Samsung Everland

Introduction

Everland is largest theme park in Korea It offers numerous recreational activities

includingEuropean AdventureMagic land American AdventureRoller Coasters Everland Speed WayWild River

Continue… Sea Wave Aquatic centerFortressBay Slide Zoo-Tropia,

Overview of the Case• Samsung Everland is the pioneer in introducing theme park concept

in South Korea,• Everland formally Yongin farmland was opened in 1976• Operating profits of the company increased in past few years• Number of attendants also increased in past years• Primary market comprises of customers who travel about 1 hour

drive to Everland, where as secondary market focuses 1-2 hours and tertiary market comprises of those driving more then 2 hour drive

• Everland introduced a master plan, expansion of everland which include Caribbean bay, Global fair, Safari Tour

• Everland is often compared to Disneyland by those who have visited both parks

• Mr.Her (president) was not only committed to the customer satisfaction but one step ahead i.e. delight them

•

Master Plan: Farmland Everland

Expansion and Up gradation First Phase investment of US $ 300 Million Introducing

Caribbean Bay water park worth $140m Global Fair worth $85m Safari Tour worth $50m

On successful completion of first phase: Second Phase will be launched comprises of devolving Resort

Town, Luxury Hotels, Golf Courses & Resort Accommodation

Service Initiative Enhancement of services(Win-Win Philosophy) Cleanliness campaign Service academy

In-house educational center Enhance learning capabilities Service trainings for other organizations Nationwide campaign for courtesy & kindness)

Personnel policy (recruitment, education & retraining) Early measurements(Korean Research Group)

Competitors Lotte World Seoul Land Dream land Children Grand

Park Seoul Grand

Park

1990 1991 1992 19930

1

2

3

4

5

6

EverlandLotte WorldSeoul land

Everland

Lotte World

Seoul Land

SWOT

Strengths–S

•Pioneer in Korea•Strong parent company Brand, Financially strong•Vast premises•Orientation towards customer satisfaction

Weaknesses – W

•Image in Yongin •Quality in service•Low employees concern to satisfy customers•Accessibility •Increased operating expenses

Opportunities – O

•New markets•Indoor recreational facilities•Increasing need of recreational activities in people•22.2% people prefer spending 1day holiday in theme parks

SO Strategies•Product Development (S2+S3+O2)•Market Penetration (S2+S3+O2+O4)•Market development (S2+ O1)

WO Strategies•Market Penetration

Threats – T

•Strong Competitors•Creative and innovative industry

ST Strategies

•Focus Strategy (S2,3,4 + T1,2)•Innovation (S2,3,4 + T1,2)

WT Strategies •Differentiation •Enhance brand image

Porters Five Forces ModelCompetitive Rivalry

IntenseBargaining power of supplier

High Bargaining power of customer

highThreat of new entrants

Low Threat of substitute

medium

PEST AnalysisPoliticalEconomical SocialTechnological

Profit declined1992 1993 %age Change

Net Sales 47173 55217 17%

Total Expenses 43817 51987 19%

Operating Profit

3356 3230 (3.75)

*Data in Millions of Korean Won

Recommended Strategies Theme parks industry is highly technological, and it require

innovation and new products with the passage of time, we recommend “Product Development” for Everland

Everland should provide quality service in order to retain their customers and for this it is advised for “Market Penetration”

Theme park is a growing industry and Asia is considered to be a highly attractive market, so Everland should go for Market Development

Everland must implement focus strategy in order to increase their quality in service to delight their customers, because Theme parks business is based on returning back customers (those who visit again & again)

Everland should also build a strong R&D department, because successful theme Parks need strong market research to better understand their customers