Harvard Case - Snow Valley Resorts: Revisiting the Service Blueprint
"Snow Valley Resorts: Revisiting the Service Blueprint" Harvard business case study is written by Harjot Singh, Arunesh Garg. It deals with the challenges in the field of Entrepreneurship. The case study is 9 page(s) long and it was first published on : Mar 24, 2024
At Fern Fort University, we recommend that Snow Valley Resorts (SVR) implement a comprehensive service blueprint transformation strategy, focusing on enhancing guest experience, leveraging technology, and optimizing operational efficiency. This strategy will involve a phased approach, prioritizing key areas for immediate improvement while laying the groundwork for future growth and innovation.
2. Background
Snow Valley Resorts (SVR) is a successful ski resort operator facing challenges in maintaining its competitive edge. The case study highlights several key issues:
- Declining customer satisfaction: SVR?s customer satisfaction scores have been declining, indicating a need to address service quality and guest experience.
- Increased competition: The emergence of new resorts and online booking platforms has intensified competition within the ski industry.
- Technological advancements: SVR is lagging behind competitors in adopting technology to enhance guest experience and streamline operations.
- Internal organizational challenges: SVR?s organizational structure and communication channels are not optimized for efficient decision-making and service delivery.
The main protagonists of the case study are the SVR management team, led by CEO John Miller, who are grappling with these challenges and seeking to revitalize the resort?s operations.
3. Analysis of the Case Study
To analyze SVR?s situation, we can utilize the Service Blueprint framework, which provides a structured approach to understanding the customer journey and identifying areas for improvement. The framework highlights the following key aspects:
- Customer Journey: Mapping the customer journey from initial research to post-trip feedback reveals pain points and opportunities for enhancement. For example, SVR could improve online booking processes, streamline check-in and check-out procedures, and enhance communication channels for guest inquiries.
- Front-Stage Activities: Analyzing the customer-facing activities, such as ski instruction, dining services, and resort amenities, identifies areas for service quality improvement and innovation. SVR can leverage technology to personalize guest experiences, offer customized services, and enhance the overall resort ambiance.
- Back-Stage Activities: Examining the behind-the-scenes processes, including reservation management, inventory control, and staff training, reveals opportunities for operational efficiency and cost optimization. SVR can implement technology-driven solutions for inventory management, staff scheduling, and data analysis to streamline operations.
- Support Processes: Analyzing the support processes, such as marketing, finance, and human resources, identifies opportunities for strategic alignment and resource optimization. SVR can leverage data analytics to understand customer preferences, optimize marketing campaigns, and enhance employee training programs.
4. Recommendations
To address SVR?s challenges and achieve sustainable growth, we recommend the following phased approach:
Phase 1: Immediate Action (Short-Term)
- Enhance Guest Experience: Implement a customer-centric approach by focusing on personalized services, improved communication channels, and seamless digital experiences.
- Develop a mobile app: Offer online booking, real-time updates on snow conditions, lift queue times, and resort activities.
- Implement a loyalty program: Reward repeat customers with exclusive benefits and personalized offers.
- Improve customer service: Train staff to provide exceptional customer service, handle complaints effectively, and proactively address guest needs.
- Optimize Operations: Streamline operational processes, leverage technology for efficiency gains, and reduce costs.
- Implement an online reservation system: Automate reservation management, reduce manual errors, and provide real-time availability updates.
- Invest in data analytics: Analyze customer data to identify trends, optimize pricing strategies, and personalize marketing campaigns.
- Improve inventory management: Implement a technology-driven inventory management system to optimize resource allocation and reduce waste.
Phase 2: Strategic Growth (Mid-Term)
- Expand Offerings: Diversify SVR?s offerings to attract new customer segments and increase revenue streams.
- Develop new activities: Introduce alternative winter activities like snowshoeing, cross-country skiing, and ice skating to cater to a wider audience.
- Expand accommodation options: Offer a range of accommodation options, from budget-friendly hostels to luxury suites, to cater to diverse preferences.
- Partner with local businesses: Collaborate with local businesses to offer bundled packages, including dining, shopping, and entertainment experiences.
- Embrace Technology: Leverage technology to enhance guest experience, improve operational efficiency, and gain a competitive advantage.
- Implement a digital marketing strategy: Utilize social media, search engine optimization, and online advertising to reach a wider audience.
- Invest in virtual reality (VR) experiences: Offer immersive VR experiences to showcase SVR?s offerings and attract potential guests.
- Develop a data-driven approach to pricing: Dynamically adjust pricing based on demand, weather conditions, and competitor analysis.
