? Problem Statement –While Cedar Fair is steadily turning gross to the 2013 estimated value of $ 1. 1B. their operating net income per centum has ranged from 50 % to -17 % over the past 5 old ages and relies to a great extent on season base on balls gross revenues and visitants over a limited operating period of 130 yearss. go forthing them vulnerable to competitory moves by the market leaders in the Amusement Park Industry. Analysis Plan / Data Used / Key Assumptions – We will utilize the Porter 5 forces Model for the Cedar Fair and to compare with the other amusement Parkss.
The 5 forces will assist us to understand the strong forces which will assist the cedar carnival to be more profitable in future. Key informations will include from each of the amusement park web sites. Besides the gross income provided by IBIS for each amusement park. The fiscal analysis peculiarly net income border provided by mergent online will let us to entree fiscal public presentation for each company. Cedar Fair owns and operates 11 amusement Parkss. four outdoor Parkss. one indoor H2O park and five hotels.
Cedar park deficiencies trade name designation due to their diverse portfolio. The trade name name of Cedar Fair is seldom associated with park or hotels. Data Analysis and Tool Use – Using the Porter’s 5 Forces model the strongest competition is from the Walt Disney. cosmopolitan studios. Sea universe and Six Flags. Since the Disney is planetary and has resorts and attractive forces for all age groups and besides it is unfastened all twelvemonth along and generates income. Disney besides keeps updating its subject Parkss wit new attractive forces and new engineering to pull new clients or reiterate excessively.
Large resorts try to lure the clients to come to the Parkss alternatively to traveling to beaches by giving them particular base on ballss on cyberspace. The mid-size subject Parkss attract the local clients who are close by and can drive and travel back without passing the dark at the hotels. Decisions – The competition among the Parkss is intense. as the market is saturated and little. To increase the clients in cedar carnival should give free base on balls on birthdays and besides introduce bundles which can be bought with the installment program.
Recommendation to Management – My recommendation would be that since the economic system is bettering and people have small spot of money to pass on holidaies. so they should publicize particular offers for the summer clip on the cyberspace and Television. They should seek to pull more clients from the local part as they can non vie with the large resort subject Parkss such as Disney. Universal Studios. and sea universe. They should hold entree to multi-skilled and flexible work force those who have the ability to rapidly follow new engineering. US Amusement Parks Market Share US Parks Total Revenue 2012.
Entire Income 2012 Percentage Market Share ( % ) Walt Disney Company $ 6. 2 billion 5. 986M 44. 5 % Universal Park and Resorts $ 2. 1 Billion 95M 15 % Sea World Parks & A ; Entertainment $ 1. 4 Billion 55M 11 % Cedar Fair $ 1. 1 Billion 118M 7. 7 % Six Flags $ 1. 06 Billion 249M 7. 9 % ( IBIS World. 2013 ) Below is the 5 Forces Model.
Mentions: 1 ) Wood. L. ( 2013. February 11 ) . Research and markets: 2013 study on the $ 16 billion us amusement Parkss & A ; arcades market having Walt Disney. six flags. cedar carnival. SeaWorld. and cosmopolitan Parkss & A ; resorts. Retrieved from hypertext transfer protocol: //www. businesswire. com/news/home/20130211005621/en/Research-Markets-2013-Report-16-Billion-Amusement 2 ) IBIS World. ( 2013 ) . Us industry studies.
3 ) Subject Parks Are on a Roll by Christopher Palmeri in the June 3-9. 2013 issue of Bloomberg Busine ssweek hypertext transfer protocol: //www. businessweek. com/articles/2013-05-30/u-dot-s-dot-theme-park-revenue-is-on-its-best-ride-in-years 4 ) IAAPA. ( 2013 ) . Amusement park and attractive forces industry statistics. Retrieved from hypertext transfer protocol: //www. iaapa. org/resources/by-park-type/amusement-parks-and-attractions/industry-statistics 5 ) Six Flags ; hypertext transfer protocol: //www. Google. com/finance? q=NYSE % 3ASIX & A ; ei=w_GHUuD9H4OTsgffMA.