Coral Divers Resort Case Summary

Executive Summary
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
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