Case Study of Ageing Population: Hong Kong Environment

Ageing Population:  Hong Kong Environment

 

Introduction

Ageing population has been considered as one of the most important issues to be given attention by the government of each nation. Accordingly, the ageing population is vastly inceasing and as noted by the World health organization (2005), there is a greater tendency that the number of indiviudals with age 60 or above will increase rapidly in this comping 50 years (WHO, 2005).  Such expectation can also be attributed in the population of Hong Kong. Primarily, the main goal of this paper is to analyse the HK population’s ageing demographic.

 

Ageing Population Transformations

Mortality declination among younger ages, medical advances, as well as better health care has lead to having a longer life expectancy in countries like Hong Kong (Health and Welfare Bureau, 1999). In addition, birth control has reduced the population of the younger individuals. Such attainments in the 20th century have altered and transformed the world’s demographic proportions. Such demographic transformations also pose as one of the key challenges in social policies as well as workforces or human services in the 21st century.

            As stated in the Statistics compiled by the United Nations, it presented that in 1999, 10% of the world population is 60 years and above. By 2050, this percentage will rise to 22% (United Nations Population Division, 1999). In line with Asian demographics, the corresponding proportion of the population aged 60 and over is 9% in 1999, and 24% in year 2050. On one hand, the proportion of the ageing population in Hong Kong is even higher: 14% in 1999, and an estimated 40% in 2050, the highest in Asia. The following table shows the proportions of aged population in the Asia Pacific region. 

Table 1.

Proportion of Ageing Population in Asia in 1999 and 2050

 

 

Country or Area

% Total Population aged 60 & over

in 1999

 

% Total Population aged 60 & over

in 2050

% Ageing Population aged 80 & over

in 1999

% Ageing Population aged 80 & over

in 2050

Asia

 

9

24

9

18

China

 

10

30

10

23

Hong Kong SAR

 

14

40

14

31

Japan

 

23

38

16

31

Macau

 

9

35

14

32

S. Korea

 

10

30

8

24

Brunei Darussalam

5

24

9

23

Cambodia

 

5

14

7

11

Indonesia

 

7

22

7

15

Malaysia

 

6

21

9

18

Philippines

 

6

20

9

14

Singapore

 

10

31

13

36

Thailand

 

8

30

10

21

Vietnam

 

7

23

10

17

 

Source: United Nations Population Division (1999). Population Ageing 1999. NY: UN publications.

 

            It has been noted that the increased in the life expectancies being enjoyed by the population in the world also indicates the life span of over 60 is much longer than the demographers who envisaged previously. Most statistical census has categorized the population of the ageing population individuals in one age group which is about 60-65 and above (Eskesen, 2002).  A large proportion of the population stays economically active even beyond 60 years of age (Faruquee, 2002). In addition, a large number of proportions of the population also live during their 80 years oir byeong. In most Asian nations like Hong Kong, the statutory retirement age is 55 or 60.  A decade ago, the life expectancy at age 60 is another 16 years for Asian males and another 19 years for Asian females.  For instance, in Hong Kong, males may expect to live another 20 years while women can live for another 24 years at age 60. Such demographic transformations indicate that the undiverseiated grouping in census statistics would restrict the usefulness of such figures. The activity level, care demand, as well as health needs of individuals in their 60s, 70s, 80s and beyond are varied.

The ageing population or the ageing population could be further diverseiated into the modest old (age 60 to 79) and the oldest old (80 and over) as noted by the (United Nations Economic and Social Council, 2000). Ten years ago, 9% of the ageing population (over age 60) is aged 80 and over; in 2050, this proportion is expected to rise to 18%. For instance, In Hong Kong, they are 14% in 1999 and estimated to be 31% in 2050 (see table above).

The possible support for the ageing population comes from the economically active population. The possible support ratio is calculated on the basis of the proportion of the population aged between 15 and 64 to that aged 65 and over. With the decreasing fertility in Asia, such ratio will decrease from 11 in 1999 to 4 in 2050.  For instance in Hong Kong, the ratio will drop from 7 to 2. This indicates that by 2050, there will be only two younger persons possiblely supporting one ageing population person at a population level in Hong Kong (Dodsworth & Mihaljek, 1997).

