Premium Essay

Disneyland in Hongkong

In: Business and Management

Submitted By floral
Words 1994
Pages 8
OVERVIEW OF DISNEYLAND IN HONG KONG
The Disney Theme Park in Honk Kong was first announced to the public in 1997. Initially it was welcomed by the public after the Asian financial crisis because of the announcement of projected benefits coupling with “Disney” tourism and the associated employment opportunities.
Although the Walt Disney Company expressed a strong commitment and responsibilities towards conservation of natural resources, it had enormous environmental costs which resulted intense public criticism. The Disneyland earned less revenue than estimated. And Disney had to take immediate action to improve its operations and safeguard its “green” reputation.
The background of Honk Kong Disney land had a long history. After nine months of intense and detailed negotiations, the Hong Kong special Administrative Region Government and the Walt Disney Company reached a preliminary agreement to commence the construction in November, 2001.
After that Disney had taken some theme Park strategies. The company relied on two approach- expanding existing parks while entering into the new territories. And it was Disney’s trade mark tactic in attaining global profitability. Despite of ups and downs the company continued to approach governments’ worldwide including those at home.
In the early 1990s, Disney representatives approached the Hong Kong government. During the negotiation period with the Hong Kong administration, Disney also entered into discussion with the Shanghai Government. The message eventually broadcasted to the public as Disney would build a new theme park either in Honk Kong or Shanghai. But truly there was no serious intension to enter into Shanghai but to create support from Hong Kong people as Hong Kong seemed to be more profitable for the company.
Hong Kong was and remained as the central hub for international business travelers. Its exceptional...

Similar Documents

Premium Essay

Hongkong Disneyland

...Map of Disneyland Hong Kong & its competitors 10 4.2 Porter’s 5 Forces 11 4.3 Porter’s 5 Forces Overview 14 5. Objectives 15 6. Strategy 15 6.1 Ansoff Growth Matrix 16 6.2 Position 17 6.3 Reposition 18 6.3.1 Sun Tzu Art of War Strategy 19 6.3.2 Attack Overview 23 Contents 7. Proposed Activities & Budget 24 8. References 28 Executive Summary Based on the case study ‘Export of American Fantasy World to the Chinese’, the authors critically analyzed the internal and external environment of Disneyland Hong Kong. Outlining the key strategic issues that the company has to deal with and providing recommendations of what Disneyland Hong Kong could do in order to once again achieve competitive advantage. 1. Introduction Disneyland Hong Kong having opened for over 10 years is still facing major problems until today. Over the years Disneyland Hong Kong constantly dealt with issues regarding social responsibility, negative publicity and competition with Ocean Park. Despite its current situation, Disneyland Hong Kong had a much bigger threat on its way - the opening of the Disneyland Shanghai. One of the major problems that Disneyland Hong Kong is facing today is the issue with its positioning, as its brand image is constantly being tarnish by the lack of social responsibility and negative publicly. This the report aims to analyze the current situation in Disneyland......

Words: 5971 - Pages: 24

Premium Essay

Disney’s Successful Adaptation in Hong Kong

...first with their first Disneyland opened in Anaheim in July 1955, Disney World Florida 1971, Disney theme park in Tokyo in 1992, and Disneyland Paris in France (Tsai & Liu 2011). Since introduction of its first theme park, Disney has been attaining global profit through expanding their existing parks while entering the new territories. Their ventures into the new Asia market, HongKong, met great hurdles and challenges as there were gaps between Hong Kong Disneyland offer and the local customs that need to undergo urgent local adjustments in order to become accepted among the Chinese and Hong Kongers. Although major changes have addressed incompatibility issues which in turn provided Disney with high profits and competitive advantages, the park faced serious problems including the frequent overcrowded flow of customers, the lacks of creativity and innovation, or the overloaded staff. As HongKong Disneyland has proved fairly successful with increased park occupation and revenues from growth especially from mainland China sector (Matusitz 2011, Tsai & Liu 2011, Zhang 2007), an unexplored market segment in China or in particular the chosen Shanghai catched Disney’s full attention along with many favored factors such as supported environment with lower cost of labor and materials (PR 2011, Schmidt et al. 2007). The decision to expand the operation in mainland china or Shanghai in particular should follow the same strategies as in success case of Disneyland Hongkong. As management......

