Question

You are a business consultant to the Northern Virginia snow skiing industry. Wintergreen Ski Resort has asked for your help this coming season to determine business strategy and how to create a plan for realizing maximum profit. Using economic analysis, what advice would you give management for the times to open and close the season?

Answer 1

Solution

Note : Since there are no numbers provided,I am giving a generalized solution without numbers.

In order to maximize profit,any company should try to increase it's revenue and / or reduce it's expense.

Here,they can primarily focus on the increasing it's revenue.

Here,it is given that Wintergreen is a skiing resort.Skiing is mostly done only during winter when there is more snow.

Virginia has it's winter for 3 months starting from Dec to March which is 3 months.during these months it can promote the skiing industry as more numbers for skiing more the demand for it's resort.

For the remaining 9 months in a financial year,it can serve as a tourist destination by serving as a normal resort.It can do promotions to increase it's occupancy during these off-peak season through providing offers like discounted price.

It can also increase the extent the peak demand slightly (by 1-2 weeks more)beyond the winter season (3 months) by conducting classes and theory sessions in skiing before the actual skiing starts.

It can collaborate with skiing bodies to conduct seminars across the country during the off-peak season so that their demand during the peak season increases which means they can increase their price leading to higher revenue.

They can also improve their brand by collaborating with the skiing institutes.