Like any other countries, the ageing population of Hong Kong is also growing rapidly, Rising longetivity as well as low fertility are causing a gradual decline in the growth of the population as well as shift  in the age structure of the demograohics to a greater share of the ageing population.  Whereas the present old-age dependency ratio of Hong Kong SAR is about 16% is low as compared to the comparator economies in the region, it is predicted to double by 2030 and exceed those of other Asian nations which include Japan (including Japan) by 2060 (Figure 1b). As seen in Figure 1, it shows that the rate of individuals with age over 64 has increased gradually from 1998-2003.

 

 

 

 

Figure 1a

Mid year population by age group

(Census and Statistics Department, 2005).

 

 

 

           

 

 

 

 

Figure 1b

 

 

 

 

 

 

 

 

 

On one hand, there is also an increasing trend in terms of life expectancy as shown in Figure 2. It has been noted that even if life expectancy is increasing, it does not mean that the quality of life of ageing population individuals can also be enhanced. Hence, it is significant that the government should be able to formulate transformation managementfor these types of individuals.

.

Figure 2

Expectation of life at Birth by Gender in HK

(Census & Statistics Department, 2005).

 

 

 

 

 

 

 

 

 

 

            Adhering to the needs of transformation managementfor ageing population individuals, diverse organisation should be able to impose this transformation management initiative. The transformation management program that will be evaluated is the “Happy Ageing Transformation management Program”.  The main goal of this program is to provide assistance to ageing population individuals for them to have a quality and happy living in spite of their ages.  In addition, this also aims in providing information on how to manage ageing population as part of the human resource management provisions.  In Hong Kong, it has been noted that the labour or workforce have grown from 3.2 million in 1996s to 3.6 million in ten years, despite a drop in terms of the entire workforce particiaption rate from 63% to 60% respectively. This is because of the increase in the size of the population and the transformation in the population’s age-sex structure (Dang, Antolin & Oxley, 2001). In year 2006, about 33% of the manpower and work forcein Hong Kong is in the position of administrators, managers, professionals as well as assoiciate professionals up from 29% during 1996. The proportion and ratio of the work force engaged as craft and relevant workers dropped from 12% to 8% In year 2006.  Accordingly, retail, wholesale as well as import/export trades, hotels and restaurants, social and personal services, and community services have been considered to be the largest economic sectors that employ about 27% of the working population.

In line with the census statistics which published in the year 2006, Hong Kong has the lowest birth rate all over the world with only 0.9 child bearing ages for every woman as compared to the replacement rate of only 2.1. The nation or region has the 966 born babies for every fertile woman of 100 and has been estimated to have 26.8% of the total population for the year 2006. Hong Kong population became rapidly ageing due to the low birth rates and well as the lack of reluctance of the young Chinese came in mainland in migrating into the Hong Kong city.

 Since, Hong Kong is primarily relies on the younger indiviiduals that came from the mainland China that can boost its population and to thehistorical and conventional city into the low birth rate. This implies that the Hong Kong government can have the options of giving tax relief into the bigger families as well as it can also consider of having the award of “baby bonus” in boosting the women for having more children. The low birth rate in Hong Kong is the world largest whereas the analysts predict that if this incident will continue, most of the number of individuals which as the age of 64 and over can accounted for the city’s third population in the year 2033 (Deutsche Presse – Agentur, 2008).

            The great effect of the population ageing or the low fertility rates into the hong Kong economy include the individual earnings and life-cycle. The said demographic can have a hump-shaped pattern as the earnings and income will rise as the young for the individuals in entering to the laboor or work force and can begin to gain the work experience while having the peak in the middle age but there is a declination as the individuals in moving to the retirement.

