Researched and analyzed the Sea World business structure to better learn strategies and business models.

1. EBM Assignment 3
SeaWorld Entertainment
Luis Marciaga
January 26, 2020
Carol Wonsavage, Entertainment Business Models

2. Why I chose this company:
Growing up in Florida, I was constantly interacting with the theme park
industry, frequently taking family trips to Orlando and visiting the parks there, one
of which is SeaWorld. Several years ago, SeaWorld faced immense controversy and
had to entirely redo their business models, and this is what intrigued me to study
more about them. I am considering entering the business world behind theme parks
and seeing how SeaWorld Entertainment handled all that backlash and managed to
stay open seems like a good opportunity to learn the ins and outs of how this
industry works.
Background Information
SeaWorld Entertainment is a theme park and entertainment company
founded by four UCLA graduates, George Millay, Milton Shedd, Dave Demote and
Ken Norris in San Diego, California. The company has several theme parks around
the country that focus on allowing visitors to experience up-close animal encounters
and educational, innovative attractions to inspire guests to celebrate and care for
the natural world around them (seaworldentertainment.com, 2020). The company
opened its first SeaWorld theme park in San Diego in March 21, 1964 and was
originally planned out to be an underwater restaurant before evolving into the
marine zoological park it opened as. Taking over 21 acres of shoreline of Mission
Bay, it began with an investment of $1.5 million, 45 employees, several dolphins, sea
lions, and 2 saltwater aquariums (Niles, 2013). The park was able to quickly expand

3. due to aggressive reinvestment of earnings and having more than 400,000 visitors
in their first year alone.
Following the success of the initial SeaWorld theme park, the company
opened two more parks, one in Orlando, Florida and one is San Antonio, Texas, all
following the same concept of animal encounters with inventive attractions and
entertainment to keep guests coming back. The company focuses heavily on nature
conservation and is marked as “a global leader in animal husbandry, behavioral
management, veterinary care and animal welfare” (seaworldentertainment.com,
2020). For longer than 50 years, Sea World has had Animal Rescue Teams that have
rescued more than 36,000 animals, funded in great part by the revenue made off of
park entries and annual pass sales. Their rescue and rehabilitation programs were
not enough to stave off the controversy they would face in 2013.
The zoological aspect of these parks is what received immense scrutiny with
the release of the documentary “Blackfish” that focuses on a killer whale kept by Sea
World Entertainment. As a response to this controversy, the company sought to
appease the public and restructured their entertainment shows and the training
done with their captive animals as well as push to highlight the educational nature
of their programs. The parks have also seen a large shift towards more thrill
attractions and roller coasters to accompany their zoological aspects and changed
their systems for the breeding and capturing of animals.
Over the years, SeaWorld Entertainment has received several awards and
accolades, but some that stand out are “Presidential Point of Light” by former
President George H.W. Bush and “Best New Attraction” for the opening of the ride

4. Manta in their San Diego location by the National Amusement Park Historical
Association in 2009. The Orlando location also received “#1 Best Marine Life Park”
for 10 years by Amusement Today and the “Manatee Conservation Award” by the US
Fish and Wildlife Service in 2003 (seaworldentertainment, 2020).
Customer Segments
 Families: The main target customers for SeaWorld Parks are families looking
for meaningful experiences and valuable memories, which make up 51% of
their daily visitors (Manby, 2015). The average age of theme park visitors is
41 (John, 2017), though SeaWorld’s daily visitors are made up 32% by
Millennials ages 23-39. The park’s focus on conservation plays a large role in
attracting visitors since research shows 92% of moms want to buy products
supporting a cause and 90% of Millennials are willing to choose a brand over
a competitor because it supports a cause, as well as 78% wanting to learn on
their travels (Manby, 2015).
 Sponsors/Partners: SeaWorld’s customer segment also includes their
sponsors, Coca-Cola, their official beverage, American Express, their official
card, Blue Bunny Ice Cream, their official ice cream, and Bad Boy Mowers,
their official lawn mower. They are also partnered with Ocearch, Guy Harvey,
the Humane Society of the United States, the Everglades Foundation, and the
National Fish and Wildlife Foundation (Partners, n.d.).

