Six Flags operates in an industry dominated by some other large theme park venues including Disney and Great Adventure. About $85\%$ of the industry revenue is generated by the $50$ largest companies. Thus, it is not fragmented like, for example, the plumbing industry where no one has a large share. It is common for larger venues to change pricing and to have special attractions to increase attendance and to seek to take attendance and share away from Six Flags parks. There are also substitute forms of entertainment such as cruises and movie theaters and casinos. Gasoline prices have continued to rise. Theme park demand varies with disposable income much as vacations to resorts and hotels vary.

Digital entertainment software and hardware $($as distinct from actual rides like a roller coaster$)$ is now everywhere and constantly changing. As a result, there is increasing pressure to offer more simulations or reality type experiences. There is a benefit to this move in that such rides use less land and software can be changed to change the attraction. The challenge is to keep the thrill, personal feeling of risk, and group interaction in place. Also, the U$.$S$.$ population is aging causing some fundamental changes in the age mix of visitors to parks and the older generation tends to like leisurely activities. There is also an overall trend to year$-$round schooling in the K$-12$ schools.

The U$.$S$.$ is one of the most litigated countries in the world. There are many class action suits for all kinds of reasons including those seeking the award of damages or torts. The size of the awards can be substantial. Government regulations vary from state to state but typically there are age and height regulations for Six Flags rides and some rides can require retrofitting to meet safety requirements. U$.$S$.$ manufacturers who make the rides are far fewer in number than the parks who need the rides. Given that Six Flags is a seasonal business; the need to get new rides in place can involve a lot of logistics issues and pressure.

Those who go to Six Flags and other theme parks are increasingly looking for water rides. There is also increasing pressure to make the rides more thrilling on the part of younger attendees while older attendees tend to want tamer rides and picnic areas. For the thrill seekers, rides can seem tame in a relatively short time. It doesn$$t take long for rides to age too quickly in their eyes. Vampirism is now a hot item, as an example. The mix of those going to a theme park varies with families on certain days and times, young adults on other dates and times, and older adults mixed in with both. Destination based theme parks attract many visitors but, in some cases, there are locals who attend parks regularly.

Team Assignment $$ The external and internal environment $$ SIX FLAGS

Imagine that your team is the top management team for Six Flags Amusement Park in New Jersey. Like any business, Six Flags is faced with environmental issues.

$1.$ Create a list of issues that management must be concerned with in the external environment, ordering them in importance through a PEST analysis. List each factor below in its order of importance with a brief statement of why the first is your major factor. Note what in the description relates to the factor for all.