The Situation Of Hong Kongs Ocean Park

The Situation Of Hong Kongs oceanic layIntroductionIn contemporary pop surface facial expression(a) personal overseas telegram of credit with an increasingly unfold commercialise, m either local enterprises atomic number 18 confront severe competition from large scale global social club. In the incase of disparities in everywhereall strengths, it is quite necessity and necessary for local descent to explore saucy maturation ideas as well as pertly pose for development.With its continuing effort on re-engineering these eld, Hong Kong marine common has sullen a profit of 95.7 HK$ millions in 2004. However, with the coming opening of Hong Kong Disneyland, Hong Kong ocean special K should be well prepared for the challenge from its main(prenominal) competition by starting from its possess characteristics, repositioning, identifying its absolute receiptss, carrying out redevelopment plan with the live on from its kick d acceptstairsners and local organi zation.This report is mainly focalizationed on the statement of the up-to-date berth of Hong Kong sea do and discussion round its future day development. To take up with, there will be almost basic introduction of Hong Kong oceanic markting surface standardised its mission, vision and so on. Next goes the analysis of out-of-door and internal environment. After that, strategic choices will be discussed. And finally, suggestion and good word are proposed to the chief executive officer and Board of oceanic common.1. Strategy concepts and vocabulary bang maritime common land houses all invitees with memorable experiences that combine entertainment and education, mend inspiring life gigantic learning and conservation advocacy. Our aim is to maintain a healthy fiscal status, while striving to deliver the mel gloomyedest standards of safety, animal care, products and lymph node swear out (Ocean viridity Hong Kong, 2010).Goals and objectives-boost the number of ann ual visitants from four million in 2004 to five million by 2010-to make a 0.5 per cent constituent to Hong Kongs gross domestic product (GDP) in 2010.VisionOcean Park aspires to be a world leader in providing excellent knob experiences in a theme super acid environment connecting people with record (Ocean Park Hong Kong, 2010). And, much(prenominal) specified, its vision is to wrick number bingle marine- found super Cing area for each family non only from Hong-Kong but overly from mainland china.The main procedure measures to determine the triumph of Ocean Park are the followingFirstly, it has amply reputation in both Hong Kong and mainland China. As it has been operated for to a greater extent than 28 years, it become a long- while front-runner of some(prenominal) generations, many local people were kindly to Ocean Park. Thus, people who had visited the parkland as children were now bringing their own children to it. Secondly, it had become a fixture of Hong Kon gs cultural heritage. Thirdly, the number of visitors in 2004 is 4 m of people (with daily maximum capacity 35 000 people) fare r until nowue in 2004 was 536.2 HK$ m comparing to 428.3 HK$ m in 2003, un ask for 2004 year was 95.7 HK$ m comparing to deficit 4.1 HK$ m in 2003. And finally, its immature cross out ( byssus) is recognizable at every house in China and plays a major role in the success of Hong Kong Ocean Park.On unity hand, we eat stakeholders, who help to achieve park purpose and mission, much(prenominal) as Hong Kong government, Home Affairs Bureau and the touristry Board, employees of Ocean Park corporation and position visitors (customers). On opposite hand, we put up those, who interfere with achieving pose purpose and mission, much(prenominal) as activist grow (certain environmental groups and animal rights activists), who put forward on forbidding of buying and transportation exotic animals to park, trade associations and unions (bus companies and cabriolet drivers), who are a make believest building a mass transit railway (MTR), and competitors, who desire to regain the securities pains share.2. External EnvironmentKey driving forces and their beRaise and over measuring rod HK$5.55 billion from backstage and government loans to revamp parks well-worn product line (approval of development plan) orbiculate changing in encumbranceism for Hong-Kong and Asia-Pacific region (development of touristry in region)Disneylands reaching world dewy-eyed success of main competitor-Disneyland, coming to Hong Kong (Disneys success or failure)PESTEL summaryFIVE FORCES ANALYSIS for amusement park application1) little terror of new entryAs entertainment and theme park industry requires a lot of cash (for park equipment, human re microbes maintenance), the entry barrier is high. likewise lots of time is required for parks planning, construction, development and launching, a lot of licenses and legalization is motivationed (safe ty, sanitary, security etc). Besides this, a large space of land is essential to the development of the amusement park, especially in Hong Kong, where the land damage in existing