Industry & Competitive Analysis of Amusement & Theme Parks Desiree Gapasin Valerie Russell Janice Carlos Katie Miner.
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Transcript Industry & Competitive Analysis of Amusement & Theme Parks Desiree Gapasin Valerie Russell Janice Carlos Katie Miner.
Industry & Competitive Analysis
of
Amusement & Theme Parks
Desiree Gapasin
Valerie Russell
Janice Carlos
Katie Miner
AGENDA
Dominant Economic Characteristics
Driving Forces
Competition Analysis
Competitive Position of Major
Companies
Competitor Analysis
Key Success Factors
Industry Prospects and Overall
Attractiveness
DOMINANT ECONOMIC
CHARACTERISTICS
Stage in Life Cycle
– Mature
Companies in the Industry
– 450 amusement parks in the U.S.
– Top 5 Corporations= 65% of Market
Scope of Rivalry
– Parks compete against each other on an
international level
DOMINANT ECONOMIC
CHARACTERISTICS
Market Size
– $9.6 Billion in Revenues
– 319 Million Park Attendance
Market Growth Rate
– 2001= 1% Increase
– Projected Decrease in Attendance and
Revenues for 2002
DOMINANT ECONOMIC
CHARACTERISTICS
Industry Structure
– Destination Parks
• Disneyland
• Universal Studios
– Regional Parks
• Six Flags
• Cedar Points
Customers
– 75% Attend as
Families
– 54% Under the
Age of 18
– 46% Adults
DOMINANT ECONOMIC
CHARACTERISTICS
Entry Barriers
– Excessive Start-up Costs
– Expensive Equipment
– Competition from Dominating
Corporations
Exit Barriers
– Costly Liquidation of Equipment
DOMINANT ECONOMIC
CHARACTERISTICS
Product/Service Characteristics
– Parks Strive to Differentiate
Scale Economies
– Manufacturing Costs Differentiate Per
Park
Capacity Utilization
– Improvements in Capacity
• Ride Reservations
• Competitive Discounting
DOMINANT ECONOMIC
CHARACTERISTICS
Technology/Innovation
– Tests For Safety
– Improvements of Attractions
• New Development for Rides
• Scenery
• Shops
DRIVING FORCES
Rivalry Between Firms (medium)
- about 450 parks in the US
- different types of parks
- revenues constantly climbing
Supplier’s Bargaining Power (low)
- about 375 manufacturers & distributors in
the US
- low switching costs
- not easy for suppliers to integrate forward
to directly compete
DRIVING FORCES
Buyer’s Bargaining Power (high)
- alternative suppliers available
- quality & price is important
- big account
Potential New Entrants (low)
- capital requirements
- government policy
- reputation/established
DRIVING FORCES
Threat of Substitutes (low)
- Amusement & Theme Park incorporates fairs,
carnivals, water parks, etc.
Other Stakeholders
- Government
- IAAPA
- NAPHA
- TEA
COMPETITON ANALYSIS
Market Share
30
39.6
5
4.7
5.5
Disney
Anheuser Busch
Other
5.2
10
Six Flags
Viacom/Paramount
Universal
Cedar
COMPETITIVE POSITION OF
MAJOR COMPANIES
Revenue (billions)
5
4
3
2
1
0
0
10
20
30
40
Number of Parks
Disney
Viacom
Six Flags
Cedar
Anhueser Busch
Universal
COMPETITIVE POSITION OF
MAJOR COMPANIES
#1—Walt Disney
Parks
#2—Six Flags,
Inc.
Industry Leader in
Sales & Visitors
Owns the most parks—
37, domestically
Disney Image, “Mickey
Mouse”
Leader in Ride
Innovations
Warner Brothers
Characters
International Appeal
COMPETITIVE POSITION OF
MAJOR COMPANIES
#3—Anheuser Busch
Unique Appeal: Animals, Beer,
Water Rides, Gardens,
Naturalistic themes
Entertaining & Educational
World’s Most Popular marine-life
park: Sea World, Orlando
COMPETITOR ANALYSIS
Primary Characteristics of Theme Parks:
Family Appeal
Contain Themed Environments
“Ambient Entertainment”
High Investment Level per unit of ride or
show capacity
High Standards of service, maintenance, &
cleanliness
Ability to entertain visitor for 5 to 7 hrs
Pay-one-price admission policy (usually)
KEY SUCCESS FACTORS
Customer Appeal
– Disney: Fairytale
– Six Flags: Extreme Trills
– Busch: Educational/Naturalistic
Strategic Alliance
– Licensing Agreements
– Joint Ventures
Technology
Safety Standards
INDUSTRY PROSPECTS & OVERALL
ATTRACTIVENESS
Industry Profitability Instability
– Seasonal Operations, Weather, Economic
Conditions, Terrorism
U.S. Market Saturation
International Market Prospects
– Asia, Europe, Latin America
Technology
– Renovation & Innovation
INDUSTRY PROSPECTS & OVERALL
ATTRACTIVENESS
Lifecycle
– US—mature
– International—growth
Developing Trends
–
–
–
–
–
Themes
Visitor Participation
Simulation & Virtual Reality
Water Attractions
All-weather Operation
INDUSTRY PROSPECTS & OVERALL
ATTRACTIVENESS
“ Rather than being viewed as a stand
alone attraction theme parks will
become part of a balanced leisure
product and tourism system that
contributes to the economic
development, employment, and
resource preservation of an entire
region.”
The End!
Thanks! Any Questions?