The Club Mediterranée

INTRODUCTION

In a sector of the uncertain tourism and in trouble since 2001, the supply had to adjust their strategy to stay competitive. The "Club Mediterranée" is among first world developers of vacation villages and is considered as a reference in the tourism sector. Unfortunately, even if they had realized a 1,67 billion euro turnover in the term of its exercise 2005/2006, this French company suffers to external events and risks. To raise, they had to change their management policy in changing their principal strategy which represented a comparative advantage. Indeed, the diversification strategy has been really little profitable if it is not overdrawn and to grow up their results they have adopted a new market position in other words a new positioning. What are the impacts of the diversification and the new location on the company's profits, and which are the risks of the Club Med group led by its strategic choices, in a sector in trouble?

1. INTRODUCTION ON THE CLUB MED AND GENERAL INFORMATION.

HISTORY

The Club Mediterranée is born in 1950. In the past, Gérard Blitz and Gilbert Trigano create a non-profit association and build the first vacation village in the Balearic Islands by launching the concept of vacation villages combining a camping, a bar and sports activities. The success is immediate; the Club the Mediterranean Sea opens from 1956 its first winter village and it quickly becomes established in the most beautiful places of the planet.

In 1957, the association is dissolved and the Club Med becomes a limited company and Gilbert Trigano becomes a CEO in 1963, while the company develops especially on the European market. In 1966, the company is introduced in the Paris Stock Exchange. During the 1970s and 1980, the Club Med becomes established successively in the United States, in Japan, in Asia and in South America.

Philippe Bourguignon becomes President of the Directory then Henri Giscard d'Estaing succeeds him in 2002.

Today the Club Med is present around 40 countries and it welcomes 1 650 000 customers a year. It employs 18622 persons and realizes a 1 590 million euro turnover.

THE SWOT ANALYSIS OF CLUB MED

On the market

Opportunities Threatens

 Strong development of the tourism sector

 Search for flexibility of the offers by the customers

 Possibility of innovating

 Greater development of the e-tourism

 Requirements