5. Value Proposition
Meaningful Experiences: SeaWorld Entertainment offers meaningful
experiences to families and visitors of all ages, having a cause behind every
dollar spent with their company and teaching at every opportunity.
 Thrill Rides: The SeaWorld parks are not just about animal encounters and
education, but offer top class rides rated highly worldwide, making them
wildly attractions for thrill-seekers and adrenaline junkies everywhere.
 Competitive Prices: Compared to their competitors, like the Disney and
Universal theme parks, SeaWorld’s entry prices are highly competitive and
with the development of incredible rides, are becoming an easier choice for
families each year.
 Educational Opportunities: At each of the SeaWorld parks visitors can find a
multitude of educational moments, from informational kiosks around the
animal exhibits, inside looks at veterinary care done in the parks, and close-
up encounter offerings that teach about the care and welfare of the animals
met.
 Conservation Efforts: SeaWorld Entertainment has their own non-profit
conservation fund to help with any and all causes to care for the natural
world. They encourage and inspire their visitors to be more aware of the
world they live on, as well as its inhabitants. From sustainably sourced food
offerings, low-waste systems and their SeaWorld Rescue team, the company

6. does a great job of adding a cause behind their brand and pushing their
message through every endeavor they follow.
Channels of Distribution
 Theme Parks: The only way to experience SeaWorld Entertainment is by
visiting their SeaWorld park locations in San Diego, California, Orlando,
Florida, and San Antonio, Texas. The parks see an average of 12,575 visitors
daily each where they sell branded merchandise, special ticketed events,
dining plans, and up-close animal encounters.
Customer Relationships
 Website: SeaWorld Entertainment’s website is very strong in offering any
information someone could want about visiting the parks, the conservation
efforts they make, and what deals are available at any given time.
 Social Media: SeaWorld Entertainment does a great job of maintaining fan
interactions on their social media account, but particularly on their
Instagram page, where they post daily. Their Twitter and Facebook accounts
are used liked a news blog for their company, announcing accomplishments,
events, or deals to keep consumers aware of what is happening. They have
452k followers on Instagram, 146k on Twitter and 1,896,289 total likes on
Facebook.
 Youth Outreach: SeaWorld Entertainment engages the youth surrounding its
parks by offering several opportunities for interaction, such as their Youth

7. Advisory Council, where the youth of America ages 14-20 can apply to join a
council that gives input and recommendations to the parks about
conservation initiatives, social media outlets, education programs, and
strategies to further reach the youth (seaworldentertainment.com, 2020).
The company also offers summer day camps each year for kids from
preschool to the end of high school, with differing activities defined by age
groups.
 Community Service: SeaWorld Entertainment works very hard on its
conservation programs to help the community there are involved in,
particularly with their SeaWorld Rescue team. This team works nationwide
and is available at all hours, every day of the year to help with all animal
rescue issues they can. They also have a non-profit conservation fund
focused on animal conservation, habitat protection, and ocean pollution.
Their parks only offer foods that are sustainably sourced and humanely
farmed and works with annual beach clean-ups near the parks.
 Merchandise: In the parks there are several branded merchandise products
offered which add another level of revenue to the parks that help
significantly. They also have certain product whose revenue goes directly to
help funding the SeaWorld Rescue team ventures.
 Discounts: SeaWorld Entertainment offers several savings opportunities to
locals to the parks, veterans, and teachers. These deals can be quite
significant, like sometimes giving locals a chance to pay the same price they
would for one day’s admission to have a full annual pass to the par.

8. Key Activities
 Animal Rescue & Release: A backbone to the SeaWorld brand, animal rescue
and release is significant piece of company activities. SeaWorld
Entertainment has a team of rescuers ready every day of the year, 24-hours a
day and since its start, have rescued over 36,000 animals, working with the
government all around the country. (Seaworld.com, 2020)
 Animal Care & Rehabilitation: Beyond rescuing the animals, SeaWorld
Entertainment houses the recuperating animals and brings them to health,
until the point of deciding they are capable of sustaining rehabilitation. The
animals in their parks are made up of rescues or bred animals, their care
being showcased all throughout the parks.
 Animal Training: At the SeaWorld parks, visitors will find trainers handling
the care and enrichment of the animals living there. The training is done for
shows for guests as well as the enrichment for the animals. This training
improves the quality of life of the animals and produces shows to bring
visitors to the parks, as well as animal encounters, like sea lion tricks and
dolphin interactions.
 Marketing: The marketing team of SeaWorld Entertainment is in charge of
every marketing scheme done for the parks. From promoting their rescue
teams and conservation efforts, to redoing the entire public look of the
company after the controversial “Blackfish” documentary was released. The
team managed to restructure the parks to bring in visitors based on ride
attractions, rather than the animal shows people were unhappy with.

