Group 6

2016038731 정승준
2016038822 허찬영
2016038768 진연식
2016038331 김경덕
2016038431 박성혁
2015056226 장가영

Design Life As Art

Contents 2

01 Internal Analysis

02 External Analysis

03 Market Research

04 Risk Analysis

05 Marketing Strategies & Plans

Intro: Company Backgrounds

Company Overview

Paradise is a leader of the tourism industry that represents

Korea. Paradise has steadily grown since 1972 with devo-
tion, consideration, and people-oriented corporate man-
agement characterized by sharing. As a pioneer in the
tourism industry including hotels, gaming, travel, and
leisure, Paradise has developed the tourism industry of Ko-
rea and facilitated the growth of the national economy by
creating jobs. As a creative company, Paradise is expanding
into manufacturing and construction.
Intro: Company Backgrounds

• Mission: Dedication, consideration, people-oriented business

Intro: Company Backgrounds

>
Vision:

Establish a sustainable manage-

ment system for a global top
company with creativity from in-
finite imagination
01 02 03 04 05

Internal Analysis
01 02 03 04 05

Value Chain Analysis Other Performance

Resource-based View Intellectual Asset

SWOT Analysis
Value Chain Analysis
Resource-based View
Marketing
RBV(Resource-based View)
- Effective customer attraction through the Agent in
Japan and China
- VIP customer-centric

Operation
Marketing

- Business place operational capacity of 30 years

- Customer treating service
- Autonomous responsiveness to government policies

Human Resources
Location Operation

- Excellence in human resources: Professional execu-

tives, dealers, and marketers

Facility
- While casino facilities are luxurious, hotels and
other facilities are vulnerable
Facility Human Resources

Location
- Easiness of China customer acquisition
- But, risk of casino construction in Japan and China
SWOT Analysis
Strength
- High awareness of VIP customer
- Quality human resources
- Differentiated promotions
- Efficient store operations
- Synergy with affiliates
Opportunities
- Turning point of recognition
- Government's policy support
- Rapid growth of Chinese market
Weakness
- Depending on brand name of Walkerhill instead
of Paradise
- Using rented business place Absence of large
resort
- Personal connection-oriented recruitment
- High COMP expenses
Threats
- New domestic casino company appearance
possibility: - Possibilities of new casino
establishment in neighboring countries
- Enlargement of foreign casino companiesCf.
Macau
- MGM partnered with the United States, a large
casino resort plans to establish
- Exchange rate is an important variable
determining profits
- Difficulties in issuing Chinese customers visas
Other Performance

Education business
Educational development is targeted at elementary school children without disabilities in
an integrated business class for the purpose of understanding and support social inclusion
through proper awareness training on disability. Disability deals with the effective
recognition utilizing a variety of media culture improvement program development.

Culture and Arts

culture and arts project is to improve self-esteem and social skills through singing hearing
impaired children for the purpose of promoting. The target hearing impaired children who
wear hearing aids and cochlear implant equipment. Mainly provide professional music
education and vocal training program for hearing impaired children Characteristics.

Site support business

Paradise phase is starting a personnel contribution to the promotion of cultural and artistic
development and social welfare in accordance with the will of the founder strategy team
fleet, chairman of Paradise Group, it is an award established to award social welfare sector,
cultural arts and special achievement category 1 persons each it is the only award given.

Profitable business
We aim to develop high quality products suitable for people with disabilities, by support-
ing educational supply, treatment and rehabilitation services in the disability field. It shall
be subject to a special school (class) educational support agency, welfare, developmental
centers and clinics, universities, day care center, hospital, etc. diocese covers the materials
development and dissemination through the online store specializing in disability.
Intellectual Asset

Click Icon To Add Image

Paradise Web Dynamic Stable

Identity Web Site Structure
01 02 03 04 05

External Analysis
01 02 03 04 05

Environment analysis (PESTLE)

Market Scale & Profitability

Competitor analysis
Environment Analysis
Policy/legal
In Korea, government particularly regulates
casino. Casino that allows native access is
only one because government regulates
casino for preventing paradise manage for
only foreigner so main customer of paradise
is Chinese.
Economic
Tourist that visit our nation is very
important in hospitality business condition.
And this condition influenced economic
condition. Paradise business is greatly
influenced by East Asia’s economic
condition because main customer of
paradise is East Asian.
Environment Analysis 16

Socio-cultural

S
South Korea-North Korea’ relationship effect decrease of tourist from
foreign country. But recent Korea’s image move up for chines who
charge 55 percent of paradise’s customer so big dangerous is gone.

