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MASSEY UNIVERSITY

A SWOT Analysis ofWhale Watching at Kaikoura and appropriate strategic initiatives

Submitted by:Sajid Khan

08530742

Submitted to:Glenys Patterson

Coordinator 152.700Organisation and Management

1st June, 2010.

SWOT Analysis of Whale Watch Kaikoura

Strengths (Internal) Weaknesses (Internal) The only marine-based local whale watching company.

Highly trained staff capable of handling modern

technology like mechanical boat.

Local tourist guides who have knowledge of related

history, culture and geography.

Providing opportunity to see many rare species like Fur

Seals, Dolphins, Albatross. Humpback Whales, Pilot

Whales, Blue Whales, Killer Whales and Southern

Right Whales.

Ability to provide facilities such as viewing from boat,

plane and helicopter at reasonable price.

Strong partnership with Council, DOC, Ngai Tahu and

Te Runanga O Kaikoura.

It is enjoying community support due to its constructive

role and good reputation.

Establishment of good terms with tour operators and

travel agents.

Limited resources for growth.

Support services for health, recreation and sport are

remote from Kaikoura (based in Christchurch, Nelson

and Blenheim).

Very far for overseas tourists. To visit Kaikoura the

overseas tourist are therefore required to spend

reasonable time and money.

Inability to provide accommodation and food to large

number of tourists due to limited number of hotels and

restaurants.

Not well recognised for other activities beside whale

watching.

Opportunities (External) Threats (External)

Being the only company it is in better position to raise

the prices to increase the revenue.

New tourism products like deep sea diving, cultural

trips, bird watching and skydiving can be started.

Training to local guides to enhance tourist satisfaction

level.

Living colorful Maori culture in the area can be used to

attract tourists.

Establishment of resorts, hotels, museum, zoo, theater

and cinemas to provide maximum facilities for

customer satisfaction.

Entrance of other experienced companies.

Refusal from DOC for further business.

Migration of whales to other areas.

Whale hunting

Increase in tourist demands for facilities like round the

clock transportation, luxury accommodation, traditional

cuisines and high caliber health and hygiene facilities.

Increase in environmental pollution is negatively

affecting the life of already endangered creatures like

Dolphin and Whale.

Increase in prices of travel fare, food and stay.

Community may withdraw their support because they

already believe that tourist are threat to their lifestyle.

Kaikoura case study| 1

Strengths

The strengths are any activities the organisation does well or any uniqueness in terms

of resources that it has (Robbins, Bergeman, Stagg & Coutler, 2007). In existing case,

Whale Watch Kaikoura is a local organisation without any national or international

competitor. It is providing a unique experience to its customer by providing them with an

opportunity to watch the endangered rare species like Fur Seals, Dolphins, Albatross.

Humpback Whales, Pilot Whales, Blue Whales, Killer Whales and Southern Right

Whales.

It has trained its staff in modern technologies like information technology and

mechanical boats. In addition, the local guides from Ngai Tahu are hired who have

knowledge about the history, culture and marine life. Furthermore, it has also

established links with THL( The helicopter line) so watching through helicopter and

plane is made possible. Similarly permits for swimming with dolphin are also setup.

Whale Watch Kaikoura has cordial relations with related organisation and community. It

has good relations with Council, Department of Conservation (DOC), Ngai Tahu and Te

Runanga O Kaikoura. Similarly, most of its staff members are local. In addition, it has

provided a conducive environment to the local community for revenue generation by

attracting domestic and foreign tourists therefore community also support them. The

community is also taking part in activities like establishment of tracks etc. Lastly, the

company has provided tour operators and tour agents with good business therefore it

has good relations with them.

There are few things which are not the specific strengths of the organisation because

they are present in the external environment but they are playing an important role by

attracting tourists and providing them with conducive environment for enjoyments.

These are, living colorful Maori culture in the area and facilities for food and stay like

hotels, restaurants, souvenir shops etc.

