Coral Divers Resort Case Study

Weakness – 1. No Capital

2. Loss of Profit

3. Competition

Core Problem

Coral Divers Resort is facing increasing competition, a shift in what vacationers desire, and decreasing revenues. Jonathon Greywell needs to examine his business and decide what course of action to take. ... He could make the resort more family-oriented. ... This strategy, while plausible in the overall business sense, will not benefit Coral Divers Resort. ...

A second alternative is to make the result more family-oriented in an effort to attract divers vacationing with their entire families. ... By using Rascals, Greywell gets a free assessment regarding what changes need to be made to the resort to make it suitable for children. In exchange, Rascals actively promotes and books vacations to the resort. Rascals receives lower group rates, and Coral Divers is likely to see year-round 90% capacity bookings. This is the most costly option, as much of the resort would need to be upgraded and additional facilities constructed.

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.