Project: Analyzing London Dungeons Business Environment and Strategy

This project offers a comprehensive analysis of London Dungeons, a popular tourist attraction, focusing on its business environment and strategic considerations. It begins with an introduction to dark tourism, defining its characteristics and providing examples like the London Dungeons. The project then delves into a detailed PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors influencing the company. Political factors include government policies and their impact on tourism, while economic factors cover financial stability and investment. Social factors analyze consumer trends and preferences, and technological factors address the use of modern tools for marketing and operations. The analysis also considers the company's history, its operations, and its response to external factors. The project evaluates the changes in the business environment and their impact on the London Dungeons' strategy, concluding with a critical evaluation of the company's approach to these challenges and opportunities.

Project

Table of Contents
INTRODUCTION......................................................................................................................2
Pestle analysis of London Dungeons.....................................................................................3
Analysis of how the Tourism and Hospitality business environment changes and its
evolves....................................................................................................................................7
Critical evaluation of how the changes in business environment affect strategy of London
Dungeon.................................................................................................................................8
CONCLUSION..........................................................................................................................8
RFERENCES.............................................................................................................................9

INTRODUCTION
According to Light(2017) Dark tourism is refers as a tourism which involve travel to
places historically but, it is also link with death and tragedy. Thus, the main attraction of this
dark location is their historical value rather than their association with the death and
sufferings. Generally, the dark tourism is that concept which has a negative intention around
the world and also, people do not want to go to such places that make them uncomfortable
and further remind them of all the horrible events. Thus, these places are generally link with
death and tragedy. For example, the Murmabi Genocide Memorial in Rwanda where around
2 million people murder in early 1990s. Thus, it is the most affecting dark tourism spot which
has ever visited. These tourism is known as dark tourism because the main attraction to dark
location has their own historical value.
In accordance with Sharpley(2018) different types of dark tourism are dark fun
factories, which are the essentially play centres and this is actually link with the children. For
example, some escape rooms which evolve around the dark theme, zombie chase or theatrical
activities, these are take place in dark fun factories. Next is ,dark exhibition which is all
around the world, such that Rouge Regime in Cambodia. Dark dungeons is another type of
dark tourism, these may be in original in state and they may have been altered for tours.
These are encompasses with live actors and sensory activities and rides. Dark disaster is
another type of dark tourism which is also increases from its popularity in public. Even the
recent documentary on Chernobyl is also ranked the most highly user rated TV series ever,
that also assist to create awareness of disaster tourism among tourist and public. On the other
side, there are different dark tourism destination such that Dark Tourism at Auschwitz,
Chernobyl, Hiroshima, 9/11 memorial, Killing Fields.
In the opinion of Simões (2020) many visitors to dark tourism sites go to visit the
place because they find it more interesting and intriguing. Many come to learn something and
also try to understand the attractiveness of the place. On the other side, many people visit the
place in order to understand the philosophical depth of it. This is clearly stated that these
places are always provide in-depth detail to the people so that they learn something from this
and learn the importance of historical places and enjoy that as well. From last many years, it
is also realized that there is an increases popularity of the dark tourism because people travel
to understand the meaning of the things and know the actual reality, or what happened in the
past in those particular places. This is also help to develop an attachment or emotion with the

historical places and this in turn increases the demand of new and exciting grows with it. In
addition to this, Collins-Kreiner(2016) also stated that accessibility and availability is also
contributing to the rise of dark tourism and people want to explore more places, that is why,
there is a sudden rise in the popularity of Dark tourism. Also, there are some ethics related to
dark tourism and many tourist who visited the place are also want to pay their respects
because history shows that these places are made for entertainment purpose only.
Merlin Group is established in the 1998 and it is the British Entertainment company
that provide best range of entertainment facilities to the tourist. It also operates in many
countries with a vision to provide best facilities without affecting the quality of its services.
Such that its midway attraction points are Australian Treetop Adventure which was
established in 2005, further, the Dungeons which was established in London in 1974. Also,
provide Falls Creek Ski Resort in Victoria, Australia in 1946, these shows that the group
provide range of facilities to their tourism in order to provide full entertainment facilities and
make their trip memorable. Initially this group do not have so many branches, but when
people staring enjoying the facilities and services offered by Merlin Group, it helps to raise
the financial services of the firm and that is why, it is able to expand its business at further
level of success.
The London Dungeons is the tourist attraction point for the tourist which is situated in
London’s South Bank, England. Here, mixture of love actors and their special effects and
rides is provided to the tourist. Thus, it can be stated that it is the thrilling attraction point for
the tourist because it provide an immersive walkthrough experience features such that Jack
the Ripper, Sweeney Todd and Guy Fawkes. Apart from this, London Dungeons also have a
360 degree sets, 2 underground rides and 19 interactive shows which includes Torturer and
Plague Doctor and Great Fire of London for the age of 12 and above. Under this, 3D
projections are used that helps to provide a real life experience to their tourist and this in turn
assist to attract more range of customers towards it. As a result, it can be stated that London
Dungeons leaving the positive impression upon the visitors and also force them to visit the
once again. There were around thousands people visit the place and these people are ready to
enjoy the thrilling places as well.
Pestle analysis of London Dungeons
PESTEL Analysis

