Coral Divers and Loblaws Case Answers

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ADMS 4900 N: Management Policy Part I

Coral Divers Resort: Case Analysis
Synopsis
Coral Divers Resort (CDR) is a small, but well-regarded, diving resort in New Providence Island in the Bahamas. It is owned by Jonathon Greywell, who work full-time at the resort and is a diving instructor certified by PADI and NAUI. CDR had established a solid reputation as a safe and knowledgeable scuba diving resort that offered not only diving, but also a beachfront location. Many divers had come to prefer CDR over the other crowded resorts in the Caribbean. It had been in operation for 10 years with annual revenues reaching as high as $554,000. However, over the last three years, financial performance had fallen off. Greywell realized that the resort
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Firstly, they have no competitive advantage. Greywell needs to differentiate his resort from competition, and one such way is to add some specialized features. Secondly, its finances are weak. Revenues had declined, Greywell needed to do something to increase business before the situation worsened. Therefore, Greywell is in a generally good position in terms of his resources. The challenge for Greywell is to effectively and efficiently implement these resources to create a resort that is profitable and different from competitors.

Recommendations/Solutions
3. What strategy would you recommend to Greywell?
Note: All numbers and calculations used below can be found in Appendix 3.
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

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