Ski Resorts in Usa

SKI RESORTS IN THE USA

CASE STUDY

TABLE OF CONTENTS:

1. Abstract.................................................................................3

3. Question 1............................................................................4-6

4. Question 2............................................................................6-8

5. Question 3............................................................................8-9

6. Question 4............................................................................9-10

7. Conclution...............................................................................10

8. References...........................................................................11-12

Abstract

This case study focuses on the problem of how management is becoming more and more important in many different fields of life. In this case, how good management can contribute to ski resorts. It observes and answers to the four important questions:

In the first part it is explained what are the mainly changes in the business environment that have occurred 30 years ago, and how they effected ski resorts.

The next part shows why management becomes more and more important for the survival and success of the ski resorts comparing it to 30 years ago.

How competition from Europe has influenced ski resorts in the USA, and the discussion about the competition between the Colorado resorts and the other resorts from the east is made.

In the last part the focus is on the predictions in the future, how will environment and future of the ski resorts change.

Question 1: What are the most important changes in the environment that have contributed to the drop in revenues?

From the period of 1970's to 1980's the Ski resorts and the ski industry in the USA was blooming, but suddenly in the mid 1980's, all ski resorts were facing problems caused by the changes in the environment. Most ski resorts were having low profits.

The losing of the profits were caused because of the change of the average year of the skier. This happened because of the Boom age Generation. People who were born between the 1946 and 1964 were the people who had to somehow manage to raise their families on their own. Because of this, they didn't have much spare time and money for wasting on winter-skiing holidays. For the reason mention in above, many of the resorts were also dealing with the problem of having more buildings than it was needed. Because of that, many smaller ski resorts disappeared. But on the other hand, the large resorts are growing from year to year. In the time being, the number of the resorts is poorer each year. Also one of the issues is the amount of money which is needed to stay in business, because of the great competition.

Additionally, from year to year the trends change rapidly. For example, children these days are more likely to play video games than to go skiing. Other thing is that, every coming year more people are likely to try the snowboard than to ski. But nevertheless the majority of snowboard riders are with the age under 24.

When we are talking about the reasons why there is a decrease of the revenues in the ski resorts, one of the problems could also be the effect of the Terrorist attach on September 11th. People have become more frightened to travel. This also led to a decrease of the profit in the tourism in the rest of the USA as well.

Maybe the biggest problem of the ski resorts is the change of the climate, global warming, caused by the effect of the Greenhouse gases. The thing which is most important to ski resorts is snow, with dealing with this problem it is almost impossible to start the ski season at the normal time. By being late for the startup of the ski season, ski resorts are having problems. The fact is, 20 record temperatures which are measured in the winter period are the temperatures measured in the years after 1980.

-As presented in the case in above, now we are aware of the changes in the environment which lead to drops in the revenues and how managing and solving this problems is important.

Question 2: why is management a more important success factor for ski resorts now, compared to 20-30 years ago?

For the period of past three decades, the ski industry has tremendously changed in the United States. As mentioned in the first part, from 1980's ski resorts started losing profit, all caused by many changes in the environment. Starting from the period of expansion of the private ski resorts which were managed by big corporations, the competition had become greater as never before. And management became very important in order to stay in business. To be in good position, to stay on market, and to gain profit becomes impossible without good managing.

With the problem of increasing the age of the customers from 33,2 to 36,6 many ski resorts are now paying attention to this customers who mostly have families and children. For them, ski resorts are doing their best to attract the customers offering them special discounts just to make their staying as more comfortable as possible.

Continuing the research, we are informed about how ski resorts have struggled to answer to all needs of the customers. The popularity of snowboarding had made many managers to think hard and to try to figure out what will bring customers to their resorts. By building various snowboard ramps and special terrains for the snowboarders, many new people from this segment have gathered. With the newest data showing the increasing of this sport by 50% in the past 10 years, ensures the good future for this resorts.

The appetites of the customers have also influenced ski resorts to enrich their offer to customers by offering them special treatment. Apart from the usual that tourist wanted in the 1970's when everything was about skiing, nowadays ski resorts offer cinemas, spa centers, massages,