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?