Ocean Park: In the Face of Competition from Hong Kong Disneyland SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Ocean Park: In the Face of Competition from Hong Kong Disneyland
In April 2006, Ocean Park, Hong Kong's only home-grown theme park, launched a syndicated loan to raise HK$4.1 billion for a master plan to revamp the park. The master plan represented the park's strategic responses to the arrival of Hong Kong Disneyland, which had opened the previous year. Faced with a formidable competitor, Ocean Park repositioned itself as a world-class marine theme park. Looks at how Ocean Park positioned itself against an international competitor and how Disneyland's failure to accommodate local culture consolidated Ocean Park's position
Swot Analysis of "Ocean Park: In the Face of Competition from Hong Kong Disneyland" written by Grace Loo, Bennett Yim includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Park Ocean facing as an external strategic factors. Some of the topics covered in Ocean Park: In the Face of Competition from Hong Kong Disneyland case study are - Strategic Management Strategies, Marketing, Project management, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ocean Park: In the Face of Competition from Hong Kong Disneyland casestudy better are - – talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, technology disruption, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing energy prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Ocean Park: In the Face of Competition from Hong Kong Disneyland
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ocean Park: In the Face of Competition from Hong Kong Disneyland case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Park Ocean, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Park Ocean operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Ocean Park: In the Face of Competition from Hong Kong Disneyland can be done for the following purposes –
1. Strategic planning using facts provided in Ocean Park: In the Face of Competition from Hong Kong Disneyland case study
2. Improving business portfolio management of Park Ocean
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Park Ocean
Strengths Ocean Park: In the Face of Competition from Hong Kong Disneyland | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Park Ocean in Ocean Park: In the Face of Competition from Hong Kong Disneyland Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Park Ocean are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Park Ocean has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ocean Park: In the Face of Competition from Hong Kong Disneyland Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Park Ocean has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Park Ocean to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Park Ocean has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Park Ocean has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– Park Ocean is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Grace Loo, Bennett Yim can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Park Ocean is one of the leading recruiters in the industry. Managers in the Ocean Park: In the Face of Competition from Hong Kong Disneyland are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Park Ocean has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Ocean Park: In the Face of Competition from Hong Kong Disneyland HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Park Ocean is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Park Ocean in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Park Ocean is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Park Ocean is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ocean Park: In the Face of Competition from Hong Kong Disneyland Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Park Ocean is present in almost all the verticals within the industry. This has provided firm in Ocean Park: In the Face of Competition from Hong Kong Disneyland case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Strong track record of project management
– Park Ocean is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Ocean Park: In the Face of Competition from Hong Kong Disneyland firm has clearly differentiated products in the market place. This has enabled Park Ocean to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Park Ocean to invest into research and development (R&D) and innovation.
Weaknesses Ocean Park: In the Face of Competition from Hong Kong Disneyland | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ocean Park: In the Face of Competition from Hong Kong Disneyland are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Park Ocean supply chain. Even after few cautionary changes mentioned in the HBR case study - Ocean Park: In the Face of Competition from Hong Kong Disneyland, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Park Ocean vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Park Ocean, firm in the HBR case study Ocean Park: In the Face of Competition from Hong Kong Disneyland needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Grace Loo, Bennett Yim suggests that, Park Ocean is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Park Ocean has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
No frontier risks strategy
– After analyzing the HBR case study Ocean Park: In the Face of Competition from Hong Kong Disneyland, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Ocean Park: In the Face of Competition from Hong Kong Disneyland HBR case study mentions - Park Ocean takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Park Ocean has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Park Ocean has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Park Ocean even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Park Ocean products
– To increase the profitability and margins on the products, Park Ocean needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ocean Park: In the Face of Competition from Hong Kong Disneyland HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Park Ocean has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Park Ocean needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Ocean Park: In the Face of Competition from Hong Kong Disneyland | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Ocean Park: In the Face of Competition from Hong Kong Disneyland are -
Learning at scale
– Online learning technologies has now opened space for Park Ocean to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Park Ocean to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Loyalty marketing
– Park Ocean has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Manufacturing automation
– Park Ocean can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Park Ocean to increase its market reach. Park Ocean will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Park Ocean can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Park Ocean can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Park Ocean can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Park Ocean can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Ocean Park: In the Face of Competition from Hong Kong Disneyland, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Park Ocean is facing challenges because of the dominance of functional experts in the organization. Ocean Park: In the Face of Competition from Hong Kong Disneyland case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Park Ocean can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ocean Park: In the Face of Competition from Hong Kong Disneyland suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Park Ocean can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Park Ocean to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Park Ocean to hire the very best people irrespective of their geographical location.
Threats Ocean Park: In the Face of Competition from Hong Kong Disneyland External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ocean Park: In the Face of Competition from Hong Kong Disneyland are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Park Ocean business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Park Ocean needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Park Ocean can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Park Ocean demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Park Ocean with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Park Ocean can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Park Ocean high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Park Ocean can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Park Ocean has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Park Ocean needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Park Ocean.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Park Ocean in the Strategy & Execution sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Park Ocean can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Ocean Park: In the Face of Competition from Hong Kong Disneyland .
Weighted SWOT Analysis of Ocean Park: In the Face of Competition from Hong Kong Disneyland Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Ocean Park: In the Face of Competition from Hong Kong Disneyland needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Ocean Park: In the Face of Competition from Hong Kong Disneyland is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Ocean Park: In the Face of Competition from Hong Kong Disneyland is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Ocean Park: In the Face of Competition from Hong Kong Disneyland is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Park Ocean needs to make to build a sustainable competitive advantage.