WILD WATER GETS SOAKEDWILD WATER GETS SOAKED Situation facing Wild Water has the potential to create a Situation facing Wild Water has the potential to create a

more saturated market that can increase competitive more saturated market that can increase competitive intensityintensity

Demolition of cottages and construction of condo can be Demolition of cottages and construction of condo can be a threat and opportunitya threat and opportunity

State uncertainty is low but effect and response uncertainty is State uncertainty is low but effect and response uncertainty is highhigh

Range of response options can include defending Range of response options can include defending current position or considering migrating upwards to current position or considering migrating upwards to higher end segmentshigher end segments

Ultimate choice depends on perception of opportunities Ultimate choice depends on perception of opportunities and assessment of internal capabilitiesand assessment of internal capabilities

Wild Water’s EnvironmentWild Water’s Environment

Wild Water

New amusement

parkBuyers loyal but will have more choice

Rivals can be multi-segments

Supplier power may

increase

Condo can serve as feeder.

Technology can offer new

products

Sense of relationship with

local community an advantage but may

not last forever

Must comply with regulation but will affect all equally

Demographics a long-term issue

Entertainment is vulnerable to economic

conditions

IMMEDIATE CHALLENGESIMMEDIATE CHALLENGES New amusement park may draw high end customers New amusement park may draw high end customers

and negate potential benefit from condo constructionand negate potential benefit from condo construction Most likely supply issue for Wild Water is the labour Most likely supply issue for Wild Water is the labour

marketmarket New amusement park can drive up salary and create shortageNew amusement park can drive up salary and create shortage May test current loyalties which was developed in condition May test current loyalties which was developed in condition

where labour market had little choicewhere labour market had little choice The entertainment industry is vulnerable to changes in The entertainment industry is vulnerable to changes in

economic conditioneconomic condition Short and seasonal operating period and vulnerability to Short and seasonal operating period and vulnerability to

economic condition poses risk in making new economic condition poses risk in making new investmentsinvestments

WILD WATER’S CULTURE WILD WATER’S CULTURE Wild Water’s culture resembles a hybrid Hierarchy-Wild Water’s culture resembles a hybrid Hierarchy-

Group culture.Group culture. Rules bound and procedural orientation serves current Rules bound and procedural orientation serves current

purpose in current business environment but may purpose in current business environment but may impede adaptationimpede adaptation

Hierarchical orientation reflective of stable environment in the past and Hierarchical orientation reflective of stable environment in the past and reliance on mechanical technologyreliance on mechanical technology

Smallness enables cultivation of family-like climateSmallness enables cultivation of family-like climate Also have elements of hierarchy with strong family Also have elements of hierarchy with strong family

controlcontrol However, long stable history may breed complacency and inability to However, long stable history may breed complacency and inability to

respond to new challengesrespond to new challenges Sense of upbeat optimism may be indicative of complacency and lack of Sense of upbeat optimism may be indicative of complacency and lack of

appreciation of seriousness of threat.appreciation of seriousness of threat. Current competencies may lack ability to adapt to new situation.Current competencies may lack ability to adapt to new situation.

Response to challenge may require going beyond Response to challenge may require going beyond current business approach.current business approach.

OPTIONS FOR FUTUREOPTIONS FOR FUTURE Key strategic issue is how to protect current customers and Key strategic issue is how to protect current customers and

draw new onesdraw new ones Need to think of capturing condo residents market and offering more Need to think of capturing condo residents market and offering more

variety to current and new customersvariety to current and new customers

Some possible options:Some possible options: Position different components of Wild West for different market Position different components of Wild West for different market

segmentssegments Consider extending opening period beyond warm season by having Consider extending opening period beyond warm season by having

indoor/enclosed facilitiesindoor/enclosed facilities Cross marketing with condo developer through use of discount and Cross marketing with condo developer through use of discount and

loyalty cards to generate more and sustained stream of customers.loyalty cards to generate more and sustained stream of customers. Develop new facilities such as marina, golf course, high end Develop new facilities such as marina, golf course, high end

restaurants, equestrian park and spa to increase revenue and reduce restaurants, equestrian park and spa to increase revenue and reduce dependency on water ridesdependency on water rides

CAUSAL MODEL OF ACTION PLANCAUSAL MODEL OF ACTION PLAN

Formulate comprehensive response plan

Acquire resource to support plan:

Land

People

Funding

Technology

Construct diverse and less seasonal facilities

Cross marketing with

condo developer

Train workers and improve HRM package

Draw in new customers

Attract customers throughout year

Survival and improve financial performance