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Six Flags Entertainment Company

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Six Flags Entertainment Company

External Factors

The outer environment is contained various factors and conditions that exist outside the

association yet are answerable for specific impacts that association relates as a result of them. As

far as business setting, the outer environment comprises factors, for example, remote

environment factors that further characterize financial factors, social factors, political factors,

mechanical factors, Ecological factors, and so forth. The Six Flag Entertainment Company has

had diverse remote factors that have been answerable for its progressions throughout the years.

The paper has finished up five unmistakable remote factors that will clarify the general impact

the organization has supported throughout the years. Following are these Remote Environment

Factors;

 Economic Factors; The Six Flags Entertainment Company professes to work the biggest

amusement stops and water amusement stops on the planet depends on the number of

parks they work on the planet. Returning back to the monetary factors that add to any

association's development is viewed as the factor that leads the organization in its

income. In the stimulation business, there are various rivals in the process that stop to

work nonstop and continue their business development, for example, that of Disney Park,

Six Flags Entertainment Company. Taking a gander at the measurable information of Six

Flags Entertainment Company, the organization has continued gigantic achievement and

yet, the organization needed to declare financial insolvency in 2008 dependent on their

absence of ineptitude in the administrative and key division. The organization

additionally needed to close down its establishment Haiyan, China, and Dubai in 2011.
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The CEO of the company, Jim Reid Anderson has stated that it is not entirely the

company’s fault that have led to less economic components, there are other factors such

as contributing such as “general malaise due to global trade tensions and the lowest pace

of GDP growth in almost 30 years” that impose restrictions in the growth factor as well

(Skift, 2019). Moreover the growth of the overall company has escalated over the years,

and the company’s main goal is to go beyond borders. This mentality led the company to

go global and enable its efforts to shine in other parts of the world as well. But

nonetheless due to certain negligence issues, the company was forced to file for

bankruptcy in 2008 and this led a halt in the company’s progress in other countries such

as China and Dubai. Nevertheless the company plans to reopen their entertainment

business in China and Saudi Arabia in 2020/ 2021 (Scholarsarchive.jwu.edu, 2019).

 Political Factors: There are numerous political factors that contribute in establishing a

company’s growth and this tends to lead back to the country of origin of the company

where it chooses to operate and the host country where the company chooses to extend its

franchise to. In similar context certain political factors in the host and country of origin

for the Six Flags Entertainment Company could lead to the company’s growth

minimization factors. The company is operating their entertainment business in many

countries and this has always been a medium of controversy for the company and how

different countries are suitable for business and which countries are not. Same was the

reason why the company had to close its operations in China in 2011, but however it

plans to reopen in China 2020/ 2021.

The political risks and dynamics in the country seem to always loom around while

operating in a host country. The company opens itself to diversified options to operate
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efficiently in the host country and the country of origin, depending on the growth and

profitability factor the country always seeks to perform as per the political dynamics of

the country. However the Six Flags Entertainment Company looks forward to working

with countries that provide suitable and sustainable environment for the country growth

as well. In doing so the company can look forward to growth factors that enhance the

overall profitability of the country and this can lead to better and enhanced economic use.

For a company to bring a country in its favor, the company should implement and take

into consideration the political pressures of the host country and must comply with the

existing laws of the country. As with the case for Six Flags Entertainment Company their

business venture globally and countries outside North America, they have kept under

consideration the political aspects of the host countries and the pressures the political

components bring on the business they offer in the host country

(Scholarsarchive.jwu.edu, 2019).

 Social Factors: The social phenomenon is one of the widest concepts a company should

understand while taking part in opting for a new business venture in a host country. The

social working of a country varies from country to country and society to society and

hence a company should understand the working of every society and the culture within.

As per the case with Six Flags Entertainment Company, many factors contribute in the

company’s establishment in the country of origin and in the host countries. Factors such

as that of the society and the trend the country has seen in the entertainment business.

Prior to Six Flags Entertainment Company, there was Disneyland, that had brought in the

trend for amusement park businesses and hence the society and the consumers had
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already been used to such a concept therefore becoming one of the competitors was not

an issue for the Six Flags Entertainment Company (Scholarsarchive.jwu.edu, 2019).

 Technological Factors: One of the core foundations to any business success is the

technology a business holds and how fast it can implement results in the industry it has its

roots in. As per the advancements taking place in the world, new technology is taking

over day by day and businesses are booming with new and innovative methods of what is

known as business advancement in the field. Since the core value and foundation of any

business lies in the heart of the technology the business introduces, then the ideas and

innovations the business designs and brings are bound to become a quick success. In the

last couple of years, the technological boom has taken over all the industries and thus

managed to swipe out all of the old and orthodox ways of handling business and

managing them (Scholarsarchive.jwu.edu, 2019).