 Into the side of the supply, the demographic of the age-earnings will only reflect to the relative transformations of labour and productivity of the working life of the individual. This transformation in the populations’ alterations and rapid growth fo ageing population structure will aggregately implication the supply in the aide of the difference of individual labour supply. On the side of demand, the individuals can assumed in adjusting the smooth as well as savings consumptions that is based on the anticipated path of the income of life-cycle whereas the net borrowers are the young individuals due to current income which is below their permanent income. Aside from that, it can implication the economy in the potential declination of growth and the possibility of slower to both the participants of manpower and work force and GDP for the growth in revenue which is from the income-based taxes. This indicates that the lack of the tax increases or its increase in the rates of the contribution to social security can result in the lower revenues. There must also be rise for the demand of health services as well as pressured for the expenditures of health to rise as well and reflects to the rise of spending to the long term care, pension, and the health care.  In this regard,  there is the pressure for the additional budget that can arise to upgrade the system of education as well as the quality of workforce so that the nation or region will remain to be competitive (Leigh, 2006).

 

 

The Future

As the growth of ageing population has been also increasing, diverse government departments as well as prvate organisations and the management, including those concerning health care, medical and welfare services, should work more closely in providing multi-disciplinary services, as well as establish a seamless long-term care system.  There will be continuous advocation for more community support services as well as volunteers to be able to provide the needs of the ageing population. Accordingly, the rapid growht of the ageing population in this generation is a major issue in human service planning nad human resource management. It can be said that the international experts population as wlel as development have noted the fundamental connection among population, gende and development. An intensive policy on ageing population needs the compilation of the data as well as the use of these analyses to provide an efficient change mangement approach. Accordingly, the issue of ageing in countries like Hong Kong are creating an active debate regarding the family, gender and the organisations of the workplace environment and the provisions and strategies to adhere to the challenges and issues (Boling, 1998.

 

 Adopting concepts of continuum of transformation management as well as care and service integration will have to be made as the quantity and types of services for the ageing population have been increasing. As integration becomes the major trend in ageing population service, welfare personnel are required to learn and master diverse skills and knowledge necessary to provide quality care to the elders, such as nursing care, psychological and social care of the elders and many others (Cheung, 1999). Circumstances have transformationd so much that a new strategy of approach in the ageing problem would definitely bring about better support system for the ageing population. At the same time, promote among the ageing population a more positive outlook towards life.

 

Conclusion

 

The analysis in this report shows that under unchanged management ageing population could adversely implication growth and living standards in Hong Kong. While higher workforce productivity growth as well as increased migration of younger skilled workers from the mainland and other regions would attenuate the economic implication of ageing, they would not offset it fully. Ageing will also put pressure on the public finances particularly on health care cost and insurance. Hence, an integrated and early response for the ageing population issues is highly demanded to address the implication of population ageing.

As the demographic changes and imolications  will start setting in about 2015 when the workforce and manpower support ratio is projected to peak, this leaves a window of potentialities and chances during the next 10 years to design specific countervailing issues for the management which could mitigate the implication of ageing. Given the likely stress on public finances, stanard measures could be taken to mitigate the implication of the likely rise in health and long-term-care spending on public finances as well as private finances. Strengthening the fiscal position could be achieved through a mix of continued expenditure restraint specifically  in non-age-sensitive areas, continuance and maintenance of the ongoing reforms in health care provision (including introducing private health insurance system and raising user fees—with safeguards for the needy),  as wel as change in management system that will also change the welfare programs and nd revenue-enhancing measures.

Other approaces could also be taken to shift the associated health care costs of ageing to the pivate sector which could involve the introduction of a Medicare-type levy on employees to be administered by the Mandatory Provident Fund. As noted in Section IV, the Hong Kong SAR government agents are already considering some of these measures these integhration with continued success at fiscal consolidation would go a long way in mitigating the implication on the public finances  and the needs of the management approach of a rapidly ageing population.

