An analysis of Ocean Park Essay

1. Introduction Hong Kong Ocean Park is considered as a one of world’s largest marine park, located on the south end of Hong Kong Island. The three sections are located on the headlands of Brick Hill, while the other two section is located in the Wong Chuk Hang Valley lowlands and Tai Shue Wan. It is considered as one of the largest ocean in the world, having an area of 870,000 square metres (2013). This paper will focus on analyze the external environment such as the economic and culture aspect that can affect the relationship of the organization to their customers, key to understanding their impact on the industry. Furthermore, it will focus on the internal environment of the organization such as its core competency, together with its strengths and weaknesses. There are various forces that influence the Marco Environment. Following is the detailed analysis based on the above dimensions: 2. Analysis of Ocean Park’s Environment Strategic position: To understand the business environment that Ocean Park is operating, we will examine it by the PEST Framework, and the SWOT analysis. 2. 1PEST analysis: 2. 1. 1 Political issues †¢Launch of individual visit scheme (Pos +) The Individual Visit Scheme was first introduced in four Guangdong cities on 28 July 2003 as a liberalisation measure under the Closer Economic Partnership Arrangement. There were 4. 3 million Mainland visitor arrivals to Hong Kong under this scheme in 2004, mainland China become No. 1 source guest of Ocean Park (Table 1. 1). †¢ The railway scheme for the South Island Line1 (Pos +) The South Island Line (East) will be connecting the MTR network at Admiralty to the Southern District of Hong Kong, via new stations at Ocean Park. Construction of the South Island Line (East) commenced in 2011 for completion expected in 2015. In addition, there will be expanding tourism in the Southern District and link Aberdeen with Ocean Park. †¢Amendments to the Marriage Ordinance (Pos +) In 2005, the government approved a new policy on marriage registration. There is no limitation on choosing place for registering a marriage. The couples can registration on different place of worship with advance application for competent minister. All these provide new business opportunities for Ocean Park. 2. 1. 2Economic trends †¢ GDP Growth in China and Hong Kong (Pos +). While 2008- 2009 Hong Kong struggles with financial tsunami, one year after the gross domestic product (GDP) grew by a remarkable 9. 3% (Figure 1) in real terms and China’s GDP growth seen as stable. That’s able to provide a stable economic environment to Ocean Park which able to sustain its development. GDP growth (annual %) in Hong Kong and China Fig 1 GDP ANNUAL GROWTH RATE, Source form Census and Statistics Department and National bureau of statistics of china †¢ Employment rate in HK (Pos +) The unemployment rate fell from a high of 8. 6% in the second quarter of 2003 to a near three-year low of 6. 5% in the fourth quarter 2004. Hong Kong consumer spending maintained notable growth throughout the year since they are optimistic of the economic outlook and improving labour market conditions. Underemployment rate (%)2006201020112012 4. 84. 43. 43. 4 Fig 2. Source from Census and Statistics Department2 2. 1. 3Cultural and social values and trends †¢ The demographic distribution of Hong Kong and China (Pos +) Ocean Park is geared toward families: parents, kids, and grandparents. From fig 3 it shows the family size of Hong Kong are getting smaller, that means parent are able to spend more money on their spoiled kids. On the other hands, China’s one-child family policy has had a great effect on living standards, the mainland traveler are willing to spend money on travel. Domestic Households by Household Composition and Household Size, 2006 and 2011 20112006 Household Composition Household size Composed of couple and unmarried children 1nilnil 2nilnil 3382 704344 436 4390 839400 360 5135 293140 382 6 and over25 37934 172 Fig 3, Source: Census and Statistics Department 2011 †¢ Annual event for attraction (Pos+) Events are the main reason of the attractions business. They recognized this early and hold different annual events such as Chinese New Year, Summer, Halloween and Christmas. The Halloween Bash has become an iconic Halloween event in the region and guests from Hong Kong, mainland China and overseas has shown biggest support in October and over the years. The showcase successfully spread Halloween culture to their visitors and bringing a new experience to the tourists from mainland. 2. 1. 