7/10/2014

Hong Kong Ocean Park

WOW It's My Park!
Sunghyuk | Bixiang | Marscella| Franziska | Sharon

Content
1

Background

What influences HKOP strategies?

HKOP
Tourism Industry
History
Culture
Strategic Drift Overview

How HKOP implement these strategies

What had been done

The roles of the leaders

Putting MRP into Test

MRP development
Performance evaluation of OP
Comparator comparison: HKDL

Whats Next?

SWOT & PESTEL Analysis

Recommendations

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Background
Hong Kong Ocean Park
What kind of the theme park is Hong Kong Ocean Park?
Amusement Park

Background
Background
Background

Zoo or Aquarium

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Background
Hong Kong Ocean Park
Company Overview

Opened in 1977, Hong Kongs home grown marine theme park

Located on the South side of Hong Kong, on 879,000of land

Founded by Hong Kong Jockey Club on a site granted by Hong Kong government

Vision of the Park

Mission of the Park

Ocean Park will be a world leader in

providing excellent guest experiences
connecting people with nature

Core Values
Fun

Safety

Service

Background
Background
Background

Respect for people

Education and Conversation

History
Culture
Culture

To provide guests with memorable

experience
How?
- Combining entertainment and education,
while inspiring life long learning and
conversation
- Maintain a healthy financial status

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Background
Hong Kong Ocean Park
Composed of Ocean Park

Organized around two themed areas: Linked by a 1.5 km cable car

- The Head line(725,000): Featured a host of thrill rides
*Abyss Turbo Drop, Dolphins and Sea lions performance
- The Low land(154,000): Featured one of the major attraction
*Giant Panda, Helium Balloon Ride
Attractions
Giant Panda Habitat
Cable Car
Helium Balloon Ride
Sea Jelly Spectacular
Pacific Pier
Atoll Reef
Chinese Sturgeon Aqua
Dolphin University
Ocean Park Tower

Background
Background
Background

History
Culture
Culture

Shows
At Ocean Park Theatre
*Sea Lion and Dolphins
At Whiskers Theatre
*Sea lion
*Mini Bird Show
At Sky Fair
*Bird Show
*Acrobatic Show

Thrill Rides
Abyss Turbo Drop
Dragon Roller Coaster
Flying Swing
The Eagle
Crazy Galleon Pirate Ship
Ferris Wheel
Mine Train
Space Wheel
Raging River

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Background
Hong Kong Ocean Park
Composed of the visitors in OP

30%

Local
70%

1995

International

40%

Local
International

60%

2010

Ranked at 3rd in Asia Theme park industry in 2013

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Background
Hong Kong Industry
Hong Kongs Tourism

During 1990s, tourism was 5% of HKs GDP

Tourists activities: Deal-making, Dining, Shopping, Sightseeing

Expense on Shopping versus Sightseeing: 50% vs 3%

3 Crisis : Asian financial crisis(in 1997), SARS(in 2003), Swine Flu(in 2009)
Second Crisis

First Crisis

Third Crisis

Number of Inbound Tourists

40
30
20
10
0
`96

`97

Background
Background
Background

`98

History
Culture
Culture

`99

`00

`01

`02

`03

`04

`05

`06

`07

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

`08

`09

`10

Recommendation
Recommendation
Recommendation

Background
Hong Kong Industry
Hong Kongs Tourism

How to overcome the crisis and increase the expense on sightseeing?

1st crisis

2nd Crisis

Five clusters(Disney)

Individual Visit Scheme

Set A Goal
Become a family destination

Differentiate Marketing

Background
Background
Background

History
Culture
Culture

3rd crisis
Aggressive preparation

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

History
What influences HKOP Strategies?
Historical Strategic Analysis Establish Path Dependency
Methods
Chronological Analysis
Cyclical Influences
Key Events and decisions
Historical Narratives

Background

1977

History

1987

Culture

Strategy

Performanc
e

1991 - 1995

SWOT | PESTEL

1997-2003

Recommendation

2004 Onwards

1970s
Master
1999
Quasi
Five
Year

Government
1980s
Development
Plan
Sir
proclaimed
Education, Entertainment and Conservation
Hit Kenneth
hard
Redevelopment
by
Financial
Crisis
Plan
Provider
Daily
Financially
Focus
Upcoming
operations
morecompetition
self
on sufficient,
education
and maintenance
from
Affordable
and
Disney
Conservation
prices
Path
PathCreation
Creation
More
Eg.
Marketing
entertainment
Approach:
research
than
Changing
education
bodies,
its
Animal
Icon prior
research
facilities
for
students
International
Focus
Positioning:
on
education
Education,
still
but
Entertainment
changed
andexpensive
Conservations
way
of
at
doing it
affordable
price
Core
Opens
Unsuccessful
Competency:
up formore
MICE
Affordable
targeting at
prices,
tourists
develop attractions within financial
Develop
entertainments
Marketing
Inadequate;
Massive capital Injection to revamp needed
ability
Successful
Lock
in effect for
future strategies
Successful
Strategy
$5.5 billion loan
Worlds best marine-based theme park with 70 new attractions,
launched in separate phrases
Educational Programmes for different age groups
Scientific research, New Veterinary Centre

