Ocean Park Case Study

In: Other Topics

Submitted By nuratti
Words 1229
Pages 5
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.…...

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