The Six Flags Entertainment Corporation is one of the main organizations in its industry. Six

Flags Entertainment Corporation keeps up its unmistakable situation in the market via cautiously

dissecting and inspecting the SWOT analysis. SWOT analysis a massively intuitive procedure

and requires compelling coordination among different divisions inside the association, for

example, – promoting, money, tasks, the executive's data frameworks, and vital arranging. The

Strength, Weaknesses, Opportunities and Threats analysis approach has helped the Six Flags

Entertainment Company managers to develop four basic types of strategies that is beneficial for

them.

 SO (strengths-opportunities) Strategies

 WO (weaknesses-opportunities) Strategies
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 ST (strengths-threats) Strategies

 WT (weaknesses-threats) Strategies

Strength factors for Six Flags – Internal Factor

As one of the main organizations in its industry, Six Flags Entertainment Corporation has

various strengths that empower it to flourish in the commercial center. These strengths not just

assist it with protecting the piece of the overall industry in existing markets yet in addition help

in entering new markets. Six Flags Entertainment Corporation is generally fruitful at the

execution of new activities and created great profits for capital use by building new income

streams. It has manufactured a culture among wholesalers and sellers where the vendors advance

the organization's items as well as put resources into preparing the business group to disclose to

the client how he/she can extricate the most extreme advantages out of the items. Mechanization

of exercises carried consistency of value to Six Flags Entertainment Corporation items and has

empowered the organization to scale up and scale down dependent on the interest conditions in

the market (Fern Fort University, 2019).

Weaknesses factors – Internal Strategic Factors

Weakness is where Six Flags Entertainment Corporation can enhance. A methodology is

tied in with settling on decisions and weaknesses are where an organization can improve utilizing

SWOT examination and expand on its upper hand and key situating. Given the size of the

development and various geologies the organization is intending to venture into, Six Flags

Entertainment Corporation needs to place more cash in innovation to coordinate the procedures

no matter how you look at it. At this moment the interest in advancements isn't at standard with

the vision of the organization. The productivity proportion and Net Contribution % of Six Flags
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Entertainment Corporation are underneath the business normal. There are holes in the item range

sold by the organization. This absence of decision can give another contender a solid footing in

the market (Fern Fort University, 2019).

Opportunities – External Factors

The new opportunities will make a level playing field for every one of the players in the

business. It speaks to an extraordinary open door for Six Flags Entertainment Corporation to

commute home its favorable position in new innovation and addition piece of the pie in the new

item classification. The selection of new innovation standard and government organized

commerce understanding has given Six Flags Entertainment Corporation a chance to enter

another developing business sector. Diminishing the expense of transportation in light of lower

delivery costs can likewise cut down the expense of Six Flags Entertainment Corporation's items

in this way giving a chance to the organization - either to support its productivity or pass on the

advantages to the clients to pick up a piece of the pie (Fern Fort University, 2019).

Threats – External Strategic Factors

Throughout the years the organization has built up various items however those are

frequent reactions to the advancement by different players. Also, the stockpile of new items is

not customary along these lines prompting high and low swings in the business number over

some undefined time frame. New innovations created by the contender or market disruptor could

be a genuine danger to the business in the medium to long haul future. Rising crude material can

represent a danger to the Six Flags Entertainment Corporation's productivity. As the organization

is working in various nations it is presented to money changes particularly given the unstable

political atmosphere in various markets over the world. Risk laws in various nations are unique
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and Six Flags Entertainment Corporation might be presented to different obligation cases given

change in arrangements in those business sectors. Lack of gifted workforce in the certain

worldwide market speaks to a danger to consistent development of benefits for Six Flags

Entertainment Corporation (Fern Fort University, 2019).

The core capabilities of Six Flags Entertainment Company are as follows;

Six Flags' core competency is associated with the proprietorship and activity of event

congregations. All the more explicitly, it is their capacity to work parks with creative rush rides,

water parks, and zoological parks. Their competency can be separated further into their

execution and activity of rides, theming sharpness etc.

Implementation and Operation of Rides – Six Flags works various first-class rides. These

incorporate the tallest circling napkin, the tallest drop ride, the main steel liner, the main wooden

napkin, the tallest and quickest napkin, and the tallest swing merry go round. Rising up out of

chapter 11, Six Flags contributed around, $90 million in new inventive rides. Besides, Six Flags

has built up an arrangement of introducing another ride per park every year. These new rides are

assessed to prompt an expansion of a few percent in guests. Six Flags has likewise had the option

to use their development all through their system. For instance, Six Flags introduced the primary

rearranged thrill ride (Batman: The Ride) in 1993 at Six Flags Great America. The ride was

prevalent to the point that Six Flags chose (and had the capacity) to move this time tested bundle

into five progressively Six Flags parks (Anon, 2019).

