Ocean Parks Business Level Strategy approaches Essay

The Ocean Park has been opened in Hong Kong for more than 30 old ages, the “ Ocean Park ” have already been a particular logo to the Hong Kong occupants and a celebrated scenic topographic point for the foreign visitants. As per the mission statement from the Park is provides all invitees with memorable experiences that combine amusement and instruction, while animating womb-to-tomb acquisition and preservation protagonism. The Ocean Park is making the amusement concerns in Hong Kong with its subject park that delivers the incorporate amusement services to its invitees.

This paper will analyze the concern degree scheme attacks by utilizing different analytical tools to analyse the related industry environment and the macro-environment that the Park is making concern with. Furthermore, it will besides analyze the internal and external environment that would take to some menaces or chances for its farther development.

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Chapter 1 – Introduction

Ocean Park Hong Kong, a subject park operates by the Ocean Park Corporation that delivers amusement concern in Hong Kong.

The Park was officially opened in 1977 by the so Governor of Hong Kong, Sir Murray MacLehose. It was built at a cost of HK $ 150 million funded by the Hong Kong Jockey Club and free land provided by the Hong Kong Government. The Park is situated on the southern side of Hong Kong Island and it is the Hong Kong primer educational and amusement subject park that covers more than 870,000 square metres of land and features a diverse choice of first Marine attractive force, bang drives and shows divided into three major countries: Lowland, Headland and Tai Shue Wan. Over the old ages, the Park has systematically rejuvenated and reinvented itself to better function its invitees, set uping itself as a major tourer attractive force both locally and abroad. Since its opening more than 30 old ages ago, over 95 million invitees have visited Ocean Park. Over 5 million invitees visit The Ocean Park each twelvemonth.

Bing the one of the largest subject park in Hong Kong, Ocean Park delivers non merely thrill drives but besides the educational and preservation of wildlife and home grounds through assorted runs. The Ocean Park Conservation Foundation ( OPCF ) was found in 1993 and the Foundation wished to significantly better the attitudes and patterns towards preservation in Hong Kong and Asia through concerted plans with other preservation organisations. Not even at all, The Hong Kong Society for Panda Conservation ( HKSPC ) was besides launched in 1999 to educate the community and support preservation of the elephantine coon bear and their home ground. Both the HKSPC and OPCF were merged into a individual organisation on 1 July 2005 as the Ocean Park Conservation Foundation Hong Kong ( OPCFHK ) .

Vision and Mission

The vision of Ocean Park is aspires to be a universe leader in supplying first-class guest experiences in a subject park environment linking people with nature, whilst the Mission of the Park is to provides all invitees with memorable experiences that combine amusement and instruction, while animating womb-to-tomb acquisition and preservation protagonism. Our purpose is to keep a healthy fiscal position, while endeavoring to present the highest criterions of safety, carnal attention, merchandises and guest service. Furthermore, the Park expresses its nucleus value by several elements: Fun, Service, Safety, Education and Conservation and Respect for People. ( Ocean Park, Corporation Information. Uniform resource locator: hypertext transfer protocol: //www.oceanpark.com.hk/html/en/footer/corporate-information/vision.html )

The cardinal stakeholders would be those clients that have the outlook to the Ocean Park which a subject park could supply with particular characteristics together with exciting, instruction and preservation. With its vision, mission and nucleus values, the Park has differentiate itself from the other subject Parkss which it aims to supply elements of amusement, instruction and preservation at an low-cost monetary value to run into with its client ‘s outlook.

In this study, the aims are to analyszs the current place of the Ocean Park through assorted analytical tools and to happen out its strength, failings, chances and menaces and eventually makes recommendation to meet the possible hazards.

Chapter 2 – Analysis

2.1 Porter 5 Forces Analysis

Porter ‘s five forces is a model for the industry analysis and concern scheme development developed by Michael E. Porter. It is an analytical tool to analyses and determines the competitory strength and hence the attraction of the market. The tool is referred to these five forces as the micro environment and the more intense survey to the market competition. “ Yet competition for net income goes beyond established industry challengers to include four other competitory forces every bit good: clients, providers, possible entrants, and replacement merchandises. The drawn-out competition that consequences from all five forces defines an industry ‘s construction and shapes the nature of competitory interaction within an industry. ” ( Porter E. , 2008:25 )

Rivalry among Existing Rivals

Although Hong Kong is a little metropolis with limited country, nevertheless, the Ocean Park had been unfastened since 1977 and being the largest subject park in Hong Kong. Throughout the clip, the Park had no major rival for more than 20 old ages until the other subject park was confirmed to build in Hong Kong, The Disneyland Hong Kong. This has created intense competition greatly decrease the market portion of Ocean Park.

