Six Flags Research Paper

Six Flags is recognized for its fun, laughter, and squeals of delight. Nevertheless, in June 2006, investors were not smiling. KMGH Denver reports (2006), shares of Six Flags Inc. dropped distinctly on Friday when debt rating companies lowered their expectations on the amusement park engineer later said attendance and earnings had slipped. (para 2).

Six Flags “History” website (2011) states multitudes gathered to Six Flags over Texas while the park opened the park in 1961. The amusement park had six differently themed districts. The six sections were influenced by the culture of six countries of the flags that flew over Texas throughout the state’s vivid antiquity, which created a magnificent and magical environment for patrons and gave the

The three parks would be the only theme parks presented and created under the Six Flags name. The company chose an approach to grow while trying to come up with more ideas. The plan was to purchase modest, existing recreation parks across the world. Six Flags gained and achieved 46 parks, the majority of the benefits transpiring in the late 1990s. The new parks carried the Six Flags name, but the theme was not. Each park was different, including a special one that operated a joined Sea World, and extra an aquarium. Six Flags did add waterparks to most of the parks that didn't previously have

The company rose from bankruptcy in May 2010 with 19 amusement parks and another new and enhanced plan. According to Hals (2010), the company exited bankruptcy as Six Flags Entertainment Corp and under the control of hedge funds such as Stark Investments, Pentwater Capital Management, and Bay Harbour Management. The funds maintained its bonds and funded $725 million to recapitalize the corporation. Back on their feet, the company rethought its important plan and decided on a lower price approach. While being a geographical theme park, it made more sense to market to the local community rather than competing with Disney and Universal Studios as a holiday stop. Six Flags finally found its 'niche'. The investors loved this plan for lower prices. As reported by Hal (et. al., 2010) the company seems likely to benefit financially as families spend on leisure again, and it occupies a sweet spot in a sluggish recovery as parents opt for local "staycations" over pricey trips. The achievement of this strategy is likely due to Six Flags finally making the decision to work within its competitive range. By cornering in on its spot market, the company was capable to rise from the ashes and once again secure a rival advantage. According to MSN Money (2011), Six Flags (SIX) stock price closed at $76.55 on May 27, 2011—up $70.79 per share from its all-time low ($5.76) in August