Weaknesses

The weaknesses are any activities the organisation does not do well or resources it

needs but does not possess(Robbins et al, 2007). Whale Watch Kaikoura is domestic

Kaikoura case study| 2

organisation with very limited resources. It is providing services at Kaikoura which is

situated in south of New Zealand therefore customers are required to spend huge

amount of money beside reasonable time to avail the services. It is experienced and

known for only Whale watching activities. Similarly, it is unable to accommodation and

food to large number of tourists. Lastly, it has acquired support services for health,

recreation and sport remotely from Kaikoura (based in Christchurch, Nelson and

Blenheim). These are the main weaknesses of the organization.

There are things which cannot be specifically termed as weaknesses because they are

present in the external environment but they are affecting the business in negative

manners. The tourist spend huge amount of money to get maximum possible pleasure

but in kaikoura there is little or no night life. Similarly the tourist want to be welcomed

rather than to be hated. In existing case the community believe that visitors are eroding

their life style.

Opportunities

These are the positive trends present in the external environmental factors(Robbins et

al, 2007). In case of Whale Watch Kaikoura, it is the only company providing these

unique experience to its customers so it can raise prices of its services to increase the

revenue but that can result in reduction of customers. In addition, it can launch other

related services like deep sea diving, cultural trips, bird watching and skydiving.

Similarly it can establishment of resorts, hotels, museum, zoo, theater and cinemas. All

these opportunities can be exploited to generate more revenues.

Threats

These are the negative trends present in the external environmental factors(Robbins et

al, 2007). In existing scenario there are many threats in the external environment. As it

is a profitable avenue, so big and experienced companies can also enter for

competition. Similarly illegal whale hunting or migration of whales to other areas are

also posing a serious threat to the business. Moreover there are chances that DOC may

refuse to extend / enact further agreement.

The demands of customer are increasing all over. They can demand facilities like round

the clock transportation, luxury accommodation, traditional cuisines and high caliber

health and hygiene facilities. Similarly increase in prices of travel fare, food and stay. All

above mentioned threats can adversely impact the business.

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Strategic Initiatives

Not every strategy is appropriate for every business. Therefore, SWOT analysis is

conducted to identify strengths, weaknesses, opportunities and threats so that

strategies could be formulated, which are properly matching to the needs of the

organization and its specific market (Adams, 2005).

In reference to the context, following three strategies are proposed for corporate,

business and functional level along with justifications.

Growth Strategy

It is a corporate-level strategy that seeks to increase the level of organisation’s business

by increasing the number of products (Robbins et al, 2007). The combination of

concentration and unrelated diversification can be useful in existing case. The SWOT

analysis reveal that there are two main areas which can be utilised to increase

operations of the business to yield more revenue.

Firstly, Whale Watch Kaikoura should concentrate on its primary business and introduce

new tourism products like deep sea diving, cultural trips, bird watching and skydiving.

Secondly, resorts, hotels, museum, zoo, theater and cinema should be established.

These initiatives will enhance the customer base and ensure their maximum satisfaction

during their stay at Kaikoura. These will also allow the company to increase their profits.

Focus Strategy

This strategy advocate that one special market or customer group should be targeted to

increase the organisational business. In case of Whale Watch Kaikoura the major chunk

of customers is comprised of overseas tourists. Therefore, the focus should be

overseas visitors.

Customer service strategy

It is the functional level strategy that seeks to determine how to support the business

level strategy. In existing scenario almost 90% of the visitors are overseas tourists. Who

are spending huge amount of money and time visit kaikoura. Therefore, the company

need to concentrate on providing the maximum utility so that customer satisfaction

could be ensured. This will provide the tourists with a sense of confidence that

standards would be upheld and quality is adhered to. Consequently, it is an important

means of maintaining the demand for the products offered by Whale Watch Kaikoura.

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References:

Adams, J. (2005) Analyze Your Company Using SWOTs, Supply House Times, 48(7), pp. 26-28.

Robbins, S. , Bergeman.R, Stagg, I. & Coulter.M (2007). Management 5. Upper Saddle River, N.J., Pearson.

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