Menace of New Entrant

The addition of new subject Parkss in other East Asia state has created the menaces posed by the entry of new rivals. This has forced the Numberss of visit down and set much more force per unit area to the entry Numberss for both local and international visitants. Furthermore, as stated on the above, the limited infinite of Hong Kong to put up another new subject park among Ocean Park and Disneyland will be really hard. In such instance, the force of the menace of new entrant is considered low consisting those factors.

Menace of the Substitutes

The Park provides the amusement concern in Hong Kong and to retain visitants chiefly by merriment and instruction. However, from the position of micro environment to the proviso of the amusement concern, it would perchance has other replacements service that supplying the similar services, merely likes the Ngong Ping 360 and The Peak Experience, etc. These new travel scenic musca volitanss provide similar services and experiences to retain those visitants.

Dickering Power of Buyers

The power of purchasers refers to the ability of the clients to be able to negociate the monetary values from the marketer. Consumers have small influence over the makers and service suppliers in negociating monetary values. The Ocean Parks is a subject park that combines with the bang rides that supplying the visitants an exciting experience while the other manus to supply with the connexion of natural through preservation and genteelness plans undertaken for its alone aggregation of insects, fishes, birds and marine mammals. These alone experiences could merely be founded in the Ocean Park and therefore the bargaining power of purchasers in considered low.

Dickering Power of Suppliers

The Ocean Park named the universe ‘s 15th-ranked subject park base on the one-year attending by the Themed Entertainment Association and Economics Research Associates, the immense figure of the visitants that enable the park a strong dialogue power with its providers, particularly the nutrient providers for the Bayview Restaurant, Terrace Cafe , Headland Rides, Panda Cafe and the Middle Kingdom Restaurant located inside the park. Refers to the Fig. 1.2 at the appendix, the income by the catering service was increased from more than three million Hong Kong Dollars from 2008 to 2009. Although, the gross revenues of goods had a somewhat lessening, nevertheless, there were extra income from the committee of franchised retails shop. This would demo the attractive force of making concern in Ocean Park could reflect to a important gross to the franchised shop. For case, the providers or the makers of those nutrients and keepsakes are besides considered has low dickering power to the Ocean Park. These factors were comprised because of the immense Numberss of the visitant attending.

2.2 PESTEL Analysis

There are many factors that could impact the determination of the organisation in the macro-environment. The PESTEL analysis comprises five major elements including Political, Economic, and Environmental, Social, Technological and Legal factors. These factors describe a model of macro-environment and used to place the alterations and possible barriers in the macro-environment all around the organisation. ( Oxford University Press, PESTEL analysis of the macro-environment. Uniform resource locator: hypertext transfer protocol: //www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm )


The immense Numberss of one-year attending enable the Ocean Park named the universe ‘s 15th-ranked subject park among those related associations. Furthermore, this one-year attending is chiefly domain by the political alterations in Hong Kong and China. In the recent old ages, the Hong Kong and China Government launches the self-tour-guided plan which allows the abode in the sanctioned state to visits Hong Kong freely, and the sanctioned Numberss of China state that put into the this plan was expanded from clip to clip. Hence, the visitants from China were increasing over the old ages. Refers to the Figure 1.3 in the appendix, it shows the figure of visitant reachings by state / district of abode ( Census and Statistics Department, 2010 ) from 2008 to 2009. This indicated the visitants from the Mainland China were the largest Numberss accounted among those states.


With mention to the Figure 1.5 and 1.6, this indicated the fiscal statement of the Ocean Park in twelvemonth 2008 to 2009. ( Ocean Park, Annual Report, 2009 ) The overall operation outgo is maintaining risen up in the old ages, such as employee ‘s benefits, care and other advertisement and publicity cost is raised up to keep the normal operation of the Park. Unfortunately, the admittance income and other gross are oppositely cut downing. These unfavourable factors bring the menace to the Park in operation.


In the recent old ages, the touristry industry in Hong Kong is major from the visitants from the Mainland China since the population growing rate is diminishing and the ageing population rate is oppositely increasing. Figure 1.4 on the appendix shows the attack of population growing rate, it is really obvious that the age group from 5 to 14 is diminishing and that would perchance take the Park loses the attending from this group. Furthermore, the Ocean Park had launched assorted plans to meet this menace to go chance.


The technological betterment enhances the Ocean Park continue to engender the rare Marine mammals, coon bear and other insect. The living country for those rare animals require a stable room temperature, humidness or other particular demands since they are migrated from the other environment which may different from Hong Kong. The betterment in technological development enhances the stableness to allow them accommodate in new environment.


