Canyon Ranch Case Study
Canyon Ranch Case Study
Executive Summary
Canyon Ranch Health Resorts (or “The Company”) was created in 1979 to be an inspirational and motivational place where clients could relax, get away, and take control of their own healthier lifestyles. As of 2004, Canyon Ranch was unquestionably the industry leader when it came to the luxury portion of the spa industry.
Lack of potential entrants in a niche market, scale economic practices (development of cosmetic line), and a strong US economy are just a few of the reasons why The Company has continued to thrive despite engaging in archaic, inefficient IS strategy.
New competitors, economic downturns, and the emergence of substitutes are now a very real threat to The Company’s current position. Should The Company wish to remain the industry leader in their respective market, they must begin to utilize IT as a competitive force. In order to do this, The Company must undertake the following initiatives: 1. Upgrade existing IT architecture and infrastructure to a company-wide modular system. 2. Adopt and interface a hospitality oriented CRM system. 3. Use the information gathered from the CRM to initiate a targeted marketing campaign.
The existing IT architecture and infrastructure is decentralized and inefficient. In fact, The Company is still using paper as means of transporting data from department to department. In addition to centralizing IT systems, The Company should add new modules to their existing system (POS, MIS, DDS, Reservation Interface, etc.) and upgrade their existing CLS system in order to promote two-way communication, and free flow of data. In doing this, The Company will move the IT strategy from that of a support function to a more aggressive, competitive function.
The Company is not doing all it can to collect important customer information. Given their respective services (Spa, Medical/Nutritional, Cosmetics, etc.), The Company has access to very personal information about
Executive Summary
Canyon Ranch Health Resorts (or “The Company”) was created in 1979 to be an inspirational and motivational place where clients could relax, get away, and take control of their own healthier lifestyles. As of 2004, Canyon Ranch was unquestionably the industry leader when it came to the luxury portion of the spa industry.
Lack of potential entrants in a niche market, scale economic practices (development of cosmetic line), and a strong US economy are just a few of the reasons why The Company has continued to thrive despite engaging in archaic, inefficient IS strategy.
New competitors, economic downturns, and the emergence of substitutes are now a very real threat to The Company’s current position. Should The Company wish to remain the industry leader in their respective market, they must begin to utilize IT as a competitive force. In order to do this, The Company must undertake the following initiatives: 1. Upgrade existing IT architecture and infrastructure to a company-wide modular system. 2. Adopt and interface a hospitality oriented CRM system. 3. Use the information gathered from the CRM to initiate a targeted marketing campaign.
The existing IT architecture and infrastructure is decentralized and inefficient. In fact, The Company is still using paper as means of transporting data from department to department. In addition to centralizing IT systems, The Company should add new modules to their existing system (POS, MIS, DDS, Reservation Interface, etc.) and upgrade their existing CLS system in order to promote two-way communication, and free flow of data. In doing this, The Company will move the IT strategy from that of a support function to a more aggressive, competitive function.
The Company is not doing all it can to collect important customer information. Given their respective services (Spa, Medical/Nutritional, Cosmetics, etc.), The Company has access to very personal information about