Case Analysis

Samsung & The Theme Park Industry

Group-2 Alka Nisarg patel Saurabh tiwari pgp/17/066 pgp/17/101 pgp/17/110 Anshul yadav Abhinay lakra Shilpi kumar pgp/17/070 pgp/16-d/180 pgp/17/112

Alternatives:
1. Go ahead with the expansion
PROS :

Boom in leisure domains, leading to a potential very profitable business Favourable economy for the activity Might give a strong foothold and offer competitive advantage
CONS :

Huge capital investment required Ecological effects

Alternatives:
2. Continue with current capacity with few structural changes like implementation of pay-one-price scheme and aggressive marketing. PROS :

Economical
Strengthen the brand image and attract customers
CONS :

Counter- intuitive results Competition can capture market growth with differentiated offerings

Stagnant growth of company

Recommendations :
We would recommend to go ahead with the expansion. We have based our decision keeping in mind the environment, competition and market prospective . The criteria are as follows :

Prospects of subway coming to Yongin will reduce the transportation and

inaccessibility problem and will lead to increase in customer volume.

Huge employee base of Samsung which can be tapped into. Mission change from farm oriented brand image to more of a destination resort image.

Urbanization rate 74.4% and per capita GNP rise indicates economy boom and rise in
people looking for sources of entertainment and willingness to pay

Recommendations :
Competitive players in market like Lotte World & Seoul Land targeting different
segments necessitates the need to target broader market segments to keep up with the trend.

Barriers to entry in this market is high owing to huge initial investment required.
Farmland can leverage here as funding can be provided by parent, Samsung Group

The cost of substitution is less for customer as prices are comparable for different parks
Expansion and further investment will help them gain in terms of differentiated
offering.