Luxury Sailing Sardinia 2022

Abstract

Luxury Sailing Sardinia operates in the boat charter industry, facing the issue of a fast growing company in difficult times, like the Covid-19 pandemic, the inflation hitting Europe and competing against bigger companies that are at the same time supplier and competitors. How can they change their business model in order to survive in the next year, having high asset costs and being a small player inside a difficult industry? Through the analysis of Porter’s 5 forces and Mintzberg’s 5P model, the case shows different options that the CEO should present to the shareholder meeting. In the case several aspects of the journey of an entrepreneur are shown, combining what an MBA candidate studies in a business school, with real life issue. The company is facing negative net income for the last three years and is deciding now whether investing in the future or focus on cutting the costs for a positive net income. Luxury Sailing Sardinia offers cabin charter on high luxurious sailing catamarans, offering lower prices with a sharing economy spirit to middle - high end customers, in an industry that was focusing on a limited customer segmentation. The company during the case analysis, is changing its operation management, finding new marketing goals, going beyond analytical financial accounting numbers in order to satisfy new customer truths, and proposing an unique way of traveling on a boat in the Mediterranean sea, by analyzing the 5P Marketing framework. The company is trying to scale up fast, building a strong brand awareness without loosing its initial mission.

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