Regardless of future acquisitions, however, this merger is important for two reasons it offers advantages to the hunter interested in a caribou hunt, and it may well have far-reaching implications for controlling the soaring prices faced by traveling hunters. Basically, World Outfitting Corporation contends that corporate-level outfitting will create economies of scale for volume purchasing and marketing. Imagine the potential of a company like World Outfitter Corporation offering one-stop shopping hunting travel while managing costs and holding down hunt prices. Instead of negotiating for the price of 200 gallons of aviation fuel, they could bargain for thousands of gallons, secure lower hotel rates based on high-quantity bookings, or even deal with airlines for special rates based on volume. They could even arrange for special taxidermy services and pricing based on hundreds of mounts. The relationship could also lead to reduced marketing costs and achieve cost savings on printing, office and other support staff. The list of possible savings goes on.
Although Safari Nordik and Mirage Outfitter will continue to operate independently under World Outfitter Corporation's umbrella, officials say they will be able to take advantage of numerous operational efficiencies created by the merger. For example, both companies could jointly fly clients directly from Montreal to a central runway on a large jet, such as a 737, before flying them out to bush camps by float plane. Also, the........(continued)