9.  Ride Design & Maintenance: As mentioned before, the parks had to
restructure their marketing around their rides instead, and this has created a
strong surge in ride quality and production. The parks have seen their rides
be considered some of the best in the world (John, 2017).
 Website Management: Most theme parks have their own websites to offer
information on their ticket prices, food offerings, etc. It is easy to find park
hours, show times, events scheduled, animal encounters, as well as the
conservation effort information the parks attach themselves to. The site gives
all information a guest could want about their parks and any news that
would be relevant (seaworld.com, 2020).
 Merchandise Development: At the parks, new merchandise is produced
constantly, revolving around their animals at the parks, the rides they have,
and the rescue team. The merchandise made for their rescue team actually
contributes heavily to the funding for their efforts and gives moral
motivation for guests to buy their products.
 Show Production: The parks have had shows based on their animal
inhabitants since its opening, though recently they have been shifting the
methods in their shows to suit the demands of societal morals. Show
productions used to be based more on making the animals, like dolphins and
killer whales jump through loops and push trainers around the pools, though
now are about showing the magnificence of the animals while providing
them mentally stimulating enrichment.

10.  Themed Dining Experiences: When going to a theme park, food provides a
unique opportunity to give more expensive offerings to guests under the
workings of it being themed. From their ‘Dining with Shamu’ plans to their
restaurants based next to a massive shark tank, these set-ups allow the parks
to price their food higher.
 Guest Relations: A major aspect to running a theme park includes guest
satisfaction and happiness. Maintaining clean grounds, positive behaviors
from the staff, generally making sure that the experience is as positive and
satisfactory as possible. This also includes providing good security at the
parks, from guards to stop unruly guests to metal detectors at entrances to
ensure the public safety (Seaworld.com, 2020).
 Educational Program Planning: The parks provide innovative educational
content throughout their spaces, from feeding shows, teaching about the
ecosystems and needs of the animals. They also have summer camps offered
for minors from pre-school until the end of high school, with the educational
content increasing in intensity with age (seaworld.com, 2020).
Key Resources
 Animals: The parks center around being a marine zoological park, making
their animals the most important resource. All around the parks visitors will
see images of their animals and décor heavily inspired by the natural world.
 Animal Trainers & Veterinarians: To maintain their animals, the company
hires on large teams of animal trainers to feed the animals and enrich their
day-to-day lives, as well as veterinarians for the routine medical care of the

11. animals. These are large, very care intensive animals, most rescues in a
rehabilitation stage, and their health and happiness heavily affect the
happiness of guests coming to see them (seaworld.org, 2020).
 Animal Care Equipment: all animals have specialized equipment, for health
care and enrichment. This includes the toys for the animals, training tools,
and medical paraphernalia. This makes up a large portion of the necessary
resources for the company, since they need to be able to sustain the health
and happiness of their main resource, the animals.
 Theme Park Staff: This is the team that keeps the show running. From
custodians to retail and food employees. Also, the ticket vendors and security
workers. Without these people, the parks would not function, and the
company would fall apart.
 Management: To make a system this large function, managers are necessary
to make it all work like the well-oiled machine it is. Making the shows run
smoothly, the animal care to be sustained. Without proper business
management, the finances needed to care for the animals or sustain their
rescue teams would be impossible.
 Rides: From the opening of the park, rides have existed in SeaWorld’s parks,
but since the release of the documentary “Blackfish” discussing the
controversy around the animal shows, rides have become a much more
significant resource to the company. Even the rides include educational
content, with examples like “Mako”, showcasing the fastest shark in the
world and including educational information around the ride lines, and a

12. newer ride at the Texas location that is meant to be an experience
reminiscent of the rescue teams the company supports.
 Animal Enclosures: To care for these animals includes providing properly
sized habitats and enclosures from them. This includes but is not limited to,
the water regulations, landscaping, ecosystem health within each habitat, and
proper maintenance and care. Each animal is studied extensively to
understand what is necessary for their health and has a home designed to
tailor to those needs. Their killer whale habitat houses more than 6 million
gallons, which requires high levels of water conditioning, filtering and tank
maintenance to manage the health and happiness of their key attraction.
(seaworld.com, 2020)
 Food & Drink: When guests come to the parks, one of the main costs for the
visit is food and beverages. This creates a good opportunity for the company
to create a steady flow of revenue to further support the other facets of the
company. This resource is also more beneficial to them since their switch to
more sustainable food, further promoting their conservation efforts.
 Lawyers: Each and every company needs at least one lawyer, from writing up
contracts with partners to handling lawsuits. There have been several
incidences of trainer injuries, or even deaths, at the parks, and never was
there a stronger need for lawyers for the company. (Than, 2010)
 Concert Stages: Around the parks, guests will see concert stages where there
will be the occasional artist who comes to perform. This gives the parks a
new wave of consumers and strong partnerships for the company. Having

