The idea of business is to introduce a scuba diving training centre and themed café restaurant in Hong Kong. It has been found that scuba diving is an incredible leisure activity that helps to explore and experience world’s underwater surfaces. With the increasing popularity of scuba diving in Hong Kong, scuba diving training and instruction sector has also developed in the past years. In the year 2015, there were millions to who scuba diving certificates were issued in the international market. On the themes cafe business are increasingly becoming popular in Hong Kong (Jeyacheya and Hampton 2016).
It has been found this business idea is going to be popular in Hong Kong, because there are almost 600 service restaurant that are serving roughly to more than 43 million customers within a month that are generally aged in between 19 to 40 years. Fast food sectors in Hong Kong are drastically growing that jumped from 10% in the year 1986 to 20% in the present period along with food and beverage (Au et al. 2014).
Therefore, both the scuba diving training centre and themed café will be intended for the young visitors and consumers in Hong Kong aged in between 18-30 years including men and women with average income. These elements of increasing competition towards scuba diving industry and themed café in Hong Kong shows, that it has a chance of high competitive edge.
Business introduction for scuba diving training centre
Scuba diving training centre will be started in Hong Kong under the registration of instructor development centre in 2013. In this context, the training centre will be responsible for offering personalised serviced. The company will be offering range of training courses taking from Bubble makers for teenagers and open water scuba diving training for the professional and temporary divers. All the courses offered by the company will be performance based will not be based on time along with it the company will be providing guide for the duration of each courses provided with safety for all the consumers (Benur and Bramwell 2015). The instruction will be comprised of several professional employees including dive champions and training instructors.
The themed café in Hong Kong will be placed inside the scuba diving training centre to set up the café near beach that will have more than 1000 customers each day in the summer. The cafe will be inclusive of Harry Potter café where the candles will be structured in a suspended way from the ceilings and chairs will be supported with the insignia of four housed of Hogwarts schools. These set up is easily going to attract customers from various location because most of the people are fascinated by Harry potter.
We are expertise scuba diving training centre will be providing range of online and offline scuba diving courses starting from beginner level to examiner level diving activities. The diving courses rages from entry level courses with open water training and experienced level training courses.
Apart from these our special coffee shop will be providing only naturally made products including coffee and snacks items such as pancakes, pastries, sandwiches and many more. The coffee will be providing will be grown by organic cultivators through the process of coffee beans extraction.
Our company has planned to cover 30 training courses including online and offline modules. Our high quality assurance training program will be incorporated globally with a fully integrated approach to ensure safety and health standards of the customers throughout the premises of the company and entire duration of course,
In case of environmental sustainability our course program is fully equipped with eco- friendly tradition with limited use of paper, plastics and books. Therefore, this is offering reduced environmental impact on their service that helps us to directly contribute to generate the development of an effective plane. Apart from the marine conservation programs will be practical, effective for the customer and environment.
To be benchmark for divers and training program through the use of cutting edge technology with superior techniques of supervision and quality control system in affordable price.
We are determined to offer high quality and affordable diving services through training programs while maintaining reduces environmental impact.
Consumer requirement: Convenient area and environment, easy instructions and processes attractive indoor and outdoor setting, on-time service, customer oriented service.
Target customer: Young teenagers, working class, college goers, regular tourists, along with eco-friendly customers and health concerned consumers (Law et al. 2015).
Scuba diving training resort was set up at the capital region of Hong Kong, as the local environment of the area where it has been set up is more familiar consisting of local connections. As the capital city Hong Kong has the benefits of economy and growing population within the province. Moreover, the Wuxianhy that is just outside the Hong Kong city is increasingly becoming popular for diving site, thereby offering high opportunity for the diving marker.
Extensive research on the tourism industry, the requirement of the diving industry along with the accommodation of themed café facilities has well been understood. Based on this model the business has been combined with diving business along with cafes service facilities (Glaser et al. 2015). However, the operational business model for the set up plan is a provision of half yearly training and themed café accommodation with a broader set up within the same location. It is due to the temperate climate of Hong Kong, that there are about 6 months within a year that are cold for diving.
In this context, the manager of the diving training centre will be recruiting divers during the diving season and focus on the café business as well as in their rest time. Moreover, the training centre will be providing diving training for the local divers to dive in various places. They as well need to prepare an inventory for persevering the underwater equipment’s such as fin, mask, and dive computer. From the advantages of their diving industry backdrop which offers food facilities as well, they will be able to experience and expand their leading trainers in overseas areas as well (Peng et al. 2018).
Moreover, by integrating scuba diving training with theme café service they will be successfully be offer effective quality service to the consumes. Therefore, in support of such business mode, Scuba diving training centre will become one of the leading market leaders within the local market and by building relationship with the overseas location as well (Bruton at al. 2015).