Environmental issues have been an of import subject over the universe. Motor vehicles are the chief cause of high concentrations of respirable suspended particulates and N oxides at street degree in Hong Kong. The Government introduced a comprehensive plan in 2000 to undertake this job with marks to cut down these two emanations from motor vehicle by 80 % and 30 % severally by the terminal of 2005. ( Environmental Protection Department, 2010 ) Bing the environmental leader, the Park launched a “ Clean Air by Ocean Park ” undertaking including the first intercrossed vehicle operates in Hong Kong. After that, nominated by the HKSAR authorities in 2000, Ocean Park received support of HK $ 10 million by The Hong Kong Jockey Club Charities Trust to replace 22 elderly Diesel vehicles and gasolene carts with environmental-friendly vehicles, to advance clean-air environment and support planetary preservation.


The Ocean Park Corporation is a statutory organic structure incorporated under the Ocean Park Corporation under the Ocean Park Ordinance ( Chapter 388 ) . The Corporation ‘s chief activity is to pull off and command the Ocean Park as a public recreational and educational park to the populace. ( Ocean Park, Code of Corporate Governance Practices, 2009 ) Since the Ocean Park Corporation became statutory organic structure, its internal operation and the constitution of the direction squad is appointed by the Government of the HKSAR. This legal factor makes the operation of the Park bonded by the Government and loses its independency.

The above analysis pointed out the chance, menace, strength and failings of the Ocean Park in the macro-environment. The technological alterations, societal and the environmental factors would be the most favourable factors to the Park for future development. However, there would be menaces from the political and economic issues to the Park since it will depend on the authorities ‘s determination and besides non governable factors.

2.3 Internal Analysis – Resource-based Position

The resource-based position is a concern direction tool used to find the strategic resources available to a company. The cardinal rule of the resource-based position is that the footing for a competitory advantage of a house lies chiefly in the application of the package of valuable resources at the house ‘s disposal. ( Wernerfelt B, 1984:172 ) On the other manus, strategic capableness is besides another component to find the success of the organisation. “ Strategic Capability is the ability to execute at the degree required for success. It is underpinned by the resources and competencies of the organisation. ” ( Johnson Gerry & A ; Scholes Kevin, 2008:23 ) Throughout the analysis in both competitory forces and the macro-environment in the related industry, the capablenesss of the Ocean Park have been identified in its concern scheme.

Core Competence

A nucleus competence can take assorted signifiers, including technical/subject affair know-how, a dependable procedure and/or close relationships with clients and providers. ( Hamel, G. & A ; Prahalad, C.K. , 1990 ) It may besides include merchandise development or civilization, such as employee dedication. On the other manus, the nucleus competencies are those activities that underpin competitory advantage and are hard from rivals to copy or to obtain. Several shows theatre in the Ocean Park is alone and it is hard and impossible to obtain by its rivals, such as the shows by birds, sea king of beasts and other Marine mammals.

Unique Resources

“ Alone resources are resources that create competitory advantage and are hard to copy, they critically underpin competitory advantage. ” ( Johnson Gerry & A ; Scholes Kevin, 2008:24 ) The alone resources of the Ocean Park enable its competitory advantages to the rivals. The most valuable physical assets of the Ocean Park are those rare marine mammals and the coon bear given by the Mainland China. These national hoarded wealths are value incomputable and they elaborate their attractive force to the visitants. These hoarded wealths could merely be found in the Ocean Park and other subject park does non hold the same resources in Hong Kong. Furthermore, the Ocean Park has been opened for more than 30 old ages in Hong Kong ; it has already built up good will to the local peoples. The instruction, preservation and natural scenic environment are the intangible resources of the Park and these resources enhance the Park to develop its trade name and good will over the old ages.

Chapter 3 – Tow Analysis

The TOWS Matrix is an analytical tool to fiting the environmental menaces and chances with the company ‘s failing and its strengths. ( Heinz Weihrich, 1982 ) Throughout the PESTEL and internal analysis of the Ocean Park, some countries have been identified as the menaces and chances for the hereafter development of the Park.

As analyzed in the PESTEL analysis, the political and economic factors would be the menaces to the Ocean Park in future development. Since the attendings are largely likely by the visitants from the Mainland China, nevertheless, this would depends on the policy alterations by both Government and it would non be perchance controlled by the Ocean Park. Furthermore, the risen up of employee ‘s benefits, the care and other advertisement and publicity cost would besides be the menaces to the Park. On one manus, the cut downing admittance besides leads to the gross bead in the recent old ages. Such immense outgo and unmanageable factors would be the major failing to the operation of the Park.

