Drowling Mountain Resort
Drowling Mountain is a community resort, situated 45minutes away from Syracuse, New York, one of the larger cities in New York, with a population of 145,170 people in 2010. Drowling Mountain was also located near some surrounding communities in Onondaga County, which has a population of 321,830 people. Drowling Mountain offers snow related activities such as snowboarding and skiing, along with operating a full service chalet, which has equipment rentals, food and beverage for sale, ski instructions and lodging rentals available for overnight guests. Drowling Mountain has a close connection with the city of Syracuse and its local businesses, however, ...view middle of the document...
o The suppliers are very lenient on the accounts payable terms with Drowling, as they operate under the assumption that “someday” they will be reimbursed. This relationship stems back to the basis of the positive economic benefit that Drowling provides to their city.
o There is not much threat of the suppliers raising costs or lowering quality to meet the resort expectations as they both enjoy the benefits of providing business to each other
• Bargaining Power of Buyers:
o The suppliers of food and beverage enjoy the benefit that Drowling provides to the city through their local suppliers of food and beverage
o Not much power with the suppliers as there is a mutual understanding between them for the repayment of accounts payable, this creates a relationship for both the buyer and supplier to be lenient on the terms of their relationship due to the dual benefits for being in business with each other
• Threat of Substitute Products:
o The threat of substitute products is very low
o Syracuse being very close to Drowling Mountain provides positive benefits to both parties as delivery times, quality of service, economic benefits and being a positive influence in the community is the basis to their relationship that demonstrates a long term commitment
• Rivalry among Existing Competitors:
o There are 34 competing resorts in the state of New York
o In 08-09, 4 million people visited the state of New York for the purpose of skiing and snowboarding.
o Competitors offered lowered prices for their services and they indicated that this was due to the difference in the size of the hills and the difficulty of the runs.
o Quite a few other resorts offered year round services at their resorts. These services included dogsledding, horseback riding, hiking, and biking and wildlife observation.
o Each resort competes for visits to the resort in order to cover costs, and the entire industry would be better served if the region experienced a higher participation rate.
o Resorts differentiate themselves by the type of secondary services they provide to their customers. These include things like chalet service, nightlife, equipment rentals and recreational activities available
o The degree of rivalry among the competing resorts is fairly high, as they compete mainly on price, customer’s satisfaction and quality of ski experience each resort provides.
After a carefully analyzing Porter’s five forces, the ski resort industry is a tough industry to capitalize growth in, unless you have a positive experience product and service differentiation than what other resorts are offering. There are minimal barriers to entry, which eases pressure on the resorts to be able to forecast industry expectations a little simpler.
The participation rate in snowsports was 7.5% of the US population in 2010, with a male to female ratio of 64:36, in which 46% of male skiers were aged between 13 and 34. This demographic demonstrates that an older population is...