Ethical

E Paradise enterprise effort do ethical business. They insist 3 ethical

principle that transparent, rational, contributing.

Technological

T Paradise casino institute ECR system in casino that help customer

get immediately through casino dealer.
Market Scale 17
 Market Profitability (Porter’s 5 Forces) 18

Existing Competitors

Supplier

Potential Entry
Enterprise

Purchaser

Replacement
Competitor Analysis
Atten- 19
Location Name Worker Sales
dance
Paradise Wolker-
1,115 415,801 796,363
Hills

Rooms in- Food& Number Seoul Sevenluck(COEX) 1,011 258,429 451,429

Total sales RevPar
come Drink of rooms
Sevenluck(Hilton) 415 200,238 898,546
Busan
27,665 35,119 62,785 650 116,559
Lotte Sevenluck(Busan) 269 75,661 220,633
Novotel Busan
13,493 5,506 18,999 329 112,363 Paradise(Busan) 301 80,476 92,656
(Busan)
Chosun Incheon Paradise(Incheon) 415 108,638 58,673

Hotel 18,880 19,431 38,311 290 178,358 Kangwon Alpensia 22 556 11,254

Daegu Interburgo 175 12,540 72,981

(Busan)
The K 228 24,839 49,234
Paradise
36,490 41,675 78,165 528 189,353 Paradise
Hotel 243 62,713 61,132
(Jeju Grand)
Park.Hyatt Majestar 308 40,380 47,278
13,772 8,782 22,553 246 153,270
Busan Loyal palace 171 19,559 30,823
Grand Jeju
Paradise
11,100 10,999 22,089 320 95,032 (Jeju Lotte)
215 37,308 44,646
Hotel
Elbegas 145 13,781 54,642
Hotel
6,089 5,566 11,655 240 69,512 Genting 192 7,949 28,983
Nongsim
Gold beach 136 18,351 42,560

Kangwon Kangwon Land 3,570 1,422,002 3,006,900

total 8,931 2,799,221 5,968,733

01 02 03 04 05

Market Research
Economic & social environment 21

Economic & Social Environment

With growing revenue from the casinos in Macao

and Singapore, the Asian gambling market is
emerging as the center of the global casino
industry. suffered or randomized

In addition, attracted by the fast paced growth in

Asia, many global casino and hotel brands are
entering Korea and Japan to explore new growth
.opportunities
 22

Amid this market environment, Paradise seeks to

transform these changes into opportunities by
.pursuing constant innovation

Not complacent with being a leading casino

company in Korea, we will continue to challenge
global casino brands to be the world leading
.brand
 Market and opportunity analysis
Today, the business environ-
ment is changing faster and
more frequently than ever be-
fore, and the global casino in-
dustry is also undergoing a
dramatic transformation.
Against this backdrop, we are in the
process of integrating casino opera-
tions within the Group and its affili-
ates to grow into a better and larger
casino.
As the first step, we acquired the
stakes of Paradise Jeju Grand Casino in
the end of 2011, and subsequently de-
cided to merge with the company on
April 2012.
We will continue to integrate our
casino operation with other affil-
iates in different regions, particu-
larly in Incheon and Busan, in
order to cement our presence as
the leading player in the global
casino industry.
Customer Behavior 24

With rising GDP and

Rising Demand for gradual deregulation
of overseas travel by Along with the grow-
Overseas Travel in By 2020, the Chinese
the government, the ing number of out-
China, China is play- government predicts
number of Chinese bound tourists, the
ing an instrumental that the number of
outbound tourists amount spent on
role behind the rapid Chinese outbound
continues to increase overseas travel is ex-
growth of the Asian tourists will reach
at a rapid rate, from panding at even a
casino market since over 100 million.
57 million in 2010 to faster pace.
the mid-2000s.
70 million in 2011, a
23% increase.
 Number of Chinese Outbound Tourists 25

(Unit: in million persons)

41 48 70 83

2007 2009 2011 2015

Source: National Bureau of Statistics of China, National Tourism Administration of The Peo -
ple’s Republic of China
Competition and Technology 26

Competitors

SevenLuck(COEX) SevenLuck(Hilton) Alpensia

451,429 898,546 11,254

attendance attendance attendance

258,429 200,238 556

sales sales sales
Competition and Technology 27

Technology

01 Paradise casino institute ECR system in casino.

That system help customer information get 02

immediately through casino dealer.

