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Ocean Park case study

Ocean Park case study

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Published by Bilal Raja
Ocean Park case study
Ocean Park case study

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Published by: Bilal Raja on Sep 25, 2010
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offer thrill rides targeting the teenage visitor market.Add new attractions. However during 2009 concerns over swine flu and mainland travel restrictions led to a drop in visitor numbers. The key strategies those ocean parks adopted are as follows.Provide new and upgraded food and beverage facilities as well as a range of retail shops and game opportunities.In addition to state of the art marine attractions. adding he is confident of his park's future. its chairman Allan Zeman said Wednesday. animals. more entertaining and appealing to the increasingly sophisticated visitor and resident marketsOcean Park's animals. and thrill-rides as opposed to the "fantasy" and animated characters that make up Disney's core competence.Continue Ocean Park’s mission as an educational facility that is updated. "We have no intention of trying to out Disney.OCEAN PARK Located near Aberdeen on the south side of Hong Kong Island. Q: what competitive strategies were taken by Ocean Park? Complementary strategies In terms of business-level strategy." The park focused on its aquarium. marine Design features and facilities. Ocean Park opened in 1977 and was Hong Kong’s first theme park. technology.Primary strategy of the redevelopment of Ocean Park is to adopt and improve upon the “SeaWorld” theme park concept in order to increase profitability and complement Hong Kong Disneyland. such as the arctic experience. the park was able to capture a large portion of Disney visitors that came from Mainland China. attendances in recent years have soared and the park broke its own attendance record for five consecutive years reaching 5. tradition and constantly evolving attractions will prove more than a match for rival Disneyland. the park moved to accentuate the differences with Disney rather than compete head-on. By following this strategy. particularly mainland tour groups and attendances for the financial year ended 30th June 2009 were down by about 5% to 4. Make Ocean Park “Better than SeaWorld” with the newest attractions. which are unique to Asia and are expected to generate increased tourism to Hong Kong.78 million although it still ranked the fourteenth most visited theme park in the world.03 million for the 2007/2008 financial year. As the CEO stated. 2 . Following a period of decline.

he said.“I brought in sales people so hungry they must have been starving for years.000 square meters."Ocean Park is different.” Once there was a motivated sales team in place Pei also developed a public relations team when he found the park had no one to go out and “tell our good stories”. cartoons and fantasy. Mickey”.000 to 20. Place and Promotion). Ocean Park is real. there wasn’t anyone talking about the product. education and ecology. and the four P’s (Product. The Hong Kong Tourism Board expects up to 27 million visitors to the territory in 2006."What is Disney? Its castles." he said. that’s what everybody said.000 people. he said the two parks will be good for the city.Pei went back to the basics of sales and marketing. The addition of the Disney theme park is creating a new kind of tourism in Hong Kong. and made sure everyone and every communication enhanced that. Spread over more than 870. It's got animals and new attractions every month or two."Where are they going to put them? “Disney can't even hold 20. Zeman said Hong Kong will see the rise of family tourism. When people visit Disneyland once. Price: The next P was price and Pei wasn’t prepared t o drop his. days before Disney opens. has capacity for 35. the park bills itself as an educational theme park with live animals and scenic surroundings. Visitors to Disneyland's charity day Sunday complained of long lines and insufficient dining space.The annual pass was another differentiator for Ocean Park because Disney (originally) didn’t offer one. We had a product that was old. with its 35 attractions. they're only going to fit 15. it was tired it was grey.” Government and Disney officials said Monday that they would consider reducing the new theme park's daily maximum capacity of 30."Disneyland with only 13 attractions.” Zeman announced plans for a HK$ 5. 3 ."The 28-year-old park sits on the south side of Hong Kong Island. With families coming from mainland China and other countries. Mickey. A series of campaigns were run to build local loyalty like the “Love Ocean Park. It was an important time to communicate with the media because with the imminent arrival of Disney Pei didn’t want the public hearing nothing but “Mickey. Price.” he says.5 billion makeover of the park that would include three hotels on the site." Zeman said “Ocean Park. Product: Pei said.000 visitors a day. Love Hong Kong” work.“It was very obvious what was wrong.000 people. with animals. Q: Market positioning of Ocean Park? The strategy Pei got aggressively on the front foot to differentiate his product and brand from Disney.000 max. . and not a place they return to. it's over. and Zeman is confident they will not all be heading for Disneyland.. Zeman said. Pei likes it because it creates loyalty and a real sense of value.

