In February 2008, President Vacances Paradis Inc (Paradise) was the assessment of its competitive strategy options for the future. Paradise was the market leader in the industry operating Quebec tour, but was faced with a serious problem: FunTours holidays (FunTours) stolen significant market share in Ontario for two years and is planning to conquer the market of Quebec in the 2008/09 winter season. Aggressive strategy FunTours' was to provide higher capacity at low prices, thus creating a price war and lower margins. The president was to consider how to meet the threat FunTours »in the face several problems: a tour industry is fundamentally changing as a result of the transition from traditional travel agents to Internet distribution, limited differentiation of our products have to compete on price, and a growing customer base as more and more people can afford travel. Price has been recognized as the dominant criterion for travelers and a lot of attention to the tour operators. President asks what strategy would be best for short-term and long-term viability of the company. "Hide
by Jonathan Michel Vandenbosch All Source: Richard Ivey School of Business Foundation 10 pages. Publication Date: June 26, 2009. Prod. # 908A09-PDF-ENG
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