Drowling Mountain Case Analysis
Drowling Mountain Company description
Drowling Mountain is a community ski resort near Syracuse, New York. It offers snow related activities such as snowboarding and skiing and full service such as restaurant and equipment rentals. It target on the 145,170 population of Syracuse. Problem definition
For the past two years, Drowling mountain have been facing losses that leading to liquidity problems. Also, the volume of customers visit is decreasing. The biggest problem the manage face now is how to make Drowling Mountain Resort returns to a sustainable operation? External and Internal Analysis sociocultural
Ski Industry The US participation rate of people who engaged in skiing, snowboarding and snowshoeing had been on a slow and steady increase. In 2010, only 7.5 percent of the population participates in those skiing activities. The customer power in this industry is medium to high since customers can choice among different winter activities and ski industry is sensitive to the change of income and weather. External In the external environment, the nature plays an important role. Warmer weather conditions affects the ski industry and much ski Resort need to spend a lot extra money to make artificial snow. Besides, the international economy causes a loss for ski resort due the reduction in income.. Internal:
Weakness The problem for the internal environment to affect Drowling is increasingly competition in this industry, although the entre into this industry is hard. Secondly, far distance from big city, 6 hour from NewYork, limit its target market to the community. Third, as a community resort, Drowling face massive pressures to cover fixed cost and operational costs. Drowling spend more than 50% of its revenue to maintain the fixed cost. And the ski resort is seasonal so that Drowling needs to cover its fixed cost within four months. Fourth, Drowling also has high liability, $2.1 million, which constrain its...
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