Playa Dorada Tennis Club: Expansion Strategy

Playa Dorada Tennis Club: Expansion Strategy Case Study example
High school
Case Study
Pages 8 (2008 words)
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The Executive Summary Dear Board, After detailed evaluation and analysis of current situation with PD tennis courts and growing opportunities in this part of business, it had been decided not to recommend expansion strategy through adding of the new tennis courts.


One of the alternatives for improving the financial situation of the club is the 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. Thus, high midday temperature and humidity automatically reduces desired daily capacity on average by 20%. In financial terms this month could bring significant revenue if the problem with bad weather could be solved. In order to overcome this challenge it is necessary to upgrade several of the tennis courts (start with those 8 upgraded in 1999) by setting up a tent over the court to cover it from bad weather and to install conditioning systems inside. Tent will be a fixed cost which will serve as a long-term investment, while the conditioning system will be variable cost depending on the weather and demand.
In addition to upgrading several of the courts and making it appropriate for tennis play during a hot weather, it is necessary to increase number of daily hours by adding high power lights to a number of courts. Due to this investment, it will be possible to extend dramatically the utilized space available. Adding 2 additional hours per day during January, February, November and October will increase maximum utilization capacity and allow to service greater amount of clients. ...
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