 

Reference

1.    Boling, P. (1998). "Family policy in Japan." Journal of Social Policy 27: 173-190. Census & Statistics Department (1996). Hong Kong Annual Digest of Statistics. Hong Kong: Government Printers.

2.    Cheung, F. M. (1999). "The gender dimension in the social sciences." World Social Science Report 1999. Paris: UNESCO/Elsevier, pp. 220-225.

Cheng, Sheung-Tak. “The Social Context of Hong Kong's Booming Elderly Home Industry”, American Journal of Community Psychology. Volume: 21. Issue: 4. Plenum Publishing Corporation; Gale Group. 1993

 

Dang, T. T., P. Antolin, and H. Oxley, 2001, “Fiscal Implications of Ageing: Projections of Age-Related Spending,” Economics Department Working Paper, No. 31 (Paris: Organization for Economic Cooperation and Development).

 

Deutsche Presse-Agentur, viewed June 18, 2010, http://www.aarpinternational.org/news/news_show.htm?doc_id=702686.

Dodsworth, J and Mihaljek, D 1997, Hong Kong, China: Growth, Structural Transformation, and Economic Stability During the Transition, International Monetary Fund, United States.

 

Eskesen, L., 2002, “Population Ageing and Long-Term Fiscal Sustainability in Austria,” IMF Working Paper 02/47 (Washington, International Monetary Fund).

 

Faruqee, H., 2002, “Population Ageing and Its Macroeconomic Implications: A  ramework for Analysis,”

 

9.    Health and Welfare Bureau (1999). 1999 Policy Objectives: Care for the Elderly. Hong Kong: HK Government.

 

Lamin, L 2006, Hong Kong Special Administrative Region: Macroeconomic Implication of an Ageing Population in Highly Open Economy, International Monetary Fund, United States.

 

Hong Kong: Hong Kong’s Population Ages as Young Chinese Migrants Shun City 2008,

 

United Nations Economic and Social Council (2000). “Concise report on world population monitoring, 2000: population, gender and development.” Report of the Secretary-General to the 33rd session of the Commission on Population and Development, 27-31 March 2000.

 

WHO. (2005). Mental health action plan for Europe – facing the challenges, building the solution. Helsinki: WHO.

 

Essay Instructions :Promote Team Effectiveness

Developing your team’s action plan for the next 3 – 6 months

 

 

(i)                 Team Action Plan

 

Develop a team action plan for the next 3 – 6 month with for 3 clear goals/objections, using realistic timeframes and evidence of allocation of tasks, responsibilities and accountabilities to various members of the team then discuss your plan.

 

 

 

 

Develop an Action Plan to facilitate networking requirements.

 

What I want to achieve (outcome)

How I will go about it (action)

Who I need to involve/consult (people)

What resources do I need (physical resources)

Finish by date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The team action plan for the next 3 – 6 month can be submitted in a form that is appropriate for your organization or in a table like the sample above. It does need to cover the following points:

 

·         Establish goals and objectives, in consultation with team members, which are in harmony with the overall organization’s strategic plan.

·         Establish realistic time frames for the achievement of goals and objectives.

·         Allocate tasks, resources and accountabilities to team members.

 

 

(ii)               Discussion

Discuss your team action plan above concentrating particularly the points mentioned above.

 

 

Strategic Management Process: Ocean Park Hong Kong

Strategic Management Process: Ocean Park Hong Kong

Table of Contents

Introduction. 2

Ocean Park Hong Kong. 3

External Environments of Ocean Park. 4

PEST Analysis. 4

Political Analysis. 5

Economic Analysis. 5

Social Analysis. 6

Technological Analysis. 6

Industry Analysis. 7

Five Forces Analysis. 7

Threat of New Entry. 8

Threat of Rivalry. 8

Threat of Substitution. 9

Threat of Suppliers. 9

Buyer Power 10

Competitor Analysis. 10

Disneyland. 10

Wetland Park. 11

Internal Environments of Ocean Park. 12

SWOT Analysis. 12

Strength. 13

Weaknesses. 13

Opportunities. 14

Threat 14

Competitive Advantage. 15

Core Competency. 15

Competitive Advantage. 16

Tangible Resources. 16

Value Creation. 17

Conclusion. 17

References. 19

Bibliography. 20

 

