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
Supplier’s 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 Buyer’s 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) Other Stakeholders
- 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. COMPETITIVE POSITION OF MAJOR COMPANIES
#1—Walt Disney Parks
Industry Leader in Sales & Visitors
Disney Image, “Mickey Mouse”
International Appeal
#2—Six 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
World’s 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 Strategic Alliance Technology
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
US—mature
International—growth
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?