Conduct a quick situational analysis and then determine which strategic alternatives will help the company create or maintain its competitive advantage.

Scenario: Your group represents the management team of a locally owned and operated water park, which has been in business for 15 years. Revenues are $5 million per season; equipment is neither new nor old; the company has little debt service, a good reputation in the community, and a flood of job applicants each summer. Next season, however, the amusement park across the highway is adding a water park to its traditional thrill ride attractions. The amusement park across the highway will not become a direct competitor.


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