Opening time is 10am for most of the year but 9-30am at peak times such as school summer holidays and public holidays. Opening Hours The park is open every day of the year but park hours vary throughout the year. Advance booking of tickets is not usually necessary. Buses operate at 10/15 minute frequency from 09-00 to 16-00 daily. When people think of the Ocean Park brand now they inevitably turn to Whiskers either the graphic version or the furry suited one. Enter a sea lion named Whiskers. Tickets may also be purchased from the number 629 Ocean Park bus terminal at Admiralty Bus Station (near Admiralty MTR Station Exit B) and also MTR Travel Services Centre at Admiralty MTR Station. and we want to build on that. Tickets Admission tickets can be purchased both the main park entrance and Tai Shue Wan entrance. and one Hong Kong is lucky to get. a sea lion character. Place: Disney is a great brand.On the other hand Disney land charged adults HK$ 295 on regular day and $ 350on peek days and the children between of 3 and11 paid HK $210 on regular days and HK$250 on peek days.Ocean park charge HK$ 185 for an adult day pass and HK$ 93 for children between the age of 3 and 11. Journey time is approx 25 minutes. Visitors should check the Ocean Park website for daily opening and closing times. who was developed from a live audition of potential mascots. Q. Tickets can be purchased online up to 90 days in advance via the Ocean Park website online 4 .What are the service operations of Ocean Park? Different Bus Services Ocean Park is served by dedicated Citybus bus service 629 (fare HK$10. Ocean park is home grown. Zeman said “Bit a lot of people look at it as an American brand. and Hong Kong people take a lot of pride in it. They have memories growing up around the park. Promotion: Then there’s promotion and Pei knew he needed something or someone to promote to the public – he needed a Mickey. Closing time varies between 6pm (for much of the winter) 7pm (summer) and 8pm (summer school holidays and some public holidays).60) from Admiralty (West) Bus Terminus (MTR Admiralty Station Exit B) outside the Lippo Centre on Drake Street on Hong Kong Island. Similarly other bus services from different remote areas have been provided for tourists.

toucans and other exotic birds and where the Amazing Birds Show takes place. Amazing Asian Animals opened on April 30th 2009 and is Ocean Park's latest attraction costing over HK$100 million. Amazing Amazon is a walk through South American themed garden with colourful exotic birds including macaws. and Lamma Island. 5 . has a helium balloon ride climbing up to 100 metres into the sky. "Waterfront" (formerly “Lowland”) and Summit (formerly “Headland”) on opposite sides of a hill.3km funicular railway through a tunnel linking Lowland area of the park with the Summit area. There is also a free 888 shuttle bus service (see above) which operates between the two park entrances to travel between Waterfront and Summit. Waterfront is on the park main entrance side of the park and the Waterfront Gardens is the location of the HONG KONG JOCKEY CLUB GIANT PANDA HABITAT. Waterfront Cable Car Terminus is the 15 minute cable car journey to the Summit with breathtaking views over Deepwater Bay.ticketing facility. Online tickets can be collected at either park entrance provided they are booked at least one day prior to collection or can be despatched by courier.8km cable car system and since September 2009 by the park's latest attraction. allowing 5 days for delivery if to a Hong Kong SAR address or 7 days for addresses outside Hong Kong. Dolphin University and Tiny Town Games. Nam Long Shan (Brick Hill). Ocean Expressopened in September 2009 Ocean Express is a 1. Stanley Peninsula. a 1. The 25.3km themed funicular railway. Ocean Express. Park Attractions The park is divided into two sections. Skyfairis a recent addition to the park. Kids Worldincludes the Whiskers Theatre where a Sea Lion Show and Whiskers and Friends Show are performed several times daily and where kids can join in the fun. Waterfront and Summit are connected by a 1.000 sq metre enclosure is covered with the same translucent material used for the "Water Cube" at the 2008 Beijing Olympics and temperature is controlled at between 18C and 25C.

