couples to chose a specialized couple packages
Spartan accommodation and extra charges for drinks
The customers are not as satisfied with the „bar‟ as they are with the other services
No presence in the Jamaican region, which is popular
with the customers
Most competitors have presence in Jamaica
“If Club Med does not continue to change and adapt to
the demands of the market, they would hurt themselves more than any of their competitors ever could”
Family spirit among the club managers. All top managers
had worked in the villages. GMs were treated as members instead of customers Even the architectural design...