Ferns N Petals Flowering Through A Unique
Franchising Model SWOT Analysis
Franchising Model is a prominent global chain of indoor family entertainment
parks on the planet and was founded by Xavier LopezAncona in the year 1997
in the city of Mexico. Business model of Ferns N Petals Flowering Through A
Unique Franchising Model case solution consisted of supplying safe
educational place to kids, working together with schools and teachers in order
to make sure optimum learning of kids, collaboration with industry partners
to find brand-new communication channels to target next generation
customers and enhance the consumers' experience. In addition, business
believed in constant development, maximizing customer experience by
introducing brand-new activities in its service according to the changing
customer requirements and choices.
The business provided more than 200 activities in its amusement park in
addition to seasonal activities based on the cultural environment of its parks
in several countries and cities and business was extremely diversified. In
addition, in order to make sure the optimum consumer complete satisfaction,
business had used commitment programs to increase check outs of repeated
customers. In order to expand into new cities and nations, business had
adopted franchising design so that business could secure its revenues and
benefit from the danger of decline of various currency.
Problem Statement
The business dealt with increased domestic and worldwide competition due to
altering customer preferences, fluctuations in the entertainment industry
trends as a result of growing demand of amusement park and increasing
customer's interest in modification and content due to high internet
penetration and use of wise devices. In addition, business suffered substantial
decrease in revenue as outcome of devaluation of local currency versus the
U.S dollars. In order to protect, itself from increased competitors and keep its
recognition as a key player in the around the world entertainment industry,
business proposed four methods, but was worried which of the tactical
alternative would offer high value to the company and aligns with its business
model and core worths.
SWOT Framework:
Strengths:
The business has a substantial geographical reach, consumer base
and maintains a strong brand name identity.
Business's emphasis on continuousproduct development, making it
possible for the business to maintaininga strong market position and to
enhance its client satisfaction.
The business had been quite successful in achieving moms and dad's
choice and was extremely trusted due to its company design of
offering safe education and finding out environment to children by
teaming up with schools, industry networks and teachers.
Ferns N Petals Flowering Through A Unique Franchising Model case
solution parks are extremely preferred by kids, as it provides 200 plus
activities, 90 various trades and specialists to be carried out by each
kid and other advantages, such as: loyalty programs.
Weaknesses:
The business has experienced lack of technical and monetary
resources, which has actually limited its ability to grow its business
locally and internationally.
Ferns N Petals Flowering Through A Unique Franchising Model case
help is facing increasing devaluation of Mexican Peso, which has led to
declining of the financial efficiency.
The business has absence of experience and knowledge of operating
in style and theme park in industry, which has restricted its
diversification in the extremely demanded and successful amusement
park industry.
Threats:
Ferns N Petals Flowering Through A Unique Franchising Model deals
with serious competitors from domestic and international competitors
together with quickly altering patterns of show business and consumer
preferences. This might lead to business losing its identity as a strong
brand name and key player
Business experiences an increased danger of duplication of its
company model by different rivals. Business design is the core strength
of the company and the primary reason of company's success.
The increasing decline of Mexican Peso versus the U.S. dollars may
decrease business's financial stability.
Opportunities:
The business can obtain the chance of increasing need of theme parks
in U.S. by getting in the U.S. show business.
Thinking about the high internet penetration in Mexico, the business
can benefit from this chance by establishing an interactive digital
platform for marketing its service and bring in optimum customers.
Porter Five Forces Framework:
Bargaining Power Of Supplier:
The bargaining power of supplier appears to be low, thinking about the reality
that Ferns N Petals Flowering Through A Unique Franchising Model is a
popular international brand with a large client base. The suppliers of business,
which include: Sponsors, commercial partners and shopping center would
wish to sustain their association with the brand due to the guaranteed
revenues and positive image.
Bargaining Power Of Customer:
The bargaining power of Ferns N Petals Flowering Through A Unique
Franchising Model case help customers in Mexico seems low as there are few
regional parks found in Mexico, offering ingenious and interesting services
which Ferns N Petals Flowering Through A Unique Franchising Model, Mexico
uses to its customers. Nevertheless, the bargaining power of clients of the
overall indoor show business seems high as there are many players in the
worldwide show business therefore, the switching expense for customers will
be lower.
Threats Of New Entrants:
The hazard of new entrant in the home entertainment seems high thinking
about substantial development prospects in the entertainment industry and
less financial investment requirement due to an increased market
performance as a result of introduction of digital platforms. As developing
leisure and amusement parks require huge capital, the danger of brand-new
entrants in general entertainment market appears to be lower.
Rivalries Among Competitors:
There seems extreme competitors in the worldwide and domestic market as a
result of increased variety of amusement and theme parks in the U.S, which
include: Walt Disney, 6 Flags and Sea World. On the other hand, direct
competition was likewise dealt with from LEGOLAND Discovery Centres (LDC)
in Canada, Germany, the UK and China where Ferns N Petals Flowering
Through A Unique Franchising Model's parks are positioned. Ferns N Petals
Flowering Through A Unique Franchising Model case help, China faced
competition fromBaby Boss City, Taiwan, Beyu World and EE City which were
replicas of Ferns N Petals Flowering Through A Unique Franchising Model.