Table of Figures

Figure 1 PEST Analysis Hong Kong Ocean Park. 4

Figure 2 Five Forces Analysis of Ocean Park (Hong Kong Amusement Park) 7

Figure 3 SWOT Analysis Hong Kong Ocean Park. 12

Figure 4 Competitive Advantage  Model of Hong Kong Ocean Park. 15

 

Introduction

Ocean Park is considered as a major attraction in Hong Kong, the luminous pearl of the Orient and known as the financial center of Southeast China. It is located on the south end of Hong Kong Island. The larger two sections are located on the headlands of Mount Nanlang, while the smaller section is located in the Huang Zhu Keng Valley lowlands. It is considered as one of the largest ocean in the world, having an area of 170 miles (2008).

Organizations change and organizations compete for the same resource, competencies as well as customers. It is the cruel reality that must not be neglected by any management, thus the strategy as well as strategic management must not be neglected as a vital integral part of what managers do ( 2002,).

This paper will focus on the strategic management process of the Ocean Park of Hong Kong towards their foreigner or tourists customers, particularly those mainland Chinese. It will first tackle the details about the Ocean Park. Second, it will analyze the external environment such as the economic and culture aspect that can affect the relationship of the organization to their possible foreign customers or tourists. Furthermore, it will focus on the internal environment of the organization such as its core competency, together with its strengths and weaknesses.

 

 

 

 

 

Ocean Park Hong Kong

            Ocean Park Hong Kong is considered as one of the most important amusement park in Hong Kong, and even in the world. Opened in January 1977 as the country’s unique local park with the heritage of delivering family, fun and fond memories, it was chosen by the citizens of the country as their number 1 favorite scenic spot in the country in 2005 ( 2007). It was also ranked by  on June 1, 2006 as the 7th among the top ten most popular amusement parks in the world (China Travel Golden Route 2007).

Ocean Park combines the elements of entertainment, education and conservation in their services. It is consists of six main areas which are: Lowland Gardens, Kid’s World, Marine Land, Headland Rides, Adventure Land and Bird Paradise (   2007). Furthermore, provides all of its guests with memorable education, while inspiring life long learning and conservation involvement. It also focuses on maintaining a healthy financial status, while offering the guests a diverse range of activities at competitive prices. It exists for the benefits of the public and strives in order to deliver the highest standard of safety, animal care, products as well as guest service (Ocean Park Hong Kong 2008).

            The Ocean Park of Hong Kong is part of the growing global industry of amusement park in the world, as well as part of the tourism industry. The organization is focuses in global market, and taking advantage of the improving tourism industry of the country, targeting their tourists, regardless of their age. The main goal of Hong Kong Ocean Park is to be the world leader in providing excellent guest experiences in a theme park environment that connects people with the nature (Ocean Park Hong Kong 2008).

The park is currently undergoing a massive expansion to be finished in 2010. However, there will no rides to be closed during the said period (2008).

External Environments of Ocean Park

PEST Analysis

Figure 1 PEST Analysis Hong Kong Ocean Park

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Political Analysis

            Political factors have a direct impact on the relationship of Ocean Park Hong Kong, to their foreign customers or visitors.             One of the most important factors that are associated with amusement park industry of the country is the easiness of the restrictions and promotion of the free travel of China in 2003 that helped to inject a new life to the tourism industry of Hong Kong (2004). The said improving relationship between China and Hong Kong, can impact the relationship of Ocean Park to their foreign customers, particularly the Chinese tourists, largest portion of the country’s visitors ( 2007). The growing economic clout, as well as the success of the Individual Visit Scheme results to the increase focus of the entire industry towards China and most of the players will focus on catering to the greater range of budget types but throughout the entire tourism industry (  2008).

