Case Analysis Club Med 
Club Med Case Analysis
Introduction
Club Mediterranee was founded by a group of friends in the year 1959 as a nonprofit association, and it became the ninth-largest hotel company in the world in 1986. Also, “Family Spirit” has become an indispensable culture as a part of this company. During it is development of the company and industry. Club Med’s “All-inclusive, club-style” resort model has achieved overwhelming advantages in this industry. As a result, due to Club Med’s great influence in travel and hotel industry, it has been in a strong position with respect to buyers, suppliers and labor. Those advantages has extended Club Med’s relative advantages among its competitors, therefore, over the years, many companies that had tried to compete with Club Med, and failed.
However, with the development of travel and hotel industry, increasing number of hotel and travel companies and agencies keep entering and exiting this field, which bring unpredictable challenges and threats to Club Med, for example, as a result of airline deregulation, more and more agencies entering the market, which lead to higher and higher turnover of agency top-seller for Club Med, this company has reconsidered its distribution network and came out a solution to this problem. Nevertheless, this is not the first challenge nor the last challenge to Club Med.
Now, by the year of 1986, Club Med was no longer the only successful chain of “All-inclusive, club-style” resorts. Other companies, such as Jack Tar Village and SuperClubs, have provided much more attractive advertisement and services than Club Med to customers, and taken a big market share from Club Med. Because of increasingly tense of competition and fast rapid change of industry environment, the dominance of the company, Club Med, is no longer as obvious as before. Currently, this company is facing a problem, that is how to maintain or even increase its market and finance performance in the future?
Analysis
In the early years that
Introduction
Club Mediterranee was founded by a group of friends in the year 1959 as a nonprofit association, and it became the ninth-largest hotel company in the world in 1986. Also, “Family Spirit” has become an indispensable culture as a part of this company. During it is development of the company and industry. Club Med’s “All-inclusive, club-style” resort model has achieved overwhelming advantages in this industry. As a result, due to Club Med’s great influence in travel and hotel industry, it has been in a strong position with respect to buyers, suppliers and labor. Those advantages has extended Club Med’s relative advantages among its competitors, therefore, over the years, many companies that had tried to compete with Club Med, and failed.
However, with the development of travel and hotel industry, increasing number of hotel and travel companies and agencies keep entering and exiting this field, which bring unpredictable challenges and threats to Club Med, for example, as a result of airline deregulation, more and more agencies entering the market, which lead to higher and higher turnover of agency top-seller for Club Med, this company has reconsidered its distribution network and came out a solution to this problem. Nevertheless, this is not the first challenge nor the last challenge to Club Med.
Now, by the year of 1986, Club Med was no longer the only successful chain of “All-inclusive, club-style” resorts. Other companies, such as Jack Tar Village and SuperClubs, have provided much more attractive advertisement and services than Club Med to customers, and taken a big market share from Club Med. Because of increasingly tense of competition and fast rapid change of industry environment, the dominance of the company, Club Med, is no longer as obvious as before. Currently, this company is facing a problem, that is how to maintain or even increase its market and finance performance in the future?
Analysis
In the early years that