Case Analysis Six Flags

1678 Words4 Pages

Six Flags is synonymous with thrills, laughter, and screams of joy. However, in June, 2006, investors were not laughing. As KMGH Denver reports (2006), shares of Six Flags Inc. dropped sharply on Friday when debt rating agencies lowered their outlooks on the amusement park operator after it said attendance and revenues had fallen. (para 2).

BACKGROUND

The Six Flags “History” website (2011) states throngs flocked to Six Flags over Texas when the park opened in 1961. Six themed sections, modeled after the culture of the six countries whose flags flew over Texas during the state’s colorful history, created a spectacular and magical setting for guests – and provided the park’s name. The inventive theming afforded guests a chance to experience places and times that previously only existed in their imaginations, including cowboy culture, French and Spanish cultures, and even southern belles and pirates. (para 4).

Six Flags built two other parks in the late sixties and early seventies. These three parks would be the only theme parks opened and constructed under the Six Flags name. When deciding on a strategy, the organization chose a strategy of growth. The plan was to purchase smaller, existing amusement parks across the globe. At one time, Six Flags acquired and operated 46 parks, with the majority of the acquisitions occurring in the late 1990s. The new parks carried the Six Flags name, but the theme of the original park was not carried over. Each new park was individualized, including one that operated an attached Sea World, and another an aquarium. The organization did, however, add waterparks to most of the facilities that did not already have one available.

According to Wheelen & Hunger (2010), [Bill] Gates began buying Si...

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...rott, E. (2009). Six Flags files for bankruptcy. Retrieved from

http://articles.moneycentral.msn.com/Investing/Extra/six-flags-files-for-bankruptcy.aspx.

KMGH Denver (2006, June 23). Six Flags considers selling Elitch Gardens, Money. Retrieved

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http://www.thedenverchannel.com/money/9415831/detail.html?rss=den&psp=money

MSN Money. (2011). SIX. Retrieved fro

http://investing.money.msn.com/investments/stock- price?symbol=SIX.

Shapiro, M. (2005). Six Flags' New CEO Outlines Strategy. Retrieved from

http://articles.latimes.com/2005/dec/15/business/fi-sixflags15.

“TEA/ERA theme park attendance report”. (2007) Retrieved from

http://www.connectingindustry.com/pdfs/TEA-ERAAttendance06.pdf

Whellen, T. L. & Hunger, D. J. (2010). Strategic management and business policy: achieving

sustainability (12th ed.)

Upper Saddle River, NJ: Pearson Prentice Hall.

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