PESTEL analysis is described as an acronym used for identifying the macro problems
faced by the organisation. It stands for political, economic, social, technological,
environmental and legal factors influencing or may have influence over the working of the
organisation. It is also known as situational analysis. It requires the company to ensure that it
has managed its operation for facing these external forces effectively that can have impact
over the business. There are also many of the times positive influences of these external
factors. Companies are required to take the opportunities provided by these external factors
for the growth and achieving the desired objectives of the organisation. PESTEL analysis of
London Dungeo will provide about all the external factors that could influence the business.
Political Factor
Political factors comprise of the extent to which government policies and government
could impact the organisation or specific industry. It includes the political stability and
policy, trade, Fiscal policies and taxation policies. It could be identified that the government
policies of the country are favourable for travel and tourism sector. Government has
established various policies for attracting tourism to the country. This does not require the
company to put more of its spending at attracting overseas customers as government is
already is taking various steps for promoting the tourism (Zahari and Romli, 2019). Due to
the government policies tourism has increased to great extent. This has also helped the
London Dungeons in earning higher revenues. London is the hub of tourists due to stable
political policies.
Political interference is not seen in the working and operations of the enterprise, they
do not influence much the internal working of the firms. The new foreign trade policies are a
considerable factor of the company as it may have impact over the number of tourists that are
visiting the country. Due to the policy the governments of other countries will also be making
reforms in their foreign trade policies. The tourism sectors will also face effects of the trade
policy as it will prevent companies to bring direct investments in the country. The tax rate of
the country is high that takes away the significant portion of the profits of company making
the growth plans to extend further. Tax is levied over all the products and services that are
provided by the company. Due to the increase in tourism sector it is probable that it may see
further rise in the taxation rates over products and services provided to the customers. This
may make the products and services costlier and increase in prices might decrease the
revenue of the company. Brexit is a political move and the effects of which are seen in every
industry of the country. Tourism industry is said to be have more significant impact as now
the people of EU members’ nations will be requiring visas for coming in London (Simões,

2020). This will impact the number of tourist visiting London from the EU nations due to
Visa compliance requirements. London Dungeon has to prepare itself for managing the
challenges faced due to the political influences.
Economic Factors
It includes the factors that impact economy and performance that in turn impacts the
profitability of the organisation. it includes interest rates, unemployment or employment
rates, cost of raw materials and the foreign exchange rates. Tourism sector gives considerable
support to the economy. The contribution of tourism economy is 11.4% in the UK GDP. This
is a considerable contribution and effects on economy are to be suffered by all the industries.
There is significant indirect impact of visitor economy by its interaction with the other
businesses in supply chain. The tourism sector is providing employment to around 3.12
million people.
The economy of London is the attraction of various investors and industries because
of its economic and political stability. Due to this there are large numbers of foreign direct
investments that promoted the economy and increased the purchasing power of the people.
This has helped the companies in achieving significant growth over the years. However as
per the present scenario it is seen due to the increased investment and not getting expected
returns investors are moving towards other beneficial regions giving higher returns over their
investments. This is causing significant impact over the economy of the country. Due to this
London Dungeon may also face decline in the revenues due to the lowering purchasing power
of the people due to slow economic growth (Ranjbari, Esfandabadi and Scagnelli, 2019).
Company is required to consider effective strategic and operational plans for earning the
required revenues for achieving the goals and objectives of the business.
Socio – Cultural Factors
These factors focus over social environment and identifying the emerging trends. It is
essential for the markers for understanding the needs and wants of customers. The social
factors arre the demographic changes in the family, education levels, attribute changes,
cultural trends and the changes in lifestyle. Social factors are to be considered by the
organisations for ensuring that the products and services are satisfying the demands and
needs of the consumers. Trend of the tourism sector are changing continuously and
companies are required to adapt to these changes for achieving the desired goals and
objectives of the business.
Today the tourism sector has emerged as the new lifestyle of number of people with the
rising standard of living of the people. The industry after the development of social platforms

