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 quality service;
3. The limit in cost efficiency and uncertainty of maintaining status quo means it hardly serves as an effective strategy for the continual decline of revenues over the last three years.
So, this option is definitely not a good one to be implemented.
Then we take a look at Adventure Diving:
The advantages of adventure diving are as follow:
1. Adding additional diving attractions could raise both resort and dive business for Coral, fulfilling the growing market of adventure diving;
2. 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. ...