Background
Background
Background

History
CultureStrategy
Strategy Performance
Performanc
History
Strategy
Performance
Culture Culture
e

SWOT
||PESTEL
SWOT
PESTEL
SWOT

Recommendation
Recommendation
Recommendation

7/10/2014

History
What influences HKOP Strategies?
Summary
Learning Organization
Utilize Path Creation
Retain its Core Education, Entertainment and Conservation
Provider
Learnt from past success and failures to adapt
History influences future strategies and the way a company works

Background
Background
Background

History
CultureStrategy
Strategy Performance
Performanc
History
Strategy
Performance
Culture Culture
e

SWOT
||PESTEL
SWOT
PESTEL
SWOT

Recommendation
Recommendation
Recommendation

Culture
What influences HKOP Strategies?
Public Sector Culture
Board of directors comprise a number of government officials
Management emphasize consensus building as part of decision
making process
Evident in MRP-consulting back and forth
Conditions strategy formulation->Stakeholder approach, slow
process

Background
Background
Background

History
CultureStrategy
Strategy Performance
Performanc
History
Strategy
Performance
Culture Culture
e

SWOT
||PESTEL
SWOT
PESTEL
SWOT

Recommendation
Recommendation
Recommendation

7/10/2014

Strategic Drift
What influences HKOP Strategies?

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Strategic Drift
What influences HKOP Strategies?
Why do firms change only incrementally?

Phase 1

Alignment with environmental change

Success of the past
Experimentation around a theme

Phase 2

Steady as you go
Building on the familiar
Core rigidities
Relationships become shackles

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Strategic Drift
What influences HKOP Strategies?
Stages

Phases

Announcement of opening HKDL

5-year development plan

Incremental change

OP Task Force
Darrell Metzger
Strategic drift

MRD
Edutainment
Allan Zeman

Flux

External threats
HK 2030 Planning Vision & Strategy Study
Short-term actions, pull marketing approach, new
mascot

Transformational change
or death

Tom Mehrmann
Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Strategic Drift
What influences HKOP Strategies?

Background
Background
Background

History
Culture
Culture

Stages
CEO Darell Metzger
5-year development plan
Emergence of external threats

Why only incremental change?

Success of the past
Experimentation around a theme

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Strategic Drift
What influences HKOP Strategies?

Background
Background
Background

History
Culture
Culture

Stages
External threats
Announcement of opening HKDL
Pull marketing approach, new mascot
Only talking about transformational
restructuring

Not enough change given degree of

environmental change, because:
Steady as you go
Core rigidities
Lagged performance effects

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Strategic Drift
What influences HKOP Strategies?

Background
Background
Background

History
Culture
Culture

Stages / Transition to phase 4

HK 2030 Planning Vision and Strategy
Study
OP Task Force
New Chairman Allan Zeman
New CEO Tom Mehrmann with new culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

7/10/2014

Strategic Drift
What influences HKOP Strategies?

Stages
Mehrmann as leader of Task Force
Creation of MRD
Cross functional teams
Renewed blueprint
New vision
Supplement HKDL
Approved 3 months after opening of HKDL

Succeesful transformational change this time;

but need to adapt to change earlier to avoid
possible demise next time
Background
Background
Background

Darell Metzger
1991-1995

1991

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Randolph Guthrie
1995-2004

Allan Zeman
2004 2013

1995 1997 1999 2003

2004

Tom Mehrman
2004- present

Recommendation
Recommendation
Recommendation

Leo Kung Lin Cheng

2014-???

2014

2005

-Differentiation from competitors

-Infrastructure improvement
-Customer Focus
-Employee focus
-Improvement in quality of park
-Marketing + Cultural integration

Allan Zeman (Chief) 2004 2013

1. Vision: provide guests with memorable experiences combining conservation, education and
entertainment
values,
as well as its vision to connect people with nature
Darell
Metzger
(Chief)
2. Spirit Educational
of entrepreneurship,
creating of
a first-class
Ocean Park
Vision:
and Conservation
animals
3. Spirit
of Guthri
Leader:
Promoting
education
and sustainability
1.
Create
5Community
Years (Chief)
Development
Plan to fulfil
OPs mission
Randolph
1995-2004
4. Constructing
Hardware
while maintaining Software
2.
Aggressive Marketing
strategy
1.
Maintaining
cost
and stability
3. Improvement
Forming alliances
2.
in quality of rides
4. Initiated events, programme and conservation
5. Result boost of visitors from 6,000 to 25,000
Tom Mehrman (CEO) 2004- present
1. Differentiation focus
2. Stakeholder focus
3. Market locally
4. Employee engagement
Background
Background
Background

History
Culture
Culture

Culture
Strategy
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

10

7/10/2014

Leadership
Leadership Styles

Derell Metzger
1991-1995
1.
2.
3.
4.
5.
6.
7.
8.

