Coral Divers Resort Case Study

679 words - 3 pages

Problem: Coral Divers Resort is a safe and knowledgeable scuba diving resort with a beach front location. Over the past three years revenues have declined and Greywell suffered a $5, 174 in losses in 1994. Coral Divers Resort needs to do something before business gets worse and Jonathan Greywell and his resort go out of business.

The first option that Greywell has would be to move Coral Divers Resort to New Providence Island in the Bahamas. The island has a large population, and Nassau the capital has the most developed tourist attractions in the Bahamas. One of the strengths of moving to New Providence would be the large tourist population that gathers there. The island also offers underwater movie sets from popular Bond movies which remain popular dive attractions today. There are also natural underwater dive spots which are ideal for tourists looking for reef or drop off dives. The weaknesses of moving to New Providence Island would be the high costs of land and operations. Greywell might not be able to sell his resort for what it is worth, and the high property costs on Providence would be very high. Two thirds of the Bahamas population lives on this island which wouldn’t improve bookings. Moving to Providence Island would just move Coral Resorts and its problems to a new location.

The second option for Greywell would be to incorporate more adventurous dives into his business. Shark, wreck, wall, and reef diving all offer more adventurous and exciting dives that Coral Divers Resort currently does not offer. The strengths that these types of dives offer would give the Resort a popular and new experience for divers looking for excitement. This plan also has weaknesses. A shark dive would cost $100 for a two tank dive when compared to a normal two tank dive that would only cost $25-75. Greywell would also have to purchase a special chain mail suite for the shark feeder at a cost of $10,000. No one on Greywell’s staff was very excited about the shark feeding diving and most of them would have to be replaced. Novice...

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