has reached new heights and benchmark. The tourism has increased than ever before and is
still continuously increasing due to the social influences (Kartomi, 2017). Social influences
are significantly favourable for the tourism industry and companies are required to take the
opportunities for achieving the desired goals and objectives. Today people are able to explore
every part of the world over the social platforms that encourage the people to have
considerable part of the spending towards tourism. It attracts tourism from around the world
that helps the business for meeting demands of consumers.
Technological Factor:
This factor mainly deals with the technological factor and in the same way, for
marketing purpose, London Dungeons also use these tools. In this modern era, every
company which is establish in the hospitality sector uses these advance technology in order to
meet the define aim and objectives (Light, 2017). This in turn assist to meet the define aim
and objectives. In the same way, technological factor did not only mean to use these in
marketing purpose, but London Dungeons should also start developing online application and
website which in turn assist to attract range of public towards it.
For example, the quoted attraction point may use virtual reality in its premised in
which the company uses 360 scenes, as per the current situation, it has a 360 degree sets but
did not have enough skilled professionals who may use this system in order to attract range of
services. In addition to this, in travel industry, virtual reality is actually used to capture
tourism destination in best and unique way so that it provide best and unique experience to
their tourist. On the other side, London Dungeons should also provide Augmented reality of
the tourist in which it has to develop the online application which help to attract range of
customers and provide better booking facilities to their customers as well (Iliev, 2020). That
is why, this has the ability to greatly enhance the entire travel experience to their tourist and
also allow the people to take more information related to place. Thus, it can be stated that
applying the technological factor will help to attract range of new tourist and by using online
application, company should start taking online booking of their tourist which assist to
sustain the brand image at international level. Also, to stay ahead in the competition, the
London Dungeons should also use other attractive technologies which in turn grab attention
of customers and force them to visit the place again and again.
Environmental factor:
This factor mainly deal with the environment and sustainability of the environment.
That is why, when tourist visit the place, the chances of pollution increases and that is why,
public forgot to be aware with regards to environment (Martini and Buda, 2020). Such that

changes in the crisis of climate also affect the environment of the country and as a result, it is
consider one of the most affecting factor in London Dungeons which leads to pollution. Also,
when the country has increase number of tourist, then it will definitely leads to increase the
pollution level of which in turn increase the carbon footprint as well.
On the other side, the biggest environment factor which influence the tourism industry
is actually the pollution which is created by transportation medium such that buses, trains and
as a result, these modes creates negative impact upon the business environment. As a result,
the creation of large amount of pollutants such that carbon dioxide is also contribute the
global warming and many other environment phenomena as well (Bhati and et.al.,2020).
Thus, to keep in mind of all the factors, London Dungeons made itself an environment-
friendliness attraction point where it has proper environment control system that also assist to
maintain positive impact upon environment. On the other side, it also make sure that its
innovation strategy also aware people to take care of environment. Also, it make sure that it
comply with sustainability act so that it keep creating awareness related to environment.
Legal Factor:
This factor deals with the laws and regulation that affect the entire premises in any
ways. That is why, there is a need to keep complying with the legal framework which is
assigned by the government of UK in order to keep smoothing the business. In the same way,
as per the current situation of London Dungeons, company is keep following the laws which
is related to Health and safety in which it is the duty of the premise to take care the health of
staff and the tourist who come to visit the place (Sharma, 2020). As the quotes attraction
building is child- friendly and adult- friendly, that is why, it is the responsibility of the
London Dungeons to keep providing health and safety measure which assist to meet the
define aim and objectives of the business .
In addition to this, company should also make sure that it comply with the laws
related to Anti- discrimination, where it provide equal opportunity to all the visitors in order
to visit the place without any discrimination (Podoshen and et.al., 2018). Overall it provide
access for all facilities to the visitors. Thus, if the quoted place comply with the rules and
laws, then it creates positive impression upon others in which it also keep attracting range of
public as well.

Analysis of how the Tourism and Hospitality business environment changes and its evolves
In this modern era, more than half of the world is completely relied upon the digital
technology and also, these advance technology also make sure to smoothen the business
operation and also meet the define aim as well. That is why, it is necessary for the London
Dungeons to provide e- ticket facilities to their tourist in which they book the shows at any
corner of the world. In addition to this, it may also develop a mobile application which in turn
assist to meet the define aim and objectives, this facilities also provide different offers to the
customers and this in turn enhance the financial position of the business as well. In addition
to this, customers keep changing their taste and preferences and that is why, it is necessary
for the company to comply with the technological factor and this in turn help to understand
the smoothing the business operations as well (Soni and Anand, 2020).
On the other side, to understand the changes in business environment, Porter five
force model is also used that helps to determine the attractiveness of an industry and this in
turn assist to develop the further opportunities option available for the tourism industry as
well. This model, describe the five forces with their attractiveness which are as mention
below:

