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Industry & Competitive Analysis of Amusement & Theme Parks Desiree Gapasin Valerie Russell Janice Carlos Katie Miner.

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Presentation on theme: "Industry & Competitive Analysis of Amusement & Theme Parks Desiree Gapasin Valerie Russell Janice Carlos Katie Miner."— Presentation transcript:

1 Industry & Competitive Analysis of Amusement & Theme Parks Desiree Gapasin Valerie Russell Janice Carlos Katie Miner

2 AGENDA Dominant Economic Characteristics Driving Forces Competition Analysis Competitive Position of Major Companies Competitor Analysis Key Success Factors Industry Prospects and Overall Attractiveness

3 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

4 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

5 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

6 DOMINANT ECONOMIC CHARACTERISTICS Entry Barriers –Excessive Start-up Costs –Expensive Equipment –Competition from Dominating Corporations Exit Barriers –Costly Liquidation of Equipment

7 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

8 DOMINANT ECONOMIC CHARACTERISTICS Technology/Innovation –Tests For Safety –Improvements of Attractions New Development for Rides Scenery Shops

9 DRIVING FORCES Rivalry Between Firms (medium) - about 450 parks in the US - different types of parks - revenues constantly climbing Suppliers Bargaining Power (low) - about 375 manufacturers & distributors in the US - low switching costs - not easy for suppliers to integrate forward to directly compete

10 DRIVING FORCES Buyers Bargaining Power (high) - alternative suppliers available - quality & price is important - big account Potential New Entrants (low) - capital requirements - government policy - reputation/established

11 DRIVING FORCES Threat of Substitutes (low) - Amusement & Theme Park incorporates fairs, carnivals, water parks, etc. Other Stakeholders - Government - IAAPA - NAPHA - TEA

12 COMPETITON ANALYSIS

13 COMPETITIVE POSITION OF MAJOR COMPANIES

14 #1 Walt Disney Parks Industry Leader in Sales & Visitors Disney Image, Mickey Mouse International Appeal #2Six Flags, Inc. Owns the most parks 37, domestically Leader in Ride Innovations Warner Brothers Characters

15 COMPETITIVE POSITION OF MAJOR COMPANIES #3 Anheuser Busch Unique Appeal: Animals, Beer, Water Rides, Gardens, Naturalistic themes Entertaining & Educational Worlds Most Popular marine-life park: Sea World, Orlando

16 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)

17 KEY SUCCESS FACTORS Customer Appeal –Disney: Fairytale –Six Flags: Extreme Trills –Busch: Educational/Naturalistic Strategic Alliance –Licensing Agreements –Joint Ventures Technology Safety Standards

18 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

19 INDUSTRY PROSPECTS & OVERALL ATTRACTIVENESS Lifecycle –USmature –Internationalgrowth Developing Trends –Themes –Visitor Participation –Simulation & Virtual Reality –Water Attractions –All-weather Operation

20 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.

21 The End! Thanks! Any Questions?


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