Club Med Case Analysis

Topics: Case analysis, Club Med, All-inclusive resort Pages: 4 (721 words) Published: November 18, 2014
Club Med Case Analysis MGMB01

The Club Med is a successful all-inclusive French organization of vacation resort found in a various sites of the world, mostly in exotic areas. Besides obvious financial success, the Club also achieved huge non-financial success. The unique concept of “family” , which is also the corporation spirit, had transform a group of strangers to a group of loving and caring friends. What’s more, they also developed their own set of marketing and distribution strategies.

Club Med developed competitive advantages due to its uniqueness and novelty, it differs significantly from conventional hotel chains. Firstly, the Club made a profit of $3million each year merely from customers’ prepaid travel deposits. Secondly, unlike the traditional hotels, the Club arranges roommates to those who travel alone. As a result, accommodation availability is counted as the amount of beds not the number of rooms.

Moreover, Club Med was in advantageous position regarding the relationship with customers, suppliers and workers. In terms of customers, for instance, the Club controls the market so that buyers can only buy the “true formula” from them. The customers will suffer economic losses if they try to replace the Club with other traveling choices. Club Med also has competitive advantages over the suppliers. Business partners like airlines companies are providing the Club with air fare discounts, from which Clun Med could earn substantial interest. Besides airline companies, the Club also receive benefits from other business partners. Since Club Med’s vacation sites created work opportunities and tourism income, economically discouraged countries are more than willing to be the Club’s villages. To win this advantageous opportunity of economic growth, those countries often offer the Club with alluring benefits including low-cost financing, sufficient foreign lobour, tax breads and probable direct equity investment. The Club is in strong position...
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