THE CLUB MED'S STRATEGY

1. Introduction on the Club Med and General Information

> History

> SWOT Analysis

> The diversification’s strategy of Club Med

2. The new market position

> How did Club Med reposition on the market?

> Why did Club Med make a reposition market?

> Impact of this strategy

3. Recommendations for the future

> Alternatives and Recommendations

> Pay attention on the risks of macro and micro economy

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