Canyon Ranch-Case Study

598 Words3 Pages
Individual Case Analysis 1: Canyon Ranch Introduction: This case is focused on Canyon Ranch, a Spa and wellness company, and the challenges they faced heading into 2004. Topics of discussion will include; company background, IT challenges, and other challenges Canyon Ranch faced heading into 2004. Company Background: Canyon Ranch was founded in 1979 with the opening of Canyon Ranch, Tucson, Arizona. The facility offered a wide variety of services related to Spa and fitness activities, but differentiated itself from competition by including health and healing services all under one roof. Canyon Ranch was also emphasized the need for luxurious services standards and boosted a staff-to-guest ratio of 2.5:1. Canyon Ranch’s unique product offering and emphasis on service enabled them to command rates 25% to 30% higher than other destination resorts, as they were recognized as the gold standard in the industry. Canyon Ranch’s success in Tucson allowed the expansion of a similar destination resort in Massachusetts, in 1989. They continued their expansion with the opening of three smaller Spa Clubs in 2000, 2002, and 2004. Problem Statement: Competition was increasing as other Day Spas began aligning their services with those in the medical field and offered services similar to Canyon Ranch’s destination resorts. Some hospitals began to offer spa treatments and included wellness centers accompanied with nutritionists. A lagging investment in IT left Canyon Ranch with aging software that was not integrated well and did not provide the customer information critical for Canyon Ranch’s continued success. Canyon Ranch also suffered from staffing challenges, specific to the Program coordinator position. This was a vital position that wore many hats, a long training period was required for the Program Coordinators, and poor pay lead to high turnover rates. Problem
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