Words: 2286 - Pages: 10

Premium Essay

Lalala

...Introduction Disneyland is a theme park where people enjoy entertainment; bring the family together, sporting, eating and shopping. Nowadays, Disneyland intends to open its operation in VietNam. This is a good chance but there are many risks that Disneyland will face when the market in Vietnam is difficult. There are risk management strategies that Disneyland develops such as: borrowing money from foreign bank to overcome interest rate risk, mange and understand clearly goals to reduce cost risk, business risk and training programs to improve skills for staffs in the job. Contents: * History/ Vision/ Mission * Environment( SWOT, PESTLE) * Identification of risk and Impacts * Ranking * Risk management strategy * Recommendation * Conclusion ( Reference) 1. About Disneyland The first Disneyland theme park was built in Anaheim California, USA on July 21, 1954 within 1 year. Disneyland is owned by The Walt Disney Company. The cost for building Disneyland is 17.5 million dollars. It had revenues 31.9 billion in 2005. Vision: The destination in South East Asia to creates happiness, memories and wonderful feeling and scene for Guest, Community and Cast. Mission: Vietnam Disneyland inspires happiness and delivery world-class experience through creativity, great leadership and a passionate Cast. 2. Environment analysis SWOT analysis Strengths | Weaknesses | _Foreign expertise._High resources (budget,......

Words: 393 - Pages: 2

Premium Essay

Analysis of Disney Products

...Pascal Muhammadi Entrée 5 NIK 29113193 ================================================================================= What research methods do you think Disney applied to tailormade their products? Please explain which method(s) is used to which product. It is expected that you could explain the method(s) to definestrategies for at least 5 products. 1. ESPN As one of the business chain, Disney would use Quantitative Method to support the research. Because of television business involves million viewers, and the research needs to cover at least thousand viewers to make the research accurate, thus quantitative method is the better method than others. To make it easier, Disney will hire marketing research firm such as AC Nielson to provide the data, and ask the firm to provide such data, thus they may understand what the current 4P and also what are the SWOT (Strength, Weakness, Opportunities, and Threats). 2. Walt Disney Studio This type of business is focusing on creating films on cinema, and the suitable research method for the business is Qualitative Method. Rotten tomatoes, one of the famous film critics will always give comment on all kind of movies. As one of the trustworthy film critic, Disney could analyze the critic to understand what kind of movie that audiences want to watch. 3. Disney Cruise Ship Disney cruise ship provides one package of entertainment on boat, from theatrical performances to fancy restaurant. Based on the business......

Words: 608 - Pages: 3

Premium Essay

Disneyland

...Euro Disney had a very hard initial experience in France. Due its lack on accurate informationabout the French and European preference and culture, further on their inability on forecastingexternal problems and inability on controlling both controllable and uncontrollable forces,Disney acquired a huge debt. Instead of analyzing and learning from its potential customersDisney chose to make assumptions, turned out that most of those assumptions were wrong.Disney made wrong assumptions in many areas as well. In the cultural area for example itassumed that customers would be ok not having wine to drink, turned out customers wereastonished but the decision of breakfast was another cultural mistake, but in the opposite way.Disney assumed that French customers would want to eat French breakfast while they wantedAmerican one. Operational errors were also committed for Disney, for example Disney assumedthat Monday would be a light day and Friday a heavy day, so they arrange the staff accordingly,turned out to be the opposite and Disney had a big problem with that. Another assumption suchas optimistic assumption about attendance was also made. If Disney had conducted a primaryresearch and learned from their potential customers, French and Europeans, they would haveforecasted those mistakes and prevented them from happening. Also if Disney had controlledbetter the controllable forces, price and promotion for example, they would have a betterinitial experience. Disney could have followed...

