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Drowling Mountain is a community resort located just 45 minutes away from Syracuse, New York, a city with a population of 145,170 in 2010. It is situated in close proximity to several surrounding communities within Onondaga County, which has a population of 321,830. Drowling Mountain offers a range of snow-related activities, including snowboarding and skiing, and operates a full-service chalet providing equipment rentals, food and beverages, ski instructions, and lodging rentals for overnight guests.
Despite its close connection with the city of Syracuse and local businesses, Drowling Mountain has faced financial challenges in recent years.
The resort struggles to cover its fixed assets and operational costs, primarily due to lower top-line revenue sources. With 34 resorts in the state of New York competing for visitors, Drowling Mountain must establish points of differentiation and unique services to secure its sustainability in the face of rivaling resorts.
The primary objective for Drowling Mountain is to develop a new marketing plan focused on top-line growth. Increasing sales and implementing new pricing schemes will be crucial for the company as it aims to reduce its financial debt and bolster its cash flow to ensure long-term viability.
Before formulating a new marketing plan, it is essential to conduct a thorough industry analysis using Porter's Five Forces framework to understand the competitive landscape:
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The high capital requirements needed to establish a new resort and the absence of suitable locations act as significant barriers to entry.
Suppliers demonstrate flexibility in accounts payable terms, given the positive economic impact Drowling provides to the city of Syracuse. There is limited threat of suppliers raising costs or compromising quality.
Based on this analysis, the ski resort industry is challenging to achieve growth in, necessitating unique product and service differentiation to stand out. Minimal barriers to entry make it essential for resorts to anticipate industry expectations accurately.
In 2010, snowsports' participation rate was 7.5% of the US population, with a male-to-female ratio of 64:36. A significant portion of male skiers falls within the 13-34 age range. These demographics indicate an older population's interest in snowsports, emphasizing the importance of attractive services for this age group.
Martin Cartier, the Chair of the Board of Directors, and Patrick Stanley, a long-time employee, play pivotal roles in Drowling Mountain's revitalization. The involvement of local investor Peter Bass is crucial in preventing the resort from going into receivership and ensuring effective operations. The eight-member board of directors, designed for eleven members, shares a common goal of making Drowling Mountain profitable. However, a lack of available cash for operations sustainability remains a significant concern for all stakeholders.
Drowling Mountain values its relationship with the city of Syracuse, local businesses, and residents. The resort is the preferred choice for locals planning ski adventures. Providing quality amenities for all patrons has been a central focus for the board's decision-making. However, the shortage of available cash hinders capital improvements.
Three potential alternatives can be considered:
Among the alternatives, the most favorable option is to implement Alternative #1: changing the price structure for lift passes. Lowering prices will likely attract more visitors, as it is viewed positively by consumers. Increased patronage will bolster top-line revenue, benefiting both the resort and its customers. This change aligns with Drowling Mountain's goal of achieving sustainability through higher visitor numbers.
The implementation of the new pricing scheme should occur within two months. The goal is to attract more skiers to Drowling Mountain, covering expenses for the ski hill. The resort should focus on casual skiers and non-skiers due to its geographic location, which may not draw experienced or frequent skiers. Additional services can be bundled with lift passes to enhance customer satisfaction and retention.
By lowering prices, Drowling Mountain can achieve a competitive edge, increase patronage, and ensure a positive customer experience, ultimately leading to improved financial stability.
Reviving Drowling Mountain Resort: A Strategic Analysis. (2016, Apr 14). Retrieved from https://studymoose.com/drowling-mountain-in-hospitality-industry-essay
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