Coral Divers Resort Case Solution
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 way for CDR to distinguish itself from other resorts and gain a competitive edge is to partner with Rascals in Paradise and become a specialized family diving resort. It is recommended that CDR use the all inclusive package approach to selling its vacations and split accommodations evenly between Independent Family Packages and Special Family Packages and provide all meal, bar service, and babysitting services at a breakeven price with meal and bar responsibilities outsourced to the local restaurant and the babysitters hired by CDR from the local community. This option is successful in turning the highest positive net income within the first full year of implementation (See year 2009 in Exhibit 4) and results in the highest growth in revenues and profits in the long term when compared to other alternatives. This is achieved because specializing and being a first-mover into the growing family diving segment of the industry generate the highest competitive advantage.
Factor Analysis:
The factors from which this decision was made for CDR were cost, profit, ease of implementation, and competitive advantage.
Profit and competitive advantage were the factors that were most important when looking to determine the best solution.
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 way for CDR to distinguish itself from other resorts and gain a competitive edge is to partner with Rascals in Paradise and become a specialized family diving resort. It is recommended that CDR use the all inclusive package approach to selling its vacations and split accommodations evenly between Independent Family Packages and Special Family Packages and provide all meal, bar service, and babysitting services at a breakeven price with meal and bar responsibilities outsourced to the local restaurant and the babysitters hired by CDR from the local community. This option is successful in turning the highest positive net income within the first full year of implementation (See year 2009 in Exhibit 4) and results in the highest growth in revenues and profits in the long term when compared to other alternatives. This is achieved because specializing and being a first-mover into the growing family diving segment of the industry generate the highest competitive advantage.
Factor Analysis:
The factors from which this decision was made for CDR were cost, profit, ease of implementation, and competitive advantage.
Profit and competitive advantage were the factors that were most important when looking to determine the best solution.