Business Strategy

Our company is Sky Zone, an indoor trampoline park that encourages a fun way to exercise. Sky Zone offers general admission tickets, as well as birthday party packages, and “skyrobics” which is a fitness class. The manager we will be interviewing is Chris Kryzak, the general manager at Sky Zone Allendale location. Chris Kryzak currently has an associates in Business management, and is in the process of obtaining his bachelor’s degree from Grantham University.

Force	Rating	Reason
Bargaining power of consumers	Medium	Sky Zone created the technology
Threat of substitution	High	Lots of alternatives
Bargaining power of suppliers	Medium	Sky Zone has loyal relationships
Threat of new entrants	High	Harder to enter industry
Rivalry	Medium	Has rivals

The table above describes the five forces for the industry that Sky Zone operates

in with the rating of each as High, Medium or Low. Although looking at the 5 forces analysis of the industry may sway you otherwise, it is indeed a profitable industry.

Bargaining Power of customer (Medium)

Sky zone works hard to build strong relationships with its customers, which allows the customers to have the ability to bargain with the company.

The bargaining power of customers for Sky zone is medium because there are 10 trampoline park in a 30 mile radius, which gives the customer options to go to other trampoline parks; Bounce, Fly High Indoor Trampoline Park, Rebounderz, Air Trampoline. Skyzone continues to maintain and exceed expectations to target and bring in customers.

Threat of Substitutions (High)

The threat of substitute recreational services is high because finding other recreational activities are easy. Some examples of substitutes for Sky zone is Recreational Activities (Hiking, Swimming), Zumba, Ice Skating, Gyms, Laser Tag, Bowling, Other Competitors. Some of these substitutions could actually be free which could potentially damage our customer base if we do not push hard to market the company.

Bargaining Power of Suppliers (Medium)

Bargaining power of suppliers determines how much of an impact suppliers have on a business. Sky zone participates in outsourcing to run their business in a variety of ways.

Food: Sky zone get its food from a number of companies. First off, they get their party catering from Village Pizza. Kohr's Frozen Custard provides ice cream and cakes for the parties that they host. Dairy Queen is also a vendor to supply frozen treats and food for the customers. U.S. Foods is the last vendor of Sky Zone, where the provide food and drinks at the concession stands.

Supplies: All supplies for plastic silverware and paper plates come from Hackensack. We provide all utensils for parties as well.

Medical: When you own a trampoline park, you are going to need medical supplies in case of an emergency. Skyzone provides medical care through Cintas, where Cintas provides medical supplies and safety equipment.

Threat of New Entrants (Medium)

Threat of new entrants determines if a similar new company can enter the market easily. Even though companies can enter and be considered a threat, the industry is oversaturated. Start up cost could be a great deal of money and Return on Investment could potential not be seen.

Rivalry (Medium)

The competition of the rivals around the company have strong influence on the surrounding area of Allendale. There are Six Trampoline Parks in a 20 mile radius making the market saturated.  

Value Chain

Sky Zone meticulously analyzes our product and process implementations in an effort to always better ourselves. Because Sky Zone is the founder of the revolutionary indoor trampoline park, we have experience to back us up in ensuring the highest quality service is provided in an economical fashion. With collaboration of our vendors and employees we have been able to create a system that works like a well-oiled machine that aligns with our competitive strategy.

Competitive Strategy 

 

The competitive strategy that our company follows is industry wide and cost. We have multiple locations around world and our prices low. This addresses the threats from the five factors because we are very affordable to our customers. They come for the trampoline adventures and the substitutes, even though high, won’t take over our main attraction. Our competition isn't as global as us because our expansion has gone from US to Mexico, Australia, Canada and even the Middle East. Our prices attract the consumer because we keep our prices low. We stay competitive with the prices and the type of equipment we use.