S.W.O.

T Analysis and PESTLE Analysis of KidZania Manila

An Undergraduate Business Analysis

Presented to
Professor Roland Blasco
SAN BEDA COLLEGE - ALABANG
Muntinlupa City

In Partial Fulfillment
Of the Requirements for the Course Subject
BAC106RZ- BUSINESS POLICY AND STRATEGY

Presented by
Elyza Nicole Agarap
Lorenzo Cipres
Quendrick Keith Surban

February 01,2018
 MISION
“To feature the very best educational entertainment experience in role-playing for our visitors
and deliver the most effective interactive medium of communication for our industry partners
while promoting the most recreational and supportive development environment for the future generation”

VISION
“Our vision is to ignite the hearts and minds of kids everywhere by empowering them to make the world a better place.”

COMPANY BACKGROUND
WHAT IS IT?
KidZania Manila is the first Edutainment [Educational Entertainment] amusement theme park in the
Philippines. It is one of the projec ts of one of the newest ventures of ABS-CBN Corporation—the Play Innovations
Inc., which was formed in 2012 strategically located in Park Triangle North in Taguig City. KidZania is one of the most
inventive, most awarded and fastest-growing kid’s educational entertainment concepts.

KidZania Manila operates like a real city that is built to

the scale of children, complete with paved roads and vehicles,
buildings and establishments, a functioning economy and its
own currency. This amusement park is designed for childr en
aged 4 to 14, housing more than 55 establishments most of
which are sponsored by real brands (Like BPI, Mcdonalds,
Goldilocks, Jollibee, National Bookstore, Cebu Pacific, etc) with
over 70 role play activities. A place where children have the
opportunity to play the different kinds of jobs in the Philippine
industry.

WHY DID THEY BUILD THE BUSINESS?

Kids are most receptive when they are having fun. Play is a child’s way
of engaging and making sense of the world. KidZania has taken the timeless and
universal form of play - roleplaying and built a functioning city around it.

By blending reality with entertainment, KidZania provides an authentic

and powerful developmental experience, preparing kids to understand and
manage their world. Through adult professions and hands-on exposure to the
working world, kids learn about the fundamentals of financial literacy and how
society functions. They learn the value of independence, empowerment, and
leadership and become aware of the benefits of involvement in their communities. By offering a powerful
developmental experience in which reality and entertainment intersect, KidZania empowers children life skills that
help them understand and manage the world they are growing into.

A. SWOT ANALYSIS
 STRENGTHS
1. Pioneer in the Philippine industry
INTERNAL ENVIRONMENT
2. Unique educational service
3. Wide variety of services and activities
for customers
4. Fun, safe and realistic facility
5. Partnered with well-known brands
6. Promotes business and ethical values
7. Publicly accessible
8. Technologically advanced
9. Massive profit margin increases
10. Quality materials and customer
support
OPPORTUNITIES
1. Extinguishment of the “School
Fieldtrip ban” by CHED
2. Increase in buying consumption
power of customers due to the
EXTERNAL ENVIRONMENT
reformed income tax rates
3. New technological innovations and
advancements available in the
Philippine industry
4. Boom of social media and other
internet-based marketing
5. Growing economy of the Philippines
6. Wide availability of expanding
facilities and operations
7. Larger demographic markets in the
business
8. New service platforms and
innovations that can be added to the
business
STRENGTHS
WEAKNESSES
1. Stagnant marketing efforts
2. Limited co-brands and partners
3. Negative Working Capital
4. Shortage in manpower
5. Parents/Elders are left behind with the
experience
6. Has a small competitive facility size
7. Brand reputation is still adequately low
THREATS
1. More companies are entering the
family entertainment industries
2. Other businesses that may serve as a
substitute for entertainment such as
theaters, malls and the like that provide
low cost but with equal satisfaction
3. Tax reform for acceleration and
inclusion might affect raw material
costs
4. Close pricing gap between competitors
5. Increasing innovation levels of other
theme parks in the Philippines
6. Abrupt changes in customer
preferences and taste
 1. Pioneer in the Philippine industry – first in the amusement theme park industry offering
“Edutainment”
2. Unique educational service- only business that offers an amusement theme park
emphasizing on role plays and activities promoting education, experience and
entertainment
3. Wide variety of services and activities for customers- offers about 70 unique role-playing
activities
4. Fun, safe and realistic facility – they offer an establishment that has an authentic business
atmosphere fit for children where security of customers is the first priority of the business
5. Partnered with well-known brands- the company is supported by leading brands in the
various industries in the Philippines
6. Promotes business and ethical values – children are guided to become individuals with
the morality of that imposed in the business world while the essence of fun is not
disregarded
7. Publicly accessible- it is in Taguig where most mass transportation is widely available
8. Technologically advanced- services offer the most recent and updated machineries and
equipment to be used in their service to the customers
9. Massive revenue increase – revenues keeps rising as a newly-typed business in the
Philippines
10. Quality materials and customer support- the business is backed up with the most reliable
and top of the line business materials (ingredients, utensils, arts and crafts material, etc.)
supported by highly trained employees with competency and ethical aptitude.

