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Samsung And The Theme Park Industry
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Samsung, Theme Park Industry in South Korea
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Samsung And The Theme Park Industry
1.
2.
3.
Machinery were custom
designed for particular market and environment conditions.
4.
- Park management
expertise not easily available – huge licensing fee and very selective.
5.
Large Scale Initial
Investment ($ 50 – 3000Mn) – Land Development; Amusement Machinery; Working Capital.
6.
- Heavy marketing
and Ad. Budgets.
7.
- Revenue
reinvestment for expansion & up gradation.
8.
- Economies of
scale and scope are significant
9.
- Strict Government
Regulations and hence typical period required for arranging government approval – 2 to 5 years.
10.
- Large Insurance
Premiums often drove small players away
11.
- ‘Know how’
tough to emulate
12.
- 6 theme
parks including Farmland – Lotte World is in the heart of the city.
13.
Visitors in Groups
are charged less.
14.
Virtual Reality theme
parks.
15.
16.
- Seoul Land
– 23rd in the “Top 50 theme parks worldwide”.
17.
- Farmland –
Highest Growth Rate.
18.
- Seasonal factor
affected all competitors (but not in the same pattern ). Positively impacts Lotte World but negatively impacts Farmland.
19.
20.
21.
- “Park and
Ride”
22.
- Scope for
market expansion – untapped market of 5 Mn.
23.
- Korea’s Economic
growth rate: 8 – 9 %
24.
- Steady Intl
tourist growth (25% of customers are tourists).
25.
- Scope to
increase merchandise sales and admission & ride fee
26.
- Inception of
the new water park during June to September will attract customers from Lotte to Farmland.
27.
- 3700 acre
land
28.
- President has
been working in Hospitality sector.
29.
- Economies of
Scale / Scope
30.
- Highest per
capita expenditure on food, beverages and souvenirs.
31.
- Parent Co’s
Strong financial muscle.
32.
- Attendance to
theme parks shows a decreasing growth trend(0.9% and 6%)
33.
- Learning curve.
34.
- Stay time
is less due to traffic congestion issues.
35.
- Seasonal fluctuations.
36.
- 6 theme
parks including Farmland – Lotte World is in the heart of the city.
37.
- Issues from
fringe stakeholders (farmers).
38.
People’s preference is
shifting towards Historical attractions
39.
-Accessibility to the
park – 60 Km from Seoul; Traffic jam.
40.
-Parking – Insufficient
during peak days.
41.
-Theme parks did
not fit well with the “high tech” and “global” image of Samsung
42.
43.
44.
Proposed names: Everland,
Green Country and Nature Land.
45.
Waterpark – Caribbean
Theme: $ 140 Mn.
46.
Global Fair: $
85 Mn.
47.
Expansion of existing
zoo and parks – night time laser show and a fable fantasy garden: $ 50 Mn.
48.
Augment parking
49.
Sources of Funds
– Samsung Group
50.
Phase 2 –
Resort Town (Exact budget not available)
51.
New Mission –
Create a zeal for long lasting life that is combined with harmony of nature.
52.
53.