Adrenaline Air sports goal is to make its customers skydiving experiences a safe and memorable one. It provides customers the required equipment and instructions for the jump and offers them some of the best scenery to make it a memorable jump.Goals/Objectives/Strategic Intent Adrenaline is a new drop zone as compared to its competitors but has done fairly well and has remained profitable till date.
The objectives Billy Cockrell wants to achieve are increase in return business. Only 3% of all first time jumpers ever take a second jump. The first time jumpers bring in most of the revenue. Spread awareness of the sports since most people are new to the sport and view it as an unsafe and dangerous sport. Acquire the best marketing media which would reach different customer segments of the market. Decrease the price of the jumps to attract more customers and make the sport more affordable. Get larger planes which can carry more passengers and reach higher altitudes and also increase the number of parachutes he has. Expand the days of operation.
Management/Governance Adrenaline Air Sports was founded by Billy Cockrell; he is also the current owner of the drop zone. He is assisted in running the business by part-time employees who are sky diving enthusiasts like him. Structure Adrenaline is owned and run by Billy Cockrell. Adrenaline Air Sports uses part time employees exclusively. Even Billy works part time. He has three pilots who have regular jobs and work at the drop zone part time. He has part time instructors, one part time photographer and some fellow skydivers who would package parachutes for first time divers for a small fee which helped them pay for their jumps. The pilots and some instructors work regularly for Billy. Most other employees came to Adrenaline Air Sports not knowing if they would pay to jump for fun or if they would pack parachutes, coach or fly planes.
Culture The place has a laid back culture. The customers and employees are seen as fellow sky divers who are committed to the sport like Billy. The customers also helped Billy furnish his office building and helped him install some utilities. It’s a very friendly and family type environment where you are welcomed as a sky diver and are made feel comfortable to enjoy the sport. Some of the employees come for the love of the sport and enjoy socializing with other people at the drop zone.
Generic Competitive Strategy In this industry, usually buyer’s or the niche members are extremists that live for the thrill of danger, that being said, the companies in this industry must be aware of the customer’s preferences. Since, many of the customers that Adrenaline Air Sports are targeting are students from universities and colleges, providing incentives that tailor to the tastes and preferences of students such as offering discounts or souvenirs, for example videotaping first-timers skydiving adventure, will amplify niche members in this industry.
With a focused strategy that is based on a low cost benefit, a company’s competitive advantages by serving buyers in the target market niche at a lower cost and price then competitors in the industry. An advantage of this strategy is to motivate buyers to visit Adrenaline Air Sports because they offer the lowest price in the industry. Therefore, the company is strategizing to be the best in the industry that offers excellent service at a low cost.
A major key to sustaining a focused differentiation strategy is that Adrenaline Air Sports should stay committed to serving the niche better than their rivals. Since this industry is so concentrated there is no need to expand by entering market segments that will not be appealing to customers that are not into extreme sports. They should focus on the market niche, and develop ways to benefit themselves in the industry.
Current Strategy This industry relates to a focused differentiation strategy vital to differentiation aimed at securing a competitive advantage with a product or service offering carefully designed appeal to the unique preferences and needs of a narrow and well-defined group of buyers. However, Adrenaline Air Sports would be defined as a focused low cost provider because in this industry, where buyer’s compulsion and inclination are distinctively different, customers are extremely difficult to capture therefore Adrenaline Air Sports offers their customers reduced prices from their competitors. This is the strategy currently used by Billy Cockrell who is trying to get more customers with low cost differentiation where he charges only $16 a jump for veteran jumpers while his competitors charge $19 or $20.The first jump cost $189 at Adrenaline Air Sports and somewhat more at other drop zones.