About SeaWorld
SeaWorld has been facing several issues from a past few years dealing with the ‘Blackfish Effect’, followed by the release of a documentary named ‘Blackfish.’ The movie was concerning the death of a trainer in SeaWorld who was killed by an orca between performance, and captivity of the orcas in SeaWorld. The company had to face severe loss after these occurrences. There have been severe dropouts after these occurrences due to which SeaWorld had to make amendments in their programs, plans and display shows. Key drivers of change had influenced SeaWorld to make changes in the organization has been elaborated in the report with the help of PEST analysis. Through PEST analysis the report could establish the effects of political, economic, social and technological drivers that had influenced change in the organization. The report scrutinizes the current position of the SeaWorld in the marketplace with the help of SWOT analysis and strategic recommendations have been provided for the company to achieve better sustainability in the marketplace and to attain competitive advantage as well. With the help of SWOT analysis, Strengths, Weaknesses, Opportunities and possible Threats to the organization is deliberated in the report. Additionally, ways through which SeaWorld can move forward successfully as an organization are mentioned in the report.
SeaWorld is a chain of oceanariums, marine mammal parks, animal theme parks and rehabilitation centres owned by SeaWorld Entertainment in the United States. Apart from holding a portfolio of 12 destinations in the United States, SeaWorld operates in United Arab Emirates, Abu Dhabi and formerly in Aurora, Ohio as well. The SeaWorld Parks feature killer whale, dolphin shows sea lion & zoological exhibitions performing numerous marine animals (Parks & Entertainment Inc., 2019a). The SeaWorld mesmerize people by featuring thrill rides such as giant roller coasters in their park. SeaWorld is the world’s foremost zoological organizations & a universal leader in animal welfare, behavioural management, animal husbandry and veterinary care. The company aims to rescue and rehabilitate oceanic as well as terrestrial animals that are abandoned, ill, injured or orphaned. SeaWorld has helped more than 33,000 animals need over the last 50 years. The company owns a licensed portfolio of brands together with SeaWorld®, Sea Rescue® & Busch Gardens® (SeaWorld Parks & Entertainment Inc, 2019b).
The park’s collection of oceanic mammals have been a subject for public debate over years, the controversy of 2010 in which SeaWorld Orlando trainer was killed by one of the park’s orcas which had a previous record of unpredictable and violent behaviour was in heat for years. The documentary film Blackfish which was produced after this incident affected SeaWorld severely (BBC, 2016a). The impact caused to the SeaWorld after this incident and the strategic changes made by the organization will be deliberated further.
The Blackfish Effect
A documentary film was released in 2013 based on the violent incidents concerning an Orca (Killer Whale) called Tilikum. The movie portrayed how the aquatic mammals are ill-treated in the parks, and how they are separated from their parents at their small age (mainly killer whales). The movie grabbed the attention of society, activists and politicians, which led to remonstrations against the capture of orcas in the SeaWorld parks (BBC, 2010b). After these issues, SeaWorld was in the limelight which dipped the attendance ratio of the company. The company’s reputation fell down, and they had to experience severe loss as well. The company had a loss of $1.37 billion in the market, and further, they had to face several issues like loss of partnerships.
In recent times the company has professed they are ending the controversial orca breeding programme. The orcas which are currently present in the parks will be the last generation, along with these pronouncements company also decided to end the orca shows. The company also specified a plan about a $100 million project called “Blue World “that would upsurge the orca habitat at SeaWorld San Diego. In a press released by SeaWorld in 2016, it was stated that new major attractions will be added to attract people from all age groups. The new attractions include new shows and events in park locations, virtual reality experience in Orlando, new rides in most of the parks etc. (Sampson, 2016). The company has invested over $175 million in capital spending, which would be one of the largest and new attraction years. After the controversy, the company has been focusing on building more attractions, educational programmes and animal conservation, rather than focusing on the live animal shows (Sampson, 2016).
The impact of key drivers that influenced SeaWorld to change can be deliberated with the help of PEST analysis. As it is a framework through which macro-environmental factors that influenced the organizational change can be effectively monitored (Koumparoulis, 2013).
Political Drivers: The criticism was increased to a greater extent followed by the release of the documentary film Blackfish. Public display of whales and dolphins are outlawed by different state governments. Orca Protection and Safety Act were signed by the governor of California against the captivity and breeding of Orcas, due to which SeaWorld had to discontinue the Orca breeding and orca shows as well (Hugo, 2016).