In the resort there are several resources that requires effective planning, for instance the resort needs to premises to decide upon the appropriate tools to operate the diving training centre.
Financial resource: In this the total cost of setting up the scuba diving training centre business will be varying from $20,000 to $45,000.
Profile Number Role
Trainer 2-4 Managing and handling training
Receptionist 2-3 Handling reception and retail work
Dive master 2- 3 Supporting dive instructor and general employee
General employees 4-5 Helping and supporting customers
Cooks and supervisors 2-4 Managing the cafeteria
Material resources: A set of dive equipment’s consisting of masks, snorkel, fins, BCD, weighting system, SPG, air tank, suits, and boots (Eriksson et al. 2015).
In order to create a best value the resort needs to build partnership with the local suppliers. However, for scuba diving resort the major suppliers will be the educated training instructors who will have unique professional knowledge I scuba diving instruction (Zhang et al. 2016). Their major partners will be PADI course director in Hong Kong.
The key activities of the resort are to concentrate on the activities such as training supervision, looking for different ways to maintain health and safety of customers while diving. Apart from these the resort also needs to maintain food quality along with different, methods to keep the cost low with exciting service and food items for entertaining the customers while practicing diving (Hammerton and Bucher 2015).
It is essential for the themed café attached with the resort to maintain quality and standards of the food they provide. All the foods prepared needs to be fresh and properly cooked. Apart from these, the services of the resort need to make the customers feel interested within the premises with exciting offers and services.
Scuba diving training resort wants to offer their customers with effective PADI courses along with memorable cafeteria experiences through well served, exotic with variety of snacks for the visiting consumers. The resort will also provide affordable services with cost that will be easily adapted at the country origin.
In this context, the resort believes in providing positive experiences for the customer who would have to otherwise to go and look for the service from other country. By being half owned by the scuba diving services, the themed café facilities has the characteristics of real harry potter themes with Chinese snacks (Pan et al. 2018).
Along with the mix of reasonable level of price, the resort believed in building effective customers experiences with quality training courses, maintained with safety and health along with comfortable eating atmosphere.
Generally the scuba diving training resort with the accommodated themed café is targeted for the customers from ages in between 14 to 30 and may be up. However, the business aims to targets those customers who are genuinely interested in scuba diving training course and cafeteria food and are desirous to pay more for the colourful experiences. These customers are usually going to be aged in between 20-50 years old people who are people with moderate and high income groups (Pratt and Harrison 2015). According to a research it has been found that scuba diving training and experiences are liked by adventurous people that usually falls in to all age group with a predominate age group in between 22 to 40 years.
The research in this context, also finds out that food loving people are often motivated to seek for new experiences and they love to travel. Therefore, the scuba diving training resort has intentionally has set up their business at beach side to offer their customers with a feeling of adventurous with a set of new experiences through the themed café. The café will be attracting consumers who are couples, and students who are likely to training courses.
The resorts consumers handling will be classified in to three major categories. They are acquiring new customers, retaining present customers and gathering of old and new customers to form a family like relationships. In this aspect, the strategy of the organisation at the beginning will be to obtain new customer from all segments who are desirous of taking scuba diving courses (Todd et al. 2015). This will be put to practice by offering the customers provided with a feeling that they are building personal bonding.
The customers as well will be given an opportunity to share their feedback on their quality of training service, instructors and food available there. In addition to this customers will also be given an option to refund for the training service if they are not satisfied with the training courses.
The resort will open one of their training centres in Vaasa, Hong Kong where the consumers will be provided with enjoyable premises to eat and spend quality time. Moreover, the resort will have their own website page where customers will be informed about the available courses of training along with the cafeteria items together with photos and prices of the training courses and food items. Along with the website channels will also have opening hours, and booking options for the training courses and contact details (Yip et al. 2015).
Later in their period of opening the company would indirect partnership selling services. This could be done with enhancing their cafeteria services through online takeaway and ordering service. By doing so, the resort will be able to ignore cost of offering and maintaining their online ordering service.
Apart from these, the scuba diving resort can also consider turning up with an agreement for providing customers, with discount in their starting season. That could be put in to activities by displaying the service activities and food items available in their themed cafe and serving sample foods. Through this they will be able to advertise their resort service through various channels (Dragicevic et al. 2017).
The company will also be introducing their profiles through social media platforms such as Face book and Instagram by highlighting scuba diving and themed café pictures. Thus the potential customers will be attracted to visit their resort and in collaboration with the existing customers they will be able to launch campaigns to interact with organisation.