Words: 1607 - Pages: 7

Premium Essay

Eurodisney Case

...1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? Both Euro Disney and Hong Kong Disney suffered losses in its first year of operations due to several factors that stems from wrong marketing decisions and lack of research. The following are the said factors: Euro Disney * Location – While the demographics presented by the European government about the number of tourists that comes to Paris is true, Euro Disney failed to make further research on the reasons for this large number. Most tourists go to Paris to visit and wander in the streets of the city and not to visit theme parks. Moreover, the climate in Paris is unsuitable for a theme park thus the off-season attendance was way below target. The French government offered Euro Disney generous incentives that they chose to overlook cultural and weather barriers. * Pricing – Unlike the Japanese, Europeans are not willing to spend much to enjoy the attractions in the park. Euro Disney was confident that Europeans would come flocking to the park despite the premium price. * Euro Disney Marketing Strategy – Euro Disney’s advertising focused on the size of the park rather than the Disney experience. They were trying to sell an alluring bit of American which the European do not particularly like. Europeans do not care that the theme park had cost over $4 billion or that it is 4,800......

Words: 4060 - Pages: 17

Premium Essay

Walt Disney

...Who can forget about the 8 princesses? From the wonderland, from the castle , from forest and from sea? With the dancing black mouse, they called mickey with his friends Donald Duck with Daisy Duck and Goofy with Pluto, but in the end you will ask yourself who is the one behind those moving cartoon characters it’s Mr. Walt Disney, Familiar isn’t? Disneyland I guess, you know about the famous land in HongKong that is full of Disney characters. Mr. Disney born on December 5 1901 in Chicago, his family settled in a village. At 1909 Walt attended in New Park School of Marceline, Walt Completed the second grade at Kansas and at school he met Mr. Walter Pfeffer who came from family of the catre aficionados. After 2 years, Wakt start to had a job that is selling newspaper , for 6 years walt sells newspaper, he wake up at 4am in the morning until evening, he found the work exhausting and he often received bad grades.Most of time you can consider Mr. Walt as a businessman , in 1917 his family acquired shares in the O-Zell jelly factory. He began as freshman at Mckinley Highschool he became the cartoonist for the school newspaper , drawing patriotic topics on World War I, And with hope to join the army Mr. Walt drop out of Highschool at the age of sixteen but he was rejected for being underage , afterwards Mr. Walt and his Friend joined the Red Cross and Mr. Walt becomes an ambulance driver in France for almost a year. As he comeback in his hometown, he seek for a job, but Mr.......

Words: 566 - Pages: 3

Premium Essay

Theme Park

...Appendix 1 Case study: Shanghai Disney Resort Joint ventured by Walt Disney Parks and Resorts and the Shanghai Government, the Shanghai Disney Resort has been started since 2009. The entire project is divided into two phases. The first phase is scheduled to be completed in December 2014. It includes a Magic Kingdom-style park, Shanghai Disneyland Park, and two themed hotels. The two phases cover a total of 963 acres of land, more than three times the size of the Hongkong Disneyland. The budget of the project amounts to US$ 4.5 billion. The Resort is built in a style similar to other Disney Resorts around the world. At the same time, special fascinations are designed to attract Chinese guests. Distinctive performance will be organised in particular Chinese festivals. After completion of the first phase, the Resort is expected to serve 12 million guests during the first six months. As expected, the guests will be local citizens and residents in the neighbouring provinces. Gradually, the Resort plans to attract customers from the entire nation, as well as tourists from countries in the vicinity, such as South Korea, Singapore, Malaysia and Taiwan. The management budgets at 40 million guests per year, until the completion of the second phase. The management anticipates a similar customer profile in the target market segment. That is, families with young children are the primary targets. Secondarily, the Resort aims at young couples, tourists, and youth...

