With Parken Sport & Entertainment’s (PSE) aggressive growth strategy the amount of media publicity has been risen sharply in recent years. This media coverage has not only been of the positive kind. In the attempt to make PSE independent of how it goes FC Copenhagen on the pitch, the company has diversified its business, so it now includes both handball, water park, cottages and fitness. This expansion has meant that turnover has doubled while the debt is more than tripled in two years. This increase in debt has created doubts among analysts about how healthy PSE is as a company. Some believe that they have acquired the subsidiaries too expensive, while others have doubts about the viability of buying. While PSE may have acquired companies too expensive, they have subsequently been forced to shed significant amounts of money into the companies to meet PSE's quality standards. After the takeovers it is not only the financial market that has been changing, also the markets in which the subsidiaries operates in have undergone change. If you look at the fitness market which FitnessDK operates in, the market has changed radically after the acquisition. At the time of buying, the market was driven by a few players who do not challenge each other on prices and sequestration period. Subsequently, low-cost chains had its entrance into the Danish market and have removed the sequestration period, which was a security in the revenue, and has further lowered the prices tremendously in training. Therefore FitnessDK also lowered their prices and removed their sequestration period to maintain competitive and remain the preferred Danish fitness chain. All these factors have created uncertainty on how well equipped PSE is in a future where the financial market is declining and where the individual Dane may have less money to the entertainment and comfort that Park Sport & Entertainment's subsidiaries offer. These uncertainties have been followed up by the press of critical articles with headlines such as, "Parken- companies must take care for themselves" and "ailing fitness chain threatens Parken's economy." The future is not only dark for PSE; as some of its subsidiaries are able too take care of themselves. In this paper it has been proven that Lalandia is prepared to continue standing strong in the future. Lalandia has a strong market position in the market for entertainment and holidays. This position has been created through a good product and strong marketing. Together, this has created a strong brand and a place in the Danish awareness. So the future for the two companies is very different which is been proven throughout this paper.
|Educations||MSc in Finance and Accounting, (Graduate Programme) Final Thesis|
|Number of pages||91|