Ocean – College Essay
In terms of the amusement park industry, the entry barrier is high due to the need to invest large amount of financial resources. In addition to the amusement park required land for a full scale development. This factor is important because Hong Kong has a high land price real estate market. ?Threat of Rivalry It is important to consider with lack of differentiation, visitors’ choice will greatly over the price and service, thus causes pressure for the intense price and service competition.
Due to high threat of rivalry, Ocean Park is implementing different plans and activities such as redevelopment and introduction of new attractions in order to catch the attention of the visitors and differentiate themselves from rivals. ?Threat of Substitution The main threat of substitution is Hong Kong Disneyland & Wetland Park, a new international theme park and an educational park (Appendix 2). Apart from this, there are other forms of substitution.
From the education side, Hong Kong residents can switch to go to Cultural Centre, Mai Po Wetland, Hong Kong Zoological and Botanical Garden. For entertainment purpose, they can visit the Karaoke, Cinema, Game Centre, or have a day trip to China. ?Bargaining power of visitors -Tourists Tourists have a low bargaining power as long as “must see” image successfully built-up and the Park cannot be replaced by other substitutes. Therefore, Ocean Park focuses to build up this image especially in Asia. Local residents The buying power of local resident is high since they have many choices as mentioned above. The switching cost is relatively low. Also, Hong Kong people like new experience and their loyalty to the product are generally low. The Park, therefore, launched difference programs like “Big Five” events with difference theme each year to bring new excitement and experience to them. Besides, special discount in low season and year pass intent to attract repeat visit.
All those strategies not only strengthen its image, but also ultimately build up loyalty of the Park. Concluded the Porter’s theory, Ocean Park can design its strategy by using a differentiation method to substantiate its new features in the new expanding market, and further penetrate the current China market. Create an image for the Park where both local resident and overseas visitors can have fun, celebrate and share the important moments of their life at the Park.