Club Mediterranee Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

SWOT Analysis of Club Med

SWOT analysis can give an overview of the position of the company defining its strengths, weaknesses, opportunities and threats. By identifying these dimensions a firm can obtain competitive advantage by identifying its strengths and opportunities and defining a plan for weaknesses and threats (Humphrey, Dececmber 2005).

Strengths

The strengths are very important to be identified so that the firm can have a competitive advantage in the market. There are different strengths of Club Med; the major strength of Club Med was the established brand identity of the firm and increased brand awareness. Whereas, the organizational structure of the firm was very strong, their traditions and rituals were quite solid. Through different resorts of Club Med; luxury, upscale and family were provided to the customers. Moreover, the firm was also involved in innovation and refurbishments and their proactive approach. Similarly, the firm was quite strong in acting quickly to fix the damages done to its resorts by the natural disasters (Chermack & Kasshanna, 2007).

Weaknesses

Identifying weaknesses are also very important for any firm. It is because on identifying the weaknesses the company can have a clear picture that what sort of problems it is facing and what measures should be taken to overcome those problems. However, Club Med was having different weaknesses in its operations and system. One of the major weaknesses of the company was that its members were being displaced due to the repositioning of the brand and also changes in the environment while targeting different countries. Whereas, the villages of Club Med were quite simple and more often the facilities like TV and phone were not provided for the customers. Similarly, Club Med was going through a continuous phase of changes and this was causing many problems for the firm in developing consistency in its operations and generating profits. Club Med was also providing a limited product range by only considering the upscale. There was a need of a defined product range in order to compete with the strong competitors in the market.

Opportunities

Opportunities play a vital role in the success of any firm. On clearly identifying the list of opportunity, firms can sharpen their business operations which can help in generating revenues and growth. The major opportunity for the Club Med was that the company could have done further expansion in the countries like Australia, New Zealand and the countries having great climate and coast lines. Moreover, Club Med could also increase its target market in the developing countries like China, Russia and Brazil. Similarly, the firm could also increase its brand awareness globally through repositioning its brand and also increasing the brand image of the firm. The opportunity that was available for Club Med was that it could increase its customer base in the markets like Asia, where it had a high turnover and potential customers. New acquisitions were also the opportunity for Club Med that it could take.

Threats

As Club Med was targeting Asian markets and was operating globally so it was facing different threats. For instance, the major threat for Club Med was the Global financial crisis through which the economy of the whole world was being affected. Since, Club Med has been truly based on the tourism therefore, due to the crisis the tourism would have been affected too. Moreover, the threat of natural disasters and weather was also a major concern for Club Med. Due to the natural disasters Club Med faced many problems like the financial crisis and damage of the property. The competitors were also posing threats on the performance of Club Med, as there were many companies in the market that were trying to do the same business like Club Med. Other threats for Club Med were the increasing cost of the labor, lower profitability, government regulations and increasing rates of the interests were proving to be problematic for the firm.

Alternatives

In order to overcome the different problems that Club Med was facing, different alternatives are provided which can be helpful in solving the problems.

Alternative 1

The growth of upscale and all-inclusive holidays in the fast developing markets in Asia.

Alternative 2

Implementing the time share scheme for Club Med.

Alternative 3

Introducing different packages like deluxe, standard and basic.

Alternative 1 Elaboration

The alternative of capturing the growth of upscale and all-inclusive holidays can be a good option for solving the problem of Club Med. This alternative also has different pros and cons. The advantages of these alternatives are that the Club Med will be able to differentiate itself from its competitors. The people will get interested in the all-inclusive holiday because of the different services and facilities provided in the competitive price (Wineaster Anderson, 2009)................................

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