Qualité du service Club Med

Threat of entrance. The hospitality industry is a lucrative business, thus there is always the

possibility of new companies willing to invest capital and human resources to compete with Club

Med. More and more vacation resorts are providing the same all inclusive services that Club

Med has been offering for over 50 years.

Supplier's Power: Throughout its more than half a century of operations, Club Med has been

able to establish loyalty and exclusivity among its local suppliers and employees. These suppliers

remained with the company even during its losses. With this mutually loyal relationship

between Club Med and its suppliers. The all-inclusive resort is assured of continuous and

exclusive flow of supplies without any threats of competition from other companies offering

similar services.

Customer’s Power: Club Med has always relied to the loyalty of its clients. As long as Club

Med continues to provide the same quality of service that has endear it to its loyal customers,

then there should not be any threat of losing customers to competitors. Clients are willing to pay

as long as the quality of service remains. However, the risks of losing its customers to

competitors remain. Club Med must ensure that client complaints, demands and needs are

meeting to retain their loyalty.

Threat of Substitute: Theme parks pose the greatest threats of substitute for Club Med.

Younger generations who have grown accustomed to the fast and easy life brought by technological advances prefer to spend heir vacation in themes parks where feast upon virtual

rides, virtual machines, virtual theater and other technologically enhanced form of games and

amusements.

Industry Rivalry: There will always be threats to Club Med’s supremacy in the hospitality

industry. Other hospitality companies are looking at the possibility of expanding their business

operations in other places, too. While Club Med enjoys an edge over rival companies, the threat

is always there. Club Med should be flexible enough to meet the needs and demands of

customers in order for it to attract new customers and retain client's loyalty.

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