Theme Park

1.0 Introduction

Theme park industry in Malaysia is growing nowadays, other than that companies also are trying to turn Malaysia into an amusement and theme park destination. Recently there are also several new theme parks establishing in Malaysia for example, Leisure Park@ i-City and Legoland, there are also few new theme parks are expected to open in two to three year time. Other than that it is also said by the general manager of long time theme park operator Sunway Lagoon Sdn Bhd, that more competitor doesn’t means that they will meet a higher competition rate, more theme parks around will make an increase in tourist arrival. The objective of studying the market of theme parks in Malaysia is to determine the type of market structure currently in this market. Following on, by determine the type of market structure we are able to illustrate the characteristics of this industry, relevant explanation and concept through economic. Market structure is best defined as the organizational and other characteristics of a market that can best describe as goods and services market. Market structure can be divided into four types which are monopolistic, monopoly, oligopoly and perfect competition market structure. The most important features of market structure include the number of firms, market shares of the firms, nature of costs, the degree to which the industry is vertically integrate, the structure of buyers in the industry and others. (Riley, 2015)

2.0 Body

Theme park industry can be considered as an oligopoly market structure due to there are only few firms dominating the particular market in Malaysia (Please refer to Appendix 1). Oligopoly firms tends to be interdependence in making decision. One of the market characteristics of an oligopoly market is interdependence, due the number of competitors in the particular market are few and any changes in the price or products by another firm will directly influence on the profits of its competitor (Varun, 2011). From...