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Canyon Ranch

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Submitted By Shighman92
Words 310
Pages 2
Sarah Highman
February 22, 2015
Mrs. Karen Crooker
Canyon Ranch

One service management problem in the Harvard case, Canyon Ranch, is advertising. Service Management is defined as a customer-focused approach to delivering information technology. It focuses on providing value to the customer and also on the customer relationship. Canyon Ranch did not advertise heavily, instead focusing on direct communication and affiliations with similar suitable partners. Canyon Ranch claims that their core strategy is word of mouth and that they’re a word of mouth referral business. They hold customer events and parties and they tell their customers to bring a guest who has never been to Canyon Ranch and does not know much about the company. I believe that if Canyon Ranch would advertise harder they would be able to deliver information about the company to their customers and be able to directly communicate with the customers without the assistance of similar partners. Not knocking the work they have put into the company however if they advertised at strategic locations, like social media for example, they would be able to communicate with a much wider range of people, at a much faster pace. This then allows the company to grow at a much faster, which allows Canyon Ranch to a larger profit margin. This all sounds great except there is another service management problem, Canyon Ranch is carefully selective about their customers. They want people have deep pockets which are great but most business want people to spend a fortune in their business. I believe that if Canyon Ranch wasn’t as selective about the people they allow in their resort that they would have a higher number of customers. My mom always told me not to judge a book by its cover, how do they know which customers to turn away and which ones to allow to the Ranch.

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