Canyon Ranch Case Study Essay
Canyon Ranch Health Resorts (or “The Company”) was created in 1979 to be an inspirational and motivational place where clients could relax, get away, and take control of their own healthier lifestyles. As of 2004, Canyon Ranch was unquestionably the industry leader when it came to the luxury portion of the spa industry.
Lack of potential entrants in a niche market, scale economic practices (development of cosmetic line), and a strong US economy are just a few of the reasons why The Company has continued to thrive despite engaging in archaic, inefficient IS strategy.
New competitors, economic downturns, and the emergence of substitutes are now a very real threat to The Company’s current …show more content…
In 1999 some functionality to store Customer Data was implemented at the Berkshires location via a system that tracks customer preferences (Guestware). Although this system is in place, the Program Coordinators and key employee positions that service the customer do not have any IT support. They are, in fact, still working on paper basis.
Figure 1: Old IT System
The IT of the Company is neither effective nor efficient. It does not support and cannot support the operational processes and can only be used for basic tactical or strategic support.
Furthermore, the current IT achievement potential is not very high, since the system cannot be upgraded easily. The current systems, even if used with adjusted business processes, cannot help achieve future success. Therefore we rate the IT infrastructure only supportive and in means of efficiency and effectively it is strategic wastage, respectively strategic overexpansion.
Figure 2: Situation Analysis of IT Infrastructure
The general vision should be to upgrade the system to maximize efficiency and customer support. The Company should not implement an aggressive IT strategy nor a momentum strategy (do