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Playa Dorada Tennis Club: Expansion Strategy - Case Study Example

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Playa Dorada Tennis Club: Expansion Strategy

Strengths Attractiveness of the PD Resorts among many tourists due to its favorable location and hot climate conditions in winter season; High capacity (340 3-bedroom, 180 3-bedroom, and 72 4-bedroom villas – fully occupied – 3000 guests); Real Estate revenue source from the sale and resale of villas; Value added service of housekeeping and maintenance for homes; Recreational and entertainment assets: a 127-unit oceanfront hotel; an Olympic-size swimming pool; an 18-hole golf course; a marina with 112 boat slips; 23 tennis courts; and several food and beverage facilities; Diversified mix of activities – the key driver for attracting primary and secondary visits to the PD Resorts; Positive tennis image of the PD Resorts due to its effective marketing promotion through the national media Weaknesses Inadequate tennis facilities; Limited space for building additional courts at the existing south-side location; Increased/Additional costs due to the necessity of building a new site within resort and duplicating facilities and service staff Interconnection and dependence of different revenue sources (tennis, hotel and villa rentals and buyers); Unprofitable PD Tennis operations as a result of low capacity levels Opportunities The highest popularity of Florida resorts comparing to any region in the US Growing popularity and demand for resorts and tennis courts Growing capacity utilization of the courts (from 18,4% to 34,8%) Tendency of increasing number of court hours per guest night A growing concern among guest about the unavailability of the tennis courts during the prime playing hours of 9 to 11 a.m. and 4 to 6 p.m; Shift the demand from peak to off-peak periods through special pricing schemes, promotions, and...
Playa Dorada Tennis Club: Expansion Strategy

Overview of the SWOT analysis of the PD Resorts, particularly PD Tennis courts, highlights critical necessity of the organization to introduce some strategic changes and adjustments in order to transform its current weaknesses into strengths, and to gain more from potential opportunities and mitigate potential risks.
There can be reviewed two main strategic options related to the PD Tennis courts expansion:
1. To expand PD Tennis courts by building new additional courts and thus to incur high fixed cost of building the courts + rent of the land
2. To develop a strategy focused on the maximization of capacity utilization rates of the current tennis court facilities.

Maximum capacity of all 23 tennis courts is based on the current operating hours of the tennis club.
This fact illustrates that building new additional courts would even more negatively impact the business at least from the financial side. While this calculation is very mechanical, it provides an insight that the management should focus on developing a strategy which would enable to maximize utilization capacity rates during the low seasons and to avoid bottle necks during the peak seasons by introducing some changes in operational, positioning and marketing strategies. The recommendations for adopting these changes are differentiated by categories and summarized below. ...Show more

Summary

Increase of the total hours available to play
First of all it is necessary to maximize the total number of days available for tennis play. At the moment, the total number of days missed because of the bad weather during a year is 29 days, which is practically 1 month. …
Author : nelskoepp
Playa Dorada Tennis Club: Expansion Strategy essay example
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