estate mart is high.2) Threat of rivalryWith low specialization of products visitors choice will be based on impairment and service only. As a result, there is an additional pressure on the price and service competition.Ocean Park needs to carry out assorted plans and activities such as redevelopment and introduction of new appealions. There are no rivals with exactly the very(prenominal) figure of speech of products. Disneys arrival is only expected.3) Threat of substitutionIn the familys leisure activities segment, where Ocean Park is operated, many organizations set aside different kind of services. These include Cultural Center, Zoo and Botanic gardens. Thus, Hong Kong, as a metropolis, has a variety of cinemas, karaoke clubs, family cafes, concert halls and museums. Such services sham offer fu ll languish of activities, which Ocean Park provides, but they collapse an blow on number of customers, especially during the days of unique events, such as blockbusters premieres or festivals.4) Bargaining power of buyers (visitors)As Ocean Park successfully established and positioned its image with unique attractions, it has become a essential see place for unconnected visitors. The holidaymaker bargaining power is low imputable to it is hard for visitors to get the same experience at any other place as they have had in Ocean Park. topical anaesthetic residents have a high buying power as they have many other choices for leisure. For instance, they piece of tail go to Wetland Park for ecotourism and nature and wildlife experience, they can likewise go to movies or fitness club for entertainment purpose. Moreover, the shimmy cost is relatively low for them.5) The power of suppliersSuppliers have quite high power. Thus, construction elements of amusement rides are huge and complicated, thats why park is highly tied with supplier. Additionally, supplier is responsible for maintenance of objects he has developed for park. This caused in high dependence of selected constructor. Otherwise, this market is developed and the choice of suppliers is become great now. While constructing buildings (hotels, etc) with occurrence contractor park cant easily switch to another contractor because of high switching cost). The situation with the exotic animals is such as Ocean Park can buy in particular surface area only.The underlying dynamics, which are driving five forces1) Aftermath of stinting crises and increasing in number of suppliers will drop supplier power.2) Disneys arrival decrease entry threat in entertainment park industry and summation competitors rivalry.3) Developing of new technologies will affect rising of substitutes. Also competitors with new technologies will win (in this aspect Disney has an advantage)4) Disneys arrival increase demands in diversification of Ocean Parks products.5) Ticket price advantages (185 HK$ for adult slating at Ocean Park compared to 295HK$ for the same ticket at Disney).6) The main rival (Disney) is as well as same market oriented (families with children), therefore, this could rise buyers power. ground on the five forces analysis, the main dominant force of industry is substitutes. less(prenominal)(prenominal) importance has suppliers and further buyers.Looking forward, the five forces will change in this way-Rivalry will increase with Disneys arrival-Buyer power will increase fairly-Substitute threat will also increase-Entry threat decrease dramatically-Supplier power will also decrease.Five forces much more than affect Wetland Park Ocean Parks find competitor, located at the northern part of Tin Shui Wai, in Yuen Long, than Ocean Park itself, because Wetland parks products are less place. It has a 10,000m2 visitor centre, Wetland Interactive World, and a 60-hectare Wetland reserve (Hong Kong Wetland Park, 2010). Arrival of other competitor Disney and its substitutes doesnt affect much Ocean Park because it has its own recess.More differentiation of new products, directed mainly to Chinese native culture will affect rivalry, substitutes and buyers. Unique high-quality products and services also will influence buyers. For seeking suppliers big impact will have Internet and special web-sites with lift out quality of service, characteristics, recommendations and prices. strategical group/space analysis for Ocean ParkThere are 2 key competitors for Ocean Park1) Hong Kong Wetland Park, mentioned above. It is a conservation, education and tourism set, consisted of large visitor centre, Wetland Interactive World and a Wetland Reserve. This park provided visitors with opportunities to observe wildlife, awareness and judgement the values of wetlands throughout the East Asian Region and beyond, wetlands conservation. So, its mainly somewhat wetlands. The Hong Ko ng Wetland Park is also going to be a world-class ecotourism facility to serve both local residents and overseas tourists (Hong Kong Wetland Park, 2010).Compare to Disneyland and Ocean Park, Hong Kong Wetland Park has different facilities and product range (such as themed exhibition galleries, a field of operation, a souvenir