Summitcan be reached either by cable car from Waterfront. Atoll Reef where visitors can walk around a huge fourstorey aquarium containing over 1500 fishes and 250 species. Pacific Pier a rock-lined seal and sea-lion pool with boardwalk. How Ocean Park management Finance its projects? 6 . Adventure Land has more rides including Mine Train. Dolphin Encounter allows visitors an "up close and personal" encounter with the dolphins enabling visitor to meet them close-up. Ocean Park Tower situated between Marine Land and Summit Rides is a rotating viewing platform rising 72 metres from which there are panoramic views of the park and coastline. Shark Aquarium containing over 70 sharks which can be viewed in close up from a walk through tunnel. feed them. Summit Rides include The Abyss turbo drop which hoists victims up to a height of 185ft before unleashing a stomach churning freefall drop. a rollercoaster ride reaching a height of 85 metres. The Dragon cliff-edge roller coaster ride. Goblet Toss and Hi-Striker. Ferris Wheel and Headland Games which include Ring Toss. Ocean Theatre where a dolphins and sea-lions perform with their trainers up to four times daily in a spectacular show set to music (get there early to be sure of a seat). Bird Paradise near the Tai Shue Wan entrance is a huge aviary with over 750 birds and 75 species and flamingo pond. Flying Swing. The Eagle swinging gondola ride. Dolphin Encounter takes place at 12-30pm on Mondays and Tuesdays and 9-30am and 12-30pm Wedenesday to Sunday. Q. Marine Land in the area around the Summit Cable Car Terminus includes Sea Jelly Spectacular. a jellyfish exhibit with music. hug them in the water and includes a souvenir photo and other memorabilia. Summit attractions include. Crazy Galleon Pirate Ship swing reaching a height of 20 metres. Space Wheel orbiting vertical wheel gondola ride and Raging River boat ride. lighting and multimedia special effects. Ocean Express funicular railway or from the park’s Tai Shue Wan entrance entrance via the worlds second longest outdoor escalator (covered by a canopy) travelling a distance of 225 metres.

Tranche B commercial loan would be repay first. Overall. Ocean Park had to first draw the subordinate loan.55 million) plus the interest that arose from the loan.Financial strategies Ocean Park is Hong Kong's oldest amusement/theme park and is located on the southern side of Hong Kong Island. The government support for Ocean Park’s redevelopment entailed a risk exposure of up to KH$3. followed by the governmentguaranteed commercial loan (Tranche A). At the same time. For these developments Ocean Park needs the KH$ 5. which was expected not to exceed KH$700 million. The risk exposure of the loan was shared equally between the government and the commercial market.387. and than the commercial loan (Tranche B). It is a comprehensive eight-phased master plan. The government also offered additional support through a guarantee of repayment of one third of commercial loan (HK$1387.55 million at fixed interest rate of 5% per annum and a loan term of 25 years.475 million. before the Tranche A governmentguaranteed commercial loan. The US$ 712 million redevelopment plan is currently underway between 2006-2012. The HK Government is also expanding the MTR subway line to the front-gate by 201314 with greatly improved accessibility. and 5-star spa-resort hotel at the Summit).60 million through private placement 7 . This includes adding 3 new hotels (one 3-star hotel with 660rooms at entrance.5 billions and the park have not enough money to fund the project itself so they decided to take loans. the park is to be enlarged by 12-15 acres and the number of attractions and rides is to double from 35 to 70. Ocean Park Ventures raises $6. In 2005 the government committed to revamping the park with a subordinated loan of KH$1. 4-star 460-rooms at Fisherman's Wharf.

