Revenue Management Essay
Due: Thursday May 14th, 6:20P EST
Assignment: Respond to two of the three prompts below. Each response should be approximately 800-1000 words in length. Each prompt includes some subtopics that you can use as a guide, but you should feel free to expand on those questions and discuss other pertinent aspects of each prompt.
1. Using Barney’s (1991) VRIS framework, evaluate the USA Ski & Snowboard’s resource base (here’s their website https://usskiandsnowboard.org). At a minimum, you should address things like:
a. What resources does this org have at their disposal? Consider tangibles and intangibles. Describe each
b. Are any of these resources unique? In other words, do they have any resources that their competition doesn’t have? If so, which ones?
c. How likely is each resource to lead to a core competency?
d. Does USA Ski & Snowboard have any resource position barriers? If so, which resources?
e. What resources should USA Ski & Snowboard consider combining to create a distinctive competency?
2. How does differentiation/cost leadership relate to revenue management? At a minimum, you should address:
a. What is strategy, and how does it inform revenue management/pricing?
c. Where does the value proposition come from in a differentiated product? In a cost leader?
d. What are sport examples (i.e., real-world) of a differentiated product and a cost leader? What is the revenue makeup of each? In other words, what proportion of revenue comes from each of their revenue streams (tickets, merchandise, distribution, F&B, etc?) Why is each org structured the way they are?
3. How has pricing in sport organizations evolved over the course of the past 50 years or so?
a. What techniques were used, and what techniques are used now?
b. What are some innovative examples of pricing used in sport?
c. Discuss some price-adjustment strategies that can or could be used in a sport setting? What are the main benefits/drawbacks of each?
d. What role has analytics and quantitative research played in modern pricing decisions?
e. What are the micro, meso, and macro level factors that affect pricing decisions?