Ski Development and Strategy

Abstract

The economic and strategic issues of developing ski-fields and ski-resorts is an area somewhat over-looked by academics. Drawing on a number of sources, this paper explores activities through which geographic terrain is transformed into customer value. It examines factors used to determine investment levels, including capacity and demand, and the economies of chai- lifts and snow-making. Strategies by which these investments are maximized are discussed. These strategies are characterized as adding value, cost reduction, creating new value or expanding markets. Finally, this paper addresses the economics of integrating activities on the mountains. While a large number of strategies are found that are common to many fields, there appears as yet no clear pattern in profitability between fields, a reflection of the peculiar environment each resort faces.