Five forces theme park industry
However, because Disney theme parks have a distinctive competency of their animated characters and their family fun rides, consumers cannot get the Disney experience anywhere else — making Disney relevant.
Local Residents The buying power of local resident is high since they have many choices as mentioned above.
Porters 5 forces analysis example
Due to high threat of rivalry, the theme park industry is implementing different plans and activities, such as the Master Redevelopment Plan MRP in Ocean Park and three different phase extensions in HK Disneyland, in order to catch the attention of the visitors and differentiate themselves from rivals. Theme parks also offer ways for Guests to gain discounted tickets to their parks, usually through a promotional campaign with a sponsor. Therefore, Hong Kong has a strong economic environment and can afford to support the theme park industry. Thus, this external analysis points to firm aggressiveness and population as the most significant strategic management issues with regard to the level of competition. Local Residents The buying power of local resident is high since they have many choices as mentioned above. In an effort to keep customers excited year after year, theme parks have the opportunity at this convention to see the newest technologies first hand and decide what to bring to their theme parks in the future. Therefore, all in all, the industry is worth of investment with a better human recourse management and a better differentiation. The industry had always experienced a shortage of service personnel. In Competition Forum Vol. Rivalry: The rivalry for Disney theme parks is medium.
The rivalry between theme parks can also be observed by the debut of new attractions or technology. The buyers can opt for other media companies and sources of entertainment, but they are not likely to find the same quality experience.
In addition to the amusement park required land for a full scale development. Whether or not these projects will succeed remains to be seen, but the entry barriers for the theme park industry appear to be much lower outside of the United States.
Though Disney controls the majority of the market share, other theme parks are expanding and adding new attractions in order to keep up with the dominating presence of Disney. In this company analysis case of Disney, the external factors are in the mass media, amusement parks and resorts, and entertainment industries.
Five forces theme park industry
In order to conduct a thorough 5 Forces Analysis, I thought it would be best to segment Disney according to their theme parks. Each of these companies offers theme parks with varying experiences, always trying to debut the newest and best experiences in order to stay ahead of one another. These trends have the potential to disrupt the international business environment. The trends influencing business development in these global industries are also considered in this external analysis. There is also an incredibly strong brand loyalty with the Disney name. All these are replaceable as these will not directly affect the business of the theme park. For example, not every family is going to take a vacation to Walt Disney World each summer. Share this:. Buyers: Buyers have low bargaining power at Disney theme parks. Photo: Public Domain The Walt Disney Company uses its strong brand as an advantage to address competition and the related external factors specified in this Five Forces analysis of the global business. Thus, new entrants are a minor business strategic management issue in this external analysis. Though Disney controls the majority of the market share, other theme parks are expanding and adding new attractions in order to keep up with the dominating presence of Disney. Threat of substitutes — The threat of substitutes in the theme park industry is one of the biggest challenges theme parks are forced to overcome. The Economic Environment Hong Kong is one of the leading finance centers in the world. Even though the company has been able to attain a large market share through its movie and theme park businesses, its lead competitors such as 21st Century Fox, CBS, and Time Warner Company continue to pose risk to profitability.
Habitat for Humanity in exchange for free admission to their parks. The park has been so overwhelmingly successful that they have announced that they are going to add the Widarding World of Harry Potter to Universal Hollywood. Therefore, those places will attract away certain amount of visitors.
In addition, the merchandise manufactured by the company is targeting people who are willing to pay a higher price for a product that resonates their brand loyalty.
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