Words: 1370 - Pages: 6

Premium Essay

Hong Kong Disney Land Case Study

...The Walt Disney Company is an American institution closely identified with Mickey Mouse and world-famous theme parks. Hong Kong Disneyland was the Walt Disney Company's third international theme park outside America, after Tokyo and Paris. Interesting enough, both the Hong Kong and Paris theme parks had its chief replaced in less than a few months after the park's opening, if these corporate moves were anything but indicative. In September 2006, the Hong Kong theme park announced it had missed its first year attendance target of 5.6 million. Often criticized as the smallest Disneyland in the world, the Hong Kong theme park had been tipped as a "stepping stone" for the American company's entry into mainland China. If it was indeed to serve as a prototype for another Disneyland in China, it would be critical for the management of Hong Kong Disneyland to come up with a recovery plan and realign its strategy to improve its image, boost attendance and deliver its revenue target. This case can be used to explore what could be done to enhance the smooth delivery of the American fantasy in the alien culture of the Middle Kingdom. (Bennett Yim Josephine Lau). Moreover, Hong Kong Disneyland is one of the world largest entrainment businesses of the world. During the 1920s and 1930s Disney just had studio and theme park but at the end of the 20th century it had several TV networks, several theme park a cruise lines, malls, airports, hotel resorts and so many other entrainment units which...

Words: 3955 - Pages: 16

Premium Essay

Product and Brand Disney

...Chapter 1: Brand Elements and Brand Equity Concept All kinds of brands require to be appealing to the people and meaningful at the same time. Since brand is the first intangible aspect that meets customers, they ought to consist of interesting and strong elements. This aspect is essential even for giant corporation like Disney. Disney is one of the leading corporation in terms of animations and entertainment dedicated for all people, ranging from children to adults. In 1923, Walter Elias Disney and Roy Disney, the founders of Disney formed a studio which focused on developing cartoon films called Disney Brothers Cartoon Studio. Since then, they have become the pioneer for animation and cartoon entertainment group in the world. They know how to implement their value and strong points into their brand logo. With the help of creativity, technology, and strong dedication, a logo that represents imagination, dreams, and magic can be created. The Walt Disney logo is formed according to the founder’s signature that promises secure, cheerful, and quality western cartoon entertainment industry. Aside from the regular logo which is only a fancy text, the company has adopted different form of logo for different kinds of products. For example, the castle that appears in front of a blue background version is used for Disney’s movie releases. As for other segment like resorts and holiday, Disney added the word “world” behind its famous fancy “Walt Disney” logo. Even though......

Words: 2640 - Pages: 11

Free Essay

The Walt Disney Company

...The Walt Disney Company is an American diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. The company also operated under the names Walt Disney Studio and Walt Disney Productions. Taking on its current name in 1986, it expanded its existing operations and also started divisions focused upon theater, radio, music, publishing, and online media. The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a successful music division. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. An early and well-known cartoon creation of the company, Mickey Mouse, is a primary symbol of The Walt Disney Company. Visi To be a top 10 brand within every market we operate in across Europe, Middle East, and Africa delivering one vision and one voice to consumers and......

Words: 2466 - Pages: 10

Free Essay

Hong Kong Disney Land

...Global Banking and Capital Markets Hong Kong Disneyland HK$3.3 bn project loan Prof. Ingo Walter 1 Hong Kong Disneyland Borrower Project Cost Infrastructure Start Construction Start Opening HKTP Structure Hong Kong International Theme Parks Limited (HKTP) - owner & operator HK$14 Billion End-2000 End-2002 2005 - HK government 57% plus conversion rights into common for infrastructure development (up to 75% ownership if exercised) - HK$ 3.25 billion - Disney 43% - HK$2.45 billion - HK government sub-debt with repayment starting in Year 16 - HK$6.1 billion - Bank Loan - HK$2.3 billion 15-year non-recourse loan plus HK$1 billion non-recourse revolving working capital loan post-construction – HK$3.3 billion. 2 Mandate - Seeking Disney acting on behalf of HKTP, asks 17 banks to bid and it could mandate upto 3 banks to lead the deal Chase options: No bid Bid to win Bid to lose 3 Chase Options No bid 1. Joint mandate (fee split) 2. Aggressive competition (especially from Bank of China and HSBC) 3. Bad track record (Eurodisney) 4. Credit Issues: 15-year maturity No collateral other than site yet to be built Non-subordination of management fees Desire to use cash flows to grow the project Market risk Force majeure risk 5. Need for fully underwritten deal 4 Chase Options Bid to win 1. Disney important client 2. Marquee deal for the region 3. Chase not a top-10 player in Asian project loans Exh.6a......

