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Siam Park City: Can Affordable Pricing be Profitable?
The case is set in November 2013, when Siam Park City - one of Thailand's biggest Amusement Park and Water Park - was celebrating its 33rd anniversary. Siam Park City was born out of the vision of Chaiwat Luangamornlert, a successful businessman who wanted to build an amusement park and water park for the people of Thailand that was of international standard, but yet available to the average Thai at an affordable price. With affordability as the cornerstone of the business philosophy, the park's entry fee was pegged at 'a reasonable price', with heavy discounts offered to Thai residents. Visitors also spent very little inside the park. This pricing strategy proved unsustainable for a business that had high set-up and operating costs, and the park suffered financial losses for more than two decades, ultimately leading to its bankruptcy. The financial loss was further aggravated by reputation loss, following two accidents in the park. Understanding that the park required a leadership change, Chaiwat stepped down from the helm in 2008 and handed over the reins of the business to his children. The new management team revamped internal operations and worked to diversify the park's customer base. The changes ushered in a new era for the amusement park - business improved and the company even earned a modest profit in 2012. Looking ahead, the new management faces the challenge of making the business financially viable over the long term, keeping in mind his founder's principles to keep the park affordable and accessible to locals. -
Unilever Platinum Stores: Building a Brand for the Community
Ratchtar Karasuddhi, the head of business development for general trade at Unilever, has an idea to assist a flood stricken owner of a local neighbourhood convenience store. He believed that with some upgrading and better visibility, the shop could be revived and become an alternative to the nearby modern trade convenience store. What started out as a simple wish to help a single distressed shop owner soon spawned into a viable business idea that would benefit the local community and the company. The number of Star Stores, or Platinum Stores as they were called within Unilever, expanded rapidly - the first outlet was inaugurated in March 2012 and there were 7,800 Platinum Stores by July 2014. The frenetic growth in the number of stores eventually affected business execution, as the operations side struggled to cope with the openings of four to five new outlets daily. Each store required the full engagement and cooperation of the shop owner, a customised planogram, and training and capability building of the shop owner. What is necessary for the sustained success of Platinum Stores in Thailand?