January 8, 2011
| Team 2Chuck HowlettKevin KirstenBob MeyerShelley MillerKarolyn Nance |
1. Using the IS Triangle, describe Canyon Ranch’s business, organizational, and information technology strategies.
The business strategy that the Canyon Ranch follows was somewhat difficult to identify because they really don’t follow one particular model. The closest perhaps is Porter’s competitive strategies model which include differentiation, focus and overall cost leadership. Canyon Ranch attains two of the three criteria noted by Porter.
Canyon Ranch has differentiated themselves by combining the traditional spa services with a healthily lifestyle. Their mission was to create “a place where people would be inspired and motivated to translate their healthiest thoughts into action. Canyon Ranch achieves this differentiation by offering traditional spa/resort activities such as golf, whirlpools, massage and beauty salons but by adding nutrition classes, cardiac stress tests and water aerobics for pain management. Their focus is on specific, upper middle class women who will not compromise on getting the best in a destination resort. Customers who want to pamper themselves initially but to incorporate healthier living in their daily routine.
Organizationally, Canyon Ranch follows more of a business diamond strategy. They focus on business processes, tasks and structures and how well they support the company’s values and beliefs. These are all supported by management and systems.
Until recently IS wasn’t much of a consideration. Recently, Canyon Ranch has created an IT leadership position that reports to senior management. While, Canyon Ranch has realized that IS will be of more importance as they continue to expand they operations they still don’t not have a comprehensive IS strategy that is aligned closely with the current business needs and more importantly is focused on where the business is headed.
2. Should Canyon Ranch engage in a personalization and CRM strategy? Why?
Canyon Ranch should engage and implement a CRM strategy to unify all of their customer data into a central view of the customers. Currently Canyon Ranch has a decentralized IT infrastructure having this central view will allow them aggregate the data they already collect. Canyon Ranch could then expand the use of CRM and target specific marketing programs to individual customers. Every location will know in advance of a customer’s visit their likes and dislikes and can use this information to meet or exceed the customer’s expectations. This will create a more personalized experience.
The CRM implementation process should also be used to identify additional data that needs to be captured. Additional purchases as well as wait-list sign-ups will provide additional insight into the demand for the current offerings and allow Canyon Ranch to add more of high demand items and reduce those not being utilized.
An additional benefit in implementing a CRM solution and developing a central view of the customer’s activities would allow the creation of a