SWOT analysis and Porter’s 5 Forces
Busch Gardens is a multi-million-dollar company that has revolutionized today’s
entertainment needs. The company fundamentals have made it successful due to its continued
proper policies implementation. These policies show the strength the company possesses, the
opportunities available that the company can take to edge over its competitors. However, despite
the properly laid strategies to take the company forward, there are threats known that can cause a
significant drawback of the Busch Gardens company affairs. In this work, the SWOT analysis of the
Busch Gardens company is conducted, and some of the factors pointed out is as follows.
Strengths Weaknesses
Diverse brand acknowledgment Unpredictability of business
Widespread variety in business Inadequate target population
Robust financial ability Hiked production cost
Opportunities Threats
Technological realization Varying partialities and perceptions
New target population Rise of online piracy
Increased products
demand Robust rivalry
Strengths
The Virginia citizens largely recognize Busch Gardens brand due to the substantial
investment that the company has put in place to sell its brand. This means that the company is
known all over Virginia and other American states. As a result, there is a notable sum of visitors
that visit the Busch Gardens to be entertained. In the Busch Gardens, there is a variety of
entertainment activities that suits all the Busch Gardens visitors. Its strong financial abilities
have enabled Busch Gardens to become a recognizable and robust company by many.
Weaknesses
SWOT Analysis 3
Busch Gardens experiences fluctuating customer turn-ups from time to time, hitting the peak
during the summer period and register the lowest turn up in the winter period. Some of their
entertainment activities have limited targets since some can only be participated by children and
leave adults out of the events. Entertainments such as movie production have become very
expensive as a result of technology advancement and the innovation of new ideas.
Opportunities
If Busch Gardens takes advantage of the new technology innovations such as the use
of drones cameras rather than the handheld cameras, in cinema production, the movie quality,
and uniqueness will enable them to edge them past their close competitors as many people
will love their cinema production as a result of the use of new technology. Busch Gardens
seeks to expound to other states across the country that will help them exploit the consumers
or their services. Due to the recent increase in the demand of the entertainment products
online such as movies over the internet, then Busch Gardens seeks to publish their products
online, and people can access them hence increasing their target space.
Threats
As generation changes from time to time, chances are, the current generation will lose the
taste of the existing entertainment products and will fall out with the Busch Gardens products
threatening the operation of Busch Gardens. The legit products that Busch Gardens publish online
is overlooked by the target population as they seek to have the pirated products from other
platforms. Despite the threats that the pirated products pose to the buyer, many prefer them than
purchasing them from legit platforms such as that of Busch Gardens. Stiff competition from similar
companies in the state is also a possible threat to the Busch Gardens company.
Porter’s 5 Forces analysis
SWOT Analysis 4
This is a managerial tool that helps the individuals in a company to understand the
company environment in terms of their external factors that has an effect of the business
performance (Zhang, 2017). In the case of Busch Gardens, some of the external factors
include other entertainment companies, resorts, and parks. These are some of the factors
that Busch Gardens must address to keep up with the dynamic companies in a similar
venture. Thus, Porter’s 5 forces seek to address the concerns of Busch Gardens company.
Competition rivalry – Strong Force
The presence of numerous other similar firms that have ventured in the
entertainment industry means that there is a direct effect to the competition that Busch
Gardens faces. Porter’s force stresses on the aggressiveness posed by other firms as
an external factor. This factor will make the competition of the two companies stiff.
Bargaining Power of Busch Gardens customers – Strong Force
The pricing strategies of Busch Gardens determines the switching cost and
which when low, it makes the customers transfer from a given entertainment provider
to another. For instance, people may switch from Busch Gardens produces films to
other film producing companies. This is as a result of if the other company has a
relatively low switching cost as compared to Busch Gardens.
Bargaining power of Busch Gardens Suppliers – Weak Force
The supplier’s population determines the influence that the supplier has on the
environment of the industry. Since Busch Gardens deals with a large community of the
suppliers, this corresponds to the weak bargaining ability that they possess.
Substitution Threat – Moderate Force
SWOT Analysis 5
There is a moderate number of possible substitutes of Busch Gardens company
that does the same venture as the subject company. Some that may seek to substitute
the Busch Gardens may be unable to attain satisfaction of the target customers using
their products hence posing a moderate force of that ability.
New entry Threats – Weak Force
As mentioned above, low switching cost may make customers switch away
from Busch Gardens to other companies. But this means that they will have a high
capital cost to facilitate the lower switching cost and in return, it will weaken the
intensity of the company and their sustainability. Therefore, new companies will
require high capital to maintain competition with already established companies.
I would recommend strategies such as phasing out outdated entertainment exercises
and films produced by the Busch Gardens. This is to show the audience that they strive to
keep up with the current trends that people perceive as the modern means of being
entertained. If Busch Gardens will continue to persist on some of outdated entertainment
means, people may have to look to other means of being entertained offered by other
companies. For instance, in Busch Gardens theaters, introduction of 3d lenses to be used by
film viewers will enhance the movie experience to viewers and make them want to always be
entertained by such means that may be perceived as modern in todays world.
References
SWOT Analysis 6
Haile, M. (2016). Modelling of SWOT Analysis Using Fuzzy Integrals.
doi:10.15405/epsbs.2016.08.12
How to Do a SWOT Analysis. (2019). doi:10.4135/9781529702491
Zhang, D. (2017). Porter’s Five Forces Analysis and Value Chain Analysis of AUX
Air-conditioning Co., Ltd. DEStech Transactions on Social Science, Education
and Human Science, (icsste). doi:10.12783/dtssehs/icsste2017/9311