Randolph Guthrie
1995-2004

Create 5 Years
Development Plan to fulfil
OPs mission
Empower vision:
Educational & Conservation
of animals
Aggressive Marketing
strategy
Forming alliances
Opening up Park for events
1993 - Ocean Park
Conservation
1995- Loyalty programme
Result boost of visitors
from 6,000 to 25,000

1.

3.

Transformational
Background
Background
Background

Maintain the current

operation of Ocean Park
Focusing on maintaining
current status
Boosting the quality of
rides and scope

2.

1. Addition to vision: Establish a

modern vision for a distinctly
Asian amusement park
2. Spirit of entrepreneurship,
creating a first-class Ocean
Park
3. Spirit of Community Leader:
Promoting education and
sustainability
4. Constructing Hardware
while maintaining Software
5. Dubbed Hong Kong Mouse
Killer

1. Differentiation focus:
Uniquely Ocean Park
2. Stakeholder focus:
Engaged stakeholder for
smoother execution
3. Market locally: focus on
the 50% of the customers
who is locals and 40%
that is from China
mainland.
4. Employee engagement

Transformational

Transactional

History
Culture
Culture

Tom Mehrman
2004- now

Allan Zeman
2004-2013

Transformational

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
| PESTEL
Strategy
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

History Analysis

Established in December 2005-2012

Features over 70 attractions
Won numerous rankings

Purpose
MRP

Better guest experience

Major tourist attractions locally & abroad
Complement & supplement Disney fantasies

Theme-based
The WaterFront
The Summit
Ocean Express

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

11

7/10/2014

Performance Evaluation
Putting MRP into test

The WaterFront
Helium Balloon
Asian Animals
Exotic Bird Shows
Nature Traits
Night Shows
Grad aquarium including
shark encounter
Underwater Restaurant

Background
Background
Background

History
Culture
Culture

Ocean Express

The Summit
Veterinary Centre
Rainforest
Thrill Mountain
Polar Adventure
Ocean Dome Stadium
Marine World I & II
Cable Car

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

Halloween Event

Background
Background
Background

History
Culture
Culture

Veterinary Centre

Amazing Asian
Animals

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

12

7/10/2014

Performance Evaluation

Positioning

Putting MRP into test

Background
Background
Background

History
Culture
Culture

Establishment
-For the well-being of the people

Before 1991 (Old)

-Education, entertainment and
conservation provider
5 year development plan
(1991-1995)
-Concretize positioning before
1991
MRP (new)
-Education, entertainment,
conservation and community
provider

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

Asian Financial Crisis

Background
Background
Background

History
Culture
Culture

Pick up
Poor Economic Outlook
Imminent of HKDL
Launched the IVS

SARS

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Inflection
Point

Recommendation
Recommendation
Recommendation

13

7/10/2014

Performance Evaluation
Putting MRP into test

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

2004/05 2005/06
Opening of Hong Kong Disneyland
Faced the aggressive competition
Attendance was still growing, but slow

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

14

7/10/2014

Performance Evaluation
Putting MRP into test

2006/07

Opening of Halloween Event

2008/09

Background
Background
Background

History
Culture
Culture

Pandemic (Swine flu: H1N1)

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

History Analysis

Joint venture of HK & Walts Disney

Established in Hong Kong @ 2005

Amenities

Theme Parks
Resort Hotels
Retail, dining & entertainment facilities

Theme-based
Fantasy
Adventure
Space
Americana

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

15

7/10/2014

Performance Evaluation
Putting MRP into test
FANTASYLAND
Its a Small World
Mickeys PhilharMagic
Golden Mickey @ Disneys
Storybook Theatres
Fantasy Gardens
Adventures of Winnie the Pooh
Sleeping Beauty Castle
Mad Hatter Tea Cups
Cinderella Carousel
Dumbo the Flying Elephant
Fantasyland Railroad Station
Sword in the Stone
Snow White Grotto
Street Entertainment
ADVENTURELAND
Demon jungle
Adventureland Haunted Trail
Festival of the Lion King
Jungle River Cruise
Tarzan Island
Street Entertainment

Background
Background
Background

History
Culture
Culture

TOMORROWLAND
Space Mountain
Buzz Lightyear Astro Blasters
Stitch Encounter
Autopia
Orbitron
UFO Zone
Street Entertainment

