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SWOT Analysis

The significant strength of the theme park and attraction industry is its positioning in the hospitality and tourism industry. For decades, the sector has expanded as a well-known attraction venture that provides fantasy to its broad consumer base (Groote, 2010). In this regard, the industry has grown its operation across the world as it has been widely adopted, an aspect that facilitates the growth of the hospitality and tourism industry (Jones & Robinett, 2012). Additionally, this sector offers different forms of attractions and products including rides, game competition, films and moving objects. These features are essential in today’s business environment that is characterized by increased rivalries from other sectors (Groote, 2010). Significantly, the attractions in this industry tend to adjust regarding changes of consumer preferences. With this, their needs are addressed adequately (Jones & Robinett, 2012). Considerably, the industry is controlled by universal parks and resorts such as Disney land that have a reputable brand name globally thus heightening tourist attraction.

Amusement and theme parks have family appeal, an aspect that supplements its importance in the tourism sector. Noticeably, the different forms of attractions in the sector are highly appealing to families (Jones & Robinett, 2012). The capacity to attract families signifies its strengths as this broadens the number of tourists expected. Despite the fact that there have been variations whereby theme parks tend to orient and focus on a specific market, their capacity to attract families that comprise of both adults and children is highly beneficial. In this regard, this aspect enabled the industry to experience a rapid expansion in recent years. Additionally, theme parks feature attractive flag species such as the Pinus leucodermis. Such species act as an icon for a specific environmental cause, for instance emphasizing on the need to curb environmental degradation (Jones & Robinett, 2012). The threats posed by increased species depletion should be mitigated, for instance, the sale of endangered species. With this, environmental conservatives are highly attracted by this feature thus broadening their consumer base. Therefore, the parks feature a great diversity of species.

The amusement park industry is characterized by high barriers to entry thereby limiting competition. This sector is characterized by the need to comply with various specifications, for instance, guaranteeing the safety of the moving objects. In this regard, existing establishments rely on their experience thus limiting opportunistic entrants from flooding the market. Additionally, the amusement parks can sell their products online. Broadening the consumer base is highly essential for the sector as this translates to high revenues (Graft, n.d.). Therefore, creating online platforms attracts a broad consumer base that increases the receptivity of the tourist services and enterprises. Significantly, amusement parks feature historical, natural and cultural heritages that are highly attractive. This is supplemented further by the presence of natural and uncontaminated environments. The presence of unique products is advantageous to this sector as this enhances success.

The sector’s main weakness is that it has a diverse product portfolio that features different theme parks and attractions, thus heightening difficulties in its monitoring and management. Notably, the various key players in the industry such as Disney land have found it difficult to manage their operations adequately (Groote, 2010). Additionally, the occurrence of accidents in the amusement parks across the world has impacted tourist attraction as consumers are worried about their safety. Significantly, government and local authorities have imposed legal restrictions to avoid future accidents, an aspect that impacts new entrants into the industry. Besides, the industry depends on the popularity of key players and their features. Therefore, this exclusive dependence can be affected by struggles such as increased expenditures.

Considerably, this sector is characterized by increased competition whereby the rivals can offer similar products quickly. Notably, the increased market value for this industry is facilitated by its uniqueness in the tourism sector. However, with competitor providing similar products, the market share is reduced. With this, tourist and amusement parks are resorting to focus on specific market segments such as children. The lack of international promotion for the parks negatively impacts the operations of the enterprises in this sector. Although some amusement parks have attracted international attention such as Disney, most are still unknown to the massive global population. This aspect is caused by poor marketing activities. Besides, the industry is characterized by lack of information regarding appropriate use of the parks. With a broad consumer group, the enterprises receive new clienteles on a daily basis (Graft, n.d.). However, lack of information about the appropriate use of the parks deters their ability to exploit on their expedition fully. Thereby, consumer groups have to rely on tour guides, some of whom share limited information. Limited flexibility in pricing of the services is an additional weakness of the amusement and theme parks.

The external opportunities for the sector include positive government attitude, diverse product portfolio, reduced barriers of entry, expansion into foreign markets, and a large group of loyal consumers (Groote, 2010). Government regulations have a negative force to the industry, a practice that is set for change as governments embrace their availability by increasing expenditures on the building of proper infrastructures such as building transport facilities. Reduced barriers to entry will ease new entrants thus expanding the industry. Additionally, the industry can capitalize on foreign markets such as Dubai to expand their operations (Sahoo, 2014).

Technological advancement provides diverse opportunities for this sector. For instance, the enterprises can focus their expansion on online sales to broaden their consumer base. This provides them with the ability to increase their sales (ATD Travel Services, 2017). Capitalizing on the emerging markets cannot be solely attained by building physical establishments, but also by developing online platforms to provide opportunities to those who cannot travel to the establishments. The virtual queuing system is a new technology that enhances consumer satisfaction. Queuing in the parks for the rides is a significant challenge faced by the parks. However, the development of the virtual queuing system is an opportunity that the parks can capitalize on (ATD Travel Services, 2017). This system uses a high-tech wristband that allows the clients to wait on line virtually by just tapping. With this, the guests have the opportunity to explore other parts of the park while waiting. Besides, the growing economy poses more opportunities to this sector. Economic recession negatively impacts business including the theme park and attraction industry. Despite this, there is a growing economy globally thus providing this sector with opportunities to capitalize on. For example, the developing country is a new market that the ventures can capitalize on.

