Samsung and Theme Park Essay.
The Industry Theme Park is a large entertainment area and has variety complexes with theme in each of its complex. Theme Park is a global Industry operating in North America, Europe and Asia with attendance from local area and from all over the world. Theme park become necessity for the people to get entertainment and leisure after busy working day, especially for family. The reason that people come to theme park is the ride that delight them to visit again. Needs Analysis.
The needs of this entertainment industry is increasing year after year as the attendance of amusement park on Farmland is increasing at 5. 113 thousand in 1993, that show us that there is growth in the Market. (table 4). From table 8. The need of the theme park for the south Korean consumer place a rate of 22%, it shows the need Korean people work for 5 and a half days every week, that indicate that they are very busy, and seems that they have no time for going to the theme park, but in the other hand if we provide a good theme park we can deliver the need of leisure for them after the busy work.
In the worldwide, this business is already mature, so we have to arrive with a concept that distinct our theme park with the other theme park, therefore we can attract global market to our theme park. The influencer of the needs: * Family : Spouse, Children, Parents, media promotion * Single : Friends, Colleague , social membership, media promotion 5 FORCES ANALYSIS Competitive Rivalry within Theme Park Industry : HIGH Local Rivalry There are 6 amusement park industry in Korea and Lotte world and Seoul Land are the closest competitor.
Lotte world is stated themselves as the biggest Indoor Theme Park in the world and they are located at downtown, which is one of the key success in the business with the accessibility. Seoul Land is the closest competitor with farmland with the similarity of the place, that offer fresh air and easy access. International Rivalry The worldwide theme park such as Walt Disney in North America, Europe, and Asia, with global connection around the world. ENTRANCE : HIGH High investment in Land, Building and construction services, Hardware provider for the ride, and Software provider.
The risk of safety is high, required 100% insurance coverage The know how of the industry is not easy, The benchmark is Walt Disney, in order to provide world class themepark haave to join venture with Disney, But Disney not interested in Korea. SUBSTITUE : HIGH Free amusement places are available, such as beach, garden,mall etc Watching Movie in theatre, or just stay at home because of heavy traffic. SUPPLIER POWER : LOW Technology is one of the main issue in this business, especially machinery and software.
There are around 10 players who can supply the machinery, so we can get a good price for machinery. The high turnover because woman stop working after marriage become an advantage because the new employee give fresh new idea for the theme park. BUYERS POWERS : HIGH Theme Park is depend on the qapacity of the attendance. They can easily change to another park. Pricing competitive with another park SWOT ANALYSIS STRENGTH * Farmland is the first amusement park in Korea * Already have a brand Image.
* Have large mother Company Samsung that operate in 65 countries * Samsung Industries can have synergy with theme park since they have four core business in electronics, machinery, chemical and Finance insurance WEAKNESS * Korean Climate with Winter from December to Mid march, and heavy shower in June and July, that gives potential time for the market in June to early September, which is only 4 months in a year. * Management has to learn the business because Walt Disney not interested in joint venture with Samsung Korea. * Limited existing parking space to cover future extension.
* The traditional habit not to smile to stranger may affect the need of service oriented people. OPPORTUNITY * Economic Growth in Korea is high, per-capita GNP risen from US$4210 in 1989 to US$7513 in 1993 (56%) (exhibit2) * Over 10 millions Korean Living in Seoul * Attendance are growing every year * With a good an distinctive concept can capture worldwide market. * Government plans to built subway up to yongin will provide convenience and reduce the heavy traffic problem THREAT * Strict Government Regulation of the use of the Land.
* The protest from the farmer that farmland expansion can cause potential flooding that will damage their crops * The National Holiday is only 4-5 days in a year * The working habit is five and a half day in a week RECCOMENDATION Segmentation for theme Park for all of the Family member, Targeting on all ages. Positioning of the Theme Park deliver the high end of Theme Park technology with the environmental friendly surrounding. Changing the Name is a must, EVERLAND seems suitable to the new mission. Make a synergy between other Samsung business to create worldwide connection to the theme park.