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Case Analysis of Swan Essay

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Abstract
Swan’s Ice Arena is a place for people to enjoy ice activities. Due to the reason that David who is the manager of Swan’s Ice Arena wants to increase the revenue, he plans to expand his public skating program. It will not limit the number of customer to 12 to 24 people; instead, it can meet 700 people’s need. The revenue changes from 200 to 3500 due to the increasing number of consumer. But the problem lies in that the target market is consisted of the teenagers and kids. They are free only on Saturday and Sunday afternoon. So it leads to the low revenue and high costs of the left time. By considering how to change the situation, he made a decision to focus on another target market of young couples. To attract the groups, he …show more content…

Different people can be specified in different group and can receive different member cards. So it can be easily to specify the group and a teenagers’ behavior will not affect the young couples. Although Swan’s Ice Arena has many opportunities, the company also faces the problem of threats. In consideration that Swan’s Ice Arena is not a high-tech company, so its action is easy to imitate for other competitors and the simulated cost is low. More and more companies will involve in and share the market of ice activities. By using information system, a company can reap significant competitive advantage(Nick Rackoff, 1985, P285). In order to survive from sharp competition, Swan’s Ice Arena has two ways to solve the problem. One is to enhance the competitive barriers; the other is to add more value to the customer. Although enhancing competitive barriers is a good way to stand out from the competition, it has its limits in the area of ice activities. ‘In
CASE ANALYSIS OF SWAN’S ICE ARENA 4 the face of eventual appropriation, all rent-generating competitive advantages have a limited life’(Rita Gunther McGrath, 1995, P252). Other competitors can imitate from Swan’s ice Arena with low cost. The second way make senses. By adding more value to the customer, such as lower the fees of entrance, add more hours to his program members. These actions may functions well.
Approach Swan’s Iceland Used to Determine Targets Market
At first,

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