Economic Analysis

            Locally and globally, different businesses are being affected by the different economic factors. In terms of the country, the development and growth of the entire tourism industry influence the performance of the entire amusement park industry. The number of Chinese visitors of the country increased from 13.1% in 1998 to 27.1% in 1999 in 2007, of all visitors ( 1999). There are total of 12.9 million tourists that came to the country, and more than 50% of it arrived from mainland China ( 2006).

            Ocean Park Hong Kong showed an increase in tourists coming from mainland China in the last few years. The mainlanders make up the 45% of all the visitors of Ocean Park, having a high attendance of 2.2 million, showing an increase of 70% from 2003 ( 2008).

Social Analysis

            The entire tourism industry, particularly the industry of amusement park of the country is being affected by major events and influences. This can be observed during the peak season such as Chinese New Year and School holidays that enables each and every player of the industry to gain more than 50% of total attendance ( 2008).

            It is also important to consider different media views. This is due to the fact that it can affect or influence of the foreign customers regarding visiting the place. Furthermore the advertisement and publicity is important, that is the reason why it is important for different amusement parks to take part in different events of the country in order to showcase the culture and history of Hong Kong to their visitors.

Technological Analysis

            The Internet has increasingly become a popular medium for marketing and customer relationship . This is due to the fact that the Internet can offer a great connection with huge and immeasurable possible market. This is important because the industry, primarily Ocean Park Hong Kong is focusing on its relationship to its global market. Furthermore, it is also important to consider the improvement and development of the amusement machinery industry.

 

 

 

 

 

 

Industry Analysis

Five Forces Analysis

Figure 2 Five Forces Analysis of Ocean Park (Hong Kong Amusement Park)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threat of New Entry

            The threat of new entrants refers the possibility that the profits of established firms in the respective industry may be eroded by new competitors. In terms of the amusement park industry, the entry barrier is high due to the need to invest large amount of financial resources ( 2004). Typically it ranges from $50 million to $3 billion, depending on the real state market. In addition to that amusement park required over 50 acres of land for a full scale development; other can utilize 10,000 to 30,000 acres ( 2006). The said factor is important because Hong Kong has a high land price real state market This is also connected to the fact that the location of the amusement park is a very important factor.

Threat of Rivalry

            Rivalry among the existing competitors takes the form of process of jockeying for the position. Firms usually implement different tactics like price competition, advertising battles, product introductions as well as increased customer services (   2004 ).

            It is important to consider the lack of differentiation, that is why the customers’ choice based greatly over the price and service, thus causes pressure for the intense price and service competition ( 2004). This can be observe in the amusement park industry of the country, due to high threat of rivalry, different players are implementing different plans and activities such as renovation and introduction of new attractions in order to catch the attention of the customers.

 

 

Threat of Substitution

            All firms within a given industry compete with an industry that produces the substitute products and services. Substitutes limit the potential returns of an industry by the process of placing a ceiling on the prices of the firms in the given industry can profitably charge ( 2004). 

            In the industry, the threat of substitution is relatively low because the main substitute for the product is other aspects of leisure and tourism industry such as sport and casino industry. On the other hand, because of the popularity of the amusement park industry as well as the growing number of Chinese tourists, the industry is not that affected.

Threat of Suppliers

            Suppliers can exert a bargaining power over participants in an industry by threatening to raise prices or even reduce the quality of purchased goods and services ( 2004,).

            In the case of the industry, the suppliers doesn’t have that much power because of the improving and growing industry of the amusement equipment industry, that enables the technology exchange between the different local and international players particularly in China ( 2007). In addition to that, the airline industry, which is considered as the primary supplier of visitors for the company is also facing impact of competition as well as the growing demand for cheap travel packages.

 

 

 

Buyer Power

            The buyer or the visitors and tourists have a medium or mediocre influence over the industry because the product and service of the industry is important for the customers. This is due to the fact that amusement is considered as part of necessity of every family in Hong Kong, as well as the mainland China market. Furthermore, the said industry cannot be replaced by other substitute.

