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CASE ANALYSIS

SUBMITTED BY : GROUP 8

• Ritushree Ray – EPGCSM-11-029


• Akhil Gupta – EPGCSM – 11- 003
• Nooh Khushal - EPGCSM – 11- 023
• Prageet Tiwari - EPGCSM – 11- 024
• Sandip Kumar Ghosh - EPGCSM – 11-031
KEY DIFFERENTIATORS & USP
How is KidZania able to differentiate in the competitive entertainment market? What is unique about KidZania’a
offer?

Unique concept of KidZania is edu-entertainment designed as per the cultural mainfestations of each place. In Kuwait :
an oil exploration lab, in Seoul : a rice cake factory, and in Cairo : a carpet shop. It’s also a safe educational place where
children could intract with other children, avoiding computer games or playing with other gadgets, learning to corporate
with others.
Mission of KidZania also makes them unique – “Preparing kids for better world”

• Learning & Culture


Museums
• KidZania acts as best of both worlds providing the benefits of learning while having fun
Key Differentiation
Edu-Entertainment • Legoland ( provides fun and learning)
Parks like Legoland &
Concept hence it • Disney ( provides imagination and fantasy)
Disney
covers the benefits • KidZania brings the benefits of both by employing it all into real life for children
of : TV Shows like • TV Shows like Nickelodeon ,KidZania also brings the real life experiences of day to day life with a
Nickelodeon dose of fun and with kids getting to actively participate

KidZania USP : Flexibility in its mission statement renders it the flexibility to venture into customizations to adapt
with changing trends of Info-Tainment
Kidzania Stakeholders
Who are KidZania’s stakeholders? What do they contribute to the experience and what do they receive in return?
Contribution to Families
KidZania’s Stakeholders Children get
Fostering
access to Children exposed The activities aid in
independence in
edutainment in to newer things decision making
children
their own-city
10%
Due to robust role play Fostered Prepare children for
30% methodologies, children
become more expressive
collaboration and
team-work
future adult
responsibilities of real life
60%
Contribution to Schools & Teachers
Simulated Learning Safe & Secure Easily Accesible ( due to
environment environment kidZania’s local presence)

Families (Children with adults) Contribution to Industry Partners


Schools and teachers
Industry partners
Understanding of behavior patterns of future consumers

Easy reach to future consumers


Kidzania Corporate Strategy (1/3)
Is KidZania’s current strategy sustainable in the long term given the competitive landscape?

VRIN Analysis for KidZania:

Resources/Capab Non- Verdict : Focussed


Valuable Rare Inimitable Differentiation
ilities substitutable

The Competitive
Industry partners Yes brings more No Yes, difficult to get big brands Yes
closeness to reality and advantage of KidZania
additional revenue comes from its Unique
Location(imp. malls) Yes No Yes for it required high No concept and flexibility to
closed investment
grow and adapt new trends
Kids and Adults both Yes Yes(no other competitor No(Competitor have to invest Yes seamlessly
entertained under has this) huge money and have to
single roof restructure their facility to
serve adults)
Unique concept Yes Yes( difficult for others Yes Yes
to expertise)

More options (role Yes more options No Yes No


plays) means more visits in
an year
Awards Yes Yes No Yes
Kidzania Corporate Strategy ( 2/3)
Is KidZania’s current strategy sustainable in the long term given the competitive landscape?

Porter’s 5 Forces Analysis for KidZania:

Client Account  Analyze KidZania influence on the Client


Power of Buyers
10
 Analyze the power of Suppliers affecting
8 the production
6

Degree of Rivalry
4
Power of Suppliers
 Analyze presence of Substitutes to the
2 experience KidZania is selling
0
 Analyze the threat of new entrants in
various categories

Threat from Threat from New


 Threat from existing competitors
Substitutes Entrants

Using the Porter’s Five Forces, the Environment around the firm and KidZania shows that there is a high threat of substitutes
Kidzania Corporate Strategy (3/3)
Is KidZania’s current strategy sustainable in the long term given the competitive landscape?

Require high investment hence competitors cannot create a


replica.
Has strong and big brands as industry partners
Edu-entertainment industry is growing hence business will.
Awards in 2001, 2003 and 2006 adds to brands value thus
After VRIN and Porter’s 5 Forces creating an advantage over competitors.
it can be concluded that the EBITDA has increased from 9.2% to 21.8% from 2011 to 2015.
current strategy is paying well YOY total number of visitors per year are growing which also
off to KidZania because of impacts KidZania positively.
following factors:
Kidzania Options Analysis using Ansoff Matrix ( 1/6)
Ansoff Analysis: The following strategic alternatives fit in the Ansoff Matrix as follows:

Market Development Diversification


New Formats Interactive Digital platform
Here focus is on targeting new markets, or new areas of existing This involved trying out new avenues and hence the strategy is
New

market, and trying to sell more of the same things to different risky: there's little scope for using existing expertise or for
people. achieving economies of scale, because we are trying to sell
Steps to follow : completely different products or services to different customers
• Use new sales channel Steps to follow :
• Market segmentation • Analyze trends in the market via PESTEL Analysis
MARKETS

Market Penetration Product Development


Growth in the number of parks : The opportunity of Developing Content to extend the Brand to other Media
North American Market Here, you're selling different products to the same people,
With this approach, you're trying to sell more of the same things Steps to follow :
to the same market. • Improve content as per the media channel
Existing

Steps to follow :
• Develop marketing strategy

Existing PRODUCTS & SERVICES New


Kidzania Options Analysis using Ansoff Matrix ( 2/6)
Ansoff Analysis: The following strategic alternatives fit in the Ansoff Matrix as follows:

Market Development New Formats


Here focus is on targeting new markets, or new areas of existing market, and trying to sell more of the same things to
different people.

Market Segmentation
This is a safe strategy that may not serve as a long
KidZania – term strategy that Ancona is looking for and the
Safer strategy, more brand awareness stakeholders like Dunaway and Darrow are looking
Option to grown into new markets with at short term profits which will not serve in the
smaller cities long term strategy

Problem Areas : low chances of repeat


customers due to smaller size of park
and fewer options available
Kidzania Options Analysis using Ansoff Matrix ( 3/6)
Ansoff Analysis: The following strategic alternatives fit in the Ansoff Matrix as follows:

Market Penetration Growth in the number of parks : The opportunity of North American Market
Trying to sell more of the same things to the same market.
As per the hybrid strategy can support short term
Market Strategy sustenance and also support the long term
strategy of KidZania .
Market strategy for KidZania here would be a hybrid of 12’o
clock position to 1’o clock position of the Strategy Clock Opening of large parks seems more viable since it
• differentiation without price premium (12 o’clock) – used leads to
to increase market share. - Higher profits
• differentiation with price premium (1 o’clock) – used to
increase profit margins.
- More scope
- Marginally increased investment as compared
The focus Area for KidZania: 12’o Clock to to smaller parks
1’o Clock - People from small cities can always visit the
parks ( e.g Disneyland)
- This would lead to higher revenues if
themed stay for such customers can be
arranged, in that way customers would
spend more time at the park and hence
spend more
Kidzania Options Analysis using Ansoff Matrix ( 4/6)
Ansoff Analysis: The following strategic alternatives fit in the Ansoff Matrix as follows:

Diversification Interactive Digital platform


trying out new avenues and hence the strategy is risky: there's little scope for using existing expertise or for achieving
economies of scale, because we are trying to sell completely different products or services to different customers

PESTEL for Digital Platform

Industry Analysis - KidZania Digital This is a high investment option with more
Political complication in the external environment ( Legally
10
8 difficult ) that may lead to losses. The initial cost
Legal
6
Economic to enter is $30 - $60M.
4
2
0

Ecological Sociocultural

Technological
Kidzania Options Analysis using Ansoff Matrix ( 5/6)
Ansoff Analysis: The following strategic alternatives fit in the Ansoff Matrix as follows:

Product Development Developing Content to extend the Brand to other Media

Here, you're selling different products to the same people,


Steps to follow :
Improve content as per the media channel

Development of Media Content to increase reach This is a high investment option with high risk but
high reach and good rewards and a very viable
long term strategy.
The media content business and the effectiveness of But the investment required for the same was
movies in driving the sales and reach for Kidzania was high ($30-$40 M)
arguably good as seen with acquisitions of Lucasfilms by
Disney as well,
Kidzania Options Analysis using Ansoff Matrix ( 6/6)
Ansoff Analysis: The Conclusion & Suggestion

Viability Matrix
IS it Long Term IS it Profitable ( low Low Risk ( As per the exhibit 9, the average child in 2015 spends
investment amount) Conducive an average of 6.65 hours per day either on TV or
Alternatives External
Environment) internet and hence the long term strategy needs to
move towards Diversification into Digital and
Market Development No Not Sure Yes
Investment into Media in respective order of priority .
Market Penetration No ( but can Yes Yes
sustain long As per short term strategy and strengthening the
term) bottom line for future investments KidZania should dig
Diversification(Digital) Yes No No deep into Market Penetration of North American
Market to increase Market share, increase profit
Product Development( Yes No Yes margins and grow further in European and Asian
Media)
markets with similar model.
Legend :

Immediate Long Term- High Long Term- Low Risk


Risk High Return Low Return

Strategy : KidZania should focus on being the Global brand with its business concept of “ Spreading Fun around
the world” and then diversify towards the digital segment to cater to the ever increasing and here to stay trend
of Internet and Smart phones and gain First Mover Advantage into the same