MAINSTREET, USA
Main Street Haunted Hotel
Glow in the Park Halloween Parade
High School Musical: Live!
Muppet Mobile Lab
Disney in the Stars
Disney on Parade
Animation Academy
Main Street Vehicles
Hong Kong Disneyland Railroad
Main Street Entertainment

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test

Spillover effects by HKOP

Halloween Events
Background
Background

History
Culture

Pandemic (Swine flu: H1N1)

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

16

7/10/2014

Performance Evaluation
Putting MRP into test

Disney: Jewel in the crown

Background
Background

Surplus much higher than OP

Sheer size
Overwhelmed strength of brand
name

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

History
Culture

Recommendation
Recommendation
Recommendation

Performance Evaluation
Putting MRP into test
Before MRP
- Consecutive years of deficits
- Heavy blow of SARS
- Bad attendance records
-Imminent opening of HKDL

- No longer face any deficits

unlike the past
- Win over crowd from HKDL
- Actual attendance > Projected
attendance

MRP
Implemented
Background
Background

History
Culture

Culture
Performanc SWOT
SWOT
| PESTEL
Strategy StrategyPerformance
| PESTEL
e

Recommendation
Recommendation

17

7/10/2014

Performance Evaluation
MRP put to test Is it a right strategy?
Before MRP
- Could barely make it
- Indulged in frequent
severe deficits

Strategy Evaluation:
- BadSuccessful
attendance
records

Vistors attendance was still growing during Disneys opening

Shown significant improvements in profits earned
Tremendous increase in attendance figure
- No longer face any
deficits unlike the past
- Actual attendance >
Projected attendance

MRP
Implemented
Culture

Background

Strategy

Performance

SWOT

Recommendation

Co. & Industry Analysis

Whats next?

Background
Background

History
Culture

Culture
Performanc SWOT
SWOT
| PESTEL
Strategy StrategyPerformance
| PESTEL
e

Recommendation
Recommendation

18

7/10/2014

Co. & Industry Analysis

Whats next?

Background
Background

History
Culture

Culture
Performanc SWOT
SWOT
| PESTEL
Strategy StrategyPerformance
| PESTEL
e

Recommendation
Recommendation

PESTEL Analysis
Whats next?

PESTEL
ANALYSIS

Background
Background

History
Culture

Culture
Performanc SWOT
SWOT
| PESTEL
Strategy StrategyPerformance
| PESTEL
e

Recommendation
Recommendation

19

7/10/2014

PESTEL Analysis
Whats next?
Political

Mainlands individual visit scheme (2003)

Lack of capacities to handle crowd

Economic

Socio &
Environment

The multicultural society

Increasing awareness of environmental protections
Laws and regulations implemented to reduce damage of
environment caused by attractions

Technological

Legal

HK Tourism Board Initiatives

Tourism infrastructure, facilities, products
Intense competition within the tourism industry

Background
Background

History
Culture

Taxation
Economic growth of China
Globalization
Exchange rates

Technological advances
Broken boundaries
Reduce operating costs
More attractive games
Increasing technology risks due to usage

Culture
Performanc SWOT
SWOT
| PESTEL
Strategy StrategyPerformance
| PESTEL
e

Recommendation
Recommendation

Then Whats Next?

Background

Culture

Strategy

Performance

SWOT

Recommendation

20

7/10/2014

Recommendations
Whats next?

Managing the Strength

Overecoming the Weakness

Strong Financial management

Long waiting time

Unique Position in Zoology

Low efficiency for operating riders

Tapping on Opportunity

High demand on joint promotion

from local and international brands
Popularity of Social Media

Background
Background
Background

History
Culture
Culture

Response to Threat

Disneys 2020 MRP which focus on

partnering with Marvel Studio, which
has the most popular blockbuster
hits such as Iron Man

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

Recommendations
Whats next?

Tertiary Institute Offering

Diploma courses in amusement park
operations
Diploma courses in veterinary

Kiosk System
Notification the waiting time to the
visitors cell phones
Visitors can register in queue by phones

Managing the Strengths

Overcoming the Weakness

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

21

7/10/2014

Recommendations
Whats next?
Short-term Strategy

Long-term Strategy

Joint Promotion

Partnership

Joint Promotion with local and

international brands
Using the SMSs popularity

Respond to Disneys 2020 MRP which

focus on partnering with Marvel Studios
Ex) Studio Ghibli movie Pon-yo

Tap on Opportunities

Response to Threats

Background
Background
Background

History
Culture
Culture

Culture
StrategyPerformance
Performanc SWOT
SWOT
| PESTEL
Strategy
| PESTEL
Strategy
Performance
SWOT
e

Recommendation
Recommendation
Recommendation

22