Samsung and the theme park industry in Korea

STRATEGIC MANAGEMENT

RAMBABU NAIK PGP/015/167DIVYAA IYER PGP/015/140TATHAGAT TRIPATHI PGP/015/190BAING SANKET SURESH PGP/015/135SARADA PRASANNA DALAI PGP/015/179SUDHANSHU LADDHA 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

Problem in land acquisition for expansion

Low level of customer satisfaction

Management’s 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

CHALLENGES (2/2)

OPTIONRenaming 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 ANALYSISAverage fee(admission+ride) 6667average fee(expenditure on food) 2874average fee(merchandise sales) 996total average fee 10537

current population 43.5capture rate 11.3current customer base(in millions) 4.9155

Projected population 47.2projected capture rate 15projected customer base(in millions) 7.08

current variable expenses 51,987projected variable expenses 74879.04791

projected total fee(in millions) 74601.96

Fixed cost(in dollars) 300exchange rate 1000fixed cost(in won) 300000

BE point in years after 2000 AD 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

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

RECOMMENDATIONS(2/2)

THANK YOU