The main threats in the industry include saturated markets, increased competitor globally that attempt to offer similar products to the same client segment, and improved competitors offer, whereby new entrants provide clients a diverse product portfolio that is better (Groote, 2010). In this regard, the different theme parks and attractions opening across the world bear the possibility of stealing away each other consumers thus limiting sales that will negatively affect the industry. Notably, changes in government regulations can adversely impact the industry. This aspect is enhanced by the fact that the parks have to comply with federal regulations. Therefore, the industry faces threats of changing government legislation. Additionally, the increased costs are continuously increasing posing more threat to the enterprises (Graft, n.d.). Besides, maintaining the high standards of services and cleanliness is highly challenging to the business ventures. With increased competition, the parks are facing increasing demand to enhance customer satisfaction through the provision of high-quality services. Therefore, the parks can run out of business in the situation that the quality of their services declines.

The future of the theme park industry is dictated by the need to adopt tech innovations. Technological advancement provides the industry with an array of opportunities to capitalize on. For example, virtual reality offers the park an opportunity to capitalize on online consumers. Additional technological equipment’s that can be adopted by the parks include virtual queuing systems, holograms, hand gesture technology, mobile technology cashless payments (ATD Travel Services, 2017). The virtual queuing system abolishes the need for the client to spend time on a long quest while waiting for rides. Holograms can be supplemented further through the use of 3D and 4D technologies to create attractive journeys (ATD Travel Services, 2017). Mobile technology is essential in this industry as it enhances customer experience. Similar technology has been adopted by Orlando theme park whereby the visitor can use mobile apps to navigate their way in the parks and check waiting times for the busiest rides. Visiting the arks are characters by the need to pack as little as possible, including cash. In this regard, theme parks should adopt a cashless system to intensify convenience (ATD Travel Services, 2017). Significantly, the hand gesture technology provides users with a unique experience by controlling their rides using hand gestures. The state of the art technologies provides vast opportunities to the parks as they enhance customers experience thus should be adopted for use.

The theme parks should shift their expansion to developing markets. Notably, most of the European parks have been repositioning their business with an increased emphasis on marketing. Besides, the parks should focus on expanding their attractions in emerging markets such as Dubai (Jones & Robinett, 2012). Additionally, the parks should also feature expansion programs such as merchandise areas and restaurants to improve customer experience.

The outdoor amusement parks are a popular segment in the hospitality and tourism industry. Through their subsequent development, the industry is experiencing subsequent growth as it intends to capitalize on the emerging markets globally (Sahoo, 2014). However, the continuous growth of the industry will be influenced by different factors including advertising and marketing campaigns, provision of a diverse product portfolio, and enhancement of guest experiences (Ady, 2010). Additionally, the industry is experiencing external variables that are beyond their control including competitor strategies and government regulations that negatively affect their operations and sales (Ady, 2010). Therefore, the industry must enhance the adoption of constant innovation to build upon the increased competition and the need to provide a safer environment.

References

ATD Travel Services. (2017). What Does the Future Hold for Theme Parks? Accessed November 5, 2017 from https://www.attraction-tickets-direct.co.uk/orlando/latest- news/what-does-future-hold-theme-parks

Ady, M. (2010) "The global theme park industry", Worldwide Hospitality and Tourism Themes, Vol. 2 Issue: 3, pp.220-237, https://doi.org/10.1108/17554211011052177

Graft, J. (year) The future of amusement parks and attraction industry. Tourism Management, 7(1), 60-62. http://dx.doi.org/10.1016/0261-5177 (86)90059-2

Groote, P. (2010). Globalization of Commercial Theme Parks Case: the Walt Disney Company. Agroinform Publishing House, Budapest.

Jones, C. & Robinett, J. (2012). The Future of Theme Parks in International Tourism. Economic Research Associates. Accessed October 30, 2017 from https://www.hotel- online.com/Trends/ERA/ERARoleThemeParks.html

Sahoo, S. (2014). Theme park hotels hold promise for Dubai’s hospitality sector. The National. Accessed October 30, 2017 from https://www.thenational.ae/business/travel-and- tourism/theme-park-hotels-hold-promise-for-dubai-s-hospitality-sector-1.587358

Sun, L. & Uysal, M. (n.d.) The Role of Theme Parks in Tourism, Hospitality Review: Vol. 12: Iss. 1. Article 8. Accessed October 30, 2017 from http://digitalcommons.fiu.edu/hospitalityreview/vol12/iss1/8