Problem: The issue that Coral Divers Resort (CDR) is facing is that it has been unable to distinguish itself from other resorts in the New Providence, Bahamas region and has been experiencing declining revenues and unprofitability for the past three years as a result. Other resorts that have been able to specialize in certain segments of the diving industry have been doing well over the past years as the industry continues to grow. CDR must look for opportunities in the diving industry to find a unique niche and gain a competitive edge that will lead to an increase its revenues. The SWOT analysis (Exhibit 1) looks at the current state of CDR and the environment it is operating in. Conclusion and Recommendation: The most effective …show more content…
This alternative provides quick cost cutting to reduce CDR’s expenses, provides additional revenue through the new adventure diving option, and is very easy to implement into its operations. This solution manages to post a positive profit in the first year of implementation (Displayed in Exhibit 3). However, this alternative does not provide a sustainable revenue stream into the future because the lack of competitive advantage it builds and the intense competition of other shark diving focused resorts in the area (See decreasing profits from years 2010 to 2011 in Exhibit 3). Comparison of Solutions: When it comes to judging the alternatives with the most important factors of profit maximization and competitive advantage, the recommended option to become focused on family diving vacations is much stronger than the option to specialize in shark diving. (Displayed in detail in Exhibit 2). Partnering with Rascals posts the highest first full year profits of $166,000 compared to the adventure focused and cost efficiency alternative that posts a first year profit of $112,000. Further, the partnering with Rascals has projected revenues that are sustained further out in the future because of the competitive advantage gained when moving into the family oriented diving segment rather than the adventure oriented segment. The difference in estimated revenue between the two in 2011 is approximately $620,000 with the family specialization solution
For the theme park industry on the Gold Coast this low level of power held by the roller-coaster suppliers means that any of the theme parks will be able to discuss their needs with a number of manufacturers due to the large number available to choose from and due to the suppliers reliance on the theme park industry to sell their products, prices will be reasonable which will also be helped by the fact that there is large competition between the suppliers due to their numbers.
The Heads who are residents Georgia booked a week-long stay in Hawaii with Paradise Resort which is formed in Delaware and conduct the principle of business in Hawaii. The Heads also booked spa appointment before the trip. Mr. Head went to the spa appointment and slipped on the floor afterwards. Mr. Head was injured due to the incident and required surgery to correct the Injuries. Mr.Head file a lawsuit against Paradise Resort in U.S. District Court for the Northern District of Georgia for compensation of $100,000. The issue is whether this court have jurisdiction to hear this lawsuit.
Carnival is “The World’s Most Popular Cruise Line” with 24 “Fun Ships” operating voyages ranging from three to 16 days in length to the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, and Bermuda. Carnival’s success is attributed to its marketing program directed towards
Our recommendation would be for Greywell to focus on family diving. This is because 45% of divers now prefer to travel with their families. With the median age of divers (36 years old) steadily increasing, the resort could focus solely on a niche market that could bring higher revenues by attracting a premium category of vacationers and charging a higher premium price. To encourage a whole family diving experience, young adults below the ages of 18, and even below 13, will be encouraged to sign up for low-risk diving classes - as part of the whole family package - and they will be watched under the careful guidance of the resort’s qualified diving instructors in swimming pools and shallower diving spots. While the Family Resort only has a 43% return on investment (very low compared to the
First, the competitors’ audience seems to be the adult crowd, which provides as an opportunity and suffering for the Cove. They are more family oriented and therefore less directly affected, but the adult night life seems to be more of a profitable success factor in the industry. This establishes there next threat which is the competition’s high vertical integration. The competition brings in a direct revenue stream from the nightlife around the beach. Also for the future of the industry, if the economy gets better tourists may want to go outside of public beaches and go to the private beaches in the industry. These external factors show the industry norms and how well the Cove is doing in the industry.
It would be quite a challenge to try to find a more beautiful outdoor community than Cape Coral, Florida (FL). With its waterway canal systems, exotic birds and floral environment, the city is both a great place to visit and live. One of the drawbacks found within the city's borders is the presence of drug addiction problems that seem to be a part of the overall culture throughout the state.
The following report is a detailed analysis and diagnosis of the current situation at The Stonington Beach Hotel, Bermuda. Many aspects are considered that include the effect that maintaining the property has on human resources, marketing and the organizational structure of the business. Recommendations are made and then discussed further.
Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively
One of the rapid producing leisure industry divisions, the cruise industry faces several challenges. Whereas supply continues to rise at double-digit levels, demand battles to keep speed. Known the demands on communications and the jeopardy of an eroding on-shore practice, less port are in a location to provide accommodation the cruise lines as supply grows. At the similar time, the community sector's inspection of manufacturing practices associated to the surroundings, duty, safety, protection and work increases. Regardless of these confronts, numerous cruise lines report record levels of productivity. This analysis will calculate the leisure-cruise
In the case of Celebrity Cruise Lines, the company is undergoing similar challenges. To respond to these issues, the firm has been moving away from their core business model (i.e. medium sized ships and small markets). As time has gone by, executives have realized the need for competing more aggressively. This has caused the firm to increase the risks they are taking in order to receive a larger reward. To determine the challenges facing the company, we will analyze these issues and provide possible solutions. This is when the company will be more agile in adapting to these kinds of issues.
For my final paper I chose to discuss The Walt Disney Company. Since the Company is so large and made up of four primary business segments, I decided to focus on one particular segment: Parks and Resorts. This segment is composed of the theme parks, cruise-line, and vacation club resorts.
The luxury and destinations segments are similar in that both of them target the upper class or those with healthy disposable incomes including retirees that are at a stage in their lifecycle allowing them to take longer, exclusive cruises often. People on these cruises demand the finest quality in all respects. A formal atmosphere with refined white glove service, along with personalized service accounts for value and satisfaction. Psychologically, these users are above all and deserve the best of the best. Therefore, their lifestyles allow them to be regular and heavy users of cruise vacations. Based on their preference, it can be assumed that these segments are hard core or split loyal to the brands they choose because their attitudes are very enthusiastic towards the type of experience they expect and may be hostile towards anything less. The type of ship is small for both segments, representing the small percentage of the market occupied. Therefore, little priority should be placed on targeting these segments. Users that decide to buy this cruise package will be for the sole psychographic reason of social status to
As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business
The overall business strategy at Life Resort & Spa is that of 'niche' marketing. Rather than operating by offering a cost value to customers (which is nearly impossible within the spa market, given that the product itself is, almost by definition, a luxury product and customers may perceive cheapness as
In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as