FIVE INDUSTRY FORCES
Porter's
Five Forces are the threat of new entry, the threat of substitution, buyer
power, supplier power, and competitive rivalry. Porter's five forces are used
to identify an industry's competitive force. This will help strategists
understand what makes the industry profitable and gain information on what
choices they should be making and where the money should be spent.
Urban Air experiences a high threat of new entry because start-up companies are
trying to attract the same clients. These new start-up companies might have
better equipment or offer better services. Next, we have the bargaining power
of the buyer, which would stand at a medium rate as the prices for Urban Air
vary. Urban Air offers different packages, and with those packages, they have
different prices and offer various activities.
The
bargaining power of suppliers stands at a medium rate, and the suppliers for
Urban Air include any manufacturers, developers, and technology being used.
Urban Air has unique suppliers, developers, and technology that are made to
help the industry grow and balance its power. Suppliers must provide moderate
bargaining power, especially if they are providing essential
products.
Urban Air
stands on a medium rate on the threat of substitutes as there might be other
affordable options. One of the unique things that Urban Air does is hold
birthday parties at their locations, making them stand out. They provide
different packages, making it difficult for them to change. The last thing we
have is competitive rivalry, which is considered high as there are new
up-and-coming trampoline parks, and this puts Urban Air at a high risk for
competition. Companies invest all their time and money in collecting data to
see how to improve their company.
Urban Air is a profitable industry because it attracts many people to its parks. Families host parties, and kids spend most of their time there during the summer. Urban Air makes a considerable profit, and the industry is seeing an increase in its earnings.
COMPETITIVE
STRATEGY
The
competitive strategy that Urban Air Adventure Park uses is Industry-Wide
Differentiation. Although many similar companies exist, Urban Air has been
rated the #1 trampoline park in the country for the past four years. With
exceptional service across each franchise location as well as top-notch
products. Urban Air also provides various marketing strategies to set us apart
from the competition:
§ All-day
play sessions: Affordable day passes with unlimited access to all
attractions.
§ Membership:
Monthly plans that offer exclusive perks like discounted rates, special event
access, and priority booking.
§ Birthday
Parties - Customizable birthday packages, including private party rooms,
dedicated party hosts, themed decorations, and unique birthday jump sessions.
§ Family
Day Discounts - Offering discounted rates for families with multiple children.
§ Student
Nights - Hosting weekly student nights with discounted rates for college
students.
§ Theme
Nights - Hosting themed nights such as Glow Nights, Toddler Time, and Dodgeball
Tournaments to attract different demographics and keep offerings fresh.
Furthermore, organized seasonal events like Halloween Costume Jump or Holiday
Jumperama with special activities and promotions.
§ Online
Customer Engagement - Engaging with the community on social media platforms
like Instagram, Facebook, and TikTok with engaging content, behind-the-scenes
glimpses, and user-generated content. Maintains an active presence on review
platforms like Yelp and Google My Business, encouraging satisfied customers to
leave positive reviews.
§
Many of our competitors can not keep
up with the satisfaction rates that we endure daily. For example, In 2021, a
new competitor recently opened up their first location 5 minutes from one of my
locations. When they opened, we had a slight dip in walk-in rates, people
wanting to cancel their memberships simply because they saw a newer and what
they thought was a better business, which could have been confirmed. Shortly
after they had opened, we skyrocketed a 46% increase in our customer walk-in
rates because this newer company had changed their daily pass prices two weeks
after being open from $39.99 to $56.99 per person for 2 hours. Once Urban Air
had seen these changes that they had implemented, we changed our membership
prices from $30 per month(per person) to $13.99 per month (per person), and our
2-hour daily passes became All Day Play Access for $30.00. Since then, they
have started to plummet and have been losing customers day in and day out.
Because of our competitors, we have gained customers and continue thriving.
VALUE CHAIN
Urban Air has stood out for being an indoor park to enjoy with the family, offering an exciting atmosphere and safety. The park has various attractions for all ages, including trampolines, climbing walls, tube playgrounds, dodgeball, and virtual reality. In addition, customers can enjoy snacks in the park's cafe.
Urban Air
is a successful company not only because it has incredible attractions but also
because of its business model, which gives value to the company. The main
activities in Urban Air's value chain can be broken down as follows:
§ Inbound
logistics: This involves receiving the materials
such as the safety equipment like the harnesses and helmets for the climbing
walls, trampolines, cleaning products to keep the facilities clean, employee
uniforms, and the food and beverages sold in the cafe.
§ Operations: This is
the most fundamental part of the chain value of Urban Air as they maintain the
equipment, supervise safety regulations, manage the staff, and offer services
such as memberships and birthday parties.
