Drowling Mountain Case Analysis
Drowling Mountain is a mountain resort that offers skiing, snowboard, and other snow activities in the state of New York. Located just 45 minutes away from Syracuse, New York. New York as a state has a total of 34 ski resorts.
Drowling Mountains is a community centric resort, which clearly attempts to capture Syracuse’s population of 145,170 people (2010). It also has the geographic location to be able to attract neighboring counties such as Onondaga County, which a population of 321,830.
As a community resort, there are massive pressures to cover fixed assets and operating costs, this is a result of not being able to attract “big city” customers. New York City is roughly five hours away from Syracuse and three hours away from Albany. With no out of the norm marketing plan, Drowling Mountain falls into the states clutter of resorts when skiers decide where to ski or snowboard, when visiting in the Syracuse area.
With commonality in the resort industry, Drowling Mountain is in bad financial disposition. Ownership has change a various number of times, as well as there is a lack of top ranking leadership, and the complete absence of customer loyalty is affecting the mountains potential. Ultimately, the resort is experiencing declining revenues, high levels debt and increasing losses. While management attempts to create a solution, the lack of understanding the actually problem seems to be a bigger issue for management.
What innovative strategy will enable Drowling Mountain Resort to increase market share as well as loyalty to skiers of all experience, given the downward trend that the mountain experienced from 2006 to 2010?
Drowling Mountain is facing many threats from internal and external pressures. Below is an analysis that will help understand what issues are most vital to the resort as well as which issues are and pushing down on management.
Snowsports Industries America ranks the U.S. participation rate for snow sports at about 7.5% of the total population (2010). Participants in the age of 6+ have slowly but steadily increased in the three years. Demand for Drowling Mountains, offering has steadily decreased since 2006, from 64,000 visitors to 46,000 in 2010. Overall decline in state level tourism and the recent economic recession has also affected the industry.
A survey in November of 2010 shoed the average customer only visiting Drowling Mountain twice each season. The ski resort offers challenging terrain as well as some of the tallest ski hills in the state (NY State). Demand was sought by experienced, casual, and non-skiing individuals. With 34 other resorts to choose from, the state has a clutter of offerings; demand for the particular mountain is volatile to all other offerings available to the state of New York.
* Drowling Mountain seems to still capture local support, which is essential to the bottom line success of the resort. * Nationwide; slow but steady increase in participation.
* Downward trend: losing market share over time (2006-2010). * Price sensitivity by participants it has steadily declined over time. * Overall decline in state level tourism and the recent economic recession has also affected the industry. * Declining dollar influenced international travel to ski reports (mainly destination establishments) Competitors:
It is important to use Porters Five Forces as a tool when assessing an existing firm; it provides a relatively subjective framework which helps show important values that help depict strategic direction, as well as aids in allocating resources accordingly.
This industry is very complex, when it comes to competitors, on one hand all 34 resorts in state of New York are competing for market share. Each resort does target different geographical segments as well as classify its’ self by what type of...
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