Shearwater adventures Essay Example | Topics and Well Written Essays - 1750 words

Shearwater adventures - Essay Example Rival Sellers: Although Shearwater Adventure has differentiated itself from its rivals by offering a wide product range, the company still faces threats because the competition can either increase its product line or devise new adventures or copy those offered by Shearwater. and thus increase its sales and market share. The rivalry intensifies as new competition enters the market with low priced products and offering good deals compared to the existing ones. In addition to this, the competitors in the adventure industry are now trying to build strong dealer networks with the African local companies in order to increase their credibility, which is also a means of promotion and advertising. The practice of increase repeat bookings from the customers is spreading like fire among the competitors who try different tactics and methods to achieve this. New Entrants: Opening an adventure company in countries like South Africa, where Shearwater Adventure is currently operating, is very easy as compared to the setting up in United States due to high permit costs. In addition to this, the new entrants who focus on rafting trips have to endure a cost as low as $20,000 and if the company wants to offer all the services than the cost could be as high as $200,000. New companies would be encouraged to enter the market by seeing a double digit growth of few companies. Substitute Products: The companies in the industry are providing more or less the same the adventure products. Shearwater Adventure has tried to differentiate itself by providing more choices in the sports than any other company. Although at-least 40 extreme sports exist in the industry, it is difficult to provide them all depending on the location of the company. A company providing water sport activities will try to attract customers by positioning itself as better than land activities. In order to predict the future demand, the companies should link up