Samsung And The Theme

Park Industry In Korea

Samsung and theme park industry in Korea

Yongin Farmland- amusement theme park

Case Overview

$300 million investment for revamping Farmland Changing the name to provide better image A water park- US$140 million A global fair- $85 million Expansion of existing zoo- $50 million Second phase: developing a resort town

Priority and profitable venture for managers comprehensive, competitive analysis Customer satisfaction and quality revolution

Overview – Master Plan

Porter’s 5 Forces Model

Porter’s 5 Forces Model

Financial Issues

• The price of the theme park land is relatively expensive, ranging from $50mil - $3bill

• The cost of the land value can be really high what more when the location of this theme park is smack in the middle of the city

• The cost of maintenance for the theme park is huge • This expenses is unavoidable as the nature of the business require regular

maintenance works and upgrading tasks

Marketing and Social Issues

Customer satisfaction was a critical issues in theme park management To reach the diverse group

SEASONAL & INTERMITTENT NATURE In marketing the theme park, the management used about 10% of their total

income for below and above the line promotions  the number of visitors for the centre  varies from time to time In managing high demand during peak season, the management of theme

park often struggle with lack of staff to manage the demand

Regulatory Issues

Key Success Factors in Theme Park Industry

Key Success Factors for Yongin Farmland Park

As the chairman of the Samsung group would you approve such a master plan??

PESTLE ANALSI

S

Political•Land use•Getting approval could be tedious, takes 2-5 yrs•Political issues involving environmental concerns

Economic•GDP growing at an average of 8% per year and current PPP is USD 13350•Seasonal business, needs continuous investment in rides, shows etc.

Technological•H/w suppliers are mainly concentrated in US and Europe and are costly•Difficult to engage management software through licensing

Social•People have long working hours• Korea is densely populated country

Environmental•Theme parks might hinder certain environmental laws Legal

•Getting approval for land and building might be difficult

Yes…. I would approve such plan….