. Should Ocean Park intensify or reduce its head-to-head competition with Disneyland? Explain. Regarding the coming of Disney land in 2005, many analysts and even Ocean Park themselves aware of this powerful rival and predicted that their ending is soon to become. On the contrary, the outcome of this battle is not as it was predicted. Ocean Park has gained benefit from Disneyland, it help boost the attendance, and also contribute revenues and profits. A few years later, it seems that Ocean Park has overcome the Hong Kong Disneyland, in terms of visitors and revenues.
The aqua theme park, based in Hong Kong’s Aberdeen district has registered 5.4 million visitors in 2010. In comparison, Hong Kong Disneyland’s gates welcomed only 5.2 million guests. A few years ago, Ocean Park was listed as 15th most visited amusement park in the world, also ahead of HK Disneyland. And while Ocean Park enjoys HK$82 million net surplus in the previous year, Disneyland is still in the red five years after it opened, recording a net loss of HK$720 million in its last fiscal year ending October 2.
The key success of their business is that they choose a co-existance strategy. Instead of face to face beating with a world class competitor from USA like Disneyland, they learn how to coexist in this competition. The coming of Hong Kong Disneyland has stimulated them to improve themselves. After self evaluating, they have realized that the renovation is needed, especially in term of brand image, Human Resource Management (HRM), and operation.
To develop themselves effectively, they have analyzed themselves based on their resource and competency. According to a resource - based view, the VRIO framework could be used as a tool for evaluating themselves:
Value – Provide nature and wildlife with many animal related activity, with cultural relevant
Not only being a leading amusement parks and aquarium in Hong Kong, but also provide experience in an amusement park environment connecting people with nature. Moreover, they also provide “edutainment” program which give visitor a chance to learn more about animal and have fun at the same time (Mike W. Peng, 2011) Lastly, the seasonal holiday event that they held, they have tried to implement with Easten style. Such as Chinese New Year, and a Haloween with a ghost from local lore, which help they touch Asian visitor heart.
Rarity – Aquarium and animal attraction
It has position themselves as a marine based attraction with real animals, in contrast to Disney’s strengths in cartoon characters, castles, virtual reality and fantasy. They planned to add more animal species, including whale, polar bears, panda and penguins to emphasize that the visitor would be able to directly connect to the nature while visiting the Ocean Park.
Imitability – Costly to imitate
In terms of imitating Ocean Park, it might not be hard to imitate but it could become more costly. Investing in aquarium and gathering many animal species might be high. In addition, Ocean Park has a rare animal Panda, which could be represented as an Asian animal. It is also a symbolic animal which builds up a good relationship between two country China and Hong Kong. Moreover, the Eastern cultural that Ocean Park implement in the event is create value among Asian people. On the contrary, Disneyland might not be able to create impression among Asian visitors, as it is a global brand who focused on western culture.
Organization – Focus on Human resource, and operation
As a long period that they have been in Hong Kong, they familiar with the Eastern cultural, and know how to implement and share with its shareholder. They have diversified organization with many staff working together in different disciplines and professions to achieve business goals. Now that they have a skilled worker, they could provide better service to a customer. In addition, after their renovation they have d the operation to be more consistency. (http://dimension.jobsdb.com/Templates/10100108/static/OP_Overview.html)
After the brand reposition and product update, it become easier to differentiate themselves from Disneyland. Even though their target customer is the same segment, but they their positioning were different. As a result, they should reduce the head to head strategy, and go back to their roots and strength their competency. As mentioned above, both Ocean Park and Disney land draw visitor to Hong Kong, and with visitor spend a longer stay since they want to visit these two theme park.
Both theme parks have embarked on expansion projects. At the same year Disneyland opened its doors in 2005, Ocean Park unveiled its multibillion facelift plans to remain competitive. Now, five years after that plan was launched, Ocean Park proudly opened a new aquarium, along with other new amenities. Not to be outdone, Disneyland also has outlined its expansion plans. To be launched in several phases, the expansions will be completed by 2014. Toy Story Land will be the first in the list and will be launched in November.
Ocean Park has announced that it attracted a record number of visitors during its 2010/11 fiscal year, with nearly 5.9 million guests passing through its gates. The attendance figure was a 16% increase over the previous year's number, with show that their expansion plan starting to deliver results. The park cited the debuts of the new Rainforest and Aqua City lands as a major reason for its improved performance, as well as the success of a number of seasonal events such as the Halloween Bash.
The boost in visitor numbers helped Ocean Park to break the HK$1 billion revenue mark for the first time, with a net profit of HK$105 million. Guests stayed 90 minutes longer at the park on average than in 2009/10, spending 21% more per head.
Ocean Park hailed the success of its community care and conservation programs over the period, which ended on June 30, 2011. More than 145,000 people visited the park for free on their birthday, while 185,000 senior citizens and 26,000 guests with disabilities also received complimentary entry.
(http://www.themeparktourist.com/news/20111216/5518/hong-kongs-ocean-park-breaks-attendance-record-during-201011)
The Rainforest area, which opened in June, features a rapids ride through a jungle setting, along with an aviary and animal exhibits. Covering 500 square meters, it is home to a range of exotic creatures including anacondas and capybaras. Earlier in 2011, the park also opened the Aqua City area, featuring Southeast Asia's largest aquarium. Due to be completed soon is Thrill Mountain, which will feature a new Bolliger & Mabillard-built rollercoaster. Another new land, Polar Adventure, is due set open in 2012.
Majority of visitors to these amusement parks come from outside of Hong Kong, notably from the mainland China.That is why an upgrade of theme parks is necessary; otherwise, they could fall out of favor from valued guests who may be more discriminating now that they have plenty of options to choose from.
(http://asiancorrespondent.com/48033/5-years-later-ocean-park-still-tops-hk-disneyland-in-numbers-game/)