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-There were fewer than -Large Scale Initial -- 6 theme parks -Virtual Reality theme - 5 competitors.
10 suppliers who were Investment ($ 50 ± including Farmland ± parks. -Lotte World ± Indoor
capable of developing 3000Mn) ± Land Lotte World is in the -- 5.5 day work -> Other theme park
quality machinery. Development; heart of the city. means of entertainment. -- Seoul Land ± 23rd in
-Machinery were custom Amusement Machinery; -Visitors in Groups are the ³Top 50 theme parks
designed for particular Working Capital. charged less. worldwide´.
market and environment -- Heavy marketing and -- Farmland ± Highest
conditions. Ad. Budgets. Growth Rate.
-- Park management -- Revenue reinvestment -- Seasonal factor
expertise not easily for expansion & up affected all competitors
available ± huge gradation. (but not in the same
licensing fee and very -- Economies of scale pattern ). Positively
selective. and scope are significant impacts Lotte World but
-- Strict Government negatively impacts
Regulations and hence Farmland.
typical period required -- Farmland- Highest per
for arranging government capita expenditure on
approval ± 2 to 5 years. food, beverages and
-- Large Insurance souvenirs.
Premiums often drove
small players away
-- µKnow how¶ tough to
emulate
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-- Subway
-- ³Park and Ride´
-- Scope for market
expansion ± untapped
market of 5 Mn.
-- Korea¶s Economic growth
rate: 8 ± 9 %
-- Steady Intl tourist growth
(25% of customers are
tourists).
-- Scope to increase
merchandise sales and
admission & ride fee
-- Inception of the new water
park during June to
September will attract
customers from Lotte to
Farmland.


-- 3700 acre land
-- President has been
working in Hospitality sector.
-- Economies of Scale /
Scope
-- Highest per capita
expenditure on food,
beverages and souvenirs.
-- Parent Co¶s Strong
financial muscle.


-- Attendance to theme parks
shows a decreasing growth
trend(0.9% and 6%)
-- Learning curve.
-- Stay time is less due to
traffic congestion issues.
-- Seasonal fluctuations.
-- 6 theme parks including
Farmland ± Lotte World is in
the heart of the city.
-- Issues from fringe
stakeholders (farmers).
-People¶s preference is
shifting towards Historical
attractions
   
--Accessibility to the park ± 60
Km from Seoul; Traffic jam.
--Parking ± Insufficient during
peak days.
--Theme parks did not fit well
with the ³high tech´ and
³global´ image of Samsung
-- Organizational style ± non
service oriented employees
and their outlook towards
customer satisfaction.
Expansion Plan
> Revamp Plan for Farmland: $ 300 Mn over 2 years(Phase 1)
> Proposed names: Everland, Green Country and Nature Land.
> Waterpark ± Caribbean Theme: $ 140 Mn.
> Global Fair: $ 85 Mn.
> Expansion of existing zoo and parks ± night time laser show and a fable fantasy garden: $ 50 Mn.

> Augment parking

> Sources of Funds ± Samsung Group
> Phase 2 ± Resort Town (Exact budget not available)
> New Mission ± Create a zeal for long lasting life that is combined with harmony of nature.
> If Plan approved, it will become prototype destination resort town I the entire world.
  !""

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