Whaleback Mountain Ski Resort is surrounded by other ski resorts and is barely making ends meet. The resorts closer to the city get more of the business, and the resorts that offer superior trails and artificial snow making also have an advantage over Whaleback. Whaleback’s parking lot is relatively small and cannot be expanded. On busy days skiers must park and walk along the roads to get to the chair lifts, and of course the walk is uncomfortable and tiring in ski boots. Whaleback’s trails are quite good by comparison with other resorts, although a little work and the services of a ski trail designer would transform them into very high quality trails. The chalet at the base of the mountain is relatively small but very cosy and attractive. Whaleback is not set up for night skiing.

Next season will make it or break it for the present owners of Whaleback. They have a line of credit at their bank, and they are willing to spend the borrowed money to establish the resort as a viable competitor. They could simply advertise or make improvements, including snow-making equipment and trail design, and they could change their prices up or down. At present their ticket prices are lower than most other resorts.

(a) What strategies seem feasible for Whaleback Mountain?

(b) What do you advise concerning competitive strategy, and what does your advice imply for product, price, and advertising strategy?