Samsung And The Theme Park Industry

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Samsung, Theme Park Industry in South Korea

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  • actually, i want to thank you ,your presentation was extremely mind storming ... you are a great team work ... my professor asked me to make my analysis within more than 2 months but believe me i was surrounded by hundreds of question marks till i found your presentation my papers became in order and actually i believe my analysis will be the best over my colleagues i gonna deliver my presentation next Thursday 'if my god wishes' and i will upload it and i wish to receive comments from you... thanx again.
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Samsung And The Theme Park Industry

  1. 1. Samsung & Theme Park Industry in South Korea<br />Group 2 - Anshuman, Chintan, Dhinesh, Gaurav N, Kaushik, Milind<br />GMP, XLRI Jamshedpur<br />
  2. 2. Industry Dynamics<br />Bargaining Power of Suppliers<br />Entry Barriers<br />Bargaining Power of Buyers<br />Threat of Substitutes<br />Rivalry among Existing Competitors<br /><ul><li>There were fewer than 10 suppliers who were capable of developing quality machinery.
  3. 3. Machinery were custom designed for particular market and environment conditions.
  4. 4. - Park management expertise not easily available – huge licensing fee and very selective.
  5. 5. Large Scale Initial Investment ($ 50 – 3000Mn) – Land Development; Amusement Machinery; Working Capital.
  6. 6. - Heavy marketing and Ad. Budgets.
  7. 7. - Revenue reinvestment for expansion & up gradation.
  8. 8. - Economies of scale and scope are significant
  9. 9. - Strict Government Regulations and hence typical period required for arranging government approval – 2 to 5 years.
  10. 10. - Large Insurance Premiums often drove small players away
  11. 11. - ‘Know how’ tough to emulate
  12. 12. - 6 theme parks including Farmland – Lotte World is in the heart of the city.
  13. 13. Visitors in Groups are charged less.
  14. 14. Virtual Reality theme parks.
  15. 15. - 5.5 day work -> Other means of entertainment.</li></ul>- 5 competitors.<br /><ul><li>Lotte World – Indoor theme park
  16. 16. - Seoul Land – 23rd in the “Top 50 theme parks worldwide”.
  17. 17. - Farmland – Highest Growth Rate.
  18. 18. - Seasonal factor affected all competitors (but not in the same pattern ). Positively impacts Lotte World but negatively impacts Farmland.
  19. 19. - Farmland- Highest per capita expenditure on food, beverages and souvenirs.</li></ul>GMP, XLRI Jamshedpur<br />
  20. 20. SWOT Analysis for Joong-Ang Development Company<br />Opportunities<br />Strengths<br />Threats<br />Weaknesses<br /><ul><li>- Subway
  21. 21. - “Park and Ride”
  22. 22. - Scope for market expansion – untapped market of 5 Mn.
  23. 23. - Korea’s Economic growth rate: 8 – 9 %
  24. 24. - Steady Intl tourist growth (25% of customers are tourists).
  25. 25. - Scope to increase merchandise sales and admission & ride fee
  26. 26. - Inception of the new water park during June to September will attract customers from Lotte to Farmland.
  27. 27. - 3700 acre land
  28. 28. - President has been working in Hospitality sector.
  29. 29. - Economies of Scale / Scope
  30. 30. - Highest per capita expenditure on food, beverages and souvenirs.
  31. 31. - Parent Co’s Strong financial muscle.
  32. 32. - Attendance to theme parks shows a decreasing growth trend(0.9% and 6%)
  33. 33. - Learning curve.
  34. 34. - Stay time is less due to traffic congestion issues.
  35. 35. - Seasonal fluctuations.
  36. 36. - 6 theme parks including Farmland – Lotte World is in the heart of the city.
  37. 37. - Issues from fringe stakeholders (farmers).
  38. 38. People’s preference is shifting towards Historical attractions
  39. 39. -Accessibility to the park – 60 Km from Seoul; Traffic jam.
  40. 40. -Parking – Insufficient during peak days.
  41. 41. -Theme parks did not fit well with the “high tech” and “global” image of Samsung
  42. 42. - Organizational style – non service oriented employees and their outlook towards customer satisfaction.</li></ul>GMP, XLRI Jamshedpur<br />
  43. 43. Expansion Plan<br /><ul><li>Revamp Plan for Farmland: $ 300 Mn over 2 years(Phase 1)
  44. 44. Proposed names: Everland, Green Country and Nature Land.
  45. 45. Waterpark – Caribbean Theme: $ 140 Mn.
  46. 46. Global Fair: $ 85 Mn.
  47. 47. Expansion of existing zoo and parks – night time laser show and a fable fantasy garden: $ 50 Mn.
  48. 48. Augment parking
  49. 49. Sources of Funds – Samsung Group
  50. 50. Phase 2 – Resort Town (Exact budget not available)
  51. 51. New Mission – Create a zeal for long lasting life that is combined with harmony of nature.
  52. 52. If Plan approved, it will become prototype destination resort town I the entire world.</li></ul>GMP, XLRI Jamshedpur<br />
  53. 53. Thank You!!<br />GMP, XLRI Jamshedpur<br />

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