Words: 4055 - Pages: 17

Premium Essay

Business Management

...Fiscal Year 2011 Annual Financial Report And Shareholder Letter January 2012 Dear Shareholders, Fiscal 2011 was a year of great accomplishment for The Walt Disney Company, marked by creativity and innovation across our businesses globally, record financial results and numerous important steps to position the Company for the future. While 2011 brought us so much to cheer about, it was also marked by profound loss, with the passing of Steve Jobs. Steve’s incredible stewardship of Pixar, and his decision to sell Pixar to Disney in 2006, brought Steve into the Disney family, as a board member, a shareholder, a mentor, and a friend, and we were so lucky for all that he represented and all that he contributed. Disney, ESPN, ABC, Pixar, and Marvel are an amazing collection of brands that grow stronger every day as new platforms and new markets provide enormous new opportunities for high quality content and experiences. To that end, we are fortunate to have a talented group of employees who are committed day in and day out to building our brands around the world. Since becoming President and CEO in 2005, I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally. In fiscal 2011, net income attributable to Disney was a record $4.8 billion, an increase of 21% over last year, and revenue was a record $40.9 billion, up 7% from last year. Diluted......

Words: 60491 - Pages: 242

Free Essay

Bloodlines of the Illuminati

...Bloodlines of Illuminati by: Fritz Springmeier, 1995 Introduction: I am pleased & honored to present this book to those in the world who love the truth. This is a book for lovers of the Truth. This is a book for those who are already familiar with my past writings. An Illuminati Grand Master once said that the world is a stage and we are all actors. Of course this was not an original thought, but it certainly is a way of describing the Illuminati view of how the world works. The people of the world are an audience to which the Illuminati entertain with propaganda. Just one of the thousands of recent examples of this type of acting done for the public was President Bill Clinton’s 1995 State of the Union address. The speech was designed to push all of the warm fuzzy buttons of his listening audience that he could. All the green lights for acceptance were systematically pushed by the President’s speech with the help of a controlled congressional audience. The truth on the other hand doesn’t always tickle the ear and warm the ego of its listeners. The light of truth in this book will be too bright for some people who will want to return to the safe comfort of their darkness. I am not a conspiracy theorist. I deal with real facts, not theory. Some of the people I write about, I have met. Some of the people I expose are alive and very dangerous. The darkness has never liked the light. Yet, many of the secrets of the Illuminati are locked up tightly simply because secrecy is a......

Words: 206477 - Pages: 826

Premium Essay

Communication

...China Labor Watch 147 W 35 TH Phone: 212-244-4049 Fax: 212-244-4146 E-mail: clw@chinalaborwatch.org ST STE 406 New York, NY 10001 Code of Conduct is No More than False Advertising, Disney Suppliers Continue Exploiting Chinese Workers By China Labor Watch November 10, 2010 While every effort will be made to keep the materials accurate and up-to-date, China Labor Watch is not personally responsible for accuracy and currency. This report contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this report. SOME RIGHTS RESERVED. 2010 Content Summary.......................................................................................................................................................................3 Yiuwah Accident .........................................................................................................................................................3 Disney Consumer Products .........................................................................................................................................4 “Cut and Run” ..............................................................................................................................................................5 Establishment of “Code of Conduct” .........................................................................................................................6......

Words: 6901 - Pages: 28