Great Wolf Resort Case Study

Great Wolf Resorts, Inc
Case Study

Company Overview

Great Wolf Resort, founded in 1997, is the largest indoor waterpark resort chain in the world. By autumn 2005, Great Wolf had seven indoor waterpark resorts opened and had four more under development. The continuous development of prime locations in destination areas has established their reputation as a family friendly brand.

Current situation

Shortly after Great Wolf went public, their share prices dropped from $19.77/share to 13.65/ share which decreased their market value by 31%. The negative impact was due to the reported quarterly loss of $2.5 million, which was more than twice the expected loss of $1 million. This lowered the confidence of share holders towards the company which led to a drop in share price as most of them were selling it. Even after experiencing such a drastic loss of market of value, Naviaser, the co-founder of Great Wolf, still wants to working towards future expansion.

Gain shareholders confidence

In order to gain back the confidence that they had lost from their shareholders, they would have to communicate its long term growth in an appealing

if they decide to re-brand in order and handle the current level of competition, I believe that they will have a greater chance of having competitive advantage and staying relevant in their operations which will increase their capital spending. As we can see from the financials shown on the case, it will be very difficult for Great Wolf to accomplish its development objectives. The financials shows the by the end of 2005, the investment activities were 95.692 million, which is hardly enough to support the average projections of 200 million. Thus, until the company becomes profitable, it will be difficult for them to meet their growth objectives whilst establishing their brand and managing