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Why do Dive Centers and Professionals do it to themselves?

Discussion in 'Business of Diving Institute' started by Industry Outsider, Aug 22, 2019.

  1. Gary_Ward

    Gary_Ward Dive Shop

    # of Dives: 5,000 - ∞
    Location: Carriacou
    97
    68
    18
    Darcy Kieran from Scubanomics has published a small piece using an academic management model to map out the industry - He uses Michael Porters 5 Forces of Competition, to excellent point out that the training agencies have the most power in the industry. We know this, which is also why PADI have been bought and sold of late. The questions is why is this and how has it gotten to this position?

    The how is easy, dive operations are typically run by enthusiast divers who want to work their hobby or passion, but are not necessarily business people. They also tend to compete very aggressively with the dive operations around them, being innovative about getting new people into the sport, but also with this competition suppressing prices. This is great news for the training agencies, as this means they're too busy fighting each other to notice where all the value is going, but with the price competition they're maintaining access to diving for many people - who then spend more and more with the services the agencies are starting to offer. Dive operations have maintained their myopic focus on the competition and effectively allowed this to happen.

    How do we address it? Start forming local and regional scuba diving associations with other dive operations with a view of creating collective bargaining. If one operation was to make a demand to PADI, SSI or anyone else for lower pricing or more innovative products.... it isn't going to happen. If 50 operations independently talk to PADI, SSI or anyone else, they might get a promising statement, but no real action either. However if 50 operations are in an association and demand for all their members changes, you're sure as hell going to have PADI, SSI or anyone else sit up and take notice...

    Its only by working together and getting collective recognition that we'll be able to redress the balance. We have to recognise that we're not competing with XYZ Scuba down the street or in the next town, we're competing with Xbox, KIte Surfing, Camping and any other activity which would keep someone away from their local dive shop or resort.
     

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