4Technology Analysis †¢New web site to promote and events (Pos+) With the increasing use of internet, it becomes an important link for marketing and customer relationship. The internet can offer a great connection with huge and immeasurable possible market. The website will keep updating Ocean Park’s latest information, news, promotion and more interactive function can be added in. 2. 2SWOT Analyze Education, fun and safety are the values which Ocean Park stresses. Apart from that Ocean Park key also provides all tourists with an experience in natural scenic environment and exotics animals (Appendix 1). However, increased competition may result in a further downward price pressure and affect the company’s financial condition and result of operation. StrengthsWeakness †¢Unique animals are selling point in ocean Park. †¢Ocean Park is recognized as icon of Hong Kong. †¢Reasonable price of tickets †¢Limitations on land development as it’s hilly. †¢Facilities are relatively old an unattached. Opportunities †¢Individual Traveling Scheme was carried out in 2003. †¢Strong economy growing in China. †¢Support of local government. †¢Higher demand of entertainment from the public. Threats †¢Competition and challenges from HK Disneyland. †¢More attractive points in the neighboring countries. Strengths: †¢Unique animals are selling point in Ocean Park. Grand Aquarium, marine creature are unique selling point inside the OP. The main strengths of OP focus on their offering of animals, fun and education to the tourists. OP tries to present the natural behavior of animals to enable people to see them in a creative way. The key is finding a balance between human entertainment and natural environments. That makes OP different from a lot of theme parks in the world. They also offer a differentiation advantage because it is considered as bigger than the HK Disneyland, thus enabling OP to offer more and new features and shows than Disneyland. Compare with Disneyland, they are focuses on showing the reality regarding the nature, while Disneyland focuses on fantasy. †¢Ocean Park is recognized as icon of Hong Kong and has established a good image. OP is a Hong Kong park; it’s very local and they have generational values. It’s been around longer than 30 years and there is a connection to the market. People go to the park as children and now they are bringing their children. †¢Reasonable price of tickets Ocean Park offers cheaper ticket costs HK$280 for adult and HK$140 for children, compare to HK$450 for adult and HK$320 for child of Disneyland. Tickets are offered at a reasonable price which can be afforded for most people and attract more visitors easily. Theme ParkGeneral Admission TicketChild TicketSenior Ticket Disneyland$450$320$100 Ocean Park$280$140Free Fig. 5 Comparison of ticket prices of Ocean Park and Disneyland. Source form Ocean Park and Disneyland website. Weakness †¢Limitations on land development as it’s hilly. Structure of geographic location is the main disadvantage. This is due to the fact that they have the limitation on the land development because the location is hilly. †¢ Facilities are relatively old and unattached. 9 Although OP started the renovation works but it would not be completed in a short time. The maintenance expense is higher. The fact that they is considered as an oldest amusement park in Hong Kong, there are different facilities that are old and un-attractive. Opportunity: †¢Individual Traveling Scheme The main opportunity of Ocean Park is launch the Individual Traveling scheme. That had helped to improve the number of the visitors. (Table 1. 3) The stable economy growth in Mainland also improving middle class with strong purchasing power helped to increase the demand of outbound travel. Mainland traveler becomes a main guest source of OP. Now they have Chinese acrobatic shows, which are relevant to the market they serve. †¢Support of local government Ocean Park has a strong marketing support from the government that recommends to the foreign visitors. It is also important to consider the development of new transportation South Island Line that would cause convenience and fast access direct to the park for the visitors. †¢Higher demand of entertainment from the public as economic growth stably. Threats †¢Competition Disneyland In Hong Kong amusement park industry, one of the threats that must be considered is Disneyland. The main influences because they were bringing a world-class standard of entertainment and service that Ocean Park unable to match at that time. Furthermore, it targets the children, thus the whole family because of the different rides and attractions that focuses on different well-known Disney characters. On the other hand, the main disadvantage is that most of the mainland Chinese doesn’t have those strong attachments with Mickey and friends and other Disney characters. These aspects are important for the company because most of the visitors of the country come from mainland China. 