...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
...Case Study 3: Hong Kong Disneyland November 26, 2013 1(A). Why was it important for Disney to work with the foreign governments where they want to open theme parks? While it may not always be a good idea for a business to work with foreign governments, it was the appropriate course for Disney to take. Certain aspects of the parks that were opened in Tokyo, Paris, and Hong Kong best evidence this. Tokyo, by every standard, is considered a success (Young & Liu, 2007). Its success led to the construction of a sister park, DisneySea. Regrettably, Disney opted to not take ownership of the park. By working with the government of Tokyo, Disney did not have to invest any capitol to open a park abroad. However, Disney forfeited exponentially higher profits for its equivalent in risk. Disney’s next venture, Disney Paris, was a collaboration with the French government. Similar to Disney Tokyo, it was important to work with the government for the purposes of immediate financial infusion. Unlike Tokyo’s government direct investment, the French government provided loans with interest rates (Young & Liu, 2007). The decision to work with the French government proved more important as construction costs went over by US$4 billion. This led to the French government restructuring Disney’s loan. It was crucial for Disney to work with the government of Hong Kong for several reasons. Like the previously mentioned Parks, Hong Kong helped financially. However, the scope...
Words: 760 - Pages: 4
...Jacob Mizrahi International Marketing MAR2141 05/25/2012 Disney Case There are different kind of challenges a company can find some of those can be the language barrier, cultural difference, need to deal with different currencies and also political challenges. However as a foreign government it is important to take a look to what it will benefit the economy and what will be most effective for the investors and the country. For example Disney began exploring what will be the theme of the park in a place so unique and cosmopolitan like Hong Kong. So they went ahead and thought of building a “Tomorrow Land” with the space theme so it could be attractive to the public in Honk Kong. The government contributed greatly to the building of the park when they realized the great influx of money this would create as part of Tourism revenue. Also it is important to include locals in the process of construction for the infrastructure of the theme park. It was not viable for Disney to bring all their “imaginers“ from California therefore; they hired some of the local talented Engineers to take part in the project of Disneyland as well. It is also very important that companies observe cultures practices and traditions in dealing with opening a new business relationship. When companies like Disney want their franchises to be a success they need to keep the best of worlds, the American Dream company plus the input from the foreign market that is being attempted to...
Words: 254 - Pages: 2
...New problems The Disney management style came in for substantial public criticism as early as the pre-opening stage. The fact that the park was operated as a private company—by the Hong Kong International Theme Parks Ltd.—using public funding from Hong Kong’s coffers furnished further grounds for public dissent. Several incidents occurred within the two months prior to the September opening, attracting criticism from local artists, journalists, and legislators and paving the way for the park’s first public apology. First, a Financial Times journalist criticized Hong Kong Disneyland’s management style, calling Disney’s first theme park in China “the scariest place after North Korea.”1 Then, a month before the official opening, local artist Daniel Wu, who was filming on site at the park, complained to the media of the arrogant and disrespectful attitude of Disney’s U.S. staff and vowed never to return.2 After the theme park opened, some of Hong Kong Disney’s work practices incurred further protests from the Hong Kong people. For example, the park’s character performers complained that they were overworked and underpaid. A spokesperson for the newly formed staff union stated that workdays of more than 12 hours and inadequate rest breaks had overwhelmed many workers, causing work-related injuries, such as joint and muscle strain. In response, Vice-President of Entertainment Lauren Jordan claimed that “there are a few cast members who have found this work to be less rewarding than...
Words: 260 - Pages: 2
...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...
