This essay sample on Coral Divers provides all necessary basic information on this matter, including the most common “for and against” arguments. Below are the introduction, body and conclusion parts of this essay.
Executive Summary Let us assume that all 3 possible strategies are implemented and we can evaluate their pros and cons through tools analyses provided in this summary. First, efficiency strategies: The advantage of improving efficiency on operations is status quo, which generates no further costs or investments. However, the disadvantages are obvious as follow: 1.
As a small-size resort and known for its flexible and personalized services, Coral’s cost efficient operation could cause losses from current guest-flow more than costs saved from squeezing current low number of staff or facilities and services; 2.
By maintaining status quo, Coral Diving Resort would not be distinguished as unique from other resorts in the Bahamas, which is going farther away from the common success of resorts based on strong identities and reputations for quality service; 3.
The limit in cost efficiency and uncertainty of maintaining status quo means it hardly serves as an effective strategy for the continual decline of revenues over the last three years. So, this option is definitely not a good one to be implemented. Then we take a look at Adventure Diving: The advantages of adventure diving are as follow: . Adding additional diving attractions could raise both resort and dive business for Coral, fulfilling the growing market of adventure diving; 2. Bahamas’ legal status on some controversial diving such as shark-feed diving could attract some more American scuba divers, who as well are major forces world divers; 3.
It is easily practicable for Coral Diving Resort to add adventure diving However, the disadvantages of adding adventure diving are obvious as well: 1. Purchasing related adventure diving equipments adds to the cost of Coral’s 2.
Although easy recruitment for adventure diving staff might be an advantage, the lack of interest and commitment from all current Coral staff which means adding adventure diving could cause complete staff replacement, hampering the stability and continuity of operations and services in Coral Diving Resort; 3. These Additional diving attractions are still widely served by hotels and resorts around Bahamas, meaning a growing competitiveness on adventure diving market. The other shark operators’ unhappy attitude towards potential new entrant can support this point; 4.
It requires a minimum of divers on a trip at regular rates to cover the cost, but the additional new and return business of adventure diver is yet to be certain; 5. Some controversial type of diving such as shark-feed diving is facing growing pressure from environmental associations or even future regulation by government as U. S. did before, and is raising public awareness regarding the safety of it. Obvious disadvantages of adventure diving seem to outnumber its advantages. So adventure diving does not seem like an very effective strategy in the short-run and uncertain in the long-run.
Finally, when it comes to family diving resort strategies, the only and biggest concern or disadvantage that comes into our mind is its cost burden, because of required renovation, adding staff and cooperative fees for Rascals in Paradise. However, based on the professional experiences and highly successful rate on various diving resorts that demonstrated by Rascals, we have every right to believe that: 1. Rascals can raise the annual bookings of Coral to the ideal level of 90% that has been desired by Greywell, not to mention the following long-term revenues generated by family guests; 2.
The demographical characteristics of diving provide steady guest flow for Corals. The age-level and the growing market of family resort diving sufficiently support a long-term business for Corals; 3. Based on the current family friendly service and facilities, it is easily practicable for Coral to focus on upgrading its family-oriented diving business; 4. The high costs of renovation can be hugely offset soon after an established steady new flow of family guests; 5. Steady long-term revenues growths provide the grounds for other additions of service, such as adventure diving. 6.
By the turnaround of Rascal’s effort and presence in diving resort industry, Coral Diving Resort can maintain and further develop its own brand of uniqueness. All pros and cons considered, family diving resort strategy is the most effective and prospective one that I strongly recommend to Coral Diving Resort. (Note tables of related tools for your reference) SWOT: STRENTHS -Solid reputation -Safety and knowledgeable in scuba diving -Unique well-regarded, not crowded location and quietness -Family friendly -Personalized services -Flexible accommodation -Prudence -Ties with diving associations WEAKNESSES Family run -Seasonal -Size (a very small-scaled resort) -Relatively simple facilities provided -marginally profitable -small number of staff -Low commitment or interest showed in staff for shark diving -High renovation costs OPPORTUNITIES -Steady increases of divers -Growing market of family diving vacations -High average income of divers and strong consumption -Cooperation offer from experienced Rascals with its highly successful rate -Relatively small physical modification into a family diving resort -Easy recruitment of relevant staff for family resort -Cash-flow brought from the co-op with Rascals Easy addition of adventure diving -Legal shark feeding -Growing market of shark feeding THREATS -Competitiveness of family diving business -Adventure diving services widely adopted by resorts around Bahamas -Climate change impact on coral reefs -Difficulties surrounding air travel after 911 -Environmental pressure on shark feeding -Safety concern about shark feeding -unwelcome emergence in other shark diving among other shark dive operators -Steady guests flow required for the conduction of adventure diving -Subject to Rascals PEST: Political-Legal Forces -Possibility of law banning shark feeding soon High tax on imported goods Economic Forces -High income level of divers -Easy employment Technological Forces -Low technological requirements for scuba diving -Specific environments for diving resorts -Experienced and licensed staff for scuba diving -Provisions of various activities and services -Facilities and amenities within the resort Socio-cultural Forces -Pursuit of distinctive experiences from diving -Seasonal demands for diving resorts -High education level of divers -Strong consumption capabilities -Concentration of population of young and middle-class -Trends of increasing family diving Gradual safety awareness of certain adventure diving – Porters: Threat of New Entrants Low, because the profit is marginal and growth rate has slowed. Rivalry Among Existing Firms High number of diving resorts, diverse family diving program and various types of diving provided by different diving resorts Threat of Substitute Products or Services Low, scuba diving is unique Bargaining Power of Buyers Low Bargaining Power of Suppliers Low Relative Power of Other Stakeholders Medium, ties to diving associations, possible future governmental regulation on shark feeding, protest of environmental groups & safety awareness
TOWS : INTERNAL FACTORS EXTERNAL FACTORSStrengths (S) -Solid reputation -Safety & knowledgeable -Unique location -Family friendly -Personalized services -Flexible accommodation -Ties with diving associationsWeaknesses (W) -Family run -Seasonal -Small size -Simple facilities provided -marginal profit -small number of staff -Low commitment showed in staff towards shark diving -High renovation costs for family resort Opportunities (O) -Steady increases of divers -Growing family diving demand -High income of divers and strong consumption -Offer from Rascals -Small modification into a family diving resort Easy recruitment -Cash-flow brought from Rascals’ plan -Easy addition of adventure diving -Legal shark feeding -Growing demand for shark feedingSO Strategies -Use Rascals’ offer to consolidate and promote the reputation and uniqueness of Coral in U. S. market. -Utilize the conveniences in and out of Coral’s to convert itself into a family diving resort. WO Strategies -Expand Coral’s sales during off-season through the co-op with Rascals. -Use prospective cash-flow from the co-op with Rascals to offset high renovation costs. -Replace current staff who show no interest in shark diving
Threats (T) -Competitiveness of family diving -Adventure diving services widely adopted in this area -Climate change impact -Difficulties surrounding air travel after 911 -Environmental pressure on shark feeding -Safety concern about shark feeding -Unwelcome emergence in shark feeding among other shark diving operators -Steady guest flow required to fulfill shark diving -Subject to RascalsST Strategies -Emphasize Coral’s uniqueness -Retain Cora’s reputation WT Strategies -Stay away from those controversial activities. Replace current staff who show no interest in shark diving