shop, an indoor play area), provide different services and thus, like Disney and Ocean Park, has its own niche. The range of facilities provided is the narrowest among 3 parks. Therefore, Wetland Park cant take in demand of those visitors, who are looking for excitements and extreme pleasure, which can be imbed on a rides at 2 other parks.2) Hong Kong Disneyland, arriving in a nearest future.After 28 years of operating as a near monopoly, Ocean Park would soon have to compete with one of the biggest names in the entertainment and theme park industry. Moreover, Disneyland targets the same group of parks customers families with children.It has well-known bran d and reputation. Its the world leader in cost of entertainment. Several of Disneys characters (Mickey Mouse, Donald Duck and Winnie the Pooh) were household names all over the world, including in Hong Kong. Image, which Disney company holds almost for a century (The Walt Disney Company was founded in 1923) and Disneyland itself (first park was opened in 1955) for half a century (compared to 28 years of Ocean park) helps to attract visitors not only from Hong Kong and midland China, but also from different part of the globe, especially those who are from the USA and Europe (The Walt Disney Company, 2010).But, disdain of distinguish of Chinese culture, Disney characters whitethorn be not as pop in Hong Kong as Ocean Parks mascot, Whiskeys.Among other advantages of Disneyland are reparation (it could be reached in just 10 minutes from Hong Kongs airport and less than 30 minutes from great dealtown Hong Kong) the price claimed to be the least dear(predicate) among the five Disney amusement parks throughout the world the area of Disneyland is 310 dry land compared to 215 acres of Ocean Park 5 times greater coronation than for Ocean Park world-renowned innovation high customer service standards.Strategic groups at heart the entertainment and theme park industry in Hong Kong coarseOceanParkDisneylandProduct rangeNarrowWetland ParkGlobalLocal geographicalal ScopeOn one hand, Ocean Park is a part of entertainment and theme industry. Its market is families with children. On other hand, Disneyland, its future competitor, applies to the same market. Despite of this, Ocean Park has its own niche with visitors from mainland China and products range, combining entertainment and leisure as well as education.3. Internal EnvironmentOcean Parks resources1) Tangible financial private and government loans expected HK$5.55 billion investment HK$145 billion economical effectiveness surplus from operations in 2004 was HK$182.2 million on revenues of HK$536.2 million net current assets HK$283.2. physical Sea World, marine life and real animals 35 rides and attractions favorable and convenient location on the southern side of Hong Kong Island wide range of new activities, such as the Abyss Turbo roam thrill ride, seasonal and special events (Chinese saucily category, Easter Holiday, Summer Holiday, Halloween and Christmas), best-selling(predicate) water-related activities, interactive activities with animals, edutainment schedules, successful Sea Jelly Spectacular and so on.2) nonphysical long-time reputation of park with government, customers new brand sea lion named Whiskers cultural heritage of Hong Kong great number of absorbed visitors.3) Human 37 speed of light employees, their skills and knowledge Thomas Mehrmann, new chief executive officer of Ocean Park, and his preliminary experience at US-based Six Flags Corporation.Main capabilities of Ocean Park1) New products, facilities and services development capability continually addi ng new features and attractions. Therefore, in a nearest future Ocean Park will become one of the best marine-based theme park with strong connection with nature.2) Research and development, marketing and sales capabilities plan to refurbish and rename Ocean Parks 2 major areas (the Lowland and the Highland), new hotels to be developed, including a five-star boutique, spa-type hotel, plan to open offices in the major urban areas of Guangzhou, Beijing and Shanghai to enhance promotional activities in Hong Kong and attract more mainland visitors.3) New incentive compensation that cerebrate employee compensation to the financial performance of park.The competences of Ocean Park local market loyalty, customers trust and love long-term reputation, distinct Chinese characteristics recognizable brand education in combination with recreation cost and differentiation of product, advance visitors to return to the park distinctive work culture, with its own norms and practicesCompetitive Ad vantages of Ocean Park over Disneyland cultural heritage of Hong Kong, orientation mostly on visitors from midland China first-mover advantages primary focus of Ocean Park on real nature and wildlife in contrast to Disneys strengths in cartoon characters, castles, practical(prenominal) reality and fantasy no need to oblige in high-profile denote and publicity, rely more on word-of-mouth more diverse and wide range of products price advantage the rise to power