Case Analysis of Club Med

The Club Med concept was to provide a complete vacation package for club members within the Club Med villages. The cost of the complete vacation would be included in the price for the time booked into a village.

Club Med operated three different types of villages. The lowest priced and those with fewest amenities were the Hut Villages. Typically, these villages operated only in the summer months, and were the oldest of the facilities owned by Club Med. The other village types were Bungalow Villages, and Hotel Villages, which were characterized by greater amenity levels, and higher prices.

By 1977, Club Med was operating on an international level in several aspects. Its villages were located in a number of different countries, its customers came from a long list of countries, and its employees were also drawn from an international pool. Annual sales exceeded F2 billion, and were climbing steadily. The number of members, also climbing steadily, exceeded 500 thousand by 1980, while the number of

holiday beds exceeded 50 thousand. With all this growth, however, the organization's top management felt that it had not yet effectively exploited the United States market.

In any revision of its marketing strategy for the United States market, Club Med top management wi

. . .
ld permit Club Med to meet its objective of continued internationalization. Meeting this objective would depend, in large part, on where the acquired or constructed facilities were located. Either the acquisition of existing facilities, or the construction of new facilities would permit Club Med to meet its objective of increasing productivity. Either the acquisition of existing facilities, or the construction of new facilities would permit Club Med to meet its objective of preserving the village concept, and of assuring a continuation of the social mixing concept. The construction of new facilities in the North American region would likely serve the organization's increased sales objective among the United States market better than would an attempted orientation of this market towards Club Med's existing facilities. Either either of these alternatives, however, 4would support the organization's objective of increasing capacity. Either orienting the United States market towards existing facilities, or the construction of new facilities in the North American region would support Club Med's objective of remaining as an innovative vacation provider. As it is the style of operation, as opposed to facility character
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Approximate Word count = 1382
Approximate Pages = 6 (250 words per page)

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