Quote:
Originally Posted by BlueJay
In Business, it doesn't get much better than this when you have the option to market against yourself, when your really not marketing against yourself.
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This scenario really doesn't apply if you are adding substantially to your fixed costs to access the same market segment and pool. There are times when you can create 2 different brands for essentially the same product or service, but this is an advantage only when you are achieving significant cost savings sharing a single set of costs. I don't see how a second waterpark owned by Proslide will achieve those savings. Each location has its own high set of fixed costs-infrastructure, land etc..
It makes little business sense from my point of view to have 2 waterparks owned by one company in the same market. The only reason to do so might be a temporary measure to force out the competition or if they plan to close Mont Cascades and eventually run with a single site. The waterpark market is constrained enough by the short season, operating 3 parks in a market-I can't see the profitability in that over the long term. So, for one company to open 2 locations-there has to be other objectives than profit in the near term.