The Walt Disney Company is the world's largest amusement park operator. It was founded in 1923 and has expanded internationally, opening parks in Tokyo, Paris, Hong Kong, and Shanghai. Disney was motivated to expand internationally to increase merchandise sales and park attendance. However, international expansion presented challenges in adjusting to local cultures, climate conditions, and competition. Disney took different financial approaches when expanding to different countries, investing less in Japan and more in Hong Kong, to mitigate risk. Careful study of potential markets and their unique factors is important to the success and adjustments of foreign Disney theme parks.

1. The Walt Disney Company is the world’s
largest amusement park operator. It was
founded on October 16, 1923, by Walt and
Roy Disney as the Disney Brothers Cartoon
Studio, Taking on its current name Disney in
1986.
Chapter 1:
Case – Disney Theme
Park

2. Contents
I. Case Background .................................................................................................................................2
II. Statement of the Problem..................................................................................................................3
III. Alternatives..........................................................................................................................................3
IV. Recommended Solution...................................................................................................................3
V. Answers to the case questions.......................................................................................................4
Question No. 1:.......................................................................................................................................4
Question No. 2:.......................................................................................................................................5
Question No. 3:.......................................................................................................................................5
Question No. 4:.......................................................................................................................................5
VI. Leanings...............................................................................................................................................6

3. I. Case Background
The Walt Disney Company is the world’s largest amusement park operator. It
was founded on October 16, 1923, by Walt and Roy Disney as the Disney
Brothers Cartoon Studio, Taking on its current name Disney in 1986. And Disney
has 5 theme parks outside the USA; there are Tokyo Disneyland (1983), Tokyo
DisneySea (2001), Disneyland Paris (1992), Hong Kong Disneyland (2005) and
Walt Disney Studios (2002). Disney is motivated to set up parks throughout the
world to expand its sales of merchandise goods as well as attendance to their
theme parks. After lunched Hong Kong Disneyland in 2005, Disney has signed a
letter of intent to build another park in Shanghai China in 2008; The Park will
attract different potential visitors in Shanghai.
Overview Disney Theme Park - Points of Interest
(Michael Sandberg's Data Visualization Blog)
Getting people excited about their data one visual at a time
Walt Disney had infinite confidence in his new park and unapologetically
included future attractions and “lands” as if they were just around the corner.
Examples of attractions that made it are: the Submarine Voyage, New
Orleans Square, and the Haunted Mansion. Note that on this map New
Orleans Square was in fact a square instead of the eventual streets and
alleys, and that the Haunted Mansion is located across from where it would
eventually appear. Attractions that did not make it, at least at Disneyland,
were: Edison Square, Liberty Street, Adventures in Science, the Wax
Museum, and the Thieves Market, although components of Edison Square
and Liberty Street found their way into Library Square at the Magic Kingdom
in Walt Disney World.
Holidayland was a real bust. Not every idea that Walt Disney had was a
winner. Walt was convinced that a circus attraction would be well received.
Fortunately his imagineers couldn’t find room for it within the park itself and it
was placed outside the berm surrounding Disneyland park. Ultimately, no one
wanted to visit a tacky circus outside the park when the attractions inside
were so compelling. Holidayland had a brief life, disappearing completely and
without a trace. This area today is occupied by the show buildings for the
Haunted Mansion and Splash Mountain, as well as other backstage facilities.
The Disneyland Hotel, although located directly across from Disneyland itself,
was not owned by The Walt Disney Company. The Wrather Company was
contracted to provide the hotel and it wasn’t until 1988 that Disney purchased
the hotel and began the expansion that currently has three Disney owned
hotels on the property. Notice that prior to the construction of the monorail
from the park to the hotel, guests were transported to the park in trams. You

4. really show your age when you remember riding the trams which had you
facing outward without anything to prevent you from falling out.
II. Statement of the Problem
Not able to adjust easily on the local culture of their operating countries
Not adjusting to societal norms. Like a no alcohol policy in Disneyland Paris
No adjusting for the environment climate: all of Disney’s American parks are in
warm climates and climates in foreign regions were too cold to attract many
winter visitors to the park.
For Shanghai Project
Transportation, Disney fact the crowdedness due to the overpopulation in
China, especially in the big city.
Competitors, More than 2,000 amusement parks in China, Disney fact the high
pressure of competition.
Affordability, Mainland of China CPP lower than Hong Kong, the entry fee must
be acceptable.
III. Alternatives
For Shanghai Project
Since more people go to city in east of China for the vacation, Disney could set
up the theme park to other city in east of China or cooperate with those existing
Parks to expand its sales of goods and exposure brand and attract people
attend them park.
Add Chinese culture element to the goods and building.
Add Pleasant Goat as cartoon characters in China to the theme park since
everyone knew it.
IV. Recommended Solution
Disney Theme Parks, encountered several problems at the beginning of the
expansion few are:
1. California and Florida’s winter climate.
2. The European currency is fluctuating.
3. In Paris, put non-alcoholic policy in the park to maintain its family image, but
German and UK balked, claiming that wine is part of French experience.
4. In Hong Kong, responsibility in the environment because of their fireworks
display.
5. An estimated 80 to 95 percent of the theme parks in China have been losing
money (Wang 2000) including most of the over 200 Journey to the West
theme park (Qian 1999). Qing Ming River Park is one of the most successful
historical and cultural theme parks in China. New theme parks can take

