38726844 CanyonRanch Case Study Analysis

Topics: Customer relationship management, Strategic management, Marketing Pages: 18 (2792 words) Published: May 31, 2015

Case-Study Analysis
Canyon Ranch

Sheetal Rahate (20719871)

Document Organization
Section 1: Introduction
Purpose, Limitations
Section 2: Company Overview
Background, Situation (Core issues/problems), Current Strategy, Stakeholders Section 3: Analysis and Evaluation
CRM, Major identified problems and analysis, SWOT Analysis Section 4: Recommendations/Alternate Approaches
Section 5: Conclusion

Section 1: Introduction
1.1 : Purpose
This document is intended primarily as a case-study report for the case Canyon Ranch by Piccoli and Applegate (2004), which provides insight and evaluates the strategic decisions made and/or various business strategies utilized by the organization in order to incorporate and manage their information system along with their business, and examines/suggests substitute methods of implementing MIS strategy in consideration. 1.2 : Limitations

The report focuses on the MIS initiatives taken by Canyon Ranch to leverage their business and the impacts it had on this organization. Information contained in the report is in accordance to Piccoli and Applegate’s perspective along with some insights from the key players in this organization i.e. their views and opinions about the subject matter.

Section 2: Company Overview
2.1: Background

Canyon Ranch (CR) is a health resort and spa that positioned itself such that it pioneered and evolved to be a leader in this luxury segment of spa industry. Founded by Enid and Mel Zuckerman in 1979, it aimed to attain its mission - “inspire people to make a commitment to healthy living, turning hopes and intentions into the highest enjoyment of life” [Canyon Ranch website].

Figure 1: Canyon Ranch's two main business divisions

It encompasses a range of services having both breadth and depth to various treatments and offerings, such that it’s appreciated several times for its “innovative view towards health, wellness, holistic and integrative care and for its uniquely relaxing and inspiring experience” that helped it mature to be the most admired destination resort in the world. It is headquartered in Tucson, Arizona and has expanded to incorporate two destination resorts (i.e. backbone of CR) and three spa-clubs (Refer Figure 1). Each resort is further bifurcated into three main departments i.e. Health and Healing, Hotel and Spa to which, separate directors were allotted for better managing and functioning (Refer Figure 2).

Figure 2: Various departments in CR Resorts
2.2: Situation

Spa industry was flourishing in U.S., which was seen a threat to CR, as several other companies had begun attacking it directly, so much so that companies tired to invade on CR’s uniqueness but as authors have mentioned CR being coined as the golden standard of the industry, and it is essentially its Health and Healing department that set it apart from all other competitors. Having said that there was no doubt that the prosperity of this industry did affect CR, such that it made it difficult for them to compare and analyze their competitors.

Although known for its high standard services and facilities, competition and alterations to the industry necessitated/demanded CR to revamp its marketing and their IT strategy. On linking this to Campsey view where he states that CR required shift in their IT strategy and systems that not only supported internal functioning but which also: Advance association within various business silos;

Enhance collaboration within the organisation;
Attract new and retain old customers;
Helped them to obtain valuable information;
Retain this information;
Analyse this information; and
To make it readily available for decision-makers to make informed judgment and actions.

Figure 3: Structure, culture and Environment of CR

2.2.1 Core reasons/issues-identified that contributed and led to the implementation of an IT...

References: 1. Canyon Ranch Website: http://www.canyonranch.com/inspiration/mission/
2. Piccoli (2008), ‘Canyon Ranch’, Information system for managers: test and cases, Wiley & Sons, Inc.
3. Shanmugasundaram, Customer Relationship Management: Modern Trends and Perspectives, Eastern Economy Edition.
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