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….