13. artists come to perform is a mutually beneficial act, giving park visitor
numbers to the crowds for the show, but also bringing in a new wave of
guests to the park.
Key Partners
 Coca-Cola: this company represents the official drink of the parks, granting
SeaWorld the power to give special deals to the guests and have soda
machines all around the location, making for a more positive experience. This
partnership gives the company cheaper access to the soda machines and
inventory stock necessary for the quantity of guests they need to cater to.
(partners, n.d.)
 Blue Bunny Ice Cream: As the official ice cream to the parks, Blue Bunny Ice
Cream can be seen throughout the theme parks, in the restaurants and shops
as well as the carts being pushed around the area. Having this partnership is
similar to that of Coca-Cola, better inventory prices and better offerings to
guests. (partners, n.d.)
 American Express: SeaWorld Entertainment is partnered with the American
Express company, in a way that American Express card owners earn a higher
percent reward from spending money at the parks than other cards. This
encourages guests at the parks to use their American Express cards, which
increases bank usage and monetary fluctuation for the card company.
(partners, n.d.)
 Bad Boy Mowers: Their next major partner is Bad Boy Mowers, who supply
and maintain the mowers required for maintenance and landscaping at the

14. parks. That much land requires a large amount of mowing regularly, so this
partnership is a substantially good deal for the company. (partners, n.d.)
Cost Structure
 Staff Salaries: One of the main costs to the company is paying their
employees. From the custodians, to the CEO’s, everyone under the company
requires pay and benefits, making up a large portion of the necessary prices
of running the company.
 Food & Drink: stocking enough food and drink to sustain the quantity of
guests per day is a large facet of costs for the parks. From snacks to full
plated dining meals, deserts to main courses, all must be maintained in
proper, high quality stock to be readily available, all while being sourced
from sustainable food producers.
 Theme Park Management: Theme parks require a high level of maintenance,
from caring for the animals to maintaining the cleanliness. This also includes
maintaining the structural integrity of the rides for the safety of guests and
updating decorations to create more positive experiences.
 Animal Care: The animals each require their own specialized form of food,
habitat maintenance, toys and enrichment. This creates a high cost necessity
the company must remember when allocating funds. This also allots money
for the rescue and rehabilitation of the animals their teams care for. All of
these endeavors are not cheap and require a healthy emergency fund as well,
as nature is unpredictable.

15.  Insurance: the company offers insurance plans to every single employee but
must also have some form of insurance to cover their bigger assets, like the
parks themselves and rides.
 Marketing: SeaWorld Entertainment’s marketing schemes need to be highly
competitive to beat out their main rivals, like the Disney brand and Universal
parks. They also have a significant amount of work to do since the marketing
catastrophe brought on by the release of the ‘anti-SeaWorld’ documentary,
“Blackfish”. Their marketing highlights their attractions and conservation
efforts to bring guests through the gates each day.
 Conservation: Another piece of cost structure for the company is the cost of
maintaining their conservation efforts. The investment to solar panel energy,
sourcing food from sustainable sources, or even local sources, and reducing
the amount of waste throughout the park creates a larger overhead cost. The
cost does reap reward though, since the company can use this as an integral
piece of their marketing strategies. (Seaworld.com,2020)
Revenue Streams
 Ticket Sales: SeaWorld park attendance makes up the largest portion, with an
average quarterly revenue being $217 million, for just one park. There are
multiple ticket offerings, from day passes to seasonal, with price deals for
locals, vets and teachers.
 Sponsors: Sponsors to the parks can be seen around the locations, from
advertising or merchandise located in stores. One example is Guy Harvey, an