price for Disneyland is expected more than twice higher for child and one and a half higher for adult than price of Ocean park. And visitors from mainland China are very price sensitive. SmartFun Annual exsert course of instruction with un moderate admission to the park for its holders within a year, and discounted prices for food, souvenirs orientation not only on entertainment, but also on education of visitors special events for traditional Chinese holidays (Chinese New Year) anyhow events for western holidays (Hallow een)Despite Ocean Park build its system on its resources, capabilities and competences, it cant relay only on them they need to be developed, innovated and refreshed, because they may begin to look dated and shabby for their visitors. For example, it can import more species, construct water/sea-related facilities and hotels. Overall, Ocean Park resources are sustainable, with some expulsion such as, the impact on these resources from environmental groups opposition.SWOT ANALYSISpositive impactNegative impactInternal environmentStrengths-diversified and wide range of amusements (thrills, animals, seasonal and special events)-product line revamp-highly linked with culture of mainland Chinese visitors, knows their demands and behavior-the main, oldest and most celebrated amusement park in the countrified, hometown favorite-28 years of operating as a near monopoly-no need to engage in high-profile advertisement and publicity, rely more on word-of-mouth-strong business connection to the local government ( jut from the government of Hong Kong and mainland China)-previous experience of Thomas Mehrmann (new CEO of Ocean Park) in theme park industry (at US-based Six Flags Corporation)-local market loyalty-positive image of parkWeaknesses-located on a hills-hard to get to some riders-thats why visitors experienced rides only once-different facilities are old and un-attractive and need renovation-a lot of activities depend on weather-no substantial ceiling investmentExternal environmentOpportunities-focusing on delivering mainland Chinas visitors as well as foreign visitors-plan to build a mass transit railway (MTR) point to connect Ocean Park to the underpass grid-the development and service of the amusement machinery, which can impact the services and features of the organization and its relationship to their foreign visitors-raise the standards of park with Disneyland arrival fostering sponsorships-plan for building new hotels (boutique and spa-type) orien tation on new luxury tourism market segmentThreats-economical instability (such as the Asian financial crisis of 1999-2001, lasted for 3 difficult years for Ocean Park), blast of different diseases, such as Severe Acute Respiratory Syndrome (SARS) in 2003 (Both these factors can affect number of visitors and their buying behavior, worsening the park financial situation)-arrival of Disneyland Hong Kong-location on valuable real estate it could be shut down and its land could be sold off for other recreational or commercial purposes.4. Strategic ChoicesBusiness-level strategyHong Kong Ocean Park uses hybrid strategy, which seeks concurrently to achieve differentiation and low price relative to competitors (Johnson, Scholes, Whittington, 2008). Most activities were carried out based on this Strategy.1) Hong Kong Ocean Parks admission fee is bounteous HK$185, Child HK$95 which is lower that of Disneys Adult HK$295(weekdays) HK$350(holidays) Child HK$210(weekdays), HK$250(holidays).2) Hong Kong Ocean Park did not spend too much on new fixed-asset attractions due to short life circles of them and difficulty in coming up with an encore.3) It keeps part attractions fresh, novel and exciting while minimize costs. Instead of buying in new attractions, Hong Kong Ocean Park focused on culture innovation. around relative low-cost ideas proved successful Seasonal and special events attracted repeat visits every year.4) Hong Kong Ocean Park did not take part in highly cost advertising campaign. Compared to its competitors, Hong Kong Ocean Park tended to rely more on word-of-mouth to generate additional business. Since Hong Kong Ocean Park was the local residents favorite theme park and had high reputation in Hong Kong even in Asia. Hong Kong Ocean Park had profound influence on several generations in Hong Kong, people who had visited the park as children were now bringing their own children to visit the park. Actually, Hong Kong Ocean Park was locally born and bred and h ad become a fixture of Hong Kongs cultural heritage.5) Hong Kong Ocean Park had a clear organisational structure, no too much redundancy. It can save labor cost.6) Hong Kong Ocean Park had identified its strategic customers clearly those are Local tourists and Mainland Tourists. So, it carried out several plans to attract its key customers.a) It hosts several festival events and activities to complement its park offerings with distinct features, like Chinese New Year. It had distinct Chinese characteristics that reflected its roots in Hong Kong, a quintessentially Chinese city.b) Retained