Swot analysis of club med

INTRODUCTION TO STRATEGIC MANAGEMENT

CLUB MED-THE PARTY IS OVER

CLUB MED- THE PARTY IS OVER

1. Introduction & Summary:

Club Med is a huge corporation in the all-inclusive market who had agolden age, but since the early 90's has slowed its growth and has entered into a pothole.

Club Med was originally founded by a group of travelers in 1950. This association was increasing in sizeand turn into a business. Nowadays Club Med is a company that owns around 100 properties all over the world.

The Club Med styles is taking a group of strangers away from their everyday lives andbring them together in a relaxing atmosphere in different parts of the world. All this is carried out in a fun environment with friendly relationships between the staff and the guests.

Until 1986,Club Med had a very strong position in the all-inclusive resort market and had not real competition. But given the success of Club Med began to emerge all-inclusive competitors which adopted Club Med´sstyle. These competitors tried to offer improvements over the Club med such as a more luxurious environment, prices cheaper or better alternatives for planning vacations. These actions take awaypotentials clients of Club Med. Also social factors such as changing tastes of travelers negatively impacted Club Med. Believe it or not the enormous size of Club Med located in many countries was adisadvantage relative to their competitors because Club Med is affected by external factors on the countries in which they settled, such as ecological, political and economic disasters.

This whole seriesof events made that the club med fell on hard financial times trough much of the 1990´s, as result of rundown properties, a mediocre reputation, the aging of baby boomers and other facts alreadymentioned.

In 1998 Philippe Bourguignon began a $ 500 million three-year rescue program to revive the club med leaning on the strong brand recognition of the company and concentrate its sales and...