Industry & Competitive Analysis

of
Amusement & Theme Parks

Desiree Gapasin
Valerie Russell
Janice Carlos
Katie Miner
 AGENDA
Dominant Economic Characteristics
Driving Forces
Competition Analysis
Competitive Position of Major
Companies
Competitor Analysis
Key Success Factors
Industry Prospects and Overall
Attractiveness
 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
 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
 DOMINANT ECONOMIC
CHARACTERISTICS

Industry Structure Customers

Destination Parks 75% Attend as
Disneyland Families
Universal Studios
54% Under the
Regional Parks Age of 18
Six Flags
Cedar Points 46% Adults
 DOMINANT ECONOMIC
CHARACTERISTICS

Entry Barriers
Excessive Start-up Costs
Expensive Equipment
Competition from Dominating
Corporations

Exit Barriers
Costly Liquidation of Equipment
 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
DOMINANT ECONOMIC
CHARACTERISTICS

Technology/Innovation
Tests For Safety
Improvements of Attractions
New Development for Rides
Scenery
Shops
 DRIVING FORCES
Rivalry Between Firms (medium)
- about 450 parks in the US
- different types of parks
- revenues constantly climbing

Suppliers Bargaining Power (low)

- about 375 manufacturers & distributors in
the US
- low switching costs
- not easy for suppliers to integrate forward
to directly compete
 DRIVING FORCES

Buyers Bargaining Power (high)

- alternative suppliers available
- quality & price is important
- big account

Potential New Entrants (low)

- capital requirements
- government policy
- reputation/established
 DRIVING FORCES

Threat of Substitutes (low)

- Amusement & Theme Park incorporates fairs,
carnivals, water parks, etc.

Other Stakeholders
- Government
- IAAPA
- NAPHA
- TEA
COMPETITON ANALYSIS

Market Share

30
39.6

5
4.7
5.5 5.2 10
Disney Six Flags Universal
Anheuser Busch Viacom/Paramount Cedar
Other
 COMPETITIVE POSITION OF
MAJOR COMPANIES

5
4
Revenue (billions)

3
2
1
0
0 10 20 30 40
Number of Parks

Disney Viacom Six Flags Cedar Anhueser Busch Universal

 COMPETITIVE POSITION OF
MAJOR COMPANIES
#1Walt Disney #2Six Flags,
Parks Inc.

Industry Leader in Owns the most parks

Sales & Visitors 37, domestically

Leader in Ride
Disney Image, Mickey
Innovations
Mouse
Warner Brothers
International Appeal Characters
 COMPETITIVE POSITION OF
MAJOR COMPANIES
#3Anheuser Busch

Unique Appeal: Animals, Beer,

Water Rides, Gardens,
Naturalistic themes

Entertaining & Educational

Worlds Most Popular marine-life

park: Sea World, Orlando
 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)
 KEY SUCCESS FACTORS
Customer Appeal
Disney: Fairytale
Six Flags: Extreme Trills
Busch: Educational/Naturalistic
Strategic Alliance
Licensing Agreements
Joint Ventures
Technology
Safety Standards
 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
 INDUSTRY PROSPECTS &
OVERALL ATTRACTIVENESS
Lifecycle
USmature
Internationalgrowth
Developing Trends
Themes
Visitor Participation
Simulation & Virtual Reality
Water Attractions
All-weather Operation
 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.
 The End!

Thanks! Any Questions?