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. ...