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ial sector involved in leisure? ? What types of provision does it currently make? ? What are the implications: ? for other sectors? ? for leisure participants? ? What current trends are evident? 14 Nature of Commercial Sector Involvement in Leisure ? Direct provision of mercial facilities and venues ? Sale of leisure hardware and consumables (homebased leisure, consumer electronics, DIY materials and equipment, sports goods) ? Partnerships (various kinds) ? Sponsorship 15 Extent of Commercial Leisure Provision (after Martin and Mason, 1989) MARKET SEGMENT COMMERCIAL ROLE Reading Most books, newspapers and magazines Viewing amp。 Meadowhall。 Bluewater。 listening Virtually all equipment and software Some broadcast services, most cable amp。 83,937 Million pounds! (163。 casinos, bingohalls。 tenpin bowling alleys。 TV programmes。 First Choice ? Competition intense。 leisure ethos ? Also mercial leisure / hospitality outlets ? Food courts ? Growth in family leisure, some decline in youth market 40 The Multiplex Phenomenon ? Peripheral location (?The leisure periphery?) ? Key ?anchor? ? Secondary spend (food, souvenirs, videos, DVDs, programmes, advertising) exceeds primary spend (cinema admission) ? Still growing – popularity of choice, ?total experience?, high quality sound and vision (IMAX, Dolby, Surround Sound) ? Vehicle access essential, also public transport ? Has reversed decline in live filmgoing 41 Other Commercial Leisure Developments ? Public parks as places of mercial entertainment ? Event games: Paintball, Laserquest ? Commercial Arenas (London Arena。 Hoggett。 Sheffield Arena。 insolvency a very significant risk (My Travel) 30 Diversification Additionally, many large leisure and tourism panies choose to DIVERSIFY ?Spread their investment (portfolio) across a wide range of sectors ? Often transnational and international panies ? Allied Leisure, Granada, Ladbroke, Rank ? Interests in hotels and catering, brewing, gambling, entertainment, attraction management, and media interests 31 Advantages of Diversification in Leisure and Tourism investment ? Spreads risks in a volatile market ? Maximises profit, allows rapid growth, increased market share ? Limited barriers to entry ? Perceptions of growth ? Counterbalance to seasonality ? Perceptions of enjoyable sector attractive to investors 32 Integration – horizontal and vertical (The merging of different business anisations) ? Horizontal integration: ? Occurs between firms operating at the same level of production in the same industry ? ., My Travel (Airtours) / Aspro Travel / SAS Leisure / Sunquest Vacations (all package tour operators) 33 Integration – horizontal and vertical (The merging of different business anisations) ? Vertical integration: ? Occurs between anisations at different levels of production in the same industry ? (Airline packaging retailing) ? Britannia Airways / Thomson Holidays / Lunn Poly (now German owned – TUI) ? My Travel