3. Conclusion As of now, Ocean Park is enjoying a comfortable position in the amusement industry. The main reason for the success of Ocean Park is because the support from the government that can be seen the implemented for easy access of the said place. With the launch of Individual Visit Scheme, mainland China becomes a main source of Ocean Park. The Mainland market is driving Ocean Park’s growth. Increasing GDP and low unemployment rate provide a stable economic environment to Ocean Park which able to sustain its development. For all the positive factors, it shows Ocean Park will grow faster than average. OP was able to use the culture in order to attract more locals and foreign visitors, as well as the current spread of the environmental awareness, which enables the organization to incorporate education and thrill in their features and services. That is the reason why it is frequently visited by families from different part of the globe. Furthermore, the organization had been focuses on the cost and differentiation create as two important competitive advantages. It had been offer an affordable ticket with fun experience. It is also important for the company to use its unique innovative reform, competitiveness of enterprises and expanding the scope of business and achieved good results to against its competitor. This is due to the fact that Disneyland is currently into renovation process, in order to regain their competitive position in the market. Ocean Park has now entered the second phase of the expansion plan, the further enhance the competitive strength of the Ocean Park is expected to become a world’s best marine theme park. Reference: 1. MTR – South Island Line (East) – Key Information – Summary. 2013. MTR – South Island Line (East) – Key Information – Summary. [ONLINE] Available at: http://www. mtr-southislandline. hk/en/key-information/summary. html. [Accessed 14 May 2013]. 2. Overview | Census and Statistics Department. 2013. [ONLINE] Available at: http://www. censtatd. gov. hk/hkstat/sub/so30. jsp. [Accessed 18 May 2013]. 3. Vision and Mission | Corporate Information | Ocean Park Hong Kong. 2013.. Available at: http://www. oceanpark. com. hk/html/en/footer/corporate-information/vision. html. [Accessed 13 May 2013]. 4. Hong Kong Economy – Hong Kong Economic Trends. 2013. [ONLINE] Available at: http://www. hkeconomy. gov. hk/en/trends/index. htm#2. [Accessed 13 May 2013]. 5. Press Release | Corporate Information | Ocean Park Hong Kong. 2013 Available at: http://www. oceanpark. com. hk/html/en/footer/corporate-information/press/press. php? id=592. [Accessed 16 May 2013]. 6. Gross Domestic Product for the 4th quarter 2004 and the whole year of 2004 | Census and Statistics Department. Available at: http://www. censtatd. gov. hk/press_release/press_releases_on_statistics/gdp/gdp_4q2004/index. jsp. [Accessed 18 May 2013]. 7. Labour – Overview | Census and Statistics Department. 2013. [ONLINE] Available at: http://www. censtatd. gov. hk/hkstat/sub/so30. jsp. [Accessed 18 May 2013]. 8. Ocean Park Corporation (2012), Annual Report, Page 96 9. EMSD completes investigation into helium balloon ride incident at Ocean Park. 2013. EMSD completes investigation into helium balloon ride incident at Ocean Park. [ONLINE] Available at: http://www. info. gov. hk/gia/general/201208/30/P201208300416. htm. [Accessed 18 May 2013]. Exhibit 1: Hong Kong tourism statistics Table 1. 1, An overview of the latest general tourism statistics. 2013 Visitor Arrivals (Year-to-date) : 12,742,332. Major Market AreasMar 2012Mar 2013Growth (%) All Countries3,709,4844,087,286+10. 2 The Americas167,827165,247-1. 5 Europe, Africa & the Middle East219,777235,706+7. 2 Australia, New Zealand & South Pacific66,14568,459+3. 5 North Asia210,918183,919-12. 8 South & Southeast Asia329,028351,684+6. 9 Taiwan154,942165,455+6. 8 Mainland China2,497,0612,842,002+13. 8 Source from: Hong Kong Tourism Board In 2011, Mainland China continued to be the largest visitor source market of Hong Kong with 28. 1 million arrivals (+23. 9%), accounting for 67. 0% of our total arrivals. Amongst all Mainland arrivals, 14. 5 million (51. 6%) were same-day visitors, up by 31. 7% year-on-year. 65. 3% or 18. 3 million visitors came to Hong Kong under the Individual Visit Scheme (IVS), up by 28. 8% over 2010. Table 1. 2 Total Tourism Expenditure Associated to Inbound Tourism Tourism Expenditure fromJan-Dec2011 (HK$Mn)Jan-Dec2012 (HK$Mn)Growth (%) Overnight Visitors166,694. 05185,841. 44+11. 5 Same-day In-town Visitors39,358. 0952,606. 33+33. 7 Cruise-in / Cruise-out Passengers 70. 8274. 935. 8 Total Tourism Expenditure Associated to Inbound Tourism258,722. 71296,563. 77+14. 6 Source from: Hong Kong Tourism Board. Table 1. 