CABO SAN VIEJO REWARDING LOYALTY PDF

Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

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Case study solutions by top business students. Describes the client management challenges the firm is facing and outlines the different ways that a rewards program may be structured to assist address individuals challenges. Not the questions you were looking for? Click here. CSV must first determine if a loyalty program will align with its overall strategy, add value to its current business model, and achieve additional customer satisfaction.

If a loyalty program is deemed appropriate, CSV must decide on a reward structure. The following case analysis will provide a situation analysis, determine major strategic alternatives, provide uniform decision criteria, analyze possible alternatives, and, lastly, recommend a solution.

Situation Analysis CSV currently serves two primary groups of customers: an aging, core clientele and a younger, more price-sensitive summertime clientele. Internal customer surveys have indicated a desire for loyalty program initiation. This also aligns with outside evidence that younger customers, in general, find appeal with these offerings. The high return rate and management opinion point to the fact that CSV already has a group of loyal core clientele. However, company data shows that the year-over-year growth stays plummeted after the year , and overall stays have not recovered to year levels Exhibit 1.

At the same time, the industry has become saturated with direct and close competitors, some of which have established loyalty programs. Management is currently divided on how to respond to the aforementioned customer trends and competitive environment while at the same time not diminishing the primary value offering. The aforementioned circumstances along with a decision-specific SWOT analysis indicate that management must find a way to address new customer expectations and respond to potentially harmful trends in order to remain competitive Exhibit 2.

CSV may be able to leverage its reputation and existing customer base to adequately maintain customer loyalty without the addition of a formal program.

Conversely, successful adaptation may require new methods. Thus, CSV must decide if their current method of attracting, retaining, and satisfying customers will remain untouched or should migrate towards matching that of the competition. Major Strategic Alternatives Management has decided to further analyze the implications of adopting a formal loyalty program. Before moving to a more rigorous analysis, management developed a list of pros and cons for the status quo alternative as well as loyalty programs with different reward structures Exhibit 3.

Decide against a loyalty program. The first alternative is to decide against the loyalty program and maintain the status quo.

In doing so, CSV will Unlock Case Solution Now!

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Cabo San Viejo: Rewarding Loyalty – Case Solution

Home Essays Assignment Questions: Cabo In general the customer base in summer differs slightly from the one rest of the year due to reductions in price to maintain optimum occupancy levels. Palm Springs summer guests also average 4 years younger. Their Vacation habits reads as followed: The average guest takes vacations per year if not to Cabo San Viejo , then most often to Euroe and the Caribbean islands.

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