CULTURAL he chooses to reposition and rebrand
CULTURAL TURNAROUND AT CLUBMED 1. Club Med’s culture before 2000 Club med is a vacation village concept, peaceful and soft place with an artificial environment. For Blitz and Trigano, all Europeans deserved vacations on the seaside and under the sun. They wanted to focus on a relaxed atmosphere with an open minded life style. Also, they focus on a festive atmosphere and isolate the customers of the local environment.
2. The reasons of Clubmed’s success between 1950s and the 1990s Very diverse destinations * Festive atmosphere (Village dances, gym competition) * Village created to make new acquaintances (shared bathroom…) * GMs and GOs are the keystone of the Club Med’s culture * Quality of services, accommodations 3. Difficulties in the early 1990s * Operation desert storm strongly impacted the tourist industry * Serge Trigano did not manage to put the situation right * No local contact GO and GM repelled some customers and the obligation to participate to activities 4. a. Why did Bourgignon’s plan fail? The plan of Bourgignon fails because he wanted to transform the village into a service company, based on a growth strategy (internal: low cost village for young people and external: Tour operators and club med gym).
Also, he wanted to cut the price by replace the employees by local supplier and to implement a real IT infrastructure.These elements was not unique to Club Med culture, thus it was not a success. In addition, external factors have not helped such as the 9/11 that creates a collapse on the tourism.
b. Do you think that Giscard D’Estaing’s plan will be more successful? There is a chance that the strategy of Giscard D’Estaing will be more successful because he chooses to reposition and rebrand Club Med. He wanted to close 50 low-end villages, to renovate the infrastructure.He rebrands Club Med by creating a more sophisticated advertising campaign. All strategies are financing through the closure of some villages, which enables the group to reduce costs.
However, some factors could hinder the strategy of Giscard D’Estaing as the threat of new entrants (low cost) but also because of the mortgage crisis. Giscard D’Estaing offers high-end villages with higher prices and the crisis reduces the purchasing power of households.