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000 TELUS 4:53 PM Practice Case - Max Ski S... h Max Ski Service \"Business has

ID: 328443 • Letter: 0

Question

000 TELUS 4:53 PM Practice Case - Max Ski S... h Max Ski Service "Business has been really great this year, especially with the move, our customers are very loyal and everyone seems to really like the new location Max announced to his small staff Max had analyzed the store's operating results the night before the staff meeting. Operating results covered the six-month period since they opened their new store and were stronger than expected, up 20% for the year. Even with these great results, Max was wondering how they might be able to increase sales even more. Having a seasonal business meant that he had to "make hay while the sun shines and get the most out of the sio season as possible to cover expenses during the summer months Max wondered what new opportunities there might be for staying open during the off season. Traditionally, Max Ski Service is closed during the summer months. Max wondered if introducing new product lines for the off season, shifting it's product focus to summer outdoor activities like biking fishing or camping would be a better business move. Could closing in the summer be missed opportunity now that they were in their new location? Or was it safer to stick to what they had always done- if nothing is broken why fix it? Max felt that it was important that the store maintain it's specialized focus on ski services and worried that changing to new product lines during the off season would possibly hurt their reputation by diluting the brand. He also felt like the summer break wasa much needed rest from the busy ski season and that the staff came back more motivated Max Si Service is a reputable store specializing in ski equipment and high end ski services in the Mont Tremblant area (personalized fittings, waxing, etc). The store has actually been around for 23 years but has recently re-located. The store's new location is somewhat of an advantage to the business as it is 5 minutes from the ski mountain and in the old Mont Tremblant village. Mont Tremblant is a major tourism hub for the province of Quebec and welcomes visitors from all over Canada, the United States and Europe each year. In fact only about 9,500 people actually live in the little village of Mont Tremblant and about 4,500 in the town of St. Jovite nearby. In recent years, there has been a lot of investment in expanding tourist attractions in Mont Tremblant. Intrawest invested $10 billion dollars in the ski resort. Including the addition of a Casino, new hotels, ski, and tourism venues. It is estimated that 2.6 million tourists visit the area each year Max Ski Service had a primary source of competition during the ski season from another smal, reputable ski service shop called Daniel Lachance Ski Shop also located in the old village. Their rivainy was intense and Max felt that the Daniel Lachance Ski Shop was quite aggressive, often dictating the market. Max wondered how much of the increase in the tourism business over the past few years was being eaten up by their rival The shop is active on Facebook, a great promotional tool because it is inexpensive and reaches a lot of people. At the beginning of the season, Max Ski was profiled in the local media and it also sponsors target people of influence in the community. Other than that, Max Ski relied heavily on word of mouth by offering high quality, personalized service to keep and get new customers Max was pleased that the weather had been exceptional for skiing this winter.Having such strong sales revenue early in the season meant that he had a small new infusion of cash that he could spend on his marketing activities, or on developing new product lines. The question was what should he spend it on to have the most impact?

Explanation / Answer

SWOT ANALYSIS OF MAX SKI SERVICES

ALTERNATIVES FOR MAX SKI SERVICES

A number of alternative are presented in front of Max Ski Services. Few key alternatives are as follows-

New Product Lines

Starting additional product lines would help him stay ahead of the competition and bring more revenues in off season. It could use rotational staff to keep them charged for the peak season.

New Avenues of Revenue

Max could start services such as photographing, videographing of the customers during the activities to boost the revenues without much additional costs

Max should tie up with key e-commerce aggregators to improve its discoverability.

New Marketing Activities

Max could tie with the upcoming resort in the area and serve the customers of the resort and other top hotels around the area

Max should utilize other social media channels such as Youtube, Instagram etc to popularize the brand.

Max should tie up with pupolar travel guides around the country to improve his discoverability.