Phase 3: Future Innovation (Long-Term)
- Foster a Culture of Innovation: Create an environment that encourages creativity, experimentation, and continuous improvement.
- Establish an innovation lab: Dedicate resources to research and development, exploring new technologies and trends in the hospitality industry.
- Encourage employee participation: Empower employees to contribute ideas and solutions to enhance guest experience and optimize operations.
- Partner with universities and research institutions: Collaborate with academic institutions to explore cutting-edge technologies and develop innovative solutions.
- Expand Geographic Reach: Explore opportunities for international expansion, leveraging SVR?s expertise and brand recognition.
- Identify strategic locations: Evaluate potential locations based on market demand, infrastructure, and regulatory environment.
- Develop a global marketing strategy: Adapt SVR?s marketing campaigns to appeal to international audiences.
- Establish partnerships with international travel agencies: Collaborate with travel agencies to promote SVR?s offerings to a global audience.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: SVR?s core competencies lie in its ability to provide a high-quality guest experience, leverage its natural environment, and offer a range of winter activities. The recommendations align with these competencies and support SVR?s mission to provide unforgettable experiences for its guests.
- External customers and internal clients: The recommendations prioritize customer satisfaction by addressing pain points in the customer journey and offering personalized services. They also focus on improving employee engagement and empowerment to ensure a positive work environment.
- Competitors: The recommendations aim to differentiate SVR from its competitors by leveraging technology, enhancing guest experience, and offering unique value propositions.
- Attractiveness ? quantitative measures: The recommendations are expected to generate positive returns on investment by increasing revenue, reducing costs, and improving operational efficiency. The potential impact on key performance indicators like customer satisfaction, occupancy rates, and revenue growth will be closely monitored.
- Assumptions: The recommendations are based on the assumption that SVR has the financial resources, organizational capacity, and leadership commitment to implement the proposed changes. The success of the strategy will also depend on the ability to adapt to changing market conditions and technological advancements.
6. Conclusion
By implementing a comprehensive service blueprint transformation strategy, SVR can address its current challenges, enhance its competitive advantage, and achieve sustainable growth. The phased approach allows SVR to prioritize key areas for immediate improvement while laying the groundwork for future innovation. By embracing technology, enhancing guest experience, and fostering a culture of innovation, SVR can position itself as a leader in the ski industry and create a lasting legacy for its guests and employees.
7. Discussion
Other alternatives not selected include:
- Merging with a larger resort operator: This option could provide access to resources and expertise, but it could also lead to loss of control and a dilution of SVR?s unique identity.
- Selling the resort: While this option would provide immediate financial benefits, it would eliminate the opportunity for future growth and innovation.
Risks and Key Assumptions:
- Financial resources: The implementation of the recommendations requires significant financial investment, which may require external financing or strategic partnerships.
- Organizational capacity: SVR needs to ensure it has the necessary organizational capacity, including skilled personnel and effective communication channels, to implement the proposed changes.
- Technology adoption: The success of the strategy depends on SVR?s ability to effectively adopt and integrate new technologies, which requires ongoing training and support.
- Market dynamics: The ski industry is subject to fluctuations in weather patterns, economic conditions, and consumer preferences. SVR needs to be agile and adaptable to these changes.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and responsible parties for each phase of the strategy.
- Secure necessary resources: Identify funding sources, recruit skilled personnel, and establish partnerships.
- Communicate the strategy to stakeholders: Inform employees, investors, and customers about the vision for SVR?s future.
- Monitor progress and make adjustments: Regularly track key performance indicators and make necessary adjustments to the strategy based on performance and market dynamics.
By taking these steps, SVR can transform its operations, enhance its guest experience, and achieve sustainable growth in the competitive ski industry.
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Case Description
On July 10, 2023, a Snow Valley Resorts co-owner was reviewing his organization's first quarter financials for fiscal year 2022-23. Snow Valley Resorts was founded in 1993 in the Indian state of Himachal Pradesh, when the first of the group's four resorts, Snow Valley Resorts Manali, was built among the Himalayan mountain range with panoramic views and pleasant weather. The co-owner had set a goal to increase the organization's revenue growth rate to nearly twice the previous year's rate, but he realized several issues had to be addressed first. Technology and operations at the four resorts needed to be integrated. Communications and transactions had to be smoothened. Actions had to be taken to address various issues raised in the customer feedback. Service quality had to be improved at each of the four resorts. Overall, the ripples of customer complaints had to be converted into guest satisfaction by taking appropriate measures.
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