The major product for the start-up stage and growing stage in their first year of opening will be entry level course along with DSD facilities. In this the entry level course will be signifying the PADI open water course in which the direct cost will be inclusive of the instructor cost, texts book as well PADI certification fee. Therefore, PADI charge for the text book will be collaborated with the certificated application. However, the indirect cost of the entire start of the diving centre is hard to assume without any operating real event (Dragicevic et al. 2017).
The estimated information on the cost structure will be approximately 3000-4000 HKD for each month including the electricity that is required for maintaining under water facilities. Along with the scale of food business the scale if business for themed café is estimated to be as 4000HKD each month.
OW DSD
Cost 3500 HKD 285 HKD
Texts books and application 565 0
Trainers/dive instructors cost 384 30
Indirect cost 50 50
Profit 1804 180
Margin 65.45% 67.25%
Table 1: Cost Breakdown structure if the diving training centre
Most of the revenues of the scuba diving resort will be coming from the sales of the assets. This means that the company sells the ownership for the scuba diving training services and food available in cafeteria for the customers visiting their resort. Therefore, the resort company will be using the used list and volume depending on the pricing as their pricing strategy.
However, there are no guarantees or confirmation on the further development of the business. Based on the scuba diving service and themed café restaurant it can be said that some diversified revenue streams will be generated. In this the most typical way to retain customers is by creating additional income for the making the customers visiting their training resort by launching loyalty program in their cafeteria for the potential customers (Eriksson et al. 2015).
Reference list
Au, A.C.S., Zhang, L., Chung, S.S. and Qiu, J.W., 2014. Diving associated coral breakage.
Hong Kong: differential susceptibility to damage. Marine pollution bulletin, 85(2), pp.789-796.
Benur, A.M. and Bramwell, B., 2015. Tourism product development and product diversification in destinations. Tourism Management, 50, pp.213-224.
Bruton, G.D., Peng, M.W., Ahlstrom, D., Stan, C. and Xu, K., 2015. State-owned enterprises around the world as hybrid organizations. Academy of Management Perspectives, 29(1), pp.92-114.
Dragicevic, N., Lee, W.B. and Tsui, E., 2017. Design?based method for service innovation: a case study in a public utility company in Hong Kong. Theory and Applications in the Knowledge Economy, p.457.
Eriksson, H., Österblom, H., Crona, B., Troell, M., Andrew, N., Wilen, J. and Folke, C., 2015. Contagious exploitation of marine resources. Frontiers in Ecology and the Environment, 13(8), pp.435-440.
Glaser, M., Breckwoldt, A., Deswandi, R., Radjawali, I., Baitoningsih, W. and Ferse, S.C.,Of exploited reefs and fishers–A holistic view on participatory coastal and marine management in an Indonesian archipelago. Ocean & Coastal Management, 116, pp.193-213.
Hammerton, Z. and Bucher, D., 2015. Levels of intervention–reducing SCUBA-diver impact within subtropical marine protected areas. Journal of Ecotourism, 14(1), pp.3-20.
Jeyacheya, J. and Hampton, M.P., 2016. Dive Tourism and the Entrepreneurial Process in the Perhentian Islands, Malaysia. Sustainable Island Tourism: Competitiveness and Quality of Life, p.135.
Law, R., Leung, R., Lo, A., Leung, D. and Fong, L.H.N., 2015. Distribution channel in hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and travel agencies. International Journal of Contemporary Hospitality Management, 27(3), pp.431-452.
Pan, F., He, Z., Sigler, T., Martinus, K. and Derudder, B., 2018. How Chinese financial centers integrate into global financial center networks: an empirical study based on overseas expansion of Chinese financial service firms. Chinese Geographical Science, 28(2), pp.217-230.
Peng, M.W., Sun, W., Vlas, C., Minichilli, A. and Corbetta, G., 2018. An institution-based view of large family firms: A recap and overview. Entrepreneurship Theory and Practice, 42(2), pp.187-205.
Pratt, S. and Harrison, D. eds., 2015. Tourism in Pacific Islands: current issues and future challenges. Abingdob: Routledge.
Todd, L., Leask, A. and Fyall, A., 2015. Destination competitiveness: A comparative study of Hong Kong, Macau, and Singapore. Tourism Analysis, 20(6), pp.593-605.
Yip, J.Y., Lee, R.W. and Tsui, E., 2015. Examining knowledge audit for structured and unstructured business processes: a comparative study in two Hong Kong companies. Journal of knowledge management, 19(3), pp.514-529.
Zhang, L.Y., Chung, S.S. and Qiu, J.W., 2016. Ecological carrying capacity assessment of diving site: A case study of Mabul Island, Malaysia. Journal of environmental management, 183, pp.253-259.a
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