The strengths and weaknesses of Club Med Hotels

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Club Med

Name: Lu Jiaying

Student Number: 997370526

Club Med was the ninth-largest hotel company in the world during 1986. It is a famous chain of club-style, all-inclusive resorts. So far, the company has been succussful in the North American market. Club Med possesses strong leverage with its buyers, suppliers and labour. Although many new competitors were appearing quickly throughout the world, Club Med is still dominant in the resort market. Since several competitors had duplicated the experience from Club Med, Jacques Giraud, president and CEO of the company, is concerned about the real strengths and weaknesses of the company. Giraud plans to make some appropriate changes in order to have the most leverage on performance.

As a major company in the all-inclusive resort market, these are several strengths let Club Med be successful. Its main strengths lied in the company spirit and the understanding of customer needs. "Family spirit" is a significant part of the company's culture, which helping the company reach a high level of commitment among employees. Besides, understanding the needs of customers is also important for a company. Club Med has created a relaxing and enjoyable atmosphere for its customers. The rooms in Club Med village lacked traditional conveniences, such as radios and telephones, which will help customers completely forget about work during their vacations. In addition to these two main strengths, the company has also done well in other aspects, such as its strong marketing and distribution strategy and the policy of nomadism.

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However, there are still some weaknesses. Firstly, comparing with its competitors, Club Med's spartan accommodations are not as attractive as the fashionable rooms from others. Secondly, the charge for cigarettes or drinks at the bar can be another weakness. In contrast, Jamaica-based Jack Tar Village company, which is Club Med's main competitor, covers everything in its all-inclusive price, including unlimited drinks. In addition, single-oriented image, GO turnover, foreign- exchange fluctuations can threaten Club Med as well.

Here are some alternatives in order to help Club Med become more competitive in resort market.

  1. Covering drinks and cigarettes in ...

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