WEAKNESSES
1. Stagnant marketing – low efforts in marketing platforms and strategies
2. Limited co-brands and partners – they only offer one company’s brand per role-play
activity. For example, they only pair off with Air Asia as their airline co-brand and have no
alternative brand within this sector (airlines) to accommodate and further broaden the
variety of the services provided.
3. Negative Working Capital- the current liabilities of the company exceed the current
assets of the business indicating risks in the liquidity condition of the company
4. Shortage in manpower – each activity is handled by only 2-3 employees while providing
learning experience to 1 batch composing of 6-8 children, thus lessens the opportunity of
some children to be attended and guided.
5. Parents/Elders are left behind with the experience – parents role in the facility is to
superve their children and cannot personally experience the service that KidZania is
offering
6. Has a small competitive facility size- compared to other theme parks, the facility only
operates in a building-format environment

OPPORTUNITIES
 1. Extinguishment of the “School Fieldtrip ban”- this will help the company attract more
schools and universities to try their service and develop the concept of “edutainment” in
the Filipino educational system.
2. Increase in buying consumption power of customers due to the reformed income tax
rates.
3. New technological modernizations and advancements available in the Philippine
industry- there are now more sophisticated and entertaining means of introducing
education to the children this days.
4. Boom of social media and other internet-based marketing- KidZania may use the
internet to further expand their reputation in the different areas of the Philippines.
5. Growing economy of the Philippines.
6. Wide availability of expanding facilities and operations- opportunity of a growing facility
may help the company meet the demands of the market, in terms of number of customers
7. Larger demographic markets in the business- this include markets that KidZania is not
targeting like customers with ages 16 to 18.
8. New service platforms and innovations that can be added to the business – consists of
introducing services not only that caters for the children but also for there parents as they
serve as chaperone.

THREATS
1. More companies are entering the family entertainment industries
2. Other businesses that may serve as a substitute for entertainment such as theaters, malls
and the like that provide low cost but with equal satisfaction
3. Tax reform for acceleration and inclusion might affect raw material costs- due to the
increase in oil excise tax, sweetened beverage tax, etc.
4. Close pricing gap between competitors – theme park prices have a close approximate
related to the prices of their services
5. Increasing innovation levels of other theme parks in the Philippines – nowadays, ocean
park, Philippine national museum, Star city and Enchanted Kingdom has been mustering
up new and unique platforms that differentiates their businesses
6. Abrupt changes in customer preferences and taste- more and more customers can be
persuaded easily by slight changes in the business environment or other factors such as
location, transportation, additional costs, etc.
 B. PESTLE ANALYSIS

 Newly imposed tax rates will likely render the price of transportation and other input goods

P
higher. KidZania Manila will incur larger costs and may pass it to their consumers by increasing
ticket prices after considering price sensitivity.
 End of Contractualization which would ramp up the personnel costs for the company because
medical insurance and benefits for each worker will be mandatory.
 Legislation that exponentially lowers the paid-up capital requirements for foreign
corporations, thus, more competitors can eat up the market share of KidZania Manila
Political  Proposed “Build Build Build” project by the incumbent president improves accessibility and
improvement of quality of living may be a great catalyst for KidZania Manila.

 Robust 6.6-7% Philippine economy growth rate, KidZania Manila is poised to enjoy economic

E
stability and scratch off macro-factors on its company risks.
 Increase in employment rate will be solved by the insufficiency of personnel of the company.
 Healthy economic backdrop can substantially influence tourist visits and drive off sales
 Arrival of Train Law would bolster disposable income of family households and thus, potential
customers will drastically increase as more families will be able to afford KidZania services.
 Low inflation rates coupled by stable interest rates suggest low volatility for the input prices
Economical which will give room for expansion because borrowing money will just require acceptable
interest rates.

S


Social &
Cultural

T
 KidZania can heavily capitalize on the rapid changes in technology
 The rise of artificial intelligence will be a convenient tool for the company in the
performance of its services. (Ex. Robots and machines can assist on teaching and interacting
with the kids.)
 Automation can substitute some clerical operations of the company bringing down costs
Technological especially after the end of contractualization
 Growing internet reach may allow larger advertisement to reach for the company, the
Filipinos from the rural areas can be cognizant of the existence of the kid-sized city
 L


Legal

E


Environment

REFERENCES:
Abadilla, Doris Dumlao (January 2018) “2018 GDP growth seen at 7-7.5%, PSEi at 9,400”. Retrieved from
http://business.inquirer.net/243532/2018-gdp-growth-seen-7-7-5-psei-9400

ABS-CBN news (December 14,2017) “'Build, Build, Build' program seen to drive 2018 GDP growth: economist”
Retrieved from http://news.abs-cbn.com/business/12/14/17/build-build-build-program-seen-to-drive-
2018-gdp-growth-economist

Advisorgate.com (nn) “KidZania - SWOT analysis. Strength, Weaknesses, Opportunities, Threats”. Retrieved from
http://swot.advisorgate.com/swot-k/21675-swot-analysis-kid zani a.html

Banko Sentral ng Pilipinass (nn) “Inflation Rates” Retrieved from http://ww w.bsp.gov.ph/s tatistics/s pei_new/ta
b34_inf.htm

Jaymalin, Mayen (December 29,2016) “New DOLE policy bans ‘endo’ “ Retrieved from http://www.ph ilstar.com/hea
dlines/2016/12/29/1657748/new-dole-policy-bans-endo

Lee, Ken (nn) “Mock proposal for a new campaign idea”. Retrieved from http://ca rgocollective.com/leeken/KidZania

Patajo-Kapunan, Lorna (January 14,2018) “Estate-tax changes under TRAIN law” Retrieved from https://busines
smirror.com.ph/estate-tax-changes-under-train-law/

Reuter Staff (November 9,2017) “Rise of the machines: Philippine outsourcing industry braces for AI” Retrieved from
https://www.reuters.com/article/us-philippines-economy-outsourcing/rise-of-the-machines-philippine-
outsourcing-industry-braces-for-ai-idUSKBN1D90BH

Wong, Alicia (March 2012) “Marketing Project:KidZania” Retrieved from https://prezi .com/3f8cvee2gvda/xxx2/