5. examples from the successful theme parks by analyzing these critical
success factors of theme parks.
We suggest that prior the expansion they have to addressed the encountered
problem first and they need to carefully study the potential market. The factors
they need to look at are the following:
1. Behaviour of the potential target market.
2. Risks
3. Cultural diversity.
4. Environmental Responsibility
5. Economic conditions
6. Related taxes ,government policies and political situations
7. Business Operations Strategies
V. Answers to the case questions
Question No. 1:
What do you think motivated Disney to set up parks abroad, and what might be
the pros and cons from the standpoint of the Walt Disney Company?
Answer: Disney Theme Park is motivated because they might think that
International Business has been increasingly successful. They ventured
international because of the three main objectives (1) to expand the sales, (2) to
acquire resources / support and (3) to minimize the risk. They set up parks
throughout the world to expand its sales of merchandise good. They saw an
opportunities or business synergies if they will into expansion. By doing so,
Disney can venture in spreading advertisements of their movies and the ideology
that Disney is a Place of Dream and happiness (family image park). Disney is
motivated to also acquire more resources by their expansion, for example,
Disney wants to create a park in China so that it can facilitate in probably
creating a Disney channel for the Chinese people which we think is a good
strategy because of China’s population. Lastly, Disney wants to minimize the risk
of their parks in America in case they experienced losses from other parks for
example in US they can gain their profits in Asia or Europe.
Pros:
To expand the sales
To acquire resources
To minimize the risks
Cons:
Diversity of culture
Competition has become more global

6. Global Economy
Question No. 2:
Why do you suppose Disney made no financial investment in Japan, one of $140
million in France, and then one of over $300 million in Hong Kong?
Answer: Since they have decided to do some expansions, we believe that the are
protecting the risk that they might encounter loses on their initial cash outlay or
investment. They just want to make sure that it is a win-win expansion. Also, as
mentioned in the case this is the first theme park outside the US, so they are still
testing the water if the decision they made is feasible. Actually, by doing so, the
transferred the related risk accompanied by their expansion Oriental Land
Company.
Question No. 3:
What factors in the external environment that contributed to Disney's Success,
failure and adjustments in foreign theme park?
Answer:
Success:
They look after the population of the region and studied the economic
conditions.
Feasibility of expansion by studying the risks involved political situations
and infrastructure of certain regions.
Failure:
Not able to easily identified the diversity of cultures.
Not able to look after the climate of certain countries / or regions that they
might affect the sales traffic.
Question No. 4:
Should Disney set up a park in Shanghai, if so what types of operating
adjustments might make there?
Answer: China’s economy is still growing and the estimated population according
to Wikipedia is about 1.3B, we believe that it has potential market. The following
factors are still need to consider in setting up Disney Theme Park:
Current Status of the business economy
Cultural differences
Climate
Potential sales outside China (neighbour countries)
Business Synergy
Technology and Infrastructure

7. For those not in mainland china are they willing to spent x amount of
money to go to Shaghai Theme Park
An estimated 80 to 95 percent of the theme parks in China have been
losing money (Wang 2000) including most of the over 200 Journey to the
West theme park (Qian 1999). Qing Ming River Park is one of the most
successful historical and cultural theme parks in China. New theme parks
can take examples from the successful theme parks by analyzing these
critical success factors of theme parks.
(excerpt http://www.chinaabout.net/273/)
Actually Disney confirmed set up park in Shanghai, and already building the park.
VI. Leanings
We have learned in this case that doing an expansion is a major decision that is
why we need to identify key factors affecting the expansion. Factors affecting
expansion have been discussed in Roman numeral IV. Walt Disney Theme
Park showed that when operating abroad adjustments are necessary depending
on the customer preferences even though the original method’s in doing
business might affect. Foreign conditions often dictate a more suitable method
and also operating modes used for international business differ somewhat from
those used on the domestic level.
Company strategies should have smoothly planned to identify some point of
weaknesses and to develop action plans. Disney Theme Parks, wants an
expansion because they want to expand the sales, to minimize the risk and also
to acquire resources.