Competitor Analysis

Disneyland

            Disneyland opened in September 2005 and had helped to reposition the country as a premier destination for families. On its opening day, it had set a record of 16,000 visitors, and 1/3 of it are from the mainland China. It had maintained its 13,000 to 14,000 average visitors (cited in 2006). The main advantage of the company is that it holds the name of the Disney which is well known in the world in terms of entertainment. Furthermore, it targets the children, thus the whole family because of the different rides and attractions that focuses on different well-known Disney characters. This can help the company to attract more visitors or tourists from different part of the globe, particularly those who are from the US and Europe.

            On the other hand, the main disadvantage is that most of the mainland Chinese doesn’t have those strong attachments with Mickey and friends and other Disney characters ( 2006). The said aspects are important for the company because most of the visitors of the country come from mainland China.

 

 

Wetland Park

            Wetland Park is a conservation, education and tourism facility that is located at the northern part of  in Yuen Long. It is compromises of 10,000 square meter large visitor centre, Wetland Interactive World and a 60-hectare Wetland Reserve  The main advantage of Wetland Park is that it offers a different type of service compare to Disneyland and Ocean Park. The main mission of the organization is to foster public awareness and understanding regarding the values of wetlands throughout the East Asian Region. The visitors will be given a chance to experience the wildlife with different animals that will help them to be close with nature and observe different animals in the natural environment (cited in 200).

            On the other hand, the organization will not be able to meet the demand of those visitors or tourists that are looking for excitements and extreme pleasure that can be experienced in different rides and parts in Disneyland and Ocean Park.

 

 

 

 

 

 

 

 

 

 

Internal Environments of Ocean Park

SWOT Analysis

Figure 3 SWOT Analysis Hong Kong Ocean Park

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strength

            The main strengths of Hong Kong Ocean Park focuses on their offering of hybrid of thrills, animals, fun and education to their foreign visitors, more specifically those mainland Chinese visitors (2007). The main advantage or strength of the company is that it enables to meet the cultural aspects of different people from different part of the globe, particularly the mainland Chinese visitors that are not that familiar with different Disney characters. This can be seen in the different services and features of the company that incorporated education with thrill.

            Above all, the main advantage of Hong Kong is that it is considered as the oldest amusement park in the country; therefore, it can be considered as experienced and knows the demands and behavior of the mainland Chinese visitors. Furthermore, it had become successful because of its connection to the local government that helped them to have a subway line for the visitors ( 2007). This enables the organization to give the foreign visitors, particularly those from mainland, who are price sensitive, to save their money for other luxury, thus helping them to save time in traveling.

Weaknesses

            On the other hand, the main disadvantage of Hong Kong Ocean Park is their structure of geographic location. This is due to the fact that they have the limitation regarding the land development because the location is hilly. Furthermore, the organization is facing lack of strong financial support and backup, that is why the organization is responsible for their own income and operation cost. Furthermore, because of the fact that Ocean Park is considered as oldest amusement park in Hong Kong, there are different facilities that are old and un-attractive, although the organization is already starting their innovation process, it would take some time and it will be completed after 6 years.

Opportunities

            The main opportunity of the company focuses on the Individual Traveling scheme of China, as well as the improving relationship of the country to the mainland China, that had helped to improve the number of the visitors in the country. In addition, the strong economy in Mainland as well as the improving middle class with the purchasing power helped to increase the demand for the outbound travel.

            Furthermore, the organization also has a strong marketing support from the local government that recommends the Ocean Park to the foreign visitors. It is also important to consider the development of new transportation South Island Line that would cause convenience and fast access direct to the Park for the foreign and local visitors.

            The Internet is also another factor; this is due to the fact that it can help the organization to connect to a vast range of possible customers or visitors. Above all, the development and improvement of the amusement machinery industry can also impact the services and features of the organization, thus their relationship to their foreign visitors.

Threat

            One of the threats that must be considered by the company is the renovation plan of the Disneyland Hong Kong that can help the said organization to regain their past position in the market. Particularly, it will also cause popularity of the organization from other foreigners, particularly those from America and Europe.

