In this strategic group analysis, first we discussed and found some popular theme or sensation parks and resorts in the world, which is Disney, Six Flag, Lego land, Universal, Puy du fou, Europa Park, Tivoli, Wanda city and HK Marine Park. And we chose the two variable is Numbers of Location and Sensation or/and Theme Park.
Table 2. Numbers of Location and Sensation or/and Theme Park Numbers of location Sensation/Both/Theme
Disney 6 Both
Six Flag 13 Sensation
Lego land 8 Both-theme
Universal 4 Both
Puy du fou 1 Theme
Europa Park 1 Sensation
Tivoli 1 Both-Theme
Wanda city 2 Sensation
HK Marine Park 1 Theme
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.
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.
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 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
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
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
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.