its unique SmartFun Annual Pass Program and tactically reviewed and developed value-added benefits to build sales and local customers loyalty. This program encouraged annual pass holders to visit the park repeatedly. Visitors to the park would spend money in other areas to boost revenue beyond the admission fees.7) Hong Kong Ocean Parks had clear and definite position that was to become the best ma rine-based theme park in the world need a source here, to provide customers with a place for recreation and education about marine life and environmental conservation. This unique strategic position is differentiated Hong Kong Ocean Park from its competitors and ensure its advantages over the main competitors.Competitive strategies of Hong Kong Ocean Parks competitorDisneyland was regarded as Hong Kong Ocean Parks main competitor and it adopted a differentiation strategy. With a differentiation strategy, a company provides products or services that offer more benefits than those of its competitors which are widely set by buyers. The aim is to make a company advantageous over its competitors by offering better products or services at the same price or increasing profits by a slightly higher price (Johnson, Scholes, Whittington, 2008).More specifically, Disneyland took below action plans in line with its differentiation strategy1) The selling points of Disneyland were Disney cartoon characters, fantasy world and famous Americans brands, 23 rides and attractions.2) Disney has strong abilities to create fantasy and virtual situations, and it was going to supplement the benefits of animation into its amusement parks.3) There would be two hotels in Hong Kong Disneyland which could provide guests with better recreation facilities.4) There was going to be a subway station linking Disneyland to other parts of Hong Kong which enable Disneyland to has convenient transportation advantage over its competitors.5) Unique Disney World-styled wedding ceremony was offered to guests in Disneyland.Strategic worryIn 2005 Ocean Park had good business characteristics it became profitable, with significant market share, effective management team and successful recognizable brand.Otherwise, arriving of Disneyland could negatively impact on success of a company. To avoid this, Ocean Park must(prenominal) define a right strategic bearing. Most preferable direction is product dev elopment. This means that Ocean Park need to improve its products range and number of additional services. Thus, by offering new wide set of entertainment and educational products for all target groups, the company can gain advantages to harden its brand, attract new consumers and retrieve lost customers, who not pursue with old facilities and services any more.Despite the international tourists is a baby group in customers bes, company could start to develop a new markets. This development includes marketing campaign directed to tourists from selected countries and making contracts with tour agents. realisation of these methods helps to increase tourists share when local citizens share will decline later on Disneyland coming.International StrategyInternational Strategy for Ocean Park is limited to marketing policy for preferable countries. The main reason of this limitation is that Ocean Park cant be expanded to other countries like Disneyland does, for example. Its based on l ocal flora and fauna and strongly attached to Chinese culture. Also other countries may not have such resources. Ocean Park is a unique, not common product. Not every country even needs it. Thus, expansion is considered in case of marketing development only, such as connection with potential tourists, opening of offices, TV advertising and so on, which helps to enhance promotional activities in Hong Kong and attract visitors.CAGE role model for Ocean ParkCultural distance With increasing popularity of the Ocean Park, the CEO and Broad of Ocean Park need to think about it magnet to tourists in case of the whole world. Indeed, Ocean Park activities are touch by cultural heritage, but it only helps park to attract tourists not only from Asia, but also from all over the world. High priorities should be given to those countries, from where the number of tourist is significant.Administrative and political distance Its main(prenominal) to consider at first countries with good and stable relationships with China and Hong Kong.Geographic distance High priority should be given to those countries, from which the number of tourist is significant, then to neighbor countries. Therefore, Ocean Park need to make agreements with tour agents in these countries, organize different sales and advertising, so, expand its marketing presence in these countries.Economic distance The economic circumstances of a country is an important factor when carrying out international strategy. Therefore, the amusement theme park cant be developed well in the countries with bad economic circumstances. Thus, the main orientation of Ocean Park will be on countries with high income per capita or high level of consumer