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Club Med (A)
The rapidly growing American subsidiary of an international resort company seeks to identify the factors underlying its success. The case describes the forces that shape the industry's structure, raising the issue of where it is possible for Club Med to establish a sustainable competitive advantage. Classic sources of competitive advantage are dealt with, leading to the role of corporate culture in creating a sustainable competitive advantage. The case also focuses on service quality from the standpoint of customer dissatisfaction and its associated costs.