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seasons became the most profitable for the company because of the parks yearround temperature of 84 degrees. However, predictions changed drastically once
the parks second spring and summer seasons came about. As the temperature
outside increased the number of guest visits decreased. When the park first opened operations
ran seven days a week, and by mid-summer 2010 Sage Hospitality had cut down to five days a
week; eliminating Mondays and Tuesdays. Customers were no longer interested in staying
indoors during the summer months, especially with the re-opening of seasonal competitors
such as Six Flags New England, Water Country, and Canobie Lake Park. The only advantage Coco
Key had going for them during the spring and summer months was their availability to the open
public; families from local communities managed to keep the park running through their
consistent visits. The water park was no longer a destination for individuals and families; quickly
they became known as the Fitchburg public pool, an inexpensive place to bring your children
for the day.
Due to the lack of guest visits revenue struggled and Coco Key was forced to raise their
prices; diminishing the local business they were attracting. Customers quickly decided that the
price did not match what the park had to offer; the attractions grew old to guest near and far.
In the winter of 2010 the water park had reached its peak; just as quickly as it took off the Coco
Key Empire had fallen. By fall 2011 the park only operated three out of the seven days in a week
and staffing had been cut in half. Coco Key Water Resort managed to hold on for another year
and a half but no profits were made during that time. Finally, the resort was up for sale and bids
were being taken. On September 2nd, 2013 Coco Key Water Resort closed their doors after
being bought out by another company; make way for the alpha dog.
only does Great Wolf Lodge offer all of these wonderful attractions but the
property is twice the size of the original water park; 406 guest suits and 45 acres of
land to house it all (Owen, Paula J.). Through all of the grand expansions made to
the existing resort Great Wolf Lodge has certainly left their paw print for all to see.
Questions:
1. What could Coco Key have done differently in order to be more successful?
2. Do you think Six Flags New England, Water Country, and Canobie Lake Park played a
significant role in the downfall of Coco Key Water Resort? Do you think the two other
Coco Key Water Resorts in New England played a significant role in the downfall? Why?
3. Do you think Coco Key offered enough attractions for their guests to keep coming back?
What do you think would have happened if they expanded upon the water park once
things started taking a turn for the worst?
4. Do you think Great Wolf Lodge will follow in the footsteps of Coco Key Water Resort?
5. In order to maintain the interest of the guests, what expansions/attractions do you think
Great Wolf Lodge should add to their New England location?
6. Both resorts had approximately the same amount of sister resorts. Do you think Great
Wolf Lodge being the only one of its kind in the New England area places a role in the
companys success? Why?
References:
Butler, Brandon. Making a Splash: Indoor Water Park Opens in Fitchburg. Sentinel &
Enterprise. 17 December 2008. Web. <http://bit.ly/1zOfC9M>.
Owen, Paula J.. Great Wolf Ready to Create State-of-the-Art Water Park in Fitchburg.
Telegram.com. 7 October 2013. Web. <http://bit.ly/1yHRZk5>.
Luna, Taryn. Great Wolf Lodge to Open in Fitchburg. The Boston Globe. 22 May 2014. Web.
<http://bit.ly/1woEc3n>.
Teaching Notes:
Abstract:
This case looks at the transition made between two companies in the same industry; how the
differences between both made one company more successful than the other. The focus of this
case is on Coco Key Water Resort and their downfalls; how the company ended up getting
bought out by Great Wolf Lodge. It further looks at the expansions and differences Great Wolf
Lodge has made and whether or not these aspects will make them more successful in the longrun.
The Teaching Objectives and Strategy of the Case:
This case can be used in a capstone hospitality course or a strategic management course.
Objectives would be1. Corporate management
2. Strategy and goals of a company
3. Transition from one company to another
Target Audience for the Case:
Undergraduate students in a Hospitality Management program
Students taking a Strategic Management course
Recommended Teaching Approach:
1. This case may be assigned as a class reading
2. This case may be used for class discussion