03 That system helps understand accurate cus-

tomer information and helps atomize cus-
tomer.
If customer have big potential, casino adminis- 04
ter this customer effectively.
Causes of Problems 28

Government problems
Korea government limits the number
of casinos

People’s awareness Paradise’s CEO

Many people think that casino is illegal They have to think about foreigner
and bad thing. But, casino is one of tourist not only Korean members
the tourism items
01 02 03 04 05

Risk Analysis
Risk Analysis 30

New tax levy

Tax late is set at 10% of sales as defined by existing
leisure tax law
Image Holder

Chinese ban on ‘Zero-dollar

’tour
China ban zero-dollar tour since 1 Oct 2013

Image Holder
 Risk Analysis – New tax levy 31

Immediacy
Low High

High
A new leisure tax (tax rate is set at ‘10% of sales’ as defined by existing
Monitor & Ana- Analyze ‘IN- leisure tax law) may be too harsh on top of the current tourism tax (10%
lyze; Contingent DEPTH’ of net casino sales; national tax), casino excise tax
Strategies con- DEVELOP
sidered STRATEGY Opinions of relevant government parties have not been co-ordinate yet.
Impact The ministry of public administration has not communicated on the tax
issue with the ministry of finance. So we believe it will take some time to
co-ordinate their view
Low The legislation of a leisure tax levy permanently affects casino. So, We
Monitor think this is highly unlikely, especially for foreigner-only casinos.
Monitor & Analyze
 Risk Analysis – Chinese ban on Zero- 32

dollar tour
Immediacy
Low High

High A zero-dollar tour is a package tour that is priced below the operator’s
Monitor & Ana- Analyze ‘IN- real cost. Many tour operators in China offer packages to Korea at deep
lyze; Contingent DEPTH’ discounts, but recover their costs by taking tour groups shopping with
Strategies con- DEVELOP extra charges from which they earn commissions.
sidered STRATEGY Chinese government ban on zero-dollar tour, so this has had an adverse
Impact
effect on mass visitor traffic into Korea since Oct 2013, as illustrated graph

Low We believe the impact of the measure on Korean casinos is limited as it

has not influenced the casino’s top-line growth as Korean casino operation
Monitor have been mostly dependent on VIP
Monitor & Analyze
01 02 03 04 05

Marketing Strategies & Plan

Contents 34

Objectives & Goals Target Market Sales/Market Share Plan of Operation

Objectives & Goals 35

’Accomplishing ‘Global Standards

2017 Phase I aims at accomplishing ‘global standards’. By

advancing all divisions of management, the
Phase 1 company will establish a foothold to become a
.‘global player’ from a local player

Becoming Globally Competitive IR Group

Phase II aims to become Korea’s representative,
globally competitive IR group. The company will 2020
establish and achieve specific goals by stage in all Phase 2
business areas and focus all of its energy on
.achieving Vision 2020
Target Market: China 36

>
36%
Average Annual
Growth Rate of Chinese
Tourists Visiting
Casinos(2007-2011)
Sales/Market Share

18.3 % 43.4 % US$ 79 bn

Average Annual Global Market Share of Market Size of the
Growth Rate of the the Asian Casino Market Asian Casino Market in 2015
Asian Casino Market in 2015(29.2% in 2010)
(2011-2015)
 Plan of Operation
Expanding Customer Attraction
by Reinforcing Sales Promotion Activity
- Strengthening linkages with tourism agencies
- Enhancing visit drivers by offering various
foods each weekend
- Holding various events
Maximizing Service Level
- Provision of best service through
the WBC (World Best Casino in Service)
implementation
38
Improving Sales Activities
& Facilities
- Regular training for dealer service improvement
- Expansion of casino facilities
- Creating comfortable indoor environment
Customer Analysis Through CRM
- Target customer selection through customer
analysis such as resting, secession customer
Thank You