Blue Mountain Resort Limited: The Night Skiing Decision

Blue Mountain Resort Limited: The Night Skiing Decision

Case Analysis – Mo Kei Yin 1004653412

The one of the most popular ski resort in Canada is in the Ontario, which is owned by Blue Mountain Resort Limited. The resort was founded by Jozo Weider in 1941 and the resort is located in Georgian, which is about 136km distance from Toronto. In mid-June 1979, Blue Mountain Resort Limited was facing a problem and they should solve it quickly. Mr. Gordon Canning, the president and the chief executive officer of Blue Mountain Resorts, needed to determine to build the facilities for the night skiing in the upcoming 1979-1980 winter skiing season or not. He had only half of a month to make the decision, because the deadline is 1st July 1979. In the consideration, we need to think about many different factors to determine to build or not, such as the demand, revenue and the cost. In the following paragraphs, we will have a detailed analysis for the decision.

To make the night skiing feasible, the main issue is to consider the construction of the lighting at the resort’s skiing centre, which costs $135,500. Moreover, Mr. Gordon have to consider the ‘’product and distribution decisions’’, ‘’the pricing decisions’’ and the ‘’promotional decisions’’. First of all, for the ‘’product and distribution decisions’’, we need to think about how can we run the night skiing. For example, we should think about which skiing area will be open at night, the area distributed for the beginner and the intermediate player, how many staff and coach is needed for the operation of the night skiing etc. Moreover, we should also consider opening hours for the bad weather at night, because of the feasibility is lower at night. Second, for the pricing decisions, it is obvious to make the decision on the ticket price for the season pass, the price of the weeknights and the weekends. And the calculate of the price will be mentioned later, in the part of the consideration of the demand. Thirdly, we should find out the promotional decisions. We should have our targeted group, segmentation and positioning for the night skiing, to keep the competitiveness for the daytime skiing.

After discussing the three considerations if we decided to build, let’s go back the

initial consideration – to implement or not. Before we make the decision, we should know the cost of the construction, the positioning of the night skiing, the expected revenue and the demand of the night skiing, in order to predict the profitability of the facility and the existing image of the company. Therefore, in the following analysis, we divide it into three parts, which is ‘’Segmentation of the night skiing’’, ‘’Demand & Price’’ and ‘’The Bias’’, analyzing them by using the quantitative approach.