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:
1.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;...