Economic Drivers: Followed by the political pressures, the company had to face a major economic downfall in the forthcoming years. Rendering to the SeaWorld Entertainment Inc. Report, the company experienced a fall of 84.5% in the second quarter income. Company was only able to net $5.8 million for the year 2015, after $37.4 million revenue in the year 2014. The prime reason for the economic fall of the company is the dip in visitor turnout, company had to publicize that they are discontinuing the breeding of killer whales (Rhodan, 2015).
Key Drivers of Change
Social Drivers: Orca shows were the prime and renowned attraction of SeaWorld, but the recent involvement of politicians and animal rights activists required SeaWorld to discontinue the orca shows and send them to their natural habitat (SeaWorld of Hurt, 2019). So the societal drivers enforced SeaWorld to stop the orca shows and focus on other attractions (rides) and educational programmes that would attract more audience (SeaWorld Parks & Entertainment Inc., 2019c).
Technological Drivers: SeaWorld has capitalized in new projects and attractions with technological advancements. The company is now focused on natural and educational displays which are gaining the attention of people, especially families and students (SeaWorld Parks & Entertainment Inc., 2019c).
The current position of the company can be evaluated with the help of SWOT analysis, through which current strengths, weaknesses, opportunities and possible threats to the company could be identified (Haile & Krupka, 2016).
Strengths: The strengths of SeaWorld Parks are:
- The company operates more than 11 theme parks throughout the USA, and some of them operate throughout the year.
- It is the 9thmost visited amusement park of US.
- The shows in the SeaWorld Parks are unique as compared to the other amusement parks in the USA. Thus, attaining a competitive advantage.
- Variety of rides, attractions and shows in all the locations of SeaWorld (SeaWorld Investors, 2017).
- The company employs more than 24,000 employees countrywide (Statista, 2019).
Weaknesses: The current weaknesses of SeaWorld are as follows:
- The number of rides in SeaWorld parks is fewer as compared to the competitors in the country.
- The ‘Blackfish effect’ impacted SeaWorld’s reputation severely, the revenue drop and attendance dip are some of the prime weaknesses that SeaWorld has.
- SeaWorld’s renowned orca shows were discontinued mainly due to political and social drivers.
- The SeaWorld is not as much popular as in the USA.
- The seasonal operation is most of the theme parks (Bob, 2016).
Opportunities: Following are the opportunities available for SeaWorld:
- Effective use of media could be one of the prime prospects the company can make use to project a new vision of the company.
- The parent company’s experience in operating theme parks would also be an opportunity to be successful in the marketplace.
- The new rides and attractions planned by the company is also an opportunity to attract more visitors from the country.
- The company could also focus on international visitors by planning and introducing new programmes and attractions that would attain global attention.
- New pricing strategies adopted by the company would attract more customers from the nation.
Threats: Possible threats to the current position of the SeaWorld are:
- Competing against other theme parks by introducing new rides.
- Heavy investments on new rides would lead to debts.
- Political and legal influences.
- Animal containment laws (The Guardian, 2019)
SeaWorld is a prominent company that has a very strong customer base across the US. The impact of Blackfish effect dipped SeaWorld’s revenue and attendance severely. The political, social and legal forces influenced the company to discontinue their renowned orca shows which were the prime attraction of SeaWorld, consequent to this effect the customer base of the company had to face severe loss. Followed by these consequences SeaWorld had to experience heavy loss in the business (Verhoeven, 2015). The company has now directed their focus towards presenting new rides, hosting educational shows and other attractions. Through these steps, the company believe to repossess their reputation in the marketplace which was once lost due to the Blackfish effect.
The strategic recommendations for the SeaWorld could be evaluated from the PEST analysis and SWOT analysis led to comprehend the drivers that influenced change in the company and to scrutinize the current situation of the company. Some of the risk factors are elaborated in both of the analysis through which strategic commendations could be effectively derived. The strategic recommendations for SeaWorld mentioned are as follows:
- SeaWorld should focus more on retaining their reputation in the marketplace and they should focus more on branding rather than focusing on the business at this point of time. As branding makes an unforgettable impression on the customers and lets the clients and customers distinguish what to expect from the company.
- Even though SeaWorld is capitalizing heavy amounts for new rides and attractions, they should make sure that the pricing of the tickets is low as compared to the other competitors in the marketplace. There are many other competitors across the US who have more number of rides and attractions as compared to the SeaWorld. So, the pricing strategy must be effective in order to fascinate people.
- Display shows could be organized for educational purposes with the existing species living in the marine park. This should be organized adhering to the guidelines given by the government. SeaWorld should use display advertising as an intermediate to convey people about their new shows and also the special offers and discounts that the customers would be offered. The company must portray the changes that they have made in their way of operation and they care for natural habitat as well.
