Drowling Mountain –Analysis and Strategic Recommendation
Case Analysis MEMO
Subject: Drowling Mountain –Analysis and Strategic Recommendation
Drowling Mountain non-profit Ski Resort was the popular choice among Syracuse residents, New York. However, the company has experienced loess for the past two years. Due to the fact that too many competitors with lowers prices and current state of economic recession (appendix 1), in addition, the company is debt heavy (appendix 2) to an extent that impacting its profitability. Based on those reasons, the company needs to be reactive and proactive in order to survival in the changing internal and external environments. Based on the analysis undertaken and the trade-offs considered (Appendix 3), it is recommended that Drownling Mountain, reducing its operation costs, modifying its marketing plan and justifying its current pricing strategy.
Even if Drowling Mountain had been the ski resort of choice for the local residents of Syracuse, there are some competitors around the area, such as Devil’s Hill, with close distance, which use lower price to attract customers. Drowling Mountain could offer free transportation with hotel coupons to offset Devil’s Hill’s lower price strategy and company’s location disadvantage. Under the condition of rising gas price and reduced leisure spending, free transportation could appeal to all kind of customer. With more customer visits, Drowling Mountain could increase its ski lift revenue. Plus, offering hotel coupons encourage customers to stay and spend more on food, equipment renting, and Events. This strategy will incur extra expenses, Drownling Mountain should target on a big group of people (e.g company event) in order to minimize average transportation cost.
In terms of its pricing plan, the company could customize its strategy solely for local family with children. For example, 20% discount with family with 1 child, 30% discount with family with 2 children, etc. in the short run, pricing discount bundled with hotel coupons and family
Subject: Drowling Mountain –Analysis and Strategic Recommendation
Drowling Mountain non-profit Ski Resort was the popular choice among Syracuse residents, New York. However, the company has experienced loess for the past two years. Due to the fact that too many competitors with lowers prices and current state of economic recession (appendix 1), in addition, the company is debt heavy (appendix 2) to an extent that impacting its profitability. Based on those reasons, the company needs to be reactive and proactive in order to survival in the changing internal and external environments. Based on the analysis undertaken and the trade-offs considered (Appendix 3), it is recommended that Drownling Mountain, reducing its operation costs, modifying its marketing plan and justifying its current pricing strategy.
Even if Drowling Mountain had been the ski resort of choice for the local residents of Syracuse, there are some competitors around the area, such as Devil’s Hill, with close distance, which use lower price to attract customers. Drowling Mountain could offer free transportation with hotel coupons to offset Devil’s Hill’s lower price strategy and company’s location disadvantage. Under the condition of rising gas price and reduced leisure spending, free transportation could appeal to all kind of customer. With more customer visits, Drowling Mountain could increase its ski lift revenue. Plus, offering hotel coupons encourage customers to stay and spend more on food, equipment renting, and Events. This strategy will incur extra expenses, Drownling Mountain should target on a big group of people (e.g company event) in order to minimize average transportation cost.
In terms of its pricing plan, the company could customize its strategy solely for local family with children. For example, 20% discount with family with 1 child, 30% discount with family with 2 children, etc. in the short run, pricing discount bundled with hotel coupons and family