Blue Mountain Case Analysis Essay

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Blue Mountain Resorts served the south of Ontario in addition to a small proportion of the US Midwest. Three types of skiers existed: the day skier (38.4%) who visit one or more times during a year, the multi-day skier (35.5%) who stay two to three days, and the vacationers (26.1%) who stay fours days or longer. In addition, 65% skiers skied on the weekend and visited an average of ten times a season.

For the 1979- 1980 winter skiing season, Gordon Canning must decide whether night skiing facilities should be installed on the Blue Mountain Resorts slopes. If do, need to determine pricing strategy for lift tickets and season passes. First move: approach Harold abbots, Blue Mountain’s controller to determine incremental investment costs of …show more content…
Implement night skiing in the North area which is advanced
As contribution margin for undertaking the project is positive, this alternative allows Blue Mountain to capitalize on the growing market for night skiing. However, as the North area is designated for advance skiers, the company may realize less potential visitors than predicted due to usage volumes.

2. Implement night skiing in the BigBaby/O-Hill which is beginner and intermediate
Again, this alternative allows Blue Mountain to capitalize on generating more revenues and expanding their current product offerings. By implementing night skiing at the beginner and intermediate levels, it can allow for customers to build a preference for night skiing while they are amateurs. As they advance in ski skills and graduate to the more advance hills, they would prefer to have night skiing there as well, thus generating a need for night skiing at the other hills as well.

3. Do not implement night skiing
This option allows Blue Mountain to eliminate the potential risks associated with this expansion. However, it does not meet the company’s objective of offering new opportunities of skiing activities to its customer base. Therefore, this limits Blue Mountain Resort’s growth as a
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