wealth.5. General introduction and future of development Hong Kong TourismSince the reunification (except during the SARS outbreak in), the Hong Kong tourism industry has performed well. In 2004, Hong Kong tourism industry reached new heights, with 21810630 tourists, increasing by 4 0.4% compared to the figures of 15536839 in 2003 (subject to SARS impact), meanwhile, the revenue of tourism amounted to 91.8 billion Hong Kong dollars, up to 9.6% over 2003 (http//www.discoverhongkong.com).Hong Kong government has always been thinking of a new positioning and development direction. In the Governments policy report, it is identified that Hong Kong to be Backed by the Mainland and towards the world, to be an international metropolis providing quality services, and it is clearly stated the new policy as Market Leads, Government Facilitates. need a source here Tourism is the most robust momentum in services industries, one of the linchpin industries of Hong Kong and is paid high attention by Hong Kong government. In the new situation and new policy paradigm, the Government begins to make overall planning for the tourism industry, which means that the Government will take more proactive measures to recruit the development of tourism (http//www.gov.hk).In 2004 mainlan d visitors continued to be the majority of Hong Kong tourism with a number of 12245862 tourists, increasing by 44.6%. Free elaborate program was the driving force to promote further expansion of mainland market. Moreover, from July 1, 2004, the stop exercise extended to 32 cities in South China and East China, 100 million 58 million residents from these cities could apply for travel to Hong Kong with the name of free exercise. In 2004, there were 426 million free exercise visitors, accounting for 34.8% of the total number of tourists which rose more than twice than 134 million tourists in 2003 (http//www.discoverhongkong.com).With the support from the government as well as the increasing trend of visitors traveling to Hong Kong, it is predicted that there will be a bright future for Hong Kong tourism which will directly promote the development of them park industry in Hong Kong.6. Suggestions to Hong Kong Ocean ParkGenerally speaking, Hong Kong Ocean Park, with Disneylands arriva l, should transform hybrid strategy to differentiation strategy. More specifically, it involves two main parts marketing strategy as short term goals and infrastructure construction as long term objective. However, it should always stick to its mission and vision of delivering the highest standards of safety, animal care, products and guest service, be a world leader in providing excellent guest experiences in a theme park environment connecting people with nature. put a source hereMarketing strategyProduct clasp on introducing a variety of interactive activities with animals. For example the Ocean theatre that staged dolphin and sea lion shows every day. Keep focus on seasonal and special events like Chinese New Year and Halloween. For instance, during summer holiday, some water-related activities such as water-war of foam parties should be nonionized which target teenagers. Develop a niche products, e.g. Sea World-styled wedding ceremony. bring home the bacon more sophisticate d products to its customers than Disney. For example, build boutique hotel and spa-style hotels for tourists with higher income, expectations and needs. Such, move to a new market segment, even luxury tourism.Price Concentrate on giving value for the money the customers have paid. It is quite essential to attract mainland visitors who are more sensitive on price. Provide guests with more amusement facilities at a lower price than Disneyland to attract more visits. As to the local residents, it is suggested to offer them the annual pass as it creates loyalty and a real sense of value by encouraging annual pass holders to visit the park repeatedly. Some special offer to different groups in the society is also recommended, for example, a discount for students during holidays. As a step of moving from hybrid to differentiation strategy after Disneys arrival, at first, Ocean Park should keep its prices, but later, with differentiation of its products range, the prices could be increased. Promotion set out full use of word of mouth marketing and the advantage of being the localized theme park. Proceed the promotion through the unique flavour of growing together with Hong Kong (Yan Le, 2007). Advertising campaign in Hong Kong can be carried out through the interactive quiz of the knowledge about animals to cheer their interest in nature and wildlife. As there is a importantly increasing number of mainland visitors to Hong Kong, it is strongly suggested that Hong Kong Ocean Park should establish agencies in major cities in China to showcase its unique attractions and attract more mainland visitors. Expand the marketing campaign to international markets to attract foreign tourists. In case of Disneys arrival, Ocean Park can start more vulturous marketing politic for attracting tourists from all over the wor