Adrenaline Air Sports

Executive Summary

Problem Statement

What strategies should Adrenaline Air Sports implement in order to stay competitive in the region and ensure the sustainable profit growths?

Purpose Statement

The purpose of this report is to analyze the current market situation of the company and to recommend courses of action to address the question raised above.

Alternative Courses of Action

1. Continue the business

2. Discontinue the business

Methods of Analysis

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value...) of an industry structure. The Competitive Forces analysis is made by the identification of 5 fundamental competitive forces. Traditional strategy models, such as Michael Porter's five forces model, focus on the company's external competitive environment. Most of them do not attempt to look inside the company.

Conclusion

The company should continue the business and they must define a target market to have a clear market position and also to establish competitive advantage. For Adrenaline Air Sports to build competitive advantage, the recommendations stated below will greatly improve the company's growth.

Recommendations

1. Advertise on sports and extreme sports TV channels. This would likely attract sports-minded viewers to try out the company's service. This would be more effective than advertising on the yellow pages.

2. The company should consider on investing on a bigger plane that could take more people on the air at higher altitudes in less time. Higher turnover means higher profits.

3. The company should also consider on hiring full time workers. If there are things that are needed to be done right away, there is a workforce that could immediately act on it.

4. Implement programs that would develop awareness on the safeness of the sport.

5. It was said that the sport had very loyal customers. The company should try its hardest to satisfy and even exceed their clients' needs to develop customer loyalty.

6. The sport is expensive and not everyone can afford it. But a high price is also required to operate the business effectively. It is therefore necessary to deliver great value t the very last cent of the client's fee.

Methods of Analysis

About the Company

Imagine flying 10,000 feet over the beautiful Blue Ridge Mountains. Looking down only to see the beautiful and large Smith Mountain Lake. To some this may sound like a dream but to Adrenaline Air Sports, it's a way of life.

Adrenaline Air Sports, which opens for business in November 1999, specializes in first time tandem skydiving & accelerated free fall. Adrenaline Air Sports is a United States Parachute Association (USPA) affiliated skydiving center and the customer's safety is their #1 priority.

Goal: The goal of Adrenaline Air Sports is to make Virginia skydiving experience a safe and memorable one.

Location: its scenic drop zone was located 35 miles southeast of Roanoke Virginia.

Staff: Mr. Billy Cockrell, the owner of Adrenaline Air Sports, headed the exclusive part-time professional staff.

Facilities: They have two Cessna 182 aircraft in their flight line, each having the ability to carry four jumpers to 10,000ft in approximately 20 minutes.

On-Site Services: personal skydiving video coverage, gear sales/rental, packing parachutes

Schedules: Opens weekend and weekdays by appointment.

Marketing: His most effective advertising technique involves using 8 Ð... x 11-inch posters with the headline "Skydive Adrenaline Sports". They also gave posters to their loyal customers asking them to put them in their workplace or residential area.

Also, they are advertising in the yellow pages of area telephone directories, have tried radio advertising briefly and had eye-catching bumper stickers.

Methods of Analysis

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.Appraising a company's resource strength and weaknesses and its external opportunities and threats, commonly known as SWOT Analysis, provides a good overview of whether its overall situation is fundamentally healthy or unhealthy. SWOT Analysis is a simple but powerful tool for sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well being. SWOT stands for strengths, weaknesses, opportunities & threats.

The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value...) of an industry structure. The Competitive Forces analysis is made by the identification of 5 fundamental competitive forces:

1. the entry of competitors (how easy or difficult is it for new entrants to start to compete, which barriers do exist)

2. the threat of substitutes (how easy can our product or service be substituted, especially cheaper)

3. the bargaining power of buyers (how strong is the position of buyers, can they work together to order large volumes)

4. the bargaining power of suppliers (how strong is the position of sellers, are there many or only few potential suppliers, is there a monopoly)

5. the rivalry among the existing players (is there a strong competition between the existing players, is one player very dominant or all all equal in strength/size)

6. as a sixth factor could be added: government.