§ Outbound
logistics: This involves providing clear and
proactive communication to customers throughout the outbound logistics process,
such as information on how to use the facilities check-in process.
§ Marketing
and Sales: Promote the park's activities and
services to attract customers through social media advertising, exclusive
events with schools, and promoting events with local organizations.
§ Customer Service: Urban Air provides customer support and quality service, such as handling customer complaints, providing the necessary information about the safety and use of attractions, managing memberships, and offering party service packages.
To ensure
Urban Air's ongoing success, there are business processes that must be
implemented to have good functioning, such as:
§ Staff
recruitment and training process: Urban Air does not require work
experience as the company trains staff on all safety procedures, supervising
activities, customer service, and park operations.
§ Marketing Process: Urban Air plans, organizes, and executes marketing campaigns through its virtual platform, social media, and local activities to attract more customers. One of the strategies used is to create field trips for local schools, handle customer reviews, and provide free subscriptions to receive emails about new events and discounts.
INFORMATION SYSTEMS
Urban Air
Trampoline and Adventure Park relies on a sophisticated array of information
systems to manage its diverse operations effectively. At the core of its
digital infrastructure is a comprehensive point-of-sale (POS) system that
handles various transactions seamlessly. This POS system facilitates ticket
sales, concession purchases, and merchandise transactions, streamlining the
customer experience. It's designed with robust security features to ensure the
confidentiality and integrity of financial data, creating a secure environment
for the company and its patrons.
Urban Air
employs an advanced online booking platform in tandem with the POS system. This
platform allows customers to reserve spots, schedule parties, and purchase
tickets remotely. The integration between the POS system and the online booking
platform ensures real-time updates on availability and accurate tracking of
reservations. This enhances customer convenience and optimizes park capacity
and resource allocation. The company's commitment to customer satisfaction is
further exemplified by its utilization of a sophisticated Customer Relationship
Management (CRM) system. This CRM system consolidates customer data, enabling
personalized interactions and targeted marketing campaigns. By understanding
customer preferences and behaviors, Urban Air can tailor its services,
promotions, and engagement strategies, fostering stronger connections with its
clientele.
Inventory
management is another critical aspect of Urban Air's information systems. The
company efficiently tracks and manages its supplies, merchandise, and equipment
through specialized software. This not only aids in maintaining optimal stock
levels but also supports strategic decision-making regarding procurement and
resource allocation.
In
summary, Urban Air Trampoline and Adventure Park's reliance on a sophisticated
suite of information systems reflects a commitment to operational excellence,
customer satisfaction, and safety. From seamless transactions and online
reservations to personalized customer interactions and robust security
measures, these systems collectively contribute to the park's success and
positive customer experiences.
PRODUCT OR PROCESS IMPLEMENTATION
Urban Air
already maintains a stable competitive advantage through product and process
implementations by regularly introducing new attractions and experiences to
keep their offerings fresh and exciting. They continuously improve existing
attractions and services by upgrading equipment, enhancing safety measures, and
introducing new theme parks. This sets them apart from competitors as they
create a more personalized environment.
Aside from
membership plans to lock in customers and buyers, many competitors may offer
party packages. Urban Air differentiates its package by offering theme parties
with decorations and activities tailored to specific themes. While many
companies offer party packages, Urban Air differentiates their package by
offering theme parties with decorations and activities that tailor them to particular
themes. This sets Urban Air apart from competitors who offer standard party
packages and appeal to customers looking for a more customized and memorable
experience for their children's parties.
However,
exploring other ways to gain a more competitive advantage may be beneficial.
For instance, Urban Air could introduce a new experience that combines their
existing trampoline adventure park attractions with a virtual reality
experience. This could include VR stimulations for extreme sports or fantasy
adventures, adding a new dimension to their entertainment offerings and
attracting customers looking for a more unique and immersive experience.
While
Urban Air is doing a fantastic job interacting with customers on social media,
it could enhance its service by implementing a mobile app that allows customers
to book and manage their visits easily. The app could include digital waivers,
online booking, and a personalized rewards program. Urban Air can increase
customer loyalty and retention by providing accessible and convenient ways for
customers to interact with the brand. Furthermore, an app could serve as a
community for kids and improve their overall experience. An app could allow
children to connect, share their experiences, and make new friends. Children
could use the app to scan QR codes around the parks to unlock special discounts
and track their achievements to unlock discounts or unique content to earn
points or trophies. This could incentivize kids to explore different park
areas, making the app more engaging and encouraging repeat visits.
To further
improve their competitive advantage, they could establish alliances by
collaborating with other businesses, such as local restaurants or entertainment
venues, to create unique customer offerings. For example, Urban Air can partner
with nearby restaurants to offer discounted meal packages for customers who
visit both establishments on the same day, providing added value and incentive
for customers to choose Urban Air.
