1. WILD WATER GETS SOAKED  Situation facing Wild Water has the potential to create a more saturated market that can increase competitive intensity  Demolition of cottages and construction of condo can be a threat and opportunity State uncertainty is low but effect and response uncertainty is high State uncertainty is low but effect and response uncertainty is high  Range of response options can include defending current position or considering migrating upwards to higher end segments  Ultimate choice depends on perception of opportunities and assessment of internal capabilities

2. Wild Water’s Environment Wild Water New amusement park Buyers loyal but will have more choice Rivals can be multi- segments Supplier power may increase Condo can serve as feeder. Technology can offer new products Sense of relationship with local community an advantage but may not last forever Must comply with regulation but will affect all equally Demographics a long- term issue Entertainment is vulnerable to economic conditions

3. IMMEDIATE CHALLENGES  New amusement park may draw high end customers and negate potential benefit from condo construction  Most likely supply issue for Wild Water is the labour market New amusement park can drive up salary and create shortage New amusement park can drive up salary and create shortage May test current loyalties which was developed in condition where labour market had little choice May test current loyalties which was developed in condition where labour market had little choice  The entertainment industry is vulnerable to changes in economic condition  Short and seasonal operating period and vulnerability to economic condition poses risk in making new investments

4. WILD WATER’S CULTURE  Wild Water’s culture resembles a hybrid Hierarchy- Group culture.  Rules bound and procedural orientation serves current purpose in current business environment but may impede adaptation Hierarchical orientation reflective of stable environment in the past and reliance on mechanical technology Hierarchical orientation reflective of stable environment in the past and reliance on mechanical technology Smallness enables cultivation of family-like climate Smallness enables cultivation of family-like climate  Also have elements of hierarchy with strong family control However, long stable history may breed complacency and inability to respond to new challenges However, long stable history may breed complacency and inability to respond to new challenges Sense of upbeat optimism may be indicative of complacency and lack of appreciation of seriousness of threat. Sense of upbeat optimism may be indicative of complacency and lack of appreciation of seriousness of threat. Current competencies may lack ability to adapt to new situation. Current competencies may lack ability to adapt to new situation.  Response to challenge may require going beyond current business approach.

5. OPTIONS FOR FUTURE  Key strategic issue is how to protect current customers and draw new ones Need to think of capturing condo residents market and offering more variety to current and new customers Need to think of capturing condo residents market and offering more variety to current and new customers  Some possible options: Position different components of Wild West for different market segments Position different components of Wild West for different market segments Consider extending opening period beyond warm season by having indoor/enclosed facilities Consider extending opening period beyond warm season by having indoor/enclosed facilities Cross marketing with condo developer through use of discount and loyalty cards to generate more and sustained stream of customers. Cross marketing with condo developer through use of discount and loyalty cards to generate more and sustained stream of customers. Develop new facilities such as marina, golf course, high end restaurants, equestrian park and spa to increase revenue and reduce dependency on water rides Develop new facilities such as marina, golf course, high end restaurants, equestrian park and spa to increase revenue and reduce dependency on water rides

6. CAUSAL MODEL OF ACTION PLAN Formulate comprehensive response plan Acquire resource to support plan: Land People Funding Technology Construct diverse and less seasonal facilities Cross marketing with condo developer Train workers and improve HRM package Draw in new customers Attract customers throughout year Survival and improve financial performance