Theme Park in Korea

Name: Su Han

Program: M2 Luxury Management Food&Wine

Title of the case: Samsung and theme park industry in Korea

1) “Is the Global theme parks industry an interesting industry to be in?”

a) Rivalry among existing competitors

Is the industry growing rapidly?

Yes,because of the increasingly fierce competition and the maturity of the market.

Concentration

Do the 4 biggest players have together more than 80% of market share?

Yes, because 4 biggest players which are The Walt Disney Company,Time Warner’s Six Flags Corporation, Paramount, Anheuser Busch and Cedar Fair have together more than 80% of market share.

Diversity of competitors

Are competitors all of approximately the same size?

No,because it depends on the land size and different regions

Are the competitors diversified rather specialized?

Yes. Theme parks generally have a global theme to propose. Diversity of competitors were getting more intense.

Product differentiation

Are there significant product differences and brand identities between the competitors?

Yes,there was a variety of parks and attractions, each with a different approach to drawing crowds and showing them a good time. That are Cultural and Education Parks; Outdoor Amusement Park; Theme Parks were generally family-oriented entertainment complexes that were built around a theme;Water Theme Parks. That means theme is equal to brand.

Are products complex and do they require a detailed understanding on the part of customers?

No, the rides and attraction are not require information.

Would customers incur significant costs in switching to a competitor?

No,ticket prices for consumers is very cheap.

Excess capacity and exit barriers

Is the industry with no intermittent over capacity?

No. Important over capacity of extra staff during spring and summer

Is it hard to get out this business because there are specialized skills and facilities or long term contract commitments?

Yes, it is.

Economies of scale and...