SBL Case Study Hasper World

PESTEL

Political

• Safety and environmental regulation

• Higher compliance costs

• Employment law

• Operating licenses

• No mention of a union

Economic

• Growing disposable incomes

• Economic downturns/recessions

• Stable country to operate in

• Leisure spending

• Discretionary spending and cost inflation

• Demand, and revenue & profit pressure

Social

• Seasonal staff

• International tourism

• Sustainability concerned consumers

• Changing customer service expectations

• Growing demand for leisure

• Safety/service/reputation risks

Technological

• VR/AR

• Mobile apps

• RFID Technology

• Digital customer experiences

• Digital systems, AI and cybersecurity

• Opportunities but major cyber risks and costs

Environmental

• Climate change

• Waste recycling/renewable energy

• Extreme weather and sustainability

• Operational disruption and stakeholder pressure

Legal

• Ride safety

• Employment law

• Data protection

• Operating licenses annual

• Fines, claims and reputational damage

SWOT Analysis

Strengths

• 50 years established

• Third largest in country

• Strong family ownership and commitment

• Differentiated educational and entertainment experience

• Extensive range of rides and attractions

• Existing infrastructure

• All food and retail on site owned by HW

• Family ownership may allow long-term strategic perspective

• Established app/website/social media

  
  

Weaknesses

• Seasonal demand

• No hotel on-site

• Slowing performance

• Limited external ideas & expertise

• Weather related seasonal disruption

• High operating and maintenance costs

• Dependence on seasonal employees

• Potential resistance to change in a family-owned organisation

• No new attractions

Opportunities

• Increasing disposable incomes

• Growing theme park market

• Hotel/resort development

• Limited external ideas/expertise

• Personalised customer experiences

• Sustainability initiatives

• Attracting international visitors

• Increasing revenue per visitor

• New attractions and innovations

• Better use of customer data

• Improved sustainability

Threats

• Technological obsolescence

• Intense competition

• Economic downturns

• Extreme weather and climate change

• Safety incidents

• Cyberattacks

• Changing customer preferences

• Alternative leisure attractions

Porter’s five forces

Competitive rivalry - High

• 2 larger rivals

• Intense competition

• Competitors have alternative leisure activities

• Pressure on prices, quality and innovation

• HW cannot become complacent

Threat of new entrants - Low/Moderate

• Significant capital, land facilities and expertise is required

• Smaller alternatives could enter

• Strict safety standards

• Established brands

Threat of substitutes - High

• Customers may choose other parks, holidays or events such as zoos

• HW competes for consumers’ leisure time and spending

• HW must provide a differentiated visitor experience

Buyer power - High

• Customers have choices

• Switching costs are low to none

• Customers can compare prices online

• Poor value or service can cause consumers to choose alternatives

Supplier power - Moderate/high

• HW may depend on specialist suppliers for ride maintenance, technology and specialist equipment

• Limited suppliers could increase costs and dependency

• Supplier failure could disrupt attractions and cost increases could decrease profit

Porter’s generic strategies

Cost leadership

• Offer lower prices than competitors

• Risky as need to cut profits or find way to cut costs

• Excessive cost cutting may damage quality

Differentiation

• Unique attractions, excellent customer services & user experience, sustainability

• Target specific customer groups such as families

• Could reduce direct price competition

• The risk is a smaller target market and therefore revenue potential

Balanced scorecard

Financial (lagging)

• Revenue

• Profit

• Revenue per visitor

• Cost control

Customer

• Customer satisfaction

• Repeat visits

• Complaints

• Online ratings

Internal processes

• Ride availability

• Safety inspections

• Queue times

• Maintenance completion

Learning growth

• Employee training

• Staff retention

• Employee engagement

• Technology skills

Ansoff matrix

Market penetration (existing markets/existing services)

• Encourage existing customers to visit more

• Promotions, loyalty schemes, improved customer experience

• Price reductions could reduce margins

Product development (existing markets/new products)

• Introduce new attractions

• Encourages repeat visits but high investment with uncertain demand

Market development (new markets/existing products

• attract visitors from new geographical areas and new customer segments

• Brings marketing costs and uncertain demand

Diversification (new markets/new products)

• move into completely new activities

• Highest risk as HW lacks experience