Situation Analysis

S W O T – Strengths Weaknesses Opportunities Threats

STRENGTHS

1. Hotels – Multi-day Accommodation

For visitors who come from greater distances and who want to spend more than one day at the park, Cedar Point has seven options, including some just a two minute walk from the gates of the park (Hotel Breakers and Breakers Express) and others just a few minutes farther away by shuttle (Sandcastle Suites, Lighthouse Point, Camper Village, Castaway Bay, and Marinas).

These choices make Cedar Point a possible vacaion choice for customers willing to spend longer times in the area.

Also, by owning the hotels, Cedar Point has the ability to coordinate promotions between the park and the hotels.

Hotel Breakers is the original hotel and backs on to a beautiful Lake Erie beach. This is a strength because a lot of people go to beaches to relax after an active day at the park. Some people on longer trips even spend a whole day on the beach.

2. 143 Years of (Safe) Operation

Cedar Point is the second oldest amusement park in the USA. Roller coaster parks do not last that long without a strong safety record. Cedar Point takes safety seriously. It knows that one bad accident could ruin its reputation and its business. Thrill seekers have been going to Cedar Point for over 100 years, and that also shows that Cedar Point must be doing something right.

3. Fast Lane / Fast Lane Plus Passes

Cedar Point gives the customers an opportunity to buy a FAST LANE PASS and a FAST LANE PLUS PASS.

The FAST LANE PASS is a wristband that allows holders to go in a special line for over 20 rides. This special line will reduce waiting times. Wait times can be long, especially for the popular rides such as The Millennium Force and Raptor, and even longer on weekends. Cedar Point does not put a limit on anything you can do with the FAST LANE PASS, but it does limit how many that they sell each day. The price of these passes can start as low as $50.00/person if you buy in advance.

The FAST LANE PLUS PASS offers holders the perks of the FAST LANE PASS and adds the ability to ride on the GateKeeper and Top Thrill Dragster through special lines. Cedar Point only has a limited number of of FAST LANE PLUS PASSES that they sell to customers per day, so you if want the pass you should buy it in advance. This pass can start as low as $65.00 if bought in advance.

4. Ownership of Other Amusement Parks

Another strength that Cedar Point has is that it owns Canada’s Wonderland (Canada) and Kings Island (southern Ohio) – – both within a one-day drive of Cedar Point. This is a strength because Cedar Point can coordinate promotions and even where new rides are built each year. It gives Cedar Point more control over the roller coaster market in the region. Owning Canada’s Wonderland gives Cedar Point the reputation of being an international business.

WEAKNESSES:

1. Limited Space

Also Cedar Point is at the end of a peninsula surrounded by water. As a result, Cedar Point only has a limited amount of space to place new attractions, and do repairs and maintenance.

2. Local Economy

Cedar Point is located close to Cleveland OH and Detroit MI which at the moment have a poor economy.

3. Competition

Another weakness is that Cedar Point has competing amusement parks close to it. Such as Six Flags Great America in Illinois. (But remember Cedar Point owns King’s Island and Canada’s Wonderland.)

4. Distance from Airports.

Lastly a weakness is that the nearest airport is in Cleveland about 100km away. This is a weakeness because if people are coming from further away and they are flying, once they land in Cleveland they still need to travel 100km to get to Cedar Point.

5. The Canada / USA Border

Cedar Point is not far from Ontario. However, not many people in Canada have heard of Cedar Point.

OPPORTUNITIES:

1. Having its customers spread the word.

Cedar Point’s opportunities include using its many visitors from around the world to spread the word about the park.

2. Cross-promoting with Canada’s Wonderland and King’s Island.

Owning three major parks creates an opportunity because it gives Cedar Point more space to work with and it also helps Cedar Point because if Canadians really enjoy Canada’s Wonderland, and they know that Cedar Point owns it they may want to go to Cedar Point to see what it’s all about. Canada’s Wonderland is within a long days drive of Cedar Point. Customers would want to use hotels, which increases their spending at Cedar Point. One possible promotion is Cedar Point advertising at Canada’s Wonderland and also to Canada’s Wonderland season pass holders. If people are flying in, because the airport is 100km away, Cedar Point could start picking up the passengers from the airport and shuttling them to there hotel, like Disney World does. Another promotion opportunity is because Cedar Point is now the owners of both Canada’s Wonderland and Kings Island, they have more space to put up new rides and attractions, also because Kings Island is so close to Cedar Point, if people want to extend there trip they can go to both parks and all of there money spent will help Cedar Point stay in buisness. Also because of this, they have two other parks to advertise, and if they mention that they own the other two parks, they could get more buisness. Also another way that this can be an opportunity is because if you advertise in Canada you can also get Canadian’s to come to the park which also brings money and buisness into your hotels. I believe the Canadian economy is better than the econony in Michigan and Ohio, and so Canada may give Cedar Point more visitors than it has before.

THREATS:

1. Local Economy

One of there threats is because they are located so close to Cleveland and Detroit, they might loose some buisness because those two cities have a really poor and corrupt economy at the moment.

2. Accidents

Cedar Point must continue to emphasize safety. One accident could ruin its reputation.

3. Other New Parks / New Attractions

Cedar Point is in an area where there are many roller coaster and amusement parks. If another new park was to open, it would probably take business from Cedar Point and the others.