Cold Opportunity The Nils Bergqvist Story A Case Solution

1. How to minimize risk

Since the ice hotel and the ice sculptures were a seasonal business, in the running only during the winter season and highly susceptible to rain and other potential weather changes, Nils can minimize the risk of the business by expanding the offerings of the business, and incorporating other activities that can be carried out in ice during the winters, for example snow tubing, sleigh rides, ice skating, snowshoeing, etc. Risk can also be minimized by buying insurance so that the disaster of business due to turbulent weather conditions can be compensated for. Another method of mitigating risk is to involve stakeholders; Nils can involve other tourism operators in his business so that the financial burden of potential losses is shared. Risk avoidance also helps in minimizing risks; making use of weather forecasting technology, Nils can plan the winter activities of the ice hotel accordingly. Furthermore, Nils should formulate a marketing and business plan and be proactive and develop and implement effective strategies to maximize the business’ potential to function normally and also provide safety and security for the visitors in case of any unexpected hazard or disaster which hampers the running of the ice hotel. (Robertson, Kean, and Moore ).

2. How to leverage partnerships with others? 

Nils made contacts in Japan during trying to connect with people in Japan who would want to visit Scandinavia. One such contact was Sakata, who was a businessman. Nils can utilize this particular contact by financially partnering with him. Whilst Sakata can become an investor in Nils' business; Nils can handle the operations along with his team. Furthermore, the partnerships can be leveraged through word of mouth marketing to attract tourists in Japan to Scandinavia. Nils can collaborate with experts in ice hoteling to guide him through their experience.