As stated above the alone resources and the nucleus competencies would be the strength of the Ocean Park while comparison with its major rivals. Furthermore, to get the better of the menaces that the Park is meeting, the Corporation had launches some particular plan likes marrying ceremonials to undertake the low birth rate and changed the mark clients to another age scope. The Ocean Park Halloween Bash launches to pull more local visitants to stave off from the policy alterations by the self-tour-guided visitants of the Mainland China.

Chapter 4 – Decision for Strategy & A ; Recommendations

After conducted several analysis of different environments to the Ocean Park, the consequence from those analysis comes to the terminal and some concern schemes of the Ocean Park were identified.

First of all, in get bying with the five competitory forces, ( Porter E. Michael, 2008 ) there are three potentially successful generic strategic attacks to surpassing other houses in an industry. The cost leading, distinction and the focal point scheme. ( Porter E Michael, 1980 )

In position of the Ocean Park acting, the distinction scheme is employed. A distinction scheme is appropriate to adopted where the mark client section is non price-sensitive, the market is competitory or saturated, clients have really specific demands which are perchance under-served, and the house has alone resources and capablenesss which enable it to fulfill these demands in ways that are hard to copy. The Ocean Park differentiates itself through the alone iconic attractive forces by rare animate beings and natural scenic environment which other subject park in Hong Kong could non be easy provided. On one manus, the trade name “ Ocean Park ” had already embedded to most of the local occupants and foreign visitants, the advertisement and stigmatization enhances value propositions and sustainable distinction is briefly develop with a scope of activities unambiguously that impact on the client purchase determination. Furthermore, the overall environment enhances to supply instruction and preservation to all the attendings. Although new rivals had already entered into the market, nevertheless, with the purposes of the Ansoff ‘s Matrix ( Ansoff. I, 1957 ) , the Ocean Park is recommended to taking action by market incursion and merchandise development to obtain stable and sustainable development.

Market incursion occurs when a company enters/penetrates a market with current merchandises. The best manner to accomplish this is by deriving rivals ‘ clients which means the portion of the market portion. Other ways include pulling non-users of your merchandise or convincing current clients to utilize more of your merchandise or service, with advertisement or other publicities. Market incursion is the least hazardous manner for a company to turn. The Ocean Park should distinguish itself by bing services to derive the market portion from its rivals, merely likes the rare animate beings that enable uninterrupted incursion to the bing market. On the other manus, the merchandise development is besides another scheme that the Park could use. A house with a market for its current merchandises might ship on a scheme of developing other merchandises providing to the same market. The uninterrupted re-development undertaking enable new bang rides that the rivals may non present in short period of clip and it would non be possible to doing the same bang drives as the Ocean Park. Frequently, when a house creates or to show in with new merchandises, it can derive new clients for these merchandises or services. Hence, new merchandise development can be a important concern development scheme for houses to remain competitory.

In add-on, strategic confederation of subcontracting may besides be considered in the development of the Park. Strategic confederation is where two or more organisations portion resources and activities to prosecute a scheme. In the instance of Ocean Park, the highest care, advertisement, publicity and growing of employee ‘s benefits would be a high hazard to the Corporation to remain competitory in the market. In position of these critical issues, farm outing confederations method can be considered to undertake this issue and to run into with the stakeholder ‘s outlook. To be maintaining a wellness fiscal position of the Corporation, some of the operational map could be subcontracted out to take down the operation cost from direct labour generated.

Last but non least, the Ocean Park has continuously makes the betterment through different schemes. Throughout this survey, understood that the Park has retained its best to run into with its stakeholder ‘s outlook and header with its mission statement, “ Ocean Park provides all invitees with memorable experiences that combine amusement and instruction, while animating womb-to-tomb acquisition and preservation protagonism. Our purpose is to keep a healthy fiscal position, while endeavoring to present the highest criterions of safety, carnal attention, merchandises and guest service ”


Fig. 1.1 Porter 5 Forces Model

Beginning: Harvard Business Review, 2008

Fig. 1.2 Note to Financial Statement

Beginning: Ocean Park, Annual Report 2008 – 2009

Fig. 1.3 Visitors Arrivals by Country / Territory of Residence

Beginning: Census and Statistics Department

Uniform resource locator: www.censtatd.gov.hkFileManagerENContent_807transport.pdf

Fig. 1.4 Resident Population Approach

Beginning: Census and Statistics Department

Uniform resource locator: www.censtatd.gov.hk_showtablecust.jsp

Fig. 1.5 Notes to the Financial Statement

Beginning: Ocean Park, Annual Report 2008 – 2009

Fig. 1.6 Gross Statement

Beginning: Ocean Park, Annual Report 2008 – 2009