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Club Mediterranee - Case study

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  1. Competitive advantage strategies employed by Club Med over the past ten years
    1. New Product Development
    2. Franchising
    3. Customer Relationship Marketing
    4. Mergers and Acquisitions
    5. Service Quality Enhancement
    6. International expansion
    7. Better value for money
    8. Costs reduction
    9. Strategic alliances
  2. Reasons why Club Med chose to pursue these strategies
    1. Too high prices compared to the value perceived by customers
    2. An ageing clientele
    3. An outdated concept
    4. A declining turnover
    5. Net losses
  3. Strategies Club Med might adopt at the beginning of the new Millenium
    1. Focusing on its core business
    2. Emphasizing corporate values
    3. Developing on-line sales
    4. Adopting a vigorous external growth strategy
    5. Concluding strategic alliances with foreign Tour Operators

In 1950, Gérard Blitz established the first Club Med village in Mallorca (Spain). In 1959, Gilbert Trigano became CEO of Société des Villages de Vacances, and in 1963, he became CEO of Club Med. For thirty years, he kept creating new "villages?, (the heavenly enclaves) surrounded by exotic landscapes. In the 1970's and 1980's, the company grew very rapidly. But, at the beginning of the 1990's, Club Med suffered due to the economic crisis as many of its villages had become quite outdated and needed refurbishing. In 1993, Gilbert Trigano nominated his son, Serge, to replace him as the CEO of the Club. But three years later, Serge Trigano, who was being held responsible for the losses of the Company, was evicted by shareholders. Since 1997, the former Euro Disney manager, Philippe Bourguignon, is in charge of Club Med.

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