- The company should focus on creating programmes and attractions that grabs international attention, through which tourists around the globe would be attracted to the company. They should develop new strategies to gain international attention, and tourist packages must be cost effective as well.
SeaWorld has already declared that they are going to discontinue their orca shows, which is one of the prime factors which shows that SeaWorld is on the right track (Zaveri, 2018). The company needs to focus on the social and economic drivers in order to retain their brand esteem. The company should strictly follow ethical business practices in order to attain stability in the marketplace and to earn the reputation as well. The ratio of employee turnover is high in the organizations which follow unethical business practices which affect the productivity of the company. Therefore, SeaWorld should uphold ethical business practices in order to attain stability and reputation, through which more stakeholders would be attracted towards the company (Miheli?, et. al., 2010).
PEST Analysis
To move forward as a successful organization SeaWorld must overlook the Blackfish effect and try to focus on the strategies through which the organization can achieve better sustainability in the future. The first step should be creating a mutual vision of the future, including the goalmouths, plans, outcomes & the strategic projects. The company could develop teams for study, plan and execution of the strategic plans (Sanyal & Hisam, 2018). The company can regain their prominence and reputation in the marketplace as it was earlier; this can be done if the company operates not only from a business perspective, also by developing brand value in the market.
The company should plan to make use of existing aquatic mammals effectively to gain international attention. They could revise their existing packages and prices and strategize effectively according to the market conditions. Team effort should be more involved to execute the errands, as teamwork provides effective results. The company should look for allies in order to achieve better sustainability. The company should also consider and think strategically about how to work in a new and innovative manner (Sanyal & Hisam, 2018).
If SeaWorld considers the strategic recommendation deliberated above, they can successfully move forward as an organization and attain a good reputation in the market as well. They should keep ethical business practices first since it can provide better sustainability (Benn, et. al., 2014). Through changing the leadership in the organization, the company can reshape the existing business operations and it could also help in achieving commendable outcomes (Muijs, 2011). Rendering to the SWOT analysis conducted above, SeaWorld has numerous opportunities to accomplish competitive advantage and attain better reputation in the marketplace just because of positive experiences and memories people share with the company since a very long time.
Conclusion
After the release of Blackfish, SeaWorld had to experience several issues in the past few years, including political, economic, social, technological and legal issues. The accusations were mainly for the ill-treatment of the aquatic mammals in the park that were separated from their family at their small age. When an orca name Tilikum killed a trainer in the park just after the performance, SeaWorld faced many accusations about the maltreatment of killer whales in the park. Consequently, the company experienced a heavy dip in turnouts and dropped reputation in the marketplace. By publicizing that the company is discontinuing the orca shows in their parks, company furthered a step to retain their reputation and poised for progress in future. The company needs to develop a shared vision and strategize effectively to accomplish future goals. The company should trail ethical business practices in order to attain sustainability and stability in the marketplace. There are numerous opportunities such as effective use of social media, promotional programmes, aquatic animals etc. which can be used effectively to get the best results. If they trail the strategic plans effectively, they can get the desired results and also they can grab the attention of international tourists as well. Therefore, SeaWorld could accomplish successful business once again in the marketplace if they plan and strategize their future vision.
SWOT Analysis
References
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Bryan, B. (2016) CITI: SeaWorld still has a lot of problems – even without the whales [online]. Available from: https://www.businessinsider.in/CITI-SeaWorld-still-has-a-lot-of-problems-even-without-the-whales/articleshow/51845889.cms [Accessed date 28 Jan 2019]
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Sanyal, S. and Hisam, M.W. (2018) The Impact of Teamwork on Work Performance of Employees: A Study of Faculty Members in Dhofar University. IOSR Journal of Business and Management (IOSR-JBM). 20(3), pp. 15-22.
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Verhoeven, B. (2015) ‘Blackfish’ Effect: SeaWorld Suffers Disastrous 84 Percent Drop in Profits in Wake of Documentary [Online]. Available from: https://www.thewrap.com/blackfish-effect-seaworld-suffers-disastrous-84-percent-drop-in-profits-in-wake-of-documentary/ [Accessed date 28 Jan 2019]
Zaveri, M. (2018) SeaWorld Agrees to Pay $5 Million in ‘Blackfish Effect’ Case [Online]. Available from: htthugps://www.nytimes.com/2018/09/19/business/seaworld-blackfish-fine.html [Accessed d 28 Jan 2019]
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