Theme – Six Flags obviously have set a need for theming their parks to turn into a vivid

encounter. A 1994 special video commented: "Consider Six Flags as a definitive 3D motion

picture. All that we do is scripted, organized and practiced for the pleasure in our visitors. The
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parks are the stage and the landscape, and you are the on-screen character. Six Flags is a dream.

Furthermore, the most ideal path for our visitors to have an incredible time is to accept the dream

with topic lands and your presentation.

The Six Flag Entertainment Company further evaluates itself on its past performances.

Six Flags Entertainment Corporation, the world's biggest local amusement park organization and

the biggest administrator of waterparks in North America, today declared that 2018 spoke to its

ninth sequential record year as income expanded $105 million or 8 percent to $1.5 billion. The

entire year income development was principally determined by a 5 percent expansion in

participation; a 2 percent increment in visitor spending per capita, driven by a 4 percent

confirmations for every capita increment because of improved evaluating on all affirmations

items and offers of enrollments with premium levels; and a 7 percent increment in sponsorship,

worldwide understandings and housing income. Participation at the organization's parks

developed to 32.0 million visitors in 2018, fundamentally determined by five residential parks

obtained in June 2018, the advantage of 365-day activities at Six Flags Magic Mountain, solid

development in Mexico, and development at the organization's waterparks (Anon, 2019).

Overall gain for the year finished December 31, 2018, expanded $2 million or 1 percent,

driven by the development in the business portrayed above and an inversion of stock-based

remuneration cost identified with the organization's Project 600 objective not being

accomplished, somewhat balance by the positive aggregate impact of expense change

acknowledged in the final quarter of 2017. Weakened profit per share for 2018 was $3.23,

speaking to an expansion of $0.14 or 5 percent contrasted with 2017. Balanced for 2018

expanded to another high of $554 million, up to $34 million or 7 percent contrasted with the

earlier year, and Modified for the year was $594 million. The organization's 2018 Modified edge
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of 40.5 percent keeps on driving the amusement park industry. Remote cash translation4

negatively affected the entire year 2018 Adjusted of $2 million (Anon, 2019).

Six Flags Entertainment Corporation has a keen eye on its competitors. Six Flags and Cedar Fair

are two of the biggest amusement park operators. Six Flags has 26 stops in North America, and

Cedar Fair runs 11 event congregations and five water stops in the U.S. furthermore, Toronto.

Six Flags Entertainment Corporation made a money for-stock offer that Cedar Fair is thinking

about. There is no assurance an arrangement will become to, and subtleties were not uncovered.

Cedar Fair LP, the proprietor of Kansas City's Worlds of Fun and Oceans of Fun, allegedly is

being sought after by a greater event congregation contender. The proposed arrangement mirrors

a knock in dealmaking in the relaxation and entertainment segment. Blackstone Group Inc.

reported that it had obtained a 65% stake in Great Wolf Resorts Inc., which works an area in

Kansas City, Kan (Anon, 2019).

The BCG matrix enables an examiner to investigate an association to evaluate how its

divisions or fragments are performing against the primary challenge. In any case, there are

constraints to the BCG in that it displays a depiction of time and doesn't really show pattern

examination against the business or the principle rivalry. A BCG matrix is additionally just on a

par with the suppositions it is established on. So if there is frail information accessible for the

association or industry; the investigation turns out to be increasingly subjective then quantitative.

The main report I could discover which would give me the divided information I have to look at

Disney Parks and Resorts against the primary contender like Six Flags cost $800. Subsequently,

this BCG is increasingly subjective in nature. In particular, I will take a gander at where the

Parks and Resorts section falls into the whole Disney association. Disney's Parks and Resorts got

over $16B in income in 2015 which is the second-biggest income hotspot for Disney.
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Furthermore, stops and resort income became 7% in both 2015 and 2014. Given this, the parks

and resort portion of Disney is a "Dairy animals". David (2014) characterizes a bovine as a

section where industry development is low however the association has a high piece of the pie.

In the present market, relaxation travel has been relentlessly developing at a moderate pace of

2%. As appeared in Figure 1 underneath, Disney's parks and resorts portion commands the event

congregation industry for piece of the overall industry (Investors.sixflags.com, 2019).

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References

Fern Fort University. (2019). Six Flags Entertainment Corporation [SWOT Analysis] Weighted

SWOT Matrix. Available at: http://fernfortuniversity.com/term-papers/swot/nyse/3150-six-flags-

entertainment-corporation.php

Anon, (2019. Available at: https://www.owler.com/company/sixflags

Investors.sixflags.com. (2019). Available at:

https://investors.sixflags.com/~/media/Files/S/SixFlags-IR/documents/annual-reports/2017-

annual-report.pdf