In February 2008, the president of Vacances Paradis Inc. (Paradise) was reviewing his options for the business's prospective competitive strategy. Paradise was Quebec's market head in the tour operating business but was facing an important challenge: FunTours Vacations (FunTours) had stolen a sizeable part of Ontario's market share in just two years and was planning on conquering the Quebec market for the 2008/09 winter season. FunTours' competitive strategy was to provide big capability at low prices, so creating decreased margins and a price war.
Paradise Vacations Case Study Solution
The president had to consider the way to satisfy FunTours' danger in the face of several challenges: the tour business was fundamentally changing as an effect of switching from conventional travel agents towards Internet supply; limited differentiation in merchandise offering compelled competing on price; and a growing customer base as more people could afford travel. Cost had appeared as the dominant criteria for travelers and a tremendous concern for tour operators. The president wondered which strategy would be greatest for the company's short- and long term viability.
PUBLICATION DATE: June 26, 2009 PRODUCT #: 908A09-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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