STRATEGIC MANAGEMENT

RAMBABU NAIK DIVYAA IYER TATHAGAT TRIPATHI BAING SANKET SURESH SARADA PRASANNA DALAI SUDHANSHU LADDHA

PGP/015/167 PGP/015/140 PGP/015/190 PGP/015/135 PGP/015/179 PGP/015/186

CHALLENGES (1/2)
Alignment of expansion strategy of farmland with corporate

strength of Samsung group

Less leisure time for Korean public to spend on theme park
Corporate executives disapproval due to mismatch between high-

tech & global image of Samsung group and theme park business
To switch to the pay-one-price scheme.
Issue of accessibility to the park due to traffic jams Seasonal nature of theme park business Lack of parking space

CHALLENGES (2/2)
Problem in land acquisition for expansion Low level of customer satisfaction Managements resistance to change Lack of service oriented people Unable to tap the vacation season(Mid July-Mid august)

satisfactorily Farmland- 612 Lotte world-1152

Competition with substituted services like visits to natural places

& historical places

Nature:-22%

Historic place:-22.6%
Not able to tap customer over age of 40

OPTION
Renaming the resort as Everland, Green country or Nature land

Pros:
Green country or nature land can position the park as nature

oriented park.
Greener image will attract more customer with age over 40
Alignment with new mission of firm

Cons:
Compete with Seoul land having green image of beautiful

scenery

COST BENEFIT ANALYSIS

Average fee(admission+ride) average fee(expenditure on food) average fee(merchandise sales) total average fee current population capture rate current customer base(in millions) Projected population projected capture rate projected customer base(in millions) 6667 2874 996 10537 43.5 11.3 4.9155 47.2 15 7.08

current variable expenses projected variable expenses projected total fee(in millions) Fixed cost(in dollars) exchange rate fixed cost(in won) BE point in years after 2000 AD

51,987 74879.04791 74601.96 300 1000 300000 4.021346103

RECOMMENDATIONS(1/2)
By the cost benefit analysis, firm should go for expansion

plan
Design own transport system to address the accessibility

issue
Proper training to staff to enhance customer satisfaction Use contractual labor to address seasonal demand Collaborate with government to procure land with proper

compensation to farmers

RECOMMENDATIONS(2/2)
attractive promotion schemes with price discounts, temporary

attractions like concerts in vacation season to allure customer

Extensive promotional campaign to allure customer towards pay-

one-price scheme
Introduce multi-storey parking for the potential customer base

THANK YOU