Featured case:
Expanding into New Theme Park Markets: The Case of Ferrari

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The case

Who – the protagonist

Luca Fuso, the head of Ferrari Brand.

What?

Ferrari, inseparable from Formula 1 racing, is a world-renowned Italian luxury sports car manufacturer. Over the years Ferrari has diversified its brand and built the first Ferrari-branded theme park (Ferrari World) in Abu Dhabi, United Arab Emirates, which has been a huge success since its opening in 2010.

Why?

On one hand, the UAE’s economy has boomed, therefore the local market presented great potential. On the other hand, many other countries wanted to build and operate a Ferrari World. The immense opportunities put the decision-maker into a dilemma: how to shape the future growth strategy?

When?

To determine whether expansion is the right move for Ferrari, Luca started by comparing the performance of amusement/theme parks in the major world markets from 2010-2015 (historical data) and 2016-2020 (forecasted data).

Where?

Countries from across North America, Europe, Latin America and Asia-Pacific are interested. The latter is the leading market, as it managed to surpass North America in terms of numbers of visitors.

Key quote

“A significant portion of our revenues from licensing activities consist of royalties we receive in connection with Ferrari World, our theme park in Abu Dhabi (12 percent of royalties generated by licensing activities).” – an abstract from Ferrari’s IPO statement in the New York Stock Exchange.

What next?

Luca faced many questions with the most important one being whether it would be beneficial for a luxury brand like Ferrari to sell more licenses for new theme parks.

The authors

author

Mark Esposito and Lisa Xiong

Mark and Lisa discuss students’ interest in Ferrari and the purpose of a teaching note.

Value of Ferrari World

Mark said: “The experience and the work conducted at Ferrari World was instrumental for the appreciation of the park itself, the brand and the strategic complexities that emerged out of it.”

Problem-solving

Lisa commented: “We included dilemmas in question format at the start of the case to stimulate students to turn on the problem-solving mode, therefore increasing their interest, focus and engagement. Instructors then find it easier to guide students to dive into the case and activate the class discussion.”

Appeal of Ferrari

Appeal of Ferrari

Mark added: “Ferrari is one of the most renowned brands in the world and it is easy for international students to refer to it, regardless of where they come from. It makes the case highly compatible with multiple student audiences.”

Importance of the teaching note

Lisa explained: “The target of the teaching note is to assist potential instructors to have a straightforward understanding of the case, to check the user compatibility, and to have a clear picture of how to teach this case. It’s important to manage the balance between conciseness and informativeness.”

Working together

She concluded: “It was a great experience working with Mark on this case; starting from a simple discussion based on personal visits to the Ferrari project, to highlighting the possible directions of this case, and to actually finishing the writing.”

About the authors

Mark Esposito is Professor of Economics at Hult International Business School and Adjunct Professor of Strategy at IE Business School.
mark@mark-esposito.com 

Lisa Xiong is an Associate Professor at emlyon business school.
lxiong@em-lyon.com

 
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Expanding into New Theme Park Markets: The Case of Ferrari
Ref 320-0077-1

Teaching note
Ref 320-0077-8

 

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