Words: 1994 - Pages: 8
...Legislative Council Secretariat FS30/08-09 FACT SHEET Financial arrangements relating to Tokyo Disneyland, Disneyland Paris and Hong Kong Disneyland 1. Background 1.1 At the special meeting held on 4 July 2009, the Panel on Economic Development discussed the financial arrangements relating to the proposed expansion of Hong Kong Disneyland. During the discussion, a member requested the Research and Library Services Division to provide information on the financial arrangements relating to Tokyo Disneyland, Disneyland Paris and Hong Kong Disneyland. As such, the purpose of this fact sheet is to provide the Panel with information on these three theme parks in terms of their ownership and the financial arrangements for the construction project. 1.2 This fact sheet originally intended to study the operational statistics of the three theme parks. According to the Tourism Commission of Hong Kong1, both the Government and the Walt Disney Company (Walt Disney) are bound by the confidentiality provision under the current agreement not to disclose any commercially sensitive information of Hong Kong Disneyland, including the gain or loss from the operation of the theme park. Against this, this fact sheet only lists the key operational statistics of Tokyo Disneyland and Disneyland Paris for comparison. 1 See Tourism Commission (2009). page 1 Research and Library Services Division Legislative Council Secretariat FS30/08-09 2. Tokyo Disneyland Overview 2.1...
Words: 3904 - Pages: 16
...Factors | Strengths2nd established Walt Disney Theme Park In Asia:Japan is the only other country in Asia to have the Disney theme park. Hong Kong Disney also has the least expensive tickets as compared to other Disney parks.Strong financial backing:The Hong Kong government holds a 57 percent stake in the park, and has invested close to 80% of the cost of the part.Vast experience in managing theme parks successfully:The Walt Disney Company has 3 theme parks that are on Forbes’ list of world’s most popular theme park.Ability to change and adapt to culture:Disney Hong Kong was built with rules of Chinese Feng Shui. Chinese taboos have also being taken into consideration in their marketing campaign. | WeaknessSmallest Disney park:The Hong Kong theme park is less than one-third the size if Tokyo Disneyland, with only 22 entertainment items in the park itself.Poor Communication:During a survey conducted, 95% of the participants felt that Disney Hong Kong should improve communication with the public. Poor service standards:Celebrities were also angered by the rudeness of park employees.Harsh Working conditions:Workers complained of unfair treatment with a 10 to `3 hour workday. | External Factors | OpportunitiesPotential Visitors from developing countries:Mainland China has until recently being exposed to more stories about Mickey Mouse. Same can be said for the developing countries like India, Thailand, Taiwan which may not have being exposed to Disney characters.Working together with...
Words: 694 - Pages: 3
...operation? What factors contributed to Hong Kong Disney's poor performance during its first years? · they were over charging there customers and breaking the customers banks, to where they could not afford to go there basically. · when comparing flight prices, it was actually cheaper to go to Florida and stay there, rather than going to theirs also the weather in Florida is more suited to family conditions usually. · they banned alcohol within the premises of the park. · Disney was more concerned advertising on how big the park was, when they should have been advertising the entertainment side of the park and show that disney is fun filled family vacation event, that Disney is actually known for all around the world, or at least the United States. · Hong Kongs Disney world, was trying to push to hard to make it happen and therefore made the park too small. · the park did not differentiate themselves from the surrounding amusements parks in china, it was just like the others basically · Hong Kong had very few rides compared to the theme park in Paris. · Did not offer current or hit movie theme based rides that were popular in China at that time. 2. to what degree do you consider that these ffactors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Diisney, or the parent company, Disney? I believe that most of the mentioned factors were very foreseeable and controlable. It just depends on how hard the Disney companies were willing to look and observe...
Words: 1237 - Pages: 5
... This is a report analysis of Hong Kong Disneyland. This analysis will examine the effect of the national culture of the Hong Kong in relation to the business operation and other several various factors of that affects the business conduct of chosen industry. The industry chosen by the writer is Hong Kong Disneyland (Disney, for brevity). Hong Kong Disneyland was a theme park built and operated by a new-joint venture company, the Hong Kong International Theme Parks Ltd. (HKITP), as formed by the Hong Kong Special Administrative Region Government and the Walt Disney Company. The author uses Disney as the subject of the paper as it is a new in the business industry. It has been conducting business since the year 2005, hence, assessment and analysis about the company is still few. This report will give a brief background about Disney. The analysis portion applying the different methods for strategic analysis in order to examine the remote and close environments of the subject company will follow the background. The paper will use some cultural theories in order to provide a comprehensive background as to the cross cultural awareness of the company with the culture of a state. BACKGROUND 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 Special Administrative Region Government and the Walt Disney Company. It is the fifth (5th) Disneyland...
