Shearwater Adventurs

Shearwater Adventures

1.   Identify the opportunities and threats facing Shearwater Adventures – briefly justify your responses.

2. Is the Extreme Adventure Industry likely to generate excess profits?  Why, or why not?

Opportunities/Threats

One of the largest success factors with Shearwater was their ability to take advantage of word of mouth in the expansion of their sales. Besides advertising on local level, it also partnered with leading operators to boost its reputation and reach a wider global audience. Allen Roberts also considered acquiring other companies and he continued to build a sold management team by attracting the right person to the right job. By offering far more adventures than its competitor, Shearwater Adventures had been differentiated from others which had only three options to offer at most. This perhaps more than anything provided a broad differentiation strategy creating additional opportunities for Shearwater .In 2006 it has also increased its number of customers by 16% from 36,056 to 41,868. Apart from white-water rafting, boating and riding elephants which are commonly offered by other competitors, Shearwater Adventures include a wider range of activities such as bungee jumping, skiing, hiking, biking, climbing, horseback riding and safaris. This move allows more customers (various age, gender, interests) with a diversity of preferences to make bookings with Shearwater Adventures for its wide selection. The ability to draw a younger crowd is another significant opportunity that Shearwater needs to take advantage of. However, Shearwater needs to be aware of the threats it faces in the industry. The product they offer is basically something that requires disposable cash to partake in. Any downturn in the economy will have a significant affect on their profitability and ability to continue to offer multiple adventures. If their opportunity is to draw a younger crowd in, they are most likely not to have the...