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Swans Ice Arena

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Swan’s Ice Arena Case
Swan’s Ice Arena is the only regulation sized hockey ice-skating rink in a city whose population is 450,000 and located in the Northern U.S. where hockey is a popular pastime. The owner, David Swan, has a successful business strictly renting the rink to hockey leagues and charging admissions to games along with concession sales. David wants to expand his business and include skating for the public as he sees a very high profit potential with that. He has made investments in making his rink more into a skating environment and the results are dismal, so he is questioning his choices and wants to know is options going forward.
One thing Mr. Swan can look at is how he segmented his market. His bread and butter is hockey and alienating a core group such as this does nothing for his loyalty factor. This could lead to other arenas being built that support maybe more than one hockey rink specifically for hockey and he would lose that part of his business. In Mr. Swan’s business 25% of his customers on a weekend skating night are under fourteen. In the United States, 20% of the population is from age 0-14 ("The World Factbook," 2014). This represents a good chunk of his business during that time and also should not be alienated. Children 14 and under and the parents of these kids would value the public skating a lot more than young adults 14 and older simply because in this generation, young adults have so many more entertainment options available to

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