Other rivals which presented a major risk to business's operations included
Kidzmondo, a Lebanese company and Divercity, a Latin American business.
These company provided the same services and used the very same business
model of Ferns N Petals Flowering Through A Unique Franchising Model.
Threats Of Substitutes:
The hazard of substitute in the general entertainment industry seems to be
high considering different options are readily available for children that
includes amusement parks, amusement park, mobile apps, TELEVISION
programs, video game, increased use of devices and phones and high web
penetration.
PESTLE Framework:
Franchising Modelis an extremely diversified organisation operating in the
UAE, Portugal, South Korea, Turkey, Saudi Arabia, the UK, India, Brazil and
more. In order to examine the external environment of Ferns N Petals
Flowering Through A Unique Franchising Model case analysis, Pestle
framework has actually been utilized:
Political:
Business's operations and strategic choices are affected by different political
aspects, such as: unfavorable laws and policies in relation to merchandise
trade, security or acquisition of intellectual property and high tax rates in
particular cities. In addition, the foreign federal government might decline to
permit the business to establish a park in the country affecting its strategic
choices. In addition, political instability in the countries where Ferns N Petals
Flowering Through A Unique Franchising Model runs will affect its company
and development substantially.
Economical:
Ferns N Petals Flowering Through A Unique Franchising Model, Kuwait
produces Gross Domestic Product per Capital earnings of $48927, which is
greater as compared to GDP per Capita income of other areas where Ferns N
Petals Flowering Through A Unique Franchising Model runs. This recommend
that business's choice to expand its operations to Doha will be beneficial. On
the other hand, the Currency of Mexico, which indicates that the currency of
Ferns N Petals Flowering Through A Unique Franchising Model case help is
diminishing versus the U.S dollars, affecting business's profitability and
financial stability. Likewise, other financial elements, such as: tax rates, work
rates, and inflation rates likewise impact the business's development and
operations.
Social:
The social elements such as high internet penetration, usage of social
networks, Mobile Apps and games have shifted the children's focus from
going to regional parks to spending times on their gadgets. This has actually
impacted the organization's company domestically and worldwide. In addition
to which, the kids's requirements and preferences have altered from checking
out regional parks to checking out style and amusement parks, such as:
Disney.
Technological:
Promoting and incorporation innovation in its company design have actually
been the essential success aspects for the company. The business extremely
believes in bringing brand-new services and introducing brand-new activities
in order to engage and draw in the kids. The service is thinking about to
present an online platform to market its services to the client at lower cost.
Legal:
Ferns N Petals Flowering Through A Unique Franchising Model case analysis is
an extremely diversified company, therefore, it is extremely subjected to
discrimination laws relating to employee's recruitment, appreciating the
cultural differences and offering cultural related activities. Similarly, business
is exposed to high compliance with healthy and safety laws in relation to
supplying protected and safe environment to consumers and workforce. In
addition, business has a responsibility to abide by laws pertaining to
establishment of park thinking about the psychological and physical protect.
Environment:
Business undergoes environmental laws as facility of national parks, leading
to soil erosion, triggering a disturbance to wild life along with an increased
noise pollution. In addition, the national parks go through other
environmental concerns, such as water lack, environment change and tourists
tourist attraction.
Proposed Strategies
Alternative 1- Growth In Number Of Parks:
Thinking about, greater development prospects for entertainment industry in
The United States and Canada, it was proposed to develop 6 to eight parks in
15 city cities of America at a cost of 30 million for each park. From quality
perspectives, the method seems feasible considering higher revenues will be
produced as result of operating in large cities as compared to the smaller
markets. Similarly, business has a substantial experience in structure bigger
parks in cosmopolitan cities.However, business does not have any experience
of operating in America, for that reason thisstrategy appears to be risky.
Alternative 2- New Formats (Entering Into Small Markets):
This method includes theconstruction of little parks in small cities with higher
GDP growth and population, such as: Doha. Although, this would result in
smaller incomes as compared to operating in bigger cities and requires less
investment.Growth will be achieved as compared to other parks as minimal
activities will be availed thinking about the little size of the park, which will
make it possible for the clients to visit again to avail other services.
Alternative 3- Interactive Digital Platform:
The proposed strategy involves the intro of an interactive digital platform for
the function of enhancing the relationship with children by offering physical
experience of the park in a virtual world. Considering thefact of high
penetrationofinternet and use of phones and electronic gizmos, the business
will have the ability to bring in optimal variety of client through this method.
Alternative 4- Content Development:
Thinking about higher growth prospects in the movie industry, the method
appears to be a feasible option.However the initial investment needed for the
project requires to be kept under factor to consider. The method might not be
acceptable by the business thinking about the truth that the international
growth and existence will not be accomplished by utilizing this strategy.
