Harvard Case - Seaworld: Are Animal Shows Sustainable after Blackfish?
"Seaworld: Are Animal Shows Sustainable after Blackfish?" Harvard business case study is written by Joel Gehman, Kelly Lester, Patrick Ng, Jennifer McEwen, Qiang Wei Song. It deals with the challenges in the field of General Management. The case study is 15 page(s) long and it was first published on : Dec 20, 2016
At Fern Fort University, we recommend SeaWorld embark on a comprehensive transformation strategy focusing on redefining its brand identity and shifting its business model away from traditional animal shows towards a more sustainable and ethically responsible approach centered on conservation, education, and research. This involves a multi-pronged approach encompassing strategic planning, organizational change, innovation, and stakeholder engagement.
2. Background
SeaWorld, a renowned marine park operator, found itself facing a severe reputational crisis after the release of the documentary 'Blackfish' in 2013. The film highlighted the ethical concerns surrounding the captivity of orcas and the potential dangers posed to both animals and human trainers. This resulted in a significant decline in attendance, revenue, and public perception. The case study explores the challenges SeaWorld faced in responding to this crisis and the potential strategies for long-term sustainability.
The main protagonists of the case study are:
- SeaWorld management: Facing the daunting task of navigating the crisis, restoring public trust, and ensuring the company's future.
- Animal welfare activists: Advocating for the ethical treatment of animals and pushing for the end of captive animal displays.
- The public: Holding diverse opinions on animal welfare and the role of marine parks in society.
3. Analysis of the Case Study
The case study highlights the need for SeaWorld to address its core business model and re-evaluate its relationship with its stakeholders. Using the SWOT analysis framework, we can identify key factors influencing SeaWorld's future:
Strengths:
- Brand recognition: SeaWorld enjoys a strong brand name with a loyal customer base.
- Expertise in marine animal care: The company possesses significant experience and knowledge in animal husbandry.
- Educational potential: SeaWorld has the potential to play a significant role in marine conservation education.
- Diversification: SeaWorld has expanded into other attractions, such as water parks and theme parks.
Weaknesses:
- Negative public perception: The 'Blackfish' controversy significantly damaged SeaWorld's image.
- Dependence on traditional animal shows: The company's revenue model relies heavily on animal performances, which are now facing ethical scrutiny.
- Limited innovation: SeaWorld has been criticized for its lack of innovation in recent years.
- High operating costs: Maintaining marine parks is expensive, putting pressure on profitability.
Opportunities:
- Shifting consumer preferences: There is a growing demand for ethical and sustainable experiences.
- Emerging technologies: Technology can be leveraged to enhance visitor experiences and promote conservation.
- Partnerships: Collaborating with conservation organizations can strengthen SeaWorld's credibility.
- New markets: Expanding into new markets with a focus on conservation and education could drive growth.
Threats:
- Increased regulatory scrutiny: Governments are increasingly focusing on animal welfare regulations.
- Competition from other attractions: Theme parks and entertainment options are constantly evolving.
- Economic downturns: Recessions can impact discretionary spending on entertainment.
- Negative media coverage: Continued negative publicity could further damage SeaWorld's reputation.
4. Recommendations
SeaWorld should implement the following recommendations to achieve long-term sustainability:
1. Redefine Brand Identity:
- Shift focus from entertainment to conservation: Emphasize SeaWorld's role in marine animal research, conservation, and education.
- Develop a new brand narrative: Communicate a message of ethical animal care, environmental responsibility, and scientific advancement.
- Engage in transparent communication: Be open and honest about animal welfare practices and conservation efforts.
- Collaborate with conservation organizations: Partner with reputable NGOs to enhance credibility and demonstrate commitment to conservation.
2. Transform Business Model:
- Reduce reliance on traditional animal shows: Gradually phase out animal performances and replace them with interactive experiences, educational exhibits, and conservation-focused activities.
- Invest in technology and innovation: Develop immersive virtual reality experiences, interactive exhibits, and educational programs utilizing cutting-edge technology.
- Expand into new markets: Explore opportunities in emerging markets with a focus on conservation and education.
- Develop a sustainable revenue model: Diversify revenue streams through partnerships, educational programs, and merchandise sales.
3. Implement Organizational Change:
- Foster a culture of ethical responsibility: Integrate animal welfare and environmental sustainability into all aspects of the organization.
- Empower employees: Encourage employee participation in decision-making and innovation.
- Invest in training and development: Equip employees with the skills and knowledge needed to support the new business model.
- Establish a strong governance structure: Ensure accountability and transparency through robust corporate governance practices.
4. Engage Stakeholders:
- Communicate effectively: Proactively engage with stakeholders, including the public, animal welfare groups, and government agencies.
- Listen to concerns: Respond to criticism and feedback with empathy and a willingness to address concerns.
- Build partnerships: Collaborate with stakeholders to develop solutions that benefit both SeaWorld and the environment.
- Embrace transparency: Share information about animal welfare practices, conservation efforts, and financial performance.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The proposed strategy aligns with SeaWorld's expertise in marine animal care and its potential to contribute to conservation.
- External customers and internal clients: The new business model caters to changing consumer preferences for ethical and sustainable experiences while empowering employees to contribute to the company's mission.
- Competitors: By focusing on conservation and education, SeaWorld can differentiate itself from other entertainment venues and attract a new customer base.
- Attractiveness: The proposed strategy offers the potential for increased revenue, improved brand image, and long-term sustainability.
6. Conclusion
SeaWorld faces a critical juncture. By embracing a transformative approach that prioritizes ethical animal care, conservation, and education, the company can regain public trust, achieve long-term sustainability, and secure a future beyond the controversy surrounding traditional animal shows.
7. Discussion
Alternative options include:
- Continuing with the current business model: This carries significant risks due to continued negative public perception and regulatory pressure.
- Selling the company: This would be a drastic measure and may not address the underlying ethical concerns.
Key risks and assumptions:
- Public acceptance: The success of the transformation depends on the public's willingness to embrace the new brand identity and business model.
- Financial viability: The transition to a new model requires significant investment and may impact short-term profitability.
- Regulatory environment: Continued regulatory scrutiny and changing animal welfare laws could pose challenges.
8. Next Steps
- Develop a comprehensive strategic plan: Outline the detailed steps for implementing the transformation strategy.
- Secure funding: Allocate resources for investment in technology, infrastructure, and employee training.
- Communicate the new vision: Engage stakeholders and employees in the transition process.
- Monitor progress and adapt: Continuously evaluate the effectiveness of the strategy and make adjustments as needed.
SeaWorld's journey towards sustainability requires commitment, innovation, and a genuine desire to make a positive impact on the environment and the animals it cares for. By embracing these recommendations, the company can not only survive but thrive in a world increasingly demanding ethical and responsible business practices.
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Case Description
On July 19, 2013, the documentary Blackfish was released. The movie claimed to have uncovered a series of animal abuses at SeaWorld and alluded to the negative impact of captivity on orcas, known as killer whales, which had resulted in the harm and even death of whale trainers. Whether real or alleged, such negative publicity threatened to affect the company's image, stock prices, profits, and many of the company's corporate relations. SeaWorld now faced several options in terms of responding to the movie release: ignore it, respond to it, or use it as an opportunity to completely rebrand. Which option would be the best for the company in the long run?
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