Submitted By:
Ankit Pandey
Abhinav Damar
Biswajyoti Mohanty
Nihar Seth
Pranami Chetia
Roohi Singh
Blue Mountain Resorts Limited: The Night Skiing Decision
Introduction:
In mid-June 1979, Mr. Gordon Canning, president and chief executive officer of Blue Mountain Resorts, was facing a major decision. The officer has to determine whether or not facilities for night skiing in the upcoming season that it should be installed on the blue mountain slopes. And if he does so, then he has to specify the pricing strategy for tickets and passes. The decision had to be made by July 1st.
Blue Mountain is located in the north of Toronto near Georgian Bay, is Ontario’s most prosperous Ski Resort. During the 1978-1979 seasons, Blue Mountain had 250 acres of Ski trails in service. There were 27 different trails serviced by eight chair-lifts and 10 other tows. Three quarters of the trails were covered with snow.
Blue Mountain’s skier market is primarily from South and South-western Ontario, with a small proportion coming from U.S. Midwest. The largest group is the day skier who represents 38.4 % of skiers who visit Blue Mountain once or more during a year.
The Organization’s corporate strategy statement dictates that any proposed project must fit at least one of the following conditions before it can be undertaken: * A project which protects current earning power and minimizes any risks inherent to the business. * A project which helps to attain off-season use of facilities. * A project which expands primary earning power. * A project which offers new opportunities in: * Other ski areas * Other recreational areas.
In addition, it was very important to the business to maintain a “comfortable capacity” at the ski resort.
Opportunity:
In 1978, Gord Canning began to inquire into ways to increase utilization of the facilities in the off-hours of the winter skiing season. Blue Mountain felt a