Vail Resorts Ltd

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Vail Resorts Ltd
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Strengths

• Strengths
• Innovation (new ideas pedestrian villages,
  resort retail, online reservation, responsive to
  customer demands moving beyond skiing)
• Technological expertise (lift designs, snowmaking
  equipment)
• Brand name/ Reputation (quality service)
• Favorable locations prime ski areas,
  accessibility
• Capital expenditures on continuous improvement
• Control over all activities and services

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Weaknesses

• Extensive dependence on ski season revenues
• Attempting to diversify revenue stream
• Unorganized approach to demonstrating
  environmental sensitivity
• Low market penetration - global tourists

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Vertical integration and diversification

• Vertical integration buying hotels, resort
  reservation
• Diversification Grand Teton Lodge (summer
  operations), Rock Resorts (spa)
• Moving into related areas leveraging existing
  capabilities
• Risks moving into businesses with lower gross
  margins and higher costs of co-ordinating

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Organizational structure

• General management (functions) and resort
  management
• Gives resorts flexibility to differentiate
  themselves and target distinct customer segments
• Dual reporting of resort marketing manager
  creates conflict
• Need to carefully define firm specific issues
  -Results in lack of co-ordination of important
  issues like environmental sensitivity

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Vail Resorts Today

• Industry expected to look up snowboarding and
  children of baby boomers
• Vail Resorts profits for quarter ended April 30
  fell 24 - macroenvironment, war
• Diversified earnings stream 65 (mountain), 25
  (lodging) and 10 (real estate)
• 2002 Non lift ticket revenues at 71
• Intrawest, American Skiing and Vail moving into
  real estate baby boomers looking for second
  homes
• Continuing commitment to capital improvements
  Lionshead village in Vail
• Strategic alliances with complementors BMW,
  Hertz, Starbucks, HP, Sprint, Mountainsmith