Hong kong disneyland case study


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Disney plans to make certain adaptation to its previous strategies to enter the European (Paris) and Japanese market. Do you agree with its decisions?

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Hong kong disneyland case study

  1. 1. Walter Elias Disney (1901-1966) Roy O Disney (1893-1971)• Founded on October 16, 1923 as Disney Bros. Studios• Incorporated in 1938 as Walt Disney Production
  2. 2. HeroWalt Disney• Born on 5th Dec 1901 in Chicago Illinois• American film producer, director, screenwriter, voice actor, animator, entrepreneur, entertainer, international icon and philanthropist, well known for his influence in the field of entertainment during the 20th century (source : Wikipedia)
  3. 3. Assistant HeroRoy Oliver Disney• Born on 24 Jun 1893 in Chicago Illinois• While Walt was the creative man, Roy was the one who made sure the company was financially stable
  4. 4. The Walt Disney Company Reports Fourth Quarter And Full Year Earnings For Fiscal 2012 Source : http://thewaltdisneycompany.com/sites/default/files/reports/q4-fy12-earnings.pdf
  5. 5. The Walt Disney Company Reports Fourth Quarter And Full Year Earnings For Fiscal 2012 Revenues Media Networks Parks & Resorts Studio Entertainment Consumer Products Interactive 2% 8% 14% 46% 30%
  6. 6. Theme Park ChronologicalSource : http://cdn.media.ir.thewaltdisneycompany.com/2011/annual/2011-fact-book.pdf
  7. 7. Case Study, Question 2Disney plans to make certain adaptation to its previous strategies to enter the European (Paris) and Japanese market. Do you agree with its decisions? YES, we agree with its decision!
  9. 9. Competitive Strategy Current
  10. 10. Disneyland Tokyo Disneyland Paris Disneyland Hong KongPolitical • Supportive • Supportive • Very supportive • Stable • Stable • Stable • Democratic • Democratic • Democratic• Government • NA • Monetary • Monetary support • Oriental Land: Land Land• Shareholdings 100% Infrastructure Infrastructure• Tax benefit Walt Disney: 0% • Government & • Government: 57% Public: 61% Walt Disney: 43% Walt Disney: 39% Disneyland Tokyo Disneyland Paris Disneyland Hong KongEconomic• Status • During the healthy • During the economic • During the healthy• Job economy, 1982 recession, 1992 economy remarkable Opportunities • Created 13,600 • Created 10,000 jobs time, 2005• Tourism jobs 19% of which • 10 million additional • Created 18,400 jobs are full-time visitors • 1.4 million additional • 14 million visitors. visitors 3rd most visited theme park in the world in 2011
  11. 11. World GDP
  12. 12. GDP @ PPP by cities
  13. 13. Disneyland Tokyo Disneyland Paris Disneyland Hong KongSocial • Adore western • Similar culture • Modern asian culture • Pop: 11.6m • Pop: 7.03m • Pop: 12.79m• Culture • Japanese were eager • French were • Chinese are surveyed to Imperialism to accept everything angry, because accept of the American – Community American. In fact they believed it culture. Also they are Sensitive they insisted to have suppressed the fond of theme parks, nothing that was French before Disneyland Hong Japanese in individualism. Kong there are 10 Disneyland existing theme parks in Hong Kong and the rest of mainland China combined.
  14. 14. Economy and Social Factor
  15. 15. Disneyland Tokyo Disneyland Paris Disneyland Hong KongTechnological• Infrastructure • NA • The government • The government• Accessibility • High-end and up to financed the invested USD$7 million date technologies infrastructure of of land premium and are accessible and the park at USD$1.8 million in can be bought at an USD$400 million, infrastructure affordable rate. extended the Paris development which subway, improve include reclamation the motorway that and more land ran by the site. acquisition. Arranged for TGV • High-end and up to to stop at the park. date technologies are • High-end and up accessible and can be to date bought at an technologies are affordable rate. accessible and can be bought at an affordable rate.
  16. 16. Disneyland Tokyo Disneyland Paris Disneyland Hong KongEnvironment• Climate • Warm and rainy in • Very cold and dry in • Sub-Tropical, cool• Land size summer, cold in winter winter. Cloudy half of and sunny winter.• Safety • 82 hectares the year Hot in humid • Disneyland considers • 1,950 hectares summer safety a very • Disneyland considers • 180 hectares important aspect in safety a very • Disneyland their operations. The important aspect in considers safety a fatality management is their operations. The very important operated so that fatality management aspect in their incidents are kept is operated so that operations. The under wraps; clearly incidents are kept fatality showing that Disney is under wraps; clearly management is focused on image first. showing that Disney operated so that is focused on image incidents are kept first. under wraps; clearly showing that Disney is focused on image first.
  17. 17. Disneyland Tokyo Disneyland Paris Disneyland Hong KongLegal• Labor law • Is strict, and • There is no flexibility in • Salary grade for is and protects both France. The employers based on their Employment employer and are not allowed to education law employee rather dismiss employees as qualification. fairly. Therefore they want, which lead Therefore to have Disneys concept of to high cost in higher qualified staff "generally employment in France. Disney must be comfortable Disneyland has strict prepared to pay wearing uniforms, regulation of more. Therefore, obeying their employees of janitors, or front bosses and being employee’s liners may not be part of the team" appearance, no tattoos, well educated was accepted and no dying of hair. French enough to take on pursued well by the people are not satisfied the challenge of Japanese. with the restriction of "creating individual freedom, happiness" as a many organization centralised strategy protests against the of Disney. regulations.
  18. 18. Case Study, Question 2 Why?
  19. 19. the Why…1) Complies with Hong Kong’s economic and social status in 2005. Hong Kong was ready for a theme park of Disneyland’s nature.2) Enter the right country at the right time with local adaption and high forecast of domestic and international visitors.3) Capitalize on how the community will respond to Disneyland in Hong Kong, and therefore forecast realistic profits
  20. 20. Summary• Social aspects play important role in this business industry• PESTEL is used to show the comparison on each aspects• Findings shows the 6 strategies (approach) to venture outside US (or internationalization)• Experience differentiation – quality service and efficient