16. artist whose artwork is constantly featured in the parks and has been
commissioned for pieces for charity work several times.
 Merchandise Sales: Another significant portion of revenue comes from the
merchandise sold at the parks. Whether it be generically marine themed
décor or themed knickknacks and clothing, the parks offer a wide variety of
merchandise for visitors. They can also be found on their website and helps
fund their conservation and rescue efforts. (seaworldparksshops.com, 2020)
 Tour & Animal Encounter Sales: Beyond ticket sales, the parks have offerings
like tours and animal encounters. This adds to the educational and
memorable experiences offered by the company. From full day experiences
to short sea lion encounters, this adds to the parks revenue since it also
comes with the price tag of a park ticket.
 Food & Drink Sales: Guests at the parks are allowed to bring their own foods,
but usually this doesn’t happen. This means that each guest is going to spend
around $15 a plate per person in the family, for usually two meals of the day.
This also includes snacks offered around the parks, like sodas, ice creams,
and chips.
 Intellectual Property Licensing: One of the most recognizable things of
SeaWorld is the character of Shamu. This started as a real killer whale in
their care, but once that whale passed, was a name carried throughout the
parks’ existence. The whales might have other actual names but will still be
the stars of the Shamu shows, the name being carried as a stage name for all
the performing whales.

17. Conclusion
SeaWorld Entertainment’s business models are one of the most interesting to
study in my opinion. Building off of being a marine zoological park was an ingenious
move to offer a unique opportunity to guests unlike anywhere else. The founders’
decision to reinvest heavily from the start allowed their company to outgrow
competition and give them the funds to solidify their brand. Making conservation
and education the two biggest factors of their brand gives the zoological theme park
a note of meaning that most parents and millennials highly value. The hit of
controversy from the documentary attacking their animal shows created a new
opportunity for the company to restructure their brand and made a new mark for
themselves. They are now some of the top theme park ride creators and are known
for their rescue team efforts and community outreach programs. There is still a
strong need to solidify that company rebrand and can be done by further pushing
the educational offerings and conservation efforts. They must make themselves the
faces of conservation among theme parks to become a stand-alone experience that
beats their competition.

18. References
About Us. (n.d.). Retrieved January 12, 2020, from
https://seaworldentertainment.com/about-us/.
account, S. W. V. (2019, November 15). SeaWorld (@SeaWorld). Retrieved January 12,
2020, from
https://twitter.com/SeaWorld?ref_src=twsrc^google|twcamp^serp|twgr^author.
Appold, K. (2019). Apparel Selling Tips: Selling More Wearables at Waterpark and
Theme Park Shops. Souvenirs, Gifts & Novelties, 58(5), 73-78. Retrieved from
http://search.ebscohost.com.oclc.fullsail.edu:81/login.aspx?direct=true&db=bth&AN=
137693549&site=ehost-live
Conservation Efforts. (n.d.). Retrieved January 12, 2020, from
https://seaworld.com/orlando/commitment/conservation/.
Corporate Responsibility. (n.d.). Retrieved January 12, 2020, from
https://seaworldentertainment.com/about-us/corporate-responsibility/.
Investor Relations. (2017). Retrieved January 12, 2020, from
https://www.seaworldinvestors.com/faq/default.aspx.
Manby, J. (2015, November 9). PDF. San Diego.
Niles, R. (2013, July 5). Theme Park History: A short history of SeaWorld San Diego.
Retrieved January 12, 2020, from
https://www.themeparkinsider.com/flume/201307/3552/.
Partners. (n.d.). Retrieved January 12, 2020, from
https://seaworldentertainment.com/about-us/partners/.
SeaWorld. (2009, February 17). Retrieved January 12, 2020, from
https://www.facebook.com/SeaWorld/.
SeaWorld Entertainment, Inc. (SEAS) Stock Price, Quote, History & News. (2020,
January 12). Retrieved January 12, 2020, from
https://finance.yahoo.com/quote/SEAS?p=SEAS&.tsrc=fin-srch.
SeaWorld Orlando (@seaworldorlando). (n.d.). Retrieved from
https://www.instagram.com/seaworldorlando/?hl=en.

19. SeaWorld Theme Park - Florida Aquariums: SeaWorld Orlando. (n.d.). Retrieved
January 12, 2020, from https://seaworld.com/orlando/.
Theme Park Trends Revealed in 2017 Voice of the Visitor Report. (2017, April 12).
Retrieved from https://www.coaster101.com/2017/04/12/theme-park-trends-
revealed-voice-visitor-report/.
White, T.I. (2017). Dolphins, Captivity, and SeaWorld: The Misuse of Science. Business &
Society Review (00453609), 122(1), 119-136. https://doi-
org.oclc.fullsail.edu/10.1111.basr.12112