South to North Feasibility Analysis

We used several frameworks to assess the feasibility of the venture.

First is the VRIO analysis. The company have several resources and capabilities including lands, facilities and personalized services.

The northwest coast of Barbados is known as the Platinum Coast. The company has 30 acres of hillside overlooking the west coast, which gives customers unique ocean views. The locational advantage is a competitive advantage because it is valuable and appreciated by customers, it is rare, and the limited coast lines to build hotels and resorts, once they have it, it is hard for others to imitate.

PESTEL. Next, we gonna look at some external factors that could influence the company. Some favorable factors like politically, the Bilateral treaty with Canada allows companies to pay business tax there at 2.5%. No withholding taxes on dividends, interest, royalties paid to the Canadian shareholder. And in social-cultural sector, studies show the baby boomers prefers luxury instead of economy on vacations. There are also increasing interests seeking out natural, unique experiences without sacrificing comfort. Environmentally, hospitality industry has been subject of criticism regarding to environmental issues, and there are increasing awareness of those issues.

In the Five forces analysis. The threat of entry is low, because things like heavy capital investment, limited locational choices, license build up the barrier to entry. The rivalry intensity is medium because there are only 5 local competitors, and none of them are in leadership of environmental operations. However, the customers have relatively medium to high power because of lots of other destination choices and low switch cost.

For SWOT analysis, internally, strengths includes the locational advantage of the platinum coast occupancy and the facilities that utilize renewable energy. Weakness would be the high pricing and luxury nature would limit the customer base. The personalized local cultural events and services could be easily imitated by competitors. And externally,

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