Industry Structure

      Fragmented

–        Few barriers to entry, no economies of scale

–        Large number of small to medium size competitors

–        Little experience required to enter industry

–        No size advantage when dealing with customers/suppliers

–        No competitor has significant market share

      Birthday parties not primary source of revenue

–        Possible opportunity in consolidation

      Stage of Growth

–        Mature

      Slow growth, service refinement

Competition

How many companies compete in the industry? 

       Numerous direct and indirect competitors

–         Most cases birthday parties not core business

–         Examples of businesses that may cater to birthday parties in
   addition to their core business:

        ● Indoor play centers              ● Restaurants                    ● Craft Stores

        ● Suites for sporting events    ● Bowling Alleys              ● Retail stores

        ● Adventure golf                    ● Skating rinks

Market share distribution within the industry:

       Very few businesses in our region focused ONLY on
   birthday parties.  

Distinguishing attributes for Komz House:  

·           Targets young kids, ages 3-6 years old

·            Provides surprise birthday parties and entertainment that focuses specifically on kids’ interests

·           Held in Kid’s Kindergarten