Ocean Park will raise gross proceeds of approximately CAD 7 million ($6. Ltd. is acting as placement agent for the transaction. Inc.60 million) through this placement. a Canada-based company engaged in evaluation of exploration projects.70) exercisable for two years.47 No. Each unit will consist of one common share and one half of one warrant of Ocean Park. Each subscription receipt will automatically convert into one unit of Ocean Park for no additional consideration upon completion of the Joint Venture transaction with International Tower Hill Mines. Offer Price ($ per share) 0. Shares Issued 14000000 8 . Each whole warrant will entitle the holder to purchase one additional common share at CAD0.75 ($0.47) per subscription receipt through a non-brokered private placement.5 ($0. Announcement (December 23. Ocean Park has agreed to allocate approximately CAD 4 million ($3.Ocean Park Ventures Corp. Axemen Resource Capital. and for general working capital purposes. 2009): Ocean Park has agreed to issue approximately 14 million subscription receipts at a price of CAD 0. (formerly eTV Technology.60 million) through a non-brokered private placement. has raised gross proceeds of CAD 7 million ($6.) Acquirer (Company) Undisclosed Investors Deal Rationale Ocean Park Ventures intends to use the net proceeds from the placement for funding its proposed joint venture with International Tower Hill Mines.6 Deal Type Deal Status Private Placement Completed: 2010-01-28 Deal Participants Target (Company) Ocean Park Ventures Corp. Deal Value (US$ Million) 6. Ltd. Ltd. Ltd.77 million) of this offering to subscribes found by Axemen Resource Capital.

such as disabled toilets. ramps. visually and hearing-impaired persons. with over 53% of the total visitation made by guests from China or overseas. gondolas.  Ocean Park keeps animals and water creatures.  Its first theme park in Hong Kong with 30 years of history and is recognized as a homegrown people's park. Aberdeen and neighboring islands.  Cable Car service offers breathtaking views of Hong Kong beautiful southern coast.  The Park ranked the world's seventh most popular amusement park .  Easy accessibility by public transport and adequate parking space.  Competitive prices. Weaknesses Limitation on land development as it's hilly.Q. tactile maps and the Loop Pad System.  Education and conversation programmes with unique environment and professional educators offered to students and learners. 9 . What are the Feasibility Report contents of Ocean Park? SWOT Analysis Strengths Ocean Park is one of the icons of Hong Kong.  Caring service are provided to physically disable. popular with locals and tourists as well.

 Lack of strong financial backup and support.  South Island Line would afford a convenient and fast means of access direct to the Park from Central. Thus. Ocean Park has been able to follow the principles of business ethics. It needs to be responsible for its own income and operational cost. Although it started the renovation works but it would not be completed in 6 years time.  Hong Kong Tourism Board recommends that Ocean Park is a famous spot for visitors. PEST Analysis Political Sector A company will not be able to gain success. The company considers legality in all their actions. The management and staff of Ocean Park make sure that all their services adhere to the standards and wills satisfy their customers regardless of nationality and age. good reputation and trust if it will not consider legal and political sector as part of their strategy.  The facilities are relatively old and un-attracted. Politically. Opportunities Individual Traveling Scheme was carried out in 2003. the company had been able to follow all the standards set by the Hong Kong government and other 10 . It is currently the biggest source of visitors for the Park.  Cross-boundary infrastructure projects include the Guanzhou-Shenzhen-Hong Kong Express Link. Hong Kong-Zhuhai-Macao Bridge and Hong Kong-Shenzhen Airport Cooperation.  Strong economy in Mainland and growing middle class with purchasing power are stimulating demand for outbound travel.

Ocean Park’s continued presence has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place. the management of the company has seen to it that they would be fair in treating all their employees. it can be said that for more than 20 years. Sociocultural Sector Culture is an important factor in understanding an industry. Part of this is their utilization of modern technology in producing new attractions and services that will meet the demands of their target market. Even with the entrance of the Disneyland Park. 11 . Ocean Park was still able to get an advantage. Moreover. The economic status of Ocean Park is highly remarkable that it always give its consumers the best and quality attractions and services.In Ocean Park. because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. the management sees to it that they value the opinion of their employees no matter what is their nationality.The company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries.Since. Technological Sector Ocean Park has been able to use technological advancement for creating new and innovative attractions and services needed by its visitors. Ocean Park had enjoyed being at the top of its competitors.international organization. most especially with regards to laws governing animals which are present in the park. Economic Sector Economically.Ocean Park is accessible to any nationality and age. They also use the purpose of information technology by creating their own website to let prospective visitors have an easy access of knowing the park and the attractions and services that the company has made for them.

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