Samsung, Theme Park Industry in South Korea

1. Samsung & Theme Park Industry in South Korea Group 2 - Anshuman, Chintan, Dhinesh, Gaurav N, Kaushik, Milind GMP, XLRI Jamshedpur

3. Machinery were custom designed for particular market and environment conditions.

4. - Park management expertise not easily available – huge licensing fee and very selective.

5. Large Scale Initial Investment ($ 50 – 3000Mn) – Land Development; Amusement Machinery; Working Capital.

6. - Heavy marketing and Ad. Budgets.

7. - Revenue reinvestment for expansion & up gradation.

8. - Economies of scale and scope are significant

9. - Strict Government Regulations and hence typical period required for arranging government approval – 2 to 5 years.

10. - Large Insurance Premiums often drove small players away

11. - ‘Know how’ tough to emulate

12. - 6 theme parks including Farmland – Lotte World is in the heart of the city.

13. Visitors in Groups are charged less.

14. Virtual Reality theme parks.

16. - Seoul Land – 23rd in the “Top 50 theme parks worldwide”.

17. - Farmland – Highest Growth Rate.

18. - Seasonal factor affected all competitors (but not in the same pattern ). Positively impacts Lotte World but negatively impacts Farmland.

19. - Farmland- Highest per capita expenditure on food, beverages and souvenirs.GMP, XLRI Jamshedpur

21. - “Park and Ride”

22. - Scope for market expansion – untapped market of 5 Mn.

23. - Korea’s Economic growth rate: 8 – 9 %

24. - Steady Intl tourist growth (25% of customers are tourists).

25. - Scope to increase merchandise sales and admission & ride fee

26. - Inception of the new water park during June to September will attract customers from Lotte to Farmland.

27. - 3700 acre land

28. - President has been working in Hospitality sector.

29. - Economies of Scale / Scope

30. - Highest per capita expenditure on food, beverages and souvenirs.

31. - Parent Co’s Strong financial muscle.

32. - Attendance to theme parks shows a decreasing growth trend(0.9% and 6%)

33. - Learning curve.

34. - Stay time is less due to traffic congestion issues.

35. - Seasonal fluctuations.

36. - 6 theme parks including Farmland – Lotte World is in the heart of the city.

37. - Issues from fringe stakeholders (farmers).

38. People’s preference is shifting towards Historical attractions

39. -Accessibility to the park – 60 Km from Seoul; Traffic jam.

40. -Parking – Insufficient during peak days.

41. -Theme parks did not fit well with the “high tech” and “global” image of Samsung

42. - Organizational style – non service oriented employees and their outlook towards customer satisfaction.GMP, XLRI Jamshedpur

44. Proposed names: Everland, Green Country and Nature Land.

45. Waterpark – Caribbean Theme: $ 140 Mn.

46. Global Fair: $ 85 Mn.

47. Expansion of existing zoo and parks – night time laser show and a fable fantasy garden: $ 50 Mn.

48. Augment parking

49. Sources of Funds – Samsung Group

50. Phase 2 – Resort Town (Exact budget not available)

51. New Mission – Create a zeal for long lasting life that is combined with harmony of nature.

52. If Plan approved, it will become prototype destination resort town I the entire world.GMP, XLRI Jamshedpur

53. Thank You!! GMP, XLRI Jamshedpur