            On the other hand, it is also important to focus on the global financial crisis that is going on, that can affect the visiting behavior and buying behavior of the tourists.

Competitive Advantage

Figure 4 Competitive Advantage Model of Hong Kong Ocean Park

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Competency

            The core competency of the organization is the length of its operation and service both to the locals and foreign visitors of the country that give the organization the knowledge regarding the likes, dislikes as well as the flow and trends in the behavior of the customers. Furthermore, cultural aspect is also an important factor, primarily to their growing mainland Chinese visitors. Furthermore, it also helps the organization to capture the attention of other visitors from different part of the globe, primarily those from the US and Europe, that are looking for new and local experience about the country.

 

 

Competitive Advantage

            When a given firms maintain its profit that exceed the average for its industry, the firm is said to have a competitive advantage against its rival. This can be seen in the current position of Hong Kong Ocean Park, over its direct competitor, which is the Hong Kong Disneyland. Hong Kong Ocean Park is using the cost advantage, where in it offers cheaper ticket that costs HK$208 for adult and HK$103 for children, compare to HK$295 for adult and HK$210 per child of Hong Kong Disneyland. In addition to that, Hong Kong Ocean Park acquired a good location compare to Disneyland, because it is nearer o the main urban districts.

            In addition to that, Hong Kong Ocean Park also offers a differentiation advantage because it is considered as bigger than the Hong Kong Disneyland, thus enabling the first organization to offer more and new features and shows than the second organization. It also offer different features and services compare to its competitors primarily the Disneyland, because it focuses on showing the reality regarding the nature, while Disneyland focuses on fantasy.

Tangible Resources

 

            The reputation of the organization is its most important tangible resource. Ultimately, reputations have economic value to the company because it will be difficult to imitate. Rivals cannot simply replicate the unique features and intricate process that produced those reputations ( 1996). The fact that the company features educational aspects regarding the environment, gives it a reputation that is close to nature. This is important because of the growing awareness of the world regarding the different natural and environmental problem, primarily global warming.

Value Creation

            The core competency of the organization gives it both advantage and disadvantage. Advantage, because it helped them to know more about the behavior and culture of their different local and foreign visitors. Furthermore, it also enables the company to create an image that is considered as one of the most important aspect in gaining and maintaining competitive advantage. On the other hand, it gives the organization the disadvantage because some part of the facilities and features of the organization are considered as old, and in great need for renovation, however, due to financial aspect as well as effort that must be exerted, it will take some time in order to come up with the ever changing demand of the foreign visitors for entertainment and leisure.

            On the other hand, the competitive advantage of the company which focuses on the cost advantage and differentiation advantage is the result of the continuous effort of the organization in their relationship with the customers as well as their continuous effort in process of research and development.

Conclusion

            As of now, Hong Kong Ocean Park is experiencing a comfortable position in the entire amusement industry, as well as the entire tourism industry of the country. It is important to consider that the said organization is considered as number 1 or most loved amusement park by local and foreign visitors, despite of the fact that it has the Disneyland, a very prominent and successful player in the global industry of amusement park. 

            Primarily, the main reason behind the success of the organization is because of the support from the government of Hong Kong and mainland China that can be seen in the different public facilities that are being implemented for easy access of the said place, as well as the implementation of the Individual Tourist of China. The company had been able to use the issue of culture in order to attract more locals as well as foreign visitors, as well as its usage of the current spread of the environmental awareness, which enables the organization to incorporate education and thrill in their features and services. That is the reason why it is frequently visited by families from different part of the globe.

            Furthermore, the organization had been able to create two important competitive advantage which focuses on the cost and differentiation. It had been able to offer cheap but fun-packed experience.

            But it is also important for the company to continue its innovation and strategic management in order to make sure that it will continue its competitive edge against its competitor. This is due to the fact that Disneyland is currently into renovation process, in order to regain their competitive position in the market.