3 Hong Kong’s Top 5 tourist attraction (‘000) Leading Visitor Attractions2009201020112012 Total59,326. 261,438. 863,634. 165,774. 9 Other Visitor Attractions28,952. 529,286. 130,118. 030,789. 2 Victoria Peak9,150. 19,608. 89,990. 610,359. 5 Ocean Park4,985. 25,242. 85,472. 55,722. 4 Peak Tramways4,930. 95,434. 65,727. 16,051. 3 Disneyland4,664. 34,970. 25,218. 05,525. 1 Clock Tower2,178. 92,313. 72,399. 02,486. 3 Wong Tai Sin Temple1,989. 02,028. 72,080. 82,137. 7 Tian Tan Buddha1,544. 31,586. 21,629. 01,670. 7 Hong Kong Wetland Park456. 3470. 0477. 3486. 7 Noah’s Ark474. 6497. 7521. 8545. 9 Source from: Travel and Tourism: Euromonitor from trade sources/national statistics Table 1. 4 Tourist Attractions Sales HK$ million200620072008200920102011 Art Galleries 15. 115. 415. 816. 116. 917. 5 Casinos —— Circuses —— Historic Buildings/Sites 202. 1205. 7209. 4215. 7221. 0225. 5 Museums 48. 352. 368. 052. 353. 354. 6 National Parks/Areas Of Natural Beauty 633. 0662. 5685. 7713. 1738. 0765. 3 Theatres —— Theme/Amusement Parks 2,512. 02,007. 92,188. 63,434. 53,674. 93,940. 3 Zoos/Aquariums —— Other Tourist Attractions 296. 9325. 6332. 1345. 4357. 5372. 8 Tourist Attractions 3,707. 43,269. 43,499. 64,777. 15,061. 75,376. 0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources Table 1. 5 Tourist Attractions Visitors ‘000 people200620072008200920102011 Art Galleries 748. 8775. 8791. 3795. 3827. 1851. 9 Casinos —— Circuses —— Historic Buildings/Sites 5,573. 25,701. 45,786. 95,931. 66,139. 26,323. 3 Museums 4,600. 04,839. 26,049. 05,202. 15,176. 15,251. 7 National Parks/Areas Of Natural Beauty 17,832. 018,402. 618,954. 719,618. 120,402. 821,263. 8 Theatres —— Theme/Amusement Parks 9,659. 29,141. 79,415. 09,516. 510,070. 810,684. 7 Zoos/Aquariums —— Other Tourist Attractions 15,783. 816,573. 016,854. 717,444. 617,968. 018,617. 2 Tourist Attractions 54,197. 055,433. 657,851. 658,508. 260,584. 062,992. 5 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade source Table 1. 6 Forecast Tourist Attractions Sales HK$ million201120122013201420152016 Art Galleries 17. 518. 118. 619. 119. 519. 9 Casinos ——. Circuses —— Historic Buildings/Sites 225. 5229. 5233. 2236. 5239. 3241. 7 Museums 54. 655. 856. 857. 858. 759. 4 National Parks/Areas Of Natural Beauty 765. 3789. 8811. 9832. 2850. 5867. 5 Theatres —— Theme/Amusement Parks 3,940. 34,176. 74,385. 54,561. 04,697. 84,801. 1 Zoos/Aquariums —— Other Tourist Attractions 372. 8385. 9397. 5407. 4415. 6421. 8 Tourist Attractions 5,376. 05,655. 75,903. 56,113. 86,281. 36,411. 4 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources Table 1. 7 Ocean Park Revenue Breakdown 2012 HK$ Million2011 HK$ Million Admission Income1,109. 4881. 6 Merchandise Income164. 0144. 9 Catering Income262. 3195. 5 Others32. 726. 7 TOTAL1598. 21,248. 7 Source: Ocean Park Corporation (2012). Annual Report Appendix 1: Background of? Ocean Park: Ocean Park has long been established as an iconic attraction in Hong Kong visited by both local residents and tourists. As a result the Park has become part of Hong Kong’s heritage. The Master Redevelopment Project of the Park, with its many new attractions, commenced in 2006 and was completed in 2012. With the implementation of ongoing expansion programme, the Park has been remaining very popular, with visitor number increasing to 7 million in 2012. With the completion of the Master Redevelopment Plan in 2012 and the planned opening of a number of new world-class attractions from 2014, one day is not enough to experience all that the Park has to offer. The Ocean Hotel will thus provide convenient accommodations for guests spending multiple days at Ocean Park, and transform Hong Kong People’s Park into a premier international resort destination. Vision: Ocean Park aspires to be a world leader in providing excellent guest experiences in a theme park environment connecting people with nature. Mission Statement: Ocean Park provides all guests with memorable experiences that combine entertainment and education, while inspiring life long learning and conservation advocacy. Our aim is to maintain a healthy financial status, while striving to deliver the highest standards of safety, animal care, products and guest service Key services of Ocean Park: Animals are the base of OP differential offering—how they present them in their natural environments. They try to showcase the natural behavior of animals to enable people to see them in a way they’ve not done before. The key is finding a balance between human entertainment and natural animal behavior. That makes us different from a lot of theme parks in the world. Target Market of Ocean Park: Target customers of Ocean Park are general public. In different occasion, Ocean Park would concentrate on specific targets. For example, in summer.