A Mexican edutainment business model: KidZania
Subject area 
 
 
 
 
Management of technology, technological innovation, business innovation and new product development, innovation, design and strategy, entrepreneurship innovation and leadership strategic planning of technological innovation. 
 
 
 
 
Study level/applicability 
 
 
 
 
MBA. 
 
 
 
 
Case overview 
 
 
 
 
KidZania® is a Mexican company of family entertainment centers, founded in 1996 by Luis Javier Laresgoiti Fernandez and fully developed by Xavier Lopez Ancona. An innovative concept inspired in a fusion of nursery and theme park, KidZania®, brings together strong brands as partners to support their own and offer a complete entertainment and educational experience to kids between two and 16 years old. A unique business model, involvement of experts and a committed board of directors has been the key to the innovation of KidZania®. Its managers, by 2011, operate eight centers – two in Mexico, two in Japan and the rest in Indonesia, Portugal, United Arab Emirates and South Korea – and have plans to expand to more countries in Asia, Latin America and Europe in 2011 and finally to the USA. The future of KidZania® seemed bright, and the manager of the company believed that the growth appeared unstoppable because the purpose was to grow on 100 percent. The strategy appeared clear: dominate in the emerging and consolidated markets (big cities) in order to strengthen its competitive position and then, enter the US market with all the muscle and take the lead in the biggest market. But what was the competition going to do about it? What will the moves be for big players like Walt Disney – which had revenues of US$38.06 billion (USSEC, 2010), for example? Will the competitors try to buy the new entrant in order to build it up or to disappear it? Or will they try to imitate KidZania®? What would be the future of this new edutainment business model? 
 
 
 
 
Expected learning outcomes 
 
 
 
 
This case has been used in executive and MBA courses in creating and sustaining innovation, recognizing disruptive technologies, and in identifying effective methods of marketing a new innovative business model. Instructors can use the case to achieve the following two learning objectives: the KidZania® case helps students to refine their understanding of the model of disruption. They are forced to look closely at the product/service and decide whether it is a disruptive innovation or a sustaining innovation. This close examination becomes a helpful tool as students think about what decisions they would make to secure the success of the KidZania® in the entertainment market. The KidZania® case allows students the opportunity to develop their knowledge and understanding of the model “skating to where the money is”. Based on their analysis of the company and product students, must decide whether the KidZania® is a business that will produce sustained revenue and is worth investing in. 
 
 
 
 
Supplementary materials 
 
 
 
 
Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.
The significance of the contribution of children to conceptualising the destination of the future
As there is a growing demand of cutting-edge technology as part of the tourism experience from the digital native population and because little is known about this group as tourism consumers despite the fact they will be the core tourism spender of tomorrow, the purpose of this paper is to give children an opportunity to share their vision of the destination of the future.,From a methodological point of view, a qualitative approach is adopted. Children were asked to draw, communicate and display their view on their Winchester of the future. The data collected are used to formulate an innovative, smart-based future-fit management approach for products and services design.,To fully meet the needs and expectation of the coming generation of tourists, Winchester (city located in the South of England, and surrounded by some of the most visited UK destinations, namely London, Oxford and Cambridge) will have to adopt an ambidextrous management approach when developing products and services for customers of the future. This ambidextrous management approach will balance metaphorical thinking and objective thinking in product and service design.,There is a scarcity of studies on children in tourism research despite the fact the industry and academics recognise the value and impact of children, and more specifically, their role in purchase decisions. Equally important, this research is also going to contribute to the body of knowledge on smart management of destinations.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS The accompanying Consolidated Financial Statements of Seven & i Holdings Co., Ltd. (the “Company”) and its consolidated subsidiaries are prepared based on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards, and are compiled from the Consolidated Financial Statements prepared by the Company as required by the Securities and Exchange Law of Japan. The accompanying Consolidated Financial Statements also include the accounts of the Company’s foreign consolidated subsidiaries, which are prepared in accordance with accounting principles generally accepted in their own countries. Certain items presented in the Consolidated Financial Statements filed with the Japanese Ministry of Finance have been reclassified for the convenience of readers.