Words: 1847 - Pages: 8
...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
.....................................................................................................................3 3.1. 3.2. 3.3. ALTERNATIVE PIXAR: BUILDING NEW ZONE WITH IMPORTING IDEAS FROM DISNEY GLOBAL..................................... 4 ALTERNATIVE THE PIRATES OF THE CARIBBEAN: BUILDING BRAND NEW THEME ON A GLOBAL LEVEL ......................... 4 ALTERNATIVE HOME OF MULAN: CREATING A BRAND NEW THEME TARGETING SPECIFICALLY THE LOCALS ................ 4 4. 5. 6. 7. CSR INITIATIVES ....................................................................................................................................................5 GENERAL OPERATIONAL UPGRADE ............................................................................................................5 CONCLUSION ............................................................................................................................................................6 APPENDIX ...................................................................................................................................................................7 LOSING MAGIC IN THE MIDDLE KINGDOM 2 1. Introduction Aiming to tap into the huge Chinese market, The Walt Disney Company created a joint venture with the Hong Kong government, where the former had a 43% stake and the latter a 57%...
Words: 3654 - Pages: 15
...more than its nearest competitor. Years of leading performance in the field of syndicated finance has led JPMorgan Chase a world’s well-known expertise in arranging large volume syndicated loans and thus significantly improved its returns as an underwriter, and its credit exposure as a lender, which reflect its high criteria of service. In addition to the great reputation, Chase has established relationships with many of the world’s famous companies and groups, which will bring it lots of business opportunities. It had over 400 professionals in its Global Syndicated Finance Group with offices in New York, London, Hong Kong, Tokyo, and Sydney. Each office had structuring and distribution teams. These abundant professional resources have been the solid foundation to sufficiently support Chase’s commissions all over the world. In its 30-person Hong Kong office, Matt Harris led structuring while Charles Pelham led distribution. As Matt Harris described it, “We have by far the largest syndicated lending...
Words: 4739 - Pages: 19
...daily life. It claims the focus on play, festive, clean, warmth, and child and safe which makes people forget the heavy work, adult’s life, the dangerous and cold living environment. Disney is built to be the happiest place in the world without nay decay, crime, confusion. Secondly, the Disneyland is designed as a complex of movie center, carnival, tourist site, shopping mall, state fair, museums and so on. People could enjoy different experiences in Disneyland. All characteristics are made by imagination and without any cultural boundaries. People from all around the world could share the same happiness and Disneyland Experience. Thirdly, all staffs are extremely professional to make sure the Disneyland is operating effectively and correctly, especially for the cast members who are at the front line to control the traffic, sell the tickets, serve the customers, show the directions, play all kinds of characters and so on. They are very crucial to the Disneyland Experience with job to create an environment of fun and delight. What made Tokyo Disneyland so successful? What lessons did Disney learn from it? Tokyo Disneyland opened in April 1983 and achieved a huge success since it has been open. Disney let the Oriental Land to take the ownership position with all the risks. Disney only demanded the revenues and some artistic control. However, as for the aspects of finance, regulation authorities, adjacent development are under Oriental Land’s control. It localizes...
Words: 1017 - Pages: 5
...Hong Kong Disney: the good and the bad Introduction:Disney Disney was founded on October 16, 1923, by Walt and Roy 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, travel, and theme parks (The Walt Disney Company, 2012). Disney went on to construct theme parks in California, Florida, Tokyo, Paris, and Hong Kong. Today Disney is the largest media conglomerate of the world and their theme parks alone generate almost $13 billion reported in 2012 in annual gross revenues (The Walt Disney Company, 2012). The Disney parks in the United States had been very successful and that is why Disney expanded into Tokyo. This was a wonderful idea, because Asian love fantasy and Disney is all about fantasy; moreover Asians were excited about the Disney Park. Disney Tokyo was constructed and opened with much success; however, Disney did not own the Tokyo location and they only received royalties from that location, but they soon realized the possibilities that could come with expansion. Disney decided to spread their wings again since Tokyo had been very successful, but they chose the wrong location for the next undertaking; Disney Paris. Who in their right mind would choose Paris as a site for a huge American themed park? Parisians hate Americans, this is a very well known