Vail Resorts Case Study Help
Appendix E- Competitor’s analysis
The major competitors of the company are: Alterra Mountain Company with market share of 21.5$%, Boyne Resorts with 5.4% market share, Peak Resorts with 5.1% market share, and Powdr Corporation with 4.6% market share. The competitors are strong and they keep on trying to catch the customers by providing more efficient services. Alterra is operating in 30 ski resorts and it has also introduced Ikon Pass in competition to the Vail Resorts’ Epic Pass. Alterra’s revenue is also expected to grow as it experienced an increase in the revenue in 2017 and 2018. Boyne Resorts operates in 11 golf courses and 10 ski resorts throughout the US. It also has partnership with Powdr. Boyne’s market shares are also increasing and it is also trying to facilitate people by providing passes like VR, and Alterra. Boyne’s revenue is also expected to increase. Peak Resorts is also operating in the US with many acquisitions. It has also introduced its Peak Pass to compete against to give a tough competition to its competitors. It has a good financial position.
Internal Analysis
Appendix A- Weighted Competitors Strength Analysis
The following competitive strength analysis of the resort industry says that Vail Resorts is in better condition as compared to Alterra Mountain Company and Boyne Resorts. The financial, global, distribution, market share, and Distribution Networks of the competitors are not better than the company’s itself. The overall score of Alterra Mountain Company is 14.8, Boyne Resort is 11.6, and Vail Resorts is 18. This clearly shows Vail Resorts is performing well in the industry.
| Competitors Analysis | Vail Resorts | Alterra Mountain | Boyne Resort | ||||
| Strength Measure | Important Weight | Strength Rating | Weighted Score | Strength Rating | Weighted Score | Strength Rating | Weighted Score |
| Globalization | 20% | 6 | 3 | 9 | 1.8 | 8 | 1.6 |
| Market Share | 20% | 7 | 5 | 8 | 4 | 8 | 3 |
| Distribution Networks | 30% | 6 | 4 | 7 | 4 | 5 | 3 |
| Financial Performance | 30% | 3 | 6 | 5 | 5 | 4 | 4 |
| Pass | 100% | 18 | 14.8 | 11.6 | |||
Appendix B- SWOT Analysis
Strengths: Vail Resorts is in the five world-class resorts in the list of 10 most visited resorts in the US. The barriers for the new entrants to enter into the market also serves as a strength to the company. The company also has loyal customer base for season pass over the years. Vail Resorts has a strong talent management system with skilled employees working in various parts of the organization. Vail Resorts hasdifferent services for various customer segments;hence increasing its customers and revenues. The company also has strong brand recognition with an inclusion of solid supply chain management, organizational culture, leadership, and growth strategy. This enables the company to charge a premium as compared to its competitors. The company does have a diverse revenue model, as it has ventured into several other businesses apart from its organizational development sector. Hence enabling the company to generate revenues from its diversified business segments.
Weakness: The resorts are expensive, which is a weakness the company as a majority of people won’t be able to avail the resorts’ services because of its highly priced services, hence resulting in the loss of a significant customer base. The company is also heavily dependent on mountain segment’s success. Due to an increase in the usage of internet andartificial intelligence; the business model of Vail Resorts has been significantly altered. There is a requirement of making changes in the in the supply chain, organizational culture, negotiations, leadership, entrepreneurship and growth strategy, which would cost a huge investment. Vail Resorts has to work on its operating and gross margins as they may put pressure on its financial statements. Vail Resorts is also facing an intense pressure from its competitors, which is making its profitability chart go down as per-unit revenue is reduced. Moreover, the seasonal workers are also a weakness for the firm.
Opportunities: The Vail Resorts has an opportunity to increase its ownership of the existing resorts. The company can also continue with real estate development. The frim can also go with innovation in the services and other operations of resorts. Vail Resorts can collaborate with the local players, who can provide good growth opportunities in the international markets. The company can also decrease the cost of itsnew offers by seeing the response first, and then scalingup to the emerging trends. This would largely save up on the launching cost, which can be utilized in further expansions or improvement, later on. Along with this, a proper understanding of the government can further ease out the situation of expanding and marketing locally.
Threats:There is also a threat of low supply of available locations to develop new resorts. Difficult environment of economy is also a threat to the organization. Due to the lack of infrastructure in rural markets and the vast distance; it is difficult to serve rural customers and so is costly.................................
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