Low Bargaining Power of Supplier High Bargaining Power of Buyer

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Low Bargaining

Power of Supplier
Number of suppliers who
use the same equipment
to design new rides.
Companies can
themselves design new
rides.
Suppliers products are
specified.
Used local resources.
Low cost labor allows the
companies to achieve
low cost structures.

High Bargain
Power of Bu

Customers can sp
their money on an
source of entertai
Customer wants a
tastes vary. Need
innovate and keep
fresh so customer
get bored.
Economic impact
influence custome
decisions.

High Bargaining
Power of Buyer

High Competitve
Rivalry

Customers can spend


their money on any
source of entertainment.
Customer wants and
tastes vary. Need to
innovate and keep things
fresh so customer do not
get bored.
Economic impact can
influence customer
decisions.

Competing with
entertainment Industry
for the share of
customer's
entertainment spend.
Industry is growing,
competitors opening
parks with retail
shopping experience to
capture a greater market
share.

High Threat to
Substitute
No switching cost.
Numerous other
entertainment options
for the customers.

Low Threat of New


Entry
Significant amount of
capital required to setup
operations.
High marketing
expenditure. Require a
strong brand image to
attract and achieve scale
of customers.

Current Strategy of Wonder LA


Analysis Criteria
Goal

Scope - Product

Scope - Operations

Scope - Marketing

Current Strategy of Wonder LA


Analysis Criteria

Scope - Sales

Scope - Sales

Scope - Human
Resoucre

Competitve Advantage Positional

Competitve Advantage Capabilities

Logic

Current Strategy of Wonder LA


Description
Building a quality service brand and expand to other locations. But maintaing the
price/value proposition for the customer.
Interactive entertainment which brings trill to the customer.
Part of entertainment industry but company views it self a service industry dealing
with people.
Rides and activities for all age groups. Primariliy targeted to middle class segment
of the Indian population.
First amusment park to have theatres, musical, land and water games at one
location.
Incremental improvement of rides and activities to hold on the interest of the
customers. Example Bangalore ferris wheel has the image of the tallest wheel in
asia.
Facitilites such has lockers, shops and restaurants to add to convience of the
customers. They dont have to worry about their belongings and can do wide
variety of things at one place.
Attained certifications to emphasize on quality and cleanliness.
Low margin industry, focus on controlling cost but by maintaining quality of
customer experience. Economies of scale important to keep low operational costs.
Outsourcing model. All 6 restaurants are majority employees are outsourced.
Cross-functional employees. They can be easily substituted or perform any function
with expertise.
Decentralized operations. Employees have autonomy to make decisions on spot.
Long term decision are looked by managers which is held once every 2 months.
Daily staff meeting on quality and performance of the employees.
Marketing expense over 100 million to create awareness of the brand Wonder LA.
Focus on a single brand name to control expense.
Mascot of the park selected on bases of popularity with the people of the
community or state.
Promotional activites such as school competitions, discounts based on size of the
group and road shows used to attract more visitors.
Marketing personnel internacted with customers to understand their need and get
feedback on how to improve the customer experience of the amusement park.
Especially targeted schools to achieve economies of scale. Primilarity to increase
the footfall of visitor during the weekdays.
Targeted children with advertisments as they were the influencers and motivators
to visit the park.
Current Strategy of Wonder LA
Description
Agents used t predict the footfall of visity ot the parks. Which aided the company in
better planning of it resoucres and facilities such as arrangement of food.

Agents also promoted park to schools and had the autonomy of offering discounts
for school trips.
Agents aid in increasing week day traffic of customers to the park.
In house training programs. 6 month on the job training followed by 6 month
probabation period for building expertise.
Employee benefits such as medical expense and family insurances.
Valid school education criteria for all employees. Supervisior were diploma holders.
Wonder LA is an established brand name. Which can allow the company to charge a
premium from its loyal customers.
Customer experience is main of focus Wonder LA. Quality of service and experience
has allowed the company to establish postise word of mouth and repeat customers.
Location of the park. It is easily accessible to customers from local and
neighbouring states.
Agents have been able to establish strong relationship with schools and can easily
attract them to visit Wonder LA.
Strong entrapreneurial experience. Building quality and successful brands.
Wide variety of activities such as water and land, established at one place.
Human resource, employees have the autonomy to make decisions and solve
problems which enhances productivity.
Product development and designing of new rides and activities to attract
customers.
For increasing demand for interactive entertainment by the Indian middle class
segement, Wonder LA strategy is to establish itself as an affordable source of
trilling entertainment for all age groups through quality of service and customer
experience.

Kochouseph Chittilappilly owner of Wonder


Criteria
Vision
Mission

Values

Kochouseph Chittilappilly owner of Wonder LA

Description
Services industry dealing with people. Give customers reasons to smile, through quality customer s
Enter hospitality business and setting up new park in Hyderabad and later in Chennai. Open a 2-3
Independent and risk taker believe in a target and works towards it (like going against advice of his
Employee centric. Success of the company lay with its employees.
Customer centric. Focus on price/value for the customers.
Maintain quality customer services through employees, cleanliness facilities etc.
Decentalized, autonomy for the employees to make quality of service better.
Used local resources and infranstruture to diversify the business.

Month
April
May
June
July
August
September
October
November
December
January
February
March
Total

Wonder LA from Exhibit 10 of the case


Quarter Averag
Kochi
Bangalore
Quarter
105,977
106,432
Q2
164,513
152,796
37,706
53,925
33,678
41,080
79,520
45,255
Q3
93,386
55,366
89,469
82,927
111,179
64,219
Q4
127,190
102,977
131,152
90,888
Q1
83,986
56,741
52,814
64,631
1,110,570
917,237 Total

Total Urban Population Exhibit 12 of the case


Description
Kerala
Karnataka
Total Urban Population
15,932,171
23,578,175
% of Urban Population visited the park
6.97%
3.89%
Note: Assuming each visitor is a new visitor.

Quarter Average
Kochi
Bangalore
Hihges
102,732

104,384

68,861

47,234

109,279

83,374

89,317

70,753
305,746

Q3
Q4

Taxonomy of institutional
infrastructure

Function

Aggregators and Distributions Provide low-cost matching and


other value-added services for
suppliers and customers through
expertise and economies of scale

Product Market
Wonder LA acts as a mass retailer. The company add
value as this type of market institution by compiling wide
variety of products into a one-stop shop for all sources of
entertainment for consumers of all age groups.
Moreover, this works as an advantage for the company
as they can attract both national and multi-national food
chains who can earn a great amount of revenue by just
serving the scale of the customers who visit the
amusement park.

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