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Ocean Park Case Study

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Submitted By nuratti
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OP issue & Challenges
-Ocean Park was an old and tired brand and no one knew what it stood for.
-HK has few scenic endowments hence need to create own attraction which take long time and high investment
-Econ dwntn(1997) & SARs(2003) strike in Asia,fell by70%attendance,threat to close down.
External environment analysis- PEST Factors
Political
-in 2009, the Govt of HK tourism board(HKTB) introduce removal of the quota of the Hong Kong Tour Group Scheme of Mainland tourists in 2002
-implementation of Individual Visit Scheme (IVS) enables Mainlander to visit HK as free and independent tourists without the need to apply for special visas.
Economic
As of Feb 12, high inflation rate lead to increase tickets price. From $208 (in 2009) to $280 (in 2012) .Decline in revenue will force OP to increase their retail price to sustain profit.
Social
-caters tourist from mainlander who are not sophisticated and they require long education campaign
- Different market- locals & business group, and international tourist; family oriented
Technological
-use of latest technology in lighting, music and multimedia special effects, to enhance amazing undersea creatures.
Industrial Analysis- Application of Porter’s 5 Forces
1. Threat of entry – very high
-the entry barrier is high due to the need to invest large amount of financial resources
-required land for a full scale development

2. Bargaining power of supplier (OP) – low
-OP known in the industry hence weaken the bargain power external supplier.
3. Bargaining power of buyer(tourist)- high
-they will not able to bargain for cheaper ticket pricing, and play only selective machine that is avail.
-Cost of switching is low-DHK
-Info avail for tourist to choose from rival for $ worth.
-repeat customers
4. Threat of substitutes products – weak
-main threat of substitution is DHK, & upcoming is DSH in 2014.
-They have totally different approach to attract customers- educational and conservation (home-grown, local take pride in it) 5. Intensity of rivalry – weak
-traditionally catered to unlike Disneyland more westernize.
-lack of differentiation, visitors’ choice will greatly over the price and service thus causes pressure for the intense price and service competition.

Competition Characteristics Threats to Ocean Park
Brand competition
OP Chinese tradition is kept & communication is mostly in Chinese & suits mainlander Home-grown and it uniquely preserved
Industry Competitors
Disneyland Fantasy base- movie & intellectual product Competitive to international market Equipped with thrill rides and fantasyland & communicated in English, open for international market
Form Competitors
USS SG Conclusion
The current Strategy of OP brand competitors are very similar to rival. All seems to be pursuing the same strategy that assumed similarity in many customer wants a cheap attraction with array of activities for them to enjoy with their family and friends. They all aim to create the same experience that OP provide to their customers.

One of OP key success factor is creating the tourist ultimate experience. OP is focus on the 2 elements of conserving and education for family & young adults to explore. OP is into a Chinese attraction and lesser attraction for international level unlike DHK which is reknown by its brand. OP therefore need to focus in further diversify in accommodating towards the international group of tourist in order to expand on their business outreach. OP has a scenic endowment which is a pull factor for tourist to repeat their returns and not avail in DHK. This is one factor that can attract tourist all over the world to come experience.
Business Level Strategies It is therefore recommended that OP continue to pursue a focused differentiation strategy. Why? As this market is a $ spinning business with accordance to customer returns. The re-development and introduction of new attractions will be able to catch the attention of the visitors and differentiate themselves from rivals. OP should listen to the customers, find or reinvigorate the brand idea and relentlessly push that through internal and external communications.
Alternatives PROS CONS
Stability strategy (Maintain – no growth
Growth strategy – must carefully monitor

Therefore Growth Strategy recommended for current situation. Need a thorough monitoring and regular evaluation of growth.

Market penetration
Market development
Product development diversification SWOT Table
Strength
-appeal to all ages
-offers thrill rides, closer to animal & nature, fun and educational to their foreign visitors
-enables to meet the cultural aspects of different people from different part of the globe
-become successful because of its connection to the local government that helped them to have a subway line for the visitors helping those tourist who sensitive to spending, save time in traveling. Opportunities
-Individual Traveling Scheme-take a great amount visitors for the park
-Internet to connect vast range of possible customers or visitors.
-Development and improvement of the amusement machinery industry- impact the services and features of the organization, thus their relationship to their foreign visitors.
-organization also has a strong marketing support from the local government that recommends the Ocean Park to the foreign visitors.
-those customer who with a powerful purchase ability and that would stimulating the demand for the outbound travel
Weakness
-limitation regarding the land development because the location is hilly
-long process of replacement of innovation process
-lack of strong financial support and backup. Threat
- DHK renovation plan able to regain their past position in the market
-unforeseen circumstances such as economic downturn, epidemic outbreak and natural disaster.
-entry of new theme park
-loss of appeal to target market

Value chain Analysis
Human Resource Management – recruit staff who is bilingual (knows Chinese and English), training and development of staffs. Must have strong leadership to manage the staffs.
Primary:
Inbound logistics- Good rapport with suppliers to guarantee quality service and price consistency.
Operations – Efficient maintenance & consistency to run the OP smoothly.
Outbound logistics – scenic endowment attracts and accessible by tourist esp. mainlanders who frequents OP and repeat returns.
Marketing and Sales –full information interpreted in bilingual for mainlander and international tourist to understand the real meaning of the attractions so as to enjoy the entire Oceanpark. Active advertising strategy promoting vigorously on the having offers for corporate visits to make use of the park in the evenings when it was traditionally dormant & embellish on the brand with the mascot whiskers seal lion.
Service – concentrate on giving value for the money they pay with good service rendered.annual

Support:
Procurement – Ensure on the raw material for the rides to be good quality and safe.
Technology – Invest heavily on better performance rides.
Human Resources – the unique OP experience is heavily dependable on conservation and education of the marine creatures to attract family & young adults in order to differentiate itself from its competitors.

Comparison for hk & sg:

In HK,tap into the greater Chinese and North Asian markets.
-Hong Kong on the other hand experiences a high level of air pollution and traffic congestion.
-residential rentals are much more expensive than in Singapore and are considered in line with those in major international cities such as London and New York.
In Singapore,1] highly competitive landscape and some investors choose Singapore, driven by lifestyle reasons or by the strength of infrastructure and the quality of service providers.2] Smaller businesses often choose Singapore as it offers more attractive tax benefits and lower cost environment when compared to its rival.
-promotes a clean, green and healthy environment, free from traffic congestion.
-accommodation options to cater to all types of needs, preferences and budgets
Both has efficient transport systems.

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