Internal competition of cluster: Medium

Internal competition of cluster: Medium

Figure 7. Strategic Group cluster

5.1 Single Location Theme-based Parks

5.1.1 Internal competition of cluster: Medium

There is a competition in this category of parks as they need to differentiate from

others by storytelling, immersive experience and quality of shows. Innovation is also a

critical factor in this cluster. To attract returning visitor and build customer loyalty, the

parks have to offer new shows and experiences. For example, when people get into

YehLiu Ocean World, s/he can not only see fish exhibition but also see ocean theater

performance by sea lion and dolphin. During the performance, those performers can

even interact with audiences. Thus, it become a special experience for customers.

5.1.2 Mobility barriers: Medium

These parks can attract a larger audience by adding some rides, however their

current customers are not visiting because of rides but to live the themed experience.

These parks can expand internationally if they manage to build a strong enough brand.

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5.2 Single Location Mainly Theme with Few Rides Parks

Cluster

5.2.1 Cluster internal competition: High

In the cluster of “Multiple location sensation-based”, there are two Parks

including Tivoli Garden and Europa Park. Tivoli Garden was opened in 1843 in

Denmark. Operation for 173 years, it is the second oldest amusement park in the

world. Tivoli is famous for its pleasure garden and some amusement rides such as one

of world’s oldest wooden roller coasters built in 1914 that is still operating today.

While Europa Park was opened in 1975 in Germany. This park is themed as thirteen

European countries combine with Grimms’ Fairy Tales. With plenty of stories and

high capacity rides, people like to go there spending their vacation.

Both of two parks are located in Europe and have highly reputation. In 2015, the

visitor number of Tivoli Garden and Europa Park are 4.733 million and 5.5 million.

As a result, they are quite competing in Europe due to their similar characteristics.

However, the Leofoo Village Theme Park (六福村主題遊樂園) was opened in

Taiwan in 1979 as a Wildlife Park. Now Leofoo Village divide the theme into four

areas, Arabian Kingdom, African Safari, South Pacific, and Wild West. They combine

wildlife park and amusement rides together. That’s why they could attract 1.65 million

people in 2015, which is the highest among Taiwan amusement parks. The target

visitors include family, couples, students and those who want to experience various

attractions in one day. So the visitor flow is different from above two amusement

parks due to the location and type.

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5.2.2 Cluster Mobility: Low-medium

The mobility of single location theme park is low-medium. Tivoli Garden and

Europa Park are in specific theme such as its history or national and story

characteristics that attract visitors around the world. There are two ways to think about

it. One is that if they move to the other cluster, their attractiveness might be cut down.

Then stay in their original cluster would be better for them. However, in such a

competitive environment, they have to try harder and harder to keep their customers.

Thus, they could improve their rides and equipment to enhance attention. And

gradually move toward both theme and sensation park.

5.3 Multiple Location, Mainly Theme with Few Rides Park

5.3.1 International competition of cluster: Low

Competition in this kind of park is relatively low because they have special

theme that is Lego and they differentiate from others. Therefore, they can hold a

certain customer of their own.

Remaining high visitor attendance and building customer loyalty are the biggest

mission of this cluster. While existing competitor continuously expand and innovate

their appearance all over the word as well as more and more rivalry of new

amusement parks, Legoland need to renew audience experience by adding more

shows, games,…

5.3.2 Mobility barriers: Medium

The mobility barriers of this kind of park is medium, Legoland has diversified

activities such as waterpark, Lego bricks, shows, rides and so on. So that they can

serve and satisfy various groups of customer. Visitors also find specific experience in

these kinds of recreation in Lego theme. These parks can strengthen their

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globalization if they expand their appearance in more nations buy building more

amusement parks next stage.

5.4 Multiple Location Sensation-Based Cluster

5.4.1 Cluster internal competition

In this cluster, which we named “Multiple location sensation-based”, there are

two firms: Six Flags and Wanda City. Six Flags operates all over USA, with a total of

eleven different locations and numerous parks; outside of USA it also have parks in

China and Dubai. Six Flags is heavily sensation-based, almost no themes or

background stories are incorporated into its rides. Wanda City is an emerging theme

park business in China, it operates in two locations, one is Nanchang (南昌) and the

other one is Hefei (合肥). In the parks, they are equipped with thirty-three set of

world-class rides. The most eye-catching ride is the 白龍飛天 roller-coaster. It

stretches over one kilometer, with a height of fifty-six meters, and the speed can reach

125 kilometers per hour. It is the highest and fastest roller-coaster in the world. Wanda

City is quite the new comer comparing to Six Flags, but it has great ambitions and is

expanding and investing aggressively.

Even though Six Flags and Wanda City are in the same cluster, they had little

competition with each other due to their difference in location, Six Flags mainly

operates in the US and in China, Wanda City. They would become direct competitors

once they expand to more international sites, but as for now, they are more likely to be

competing with other amusement parks from other clusters which operate in the same

regions.

5.4.2 Cluster Mobility

For cluster mobility, it would be fair to say that this cluster’s entry barrier is

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relatively low. One would need to invest a great deal of capital to acquire land and

facilities (eg. rides, restaurants, infrastructures, etc.), and that would be about it. Less

creativity and innovation would be needed then coming up with an attractive and

successful theme for theme-based parks.

However, for Six Flags and Wanda City to move towards being more

theme-based, it would be more challenging. First of all, these parks are already

well-known for providing highly sensational entertainment, to add new themes and

stories to its rides might not be beneficial, as this would undifferentiated them from

their competitors such as Universal and Disney. Sometimes visitors just want to

experience the excitement without having to process the story behind it. Secondly,

when merging a story-based theme to a ride, the appearance of the ride would need to

be specifically designed for its purpose of telling the story. These parks already has

their rides in place, either replacing them or altering them would be a huge

investment.

Overall, we believe that entering this cluster would be relatively easy if one

invests time and capital into it. On the other hand, exiting this cluster would be more

challenging and risky, due to reasons mentioned above.

5.5 Global Theme and Sensation Parks Cluster

5.5.1 Cluster internal competition

In this cluster, which we named “Global theme and sensation Parks Cluster”, one

is Disney, Disney has six locations in the world, which is California (1955), Florida

(1971), Tokyo (1983), Paris (1992), Hong Kong (2005) and Shanghai (2016).

Disneyland is distributed all over the world. Inside the Disney parks, there have

sensation and theme parks. Another is Universal, Universal has four locations in the

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world, which is California, Florida, Tokyo, and Singapore. Universal is distributed all

over the world. Inside the Universal, there have sensation and theme parks. I think

Disney and Universal are competitors in these cluster, and they will be complement

each other forever. They have different rides and theme in their parks, so they will

attract different visitors to enter the park.

5.5.2 Cluster Mobility

I think the mobility of the Global theme and sensation Parks Cluster is low,

because Disney and Universal are distributed all over the world, and they have

different sensation and theme parts, they will attract different visitors to enter the park

and play in the park. I think Disney and Universal do not need to remove single theme

park or single sensation park, because they use their attraction, creation and

innovation to let their visitors make them happy and enjoy their selves. If Disney or

Universal remove to single theme or sensation parks, they will lose their number of

visitors who prefer to the theme or sensation parks is their reason to enter the park. It

is not a wise choice at all.

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