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INTRODUCTION

It all started on 16th October 1923 when Disney brothers Walt Disney and Roy Disney thought about a character named Mickey Mouse. This character started gaining attention which further led to the formation of a new production company which became famous as Walt Disney Productions in the year 1929.

The Walt Disney Company is the worlds largest amusement parks that focuses on a particular motive, such as cartoon characters or animals, in addition to the traditional offerings of rides, food and games. Disney operates seven of the worlds most attended amusement parks.

Disneyland park, Anaheim 1955

Magic kingdom, 1971

Disney Hollywood studio, 1989

Disney animal kingdom,1998 Tokyo Disneyland, 1983 Epcot,1981

A comparision story of the Disney Theme Parks which includesTokyo Disneyland, Disneyland Paris, Honkong Disneyland,

and Shanghai Disneyland.

TOKYO DISNEYLAND
Established in 1983. First Disney park to be build outside the United States. The Oriental Land Company of Japan proposed the concept to Disney which accepted the concept but didnt provide any financing may be due to reasons such as Foreign markets are unpredictable and hence risky. Difference in cultures and societies with different value systems and norms. The legal and regulatory environments abroad. World currency fluctuate dramatically. To minimize its risk of loss. Also, there might be a risk of foreign operations pull necessary capital away from domestic operations and end up doing the company more harm than good.

1. 2. 3. 4. 5. 6.

Reasons for Diversification


Expand sales. To engage in international business: to diversify sources of sales and resources and to minimize the competitive risk.

And therefore enjoy a monopoly over foreign markets which generate income that can be used to encroach on the Disneys own domestic market. Changes in culture, technology and governmental regulatory policy over international trade
A demand for their products by the people of other nations.

Implementation
The Oriental Land Company owns the park Tokyo Disneyland. Disney provided the master planning, design, manufacturing, training services, construction as well as consulting services. Disney received fees for the same and now receives the royalties. The Oriental Land Company also owns the Tokyo DisneySea and receives royalties for the same.

Consequences
Tokyo Disneyland was a success. It was successful because it provided Japanese with the real thing along with certain adaptations such as a Japanese restaurant and a big screen showing Japanese history. Adaptive nature of Japanese for franchises.

Tokyo Disneyland proved a major success, the Walt Disney Company was ready to take greater risk by spending about $140 million of its own capital and taking a 49% equity stake in what would become known as

Euro Disney at PARIS

REASONS for Diversification


Paris has central location.
Most visited European city. French are the largest consumers of Disney Products. Government offered help like railway, funds and cheap land.

Implementation
A number of factors of the external environment helped create problems for Euro Disney right from the start.
Cultural disparities. Disney failed to accurately predict the leisure activities of Europeans.
Also, the Europeans have an unruly approach to forming lines that made for chaotic conditions at the park attractions. Trade dispute arising between France and the US.

The cold winters in Paris were identified as potential problem.

Policy of serving no alcohol to maintain its family image.


The currency exchange rate made the European currencies strong against the dollar, thereby making it more affordable for Europeans to travel to the US parks than their own nearby Euro Disney. Nations tend to want to preserve their own unique cultural customs.

Consequences
It relaxed grooming rules of its employees. Allowed alcoholic beverages to be served in its park restaurants. Created more detail in its building architecture to appease the more sophisticated European sense of design. Adopted French as its official language. Chose to be flexible and quieted much of the local dissention.

Use of European actors for promotion.

Disneyland Paris has now more than twice as many visitors as The Louvre and is making small profits.

Tokyo Disney had none of these cultural objections of Disneyland Paris.

American culture has apparently worked its way well into that of the Japanese youth generation.

HONG KONG DISNEYLAND


Hong Kong Disneyland is built and operated by a new joint venture company, the Hong Kong international theme parks ltd. HKITP as formed by the Hong Kong administrative region government and the Walt Disney company. It is the fifth Disneyland style park which located on a reclaimed area in pennys bay, landau island.

REASONS for Diversification


Asias largest tourist destination. Better infrastructure. Higher family incomes. Honkongs aim to boost tourist industry.

Disney expectation to create indirect jobs.


Improving relationship.

Implementation
Chinese visitors being aimed at.
Hong Kong government to eliminate the visa requirement for Chinese visitors. Joint venture is planning to build smaller, more affordable hotels to cater Chinese visitors.

Consequence
Due to the financial problems of Disneyland Paris, Hong Kong Disneyland will be on a smaller scale than Disneyland Paris needing 5 million annual visitors rather than 10 million to break even.

Disney does not expects a cultural backlash from the park as encountered in France because people in Hong Kong are more interested in making money than in preserving culture.

SHANGHAI DISNEYLAND
Disney intends to establish a theme park at Shanghai, China: letter of intent in 2002.
Disneys authorities are expecting to attract potential visitors. Disney has made no definite commitment.

REASON
China has had a one child per family policy, which has increased family disposable incomes and make parents reluctant to deny anything to their only child, such as a visit to a theme park.

Operating Adjustments
Handling cultural miscues. Use of other modes of intervention such as that of Disney Channel.

To identify which of its classic rides Space Mountain, Its a Small World, Pirates of the Caribbean it will bring to the Chinese mainland. Careful line with the Chinese government.

Relocation in China is a huge problem because land prices are soaring so therefore Disney must look into this. Hong Kong visitors stayed an average of 40 minutes at food joints in parks, creating backups. Seating has since been added, but Shanghai will have cavernous restaurants from the beginning. Competitive pricing of rides.

CONCLUSION
Disney has a very positive and well meaning product and attitude. Disney has a good chance at succeeding where ever it may go. And if that is true for such a cultural hot potato as Disney, it seems that such an expansion is healthy for almost any business, traditional or modern.

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