SITUATION ANALYSIS-

GBS INDIA
Business Communication Analysis
Group 6

Course Facilitator- Prof. Santana Pathak

Rashi Agrawal 80512100833 B006 rashi.agrawal833@nmims.edu.in

Manasi Tawte 80512100425 B016 manasi.tawte425@nmims.edu.in

Akshay Khaire 80512100328 B026 akshay.khaire328@nmims.edu.in

Abhishek Deswal 80512100001 B036 abhishek.deswal001@nmims.edu.in

Parv Rastogi 80512100150 B046 parv.rastogi150@nmims.edu.in

Piyush Khanduri 80512100356 B056 piyush.khanduri356@nmims.edu.in

SBM, NMIMS MUMBAI

January 18, 2022
Contents:

Situation Analysis

El Dorado’s profits had started decreasing from past two years due to huge surge in labour
rates, increased insurance costs and expiring tax benefits. Jane needed to come up with a plan
to increase the revenues so as to save the company from bankruptcy.

Neil, the CFO of the company, had learnt that top 20% of US incomes accounted for 48% of the
entertainment expenditures and so wanted to tap this segment. His idea primarily targeted on
attracting this new segment which is time starved and would be willing to pay more to save time.

While Neil’s idea can help the company tap into new segment there is a concern that the
privileged treatment to a group of people might attract a couple of ugly glances from the people
waiting in the line and thus impact the overall experience for both the groups. This contradicts
the motive with which company was started – to create an environment which highlights the
best of human endeavours.

Previously there has been implementation of few ideas targeting the similar segment like
upgrading souvenir shops to gift boutiques and snack concessions to seated dining.
Additionally, initiatives have been undertaken to attract conference business whose head sees
tremendous potential in Neil’s plan as an incentive for conference organizers.
After analyzing the situation from all aspects, it has become evident that we need to come up
with a plan which will be profitable for company without compromising on its mission and goals.

Problem Statement

To decide whether to launch 'preferred guest card' for mass affluents or implement/design a
new idea to increase overall revenue without compromising on customer experience.

Criteria

1. Overall customer experience

2. El Dorado’s profitability
3. Increase in customer base
Options

1. Go ahead with Neil’s idea and launch ‘preferred guest card’

2. Expand on her idea of upgrading the souvenir shops to boutiques and attracting
conference business
3. Dynamic pricing

Evaluation of options:

1. Go ahead with Neil’s idea and launch ‘preferred guest card’

Criteria:
a) Overall customer experience:
Customers with the card will be preferred first everywhere which can make them feel
special and can have fun without wasting time waiting in the line. Though there is a
separate line for customers with card, regular customers will soon be aware of it and
this might change their perception about the place as one where rich people are
prioritized. Overall, customers with a pass will be satisfied with the service but those
without pass may not be that satisfied specially during weekends or special
occasions when waiting period is longer.
b) El Dorado’s profitability:
Two factors contribute to the profitability of the plan: revenue generated and
corresponding investment made. Investment made in this option will be significantly
less. A new market segment is being tapped and the people in this segment will
be increasing day by day with an increase in awareness about importance of
time, revenue generation through this option can significantly help the
organization overcoming their cash crunch. However it should be considered that
as the people in this group will increase it can backfire as more and more people get
the pass and still would have to wait in line.
c) Increase in customer base:
Since a new segment is being tapped there would be a significant increase in
customer base, considering that addition of new customers will offset the possible
decrease in regular customers of El Dorado dissatisfied with the introduction of this
pass.

3.Dynamic pricing
Criteria:
a) Overall Customer Experience - The concept behind dynamic pricing is to charge parkgoers
more when demand is strong and equally distribute people throughout the year. The customer
experience will be enhanced as customers will be more willing to stay in the park longer and
spend more money. They may be enticed to visit when the parks are less expensive, resulting in
reduced attendance on more expensive days, shorter lines, and simpler meal reservations.
However, people will have to pay a bit more if they want to visit the park on special occasions
like Christmas, etc.

b)El Dorado’s Profitability - Even if attendance is low, per capita expenditure will increase due to
increased admissions and spending on merchandise, food, and beverage, meeting the goal of
dynamic pricing.

c)Increase in Customer Base - There is no shortage of those who are willing to spend more for
an elite or a less crowded experience. With even out distribution of the crowds throughout the
year, higher prices on busy days will attract more the kind of people who want lesser crowd and
better experience. On the similar lines, on normal days people will be visiting more due to
shorter lines and cheaper prices. This can increasec the retention rate and visits per customer.

Recommendation

Go ahead with the hybrid mode of working, 1:1 ratio for employees working remotely and in
office.