Read through the following case study. Make a list of all the strengths, weaknesses, opportunities, and threats you can think of in relation to the Sorenson Motel. Use the SWOT Analysis Form provided or create your own similar document. You must include at least three valid points in each section.
SWOT Template.docx (Word document)
Case Study:
The Sorenson Motel is a 50-unit, no-frills operation in the less scenic part of a major Queensland resort town. The owner, John Sorenson, firmly believes that there is a need for his style of low-cost family accommodation amid the luxury and beauty of the area. His rooms are large, family-style rooms (there is no television, for example). Although there is plenty of room for future expansion, the grounds are lacking quite a bit of landscaping and are made up of mostly grass.
Mr. Sorenson can serve breakfast to the rooms and provides tea-making facilities. There are a lot of good restaurants and take-aways in the area. Mr. Sorensons prices are less than half of what similar motels charge and only a fraction of what the big five-star properties are charging. And, really, he isnt all that far away from the beach, shops, and other attractions.
The problem is occupancy. He has some regulars who come every holiday period (and have been doing so for the last five years he has owned the property). Overall, occupancy is about 50% year-round, and he knows from the local tourist office that the other properties average around 68% occupancy year-round. New developments could mean trouble. This lack of occupancy can be quite frustrating for Mr. Sorenson. Cars pull in, drive around the parking areas, and then drive away.
Currently Mr. Sorenson does very little advertising in local district guides and the holiday papers, mainly because he really thinks word-of-mouth is the best form of advertising. He is a member of the local tourist committee, but too busy to go to meetings. However, he does receive the local statistics and knows the average stay in the area is 3.8 nights, and that local families and couples, and increasingly overseas visitors, are his potential customers.
Hes not desperate yet, but hes getting worried and disillusioned. He thought he would be overrun with guests, but that hasnt happened.