Coral Divers Resort Case
Coral Divers Resort Case Analysis
SGMA 571: Strategic Management
Name: Godpower Agugharam
Student #: 10101469
Strategic Recommendation: What do you advise Coral Divers to do?
Core divers Resort (CDR) should focus on making their current business operation more efficient by keeping an eye on operating costs and partnering with adventure resorts for customers who wants adventure diving. The company financials cannot support any expansion for family oriented resort with the company being over leveraged with little cash and liquidity. Secondly, this strategy has ease of implementation and provides a profit increase of 10% with little capital expenditure
Also, Greywell has built a lifestyle around the Coral Divers Resort business and enjoys it with his family. Selling the resort with his little equity in the business will not provide enough money for him to start a new business in another location. Focusing on being more efficient is more profitable for the company as the industry is in its maturity phase with stiffer competition and readily available substitutes.
What do you think Coral Divers would like to accomplish over the next 5 years?
Coral Divers is experiencing declining revenues and unprofitability for the past three years. Other resorts that have been able to specialize in certain segments of the diving industry, Coral Divers have been unable to distinguish themselves from other resorts. Coral Divers Resort (CDR) is looking to differentiate itself from other resorts in the New Providence, Bahamas region. The company is looking for opportunities in the diving industry to find a unique niche and gain a competitive edge that will lead to an increase its revenues.
Strengths
The resort has a beachfront location, the rich resource of the ocean is within close proximity and have developed a good reputation as a quiet and safe resort which appeals to vacationers looking to get away from busy tourist resort hotels. The diving instructors in the
SGMA 571: Strategic Management
Name: Godpower Agugharam
Student #: 10101469
Strategic Recommendation: What do you advise Coral Divers to do?
Core divers Resort (CDR) should focus on making their current business operation more efficient by keeping an eye on operating costs and partnering with adventure resorts for customers who wants adventure diving. The company financials cannot support any expansion for family oriented resort with the company being over leveraged with little cash and liquidity. Secondly, this strategy has ease of implementation and provides a profit increase of 10% with little capital expenditure
Also, Greywell has built a lifestyle around the Coral Divers Resort business and enjoys it with his family. Selling the resort with his little equity in the business will not provide enough money for him to start a new business in another location. Focusing on being more efficient is more profitable for the company as the industry is in its maturity phase with stiffer competition and readily available substitutes.
What do you think Coral Divers would like to accomplish over the next 5 years?
Coral Divers is experiencing declining revenues and unprofitability for the past three years. Other resorts that have been able to specialize in certain segments of the diving industry, Coral Divers have been unable to distinguish themselves from other resorts. Coral Divers Resort (CDR) is looking to differentiate itself from other resorts in the New Providence, Bahamas region. The company is looking for opportunities in the diving industry to find a unique niche and gain a competitive edge that will lead to an increase its revenues.
Strengths
The resort has a beachfront location, the rich resource of the ocean is within close proximity and have developed a good reputation as a quiet and safe resort which appeals to vacationers looking to get away from busy tourist resort hotels. The diving instructors in the