Coral Divers and Loblaws Case Answers
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 is not well differentiated in the competitive diving resort industry and needed to do something before the situation worsened.
Issue Identification
For the last three years, revenues have declined, bookings were flat for the first half of the year.
Issue Analysis
1. What external factors affect Coral Divers’ competitive position? How do these factors affect Coral Divers’ strategy?
There are several external factors that affect CDR’s competitive position:
Economic: Scuba diving trips to Bahamas tend to be luxury items and therefore it is more likely people would travel during good economic conditions. This will affect the number of bookings and revenue for CDR because it depends on the state of the economy and the amount of disposable income people have (Magnifico).
Environmental: The bleaching impact of climate change on coral reefs brings impact to the scuba diving industry. This is the main attraction and the main reason for the divers to keep coming back to the resort. When the coral reefs lose its beauty, less divers will come to the resort and they will find new locations for scuba diving.
Social: Air travel has been a concern since the event of 9/11. The changes in demographics of customer base and market taste may
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 is not well differentiated in the competitive diving resort industry and needed to do something before the situation worsened.
Issue Identification
For the last three years, revenues have declined, bookings were flat for the first half of the year.
Issue Analysis
1. What external factors affect Coral Divers’ competitive position? How do these factors affect Coral Divers’ strategy?
There are several external factors that affect CDR’s competitive position:
Economic: Scuba diving trips to Bahamas tend to be luxury items and therefore it is more likely people would travel during good economic conditions. This will affect the number of bookings and revenue for CDR because it depends on the state of the economy and the amount of disposable income people have (Magnifico).
Environmental: The bleaching impact of climate change on coral reefs brings impact to the scuba diving industry. This is the main attraction and the main reason for the divers to keep coming back to the resort. When the coral reefs lose its beauty, less divers will come to the resort and they will find new locations for scuba diving.
Social: Air travel has been a concern since the event of 9/11. The changes in demographics of customer base and market taste may