Bargaining power of buyer (high): there is a high bargaining power of buyers
because tourist enjoy the facilities provide under the dark tourism. Such that most of the
people visit the places with different aim suchthat they prefer to visit the place in order to
understand the deep meaning of the place, learn about history etc. That is why, it is stated that
tourist are ready to invest huge amount in order to meet the define aim (Belo and Gustavo,
2020). In addition to this, it is also analysed that there are range of facilities which is
provided by London Dungeons where people learn new things which directly help to attract
range of customers as well. That is why, it is stated that there is a high range of bargaining
power of buyers.
Bargaining power of suppliers (high):There is a high bargaining power of the
suppliers such that the market input are high and the suppliers are also have switching cost
which is relative to the firm switching cost. Therefore it can be stated that when the services
are easily available in the market, then the cost of the input is also high and if the company
offer the unique product and services to their customers then it will be beneficial for the
business to make sure that it provide the best variety of product which attract the range of
new product as well (Ge and Li, 2019). In the same way, London Dungeons also have
different and special programs that keep attracting the range of suppliers and this in turn leads
to low switching cost between the rival suppliers where the company can keep its input cost
lower in order to enhance the profit.
Threat of substitute (high):The tourism industry faces high threat of substitute and
this is because there are wide range of other facilities is available in London. If the same
programs are offer by the other museum or building then it definitely attract the range of
people and that is why, it shows that it affect the overall business performance in negative
manner (Khurram, Hassan and Khurram, 2020). This force of Porter state that the ease of the
customers which have to replace the product with others. In the same way, as per the current
situation, there are many substitute available in the market which attract customer and switch
the customer choice as well. That is why, it is stated that the company should make sure that
there must be no close substitute and it must provide unique feature facilities or service that
keep attracting the range of people towards it.
Threat of new entrant (low):The tourist industry faces low threat of new entry
because these all museum and building related to the dark tourism which are establish from
ancient timesand it is not possible for the company to invest the money on this in order to

attract the customers (Varelas and Georgopoulos, 2017). As it require high investment cost in
order to establish the same company and it takes many years to sustain the brand image and
that is why, it is stated that it is not worth it to invest into this. Also, it has been analyzed that
if it takes less time and money to enter into this market then it will be beneficial for the
company to attract range of new customers. As this industry have a strong barriers to entry is
ideal for existing companies within this industry and that is why, firm should be able to
charge the higher price with negotiated terms.
Intensity of rivalry (high):In market, there are is a wide range of competition in the
tourism industry such that there are wide option which is available in the business that keep
attracting the range of product in profitable manner. It is also stated that when there is a more
business, there will be less profit and less attractive the market is (Julita and Arianty 2017).
Thus, London Dungeons have a strong market share in the country and as there are range of
customers who are ready to enjoy the services offered by the company to others. That is why,
it is necessary for the quoted business to offer the unique product and services which in turn
assist to increase the overall market share in the positive manner. Also, there are option
which is available in the country who also provide the same product but the quality and
management is low and that is why, customers automatically attract towards the London
Dungeons.
Porter Diamond model, which is another model that is also used to determine the
competitive attractiveness of the industry. The theory also argued that there is a need to
determine the company’s abilities in order to compete in the international arena which is
based mainly on the set location advantage that some industries in different nations (Kharub
and Sharma, 2017). Therefore, these factors are as mention below:

Firm Strategy: The strategy of London Dungeons is also unique such that the place is
famous because it provide best source of entertainment to their users and the quoted business
is also allow the customer who belong to different culture which in turn assist to meet the
define aim and objectives as well. Also the management style of the company is also strong
so that customers do not face any difficulty. Even the nation is also provide the range of
facilities to the company in order to gain the high competitive advantage so that there must be
a string competition so that it will help to attract range of customers towards it. As tourism
industry faces a strong competition with others and that is why, it is necessary for the firm to
make sure that it provide the best facilities to their customers in order to grab the attention
toward it.
Factor condition: This is that situation of the country which is related to the factors
such that knowledge and infrastructure. Such that these factor are groups in a material
resources like, human resource and environment factor. In the same way, under the tourism
industry, it is necessary for the company to make sure that it have enough human resource
which do not affect the overall customers in negative manner (Fang and et.al.,2018). Also, it
has some skilled professionals who wanted to take the industry at international level and that
is why, it leads to create the positive impact upon the customers as well. As London is
famous for the attractive building and monuments which keep attracting range of people
towards it, thus it have a good supply chain that help to attract customers.
Demand condition: As per this factor, it is stated that when there is a high demand,
then the challenges for the industry is also increases and as a result, it creates an opportunities
to grow and also become a better company as well. Hence, if the company provides