Module 2 Exam Essay
Question One
Splash Beach: Our mission is to provide customers with the most unique, enjoyable, and relaxing experience for friends, colleagues, or family promoting and creating better lives through spreading the power of optimism to become the world’s most respected service brand.
Question Two
In my view, the decision to grow the business portfolio through unrelated diversification can be advantageous to the company. Through investing in unrelated diversification, the company will add new and diverse products and services. This allows the organization to penetrate other markets and increase its portfolio. Splash Beach currently enjoys good revenues per season and introducing other unique services, for instance, an eatery within the park can lead to more profits.
Question Three
Splash beach currently enjoys annual revenue of $5 million and this symbolizes the success of the organization. Therefore, increasing the business portfolio through related diversification is not a viable idea since it is already investing in all activities that a local water park can provide. Additionally, the organization enjoys a good reputation with the community due to such services. As such, it seems prudent that Splash Beach offers their stellar services to other communities to increase both their portfolio and revenue.
Question Four
Investing in a differentiation strategy can be advantageous for Splash Beach because customers will get a new product, service, and experience thus adding to the uniqueness of the organization. For instance, Splash Beach can invest in open restaurants that have gym amenities to attract new customers. Additionally, existing customers are willing to pay for extra services. The success of a differentiation strategy is offering products and services differently from other competitors.
Question Five
An organization that invests in a low-cost strategy offers products and services at low prices to sell more and increase their market share. The strategy has its pros and cons depending on the location of a business. In this case, Splash Beach can benefit through this strategy since there will be increased sales. For instance, they can offer discounted rates to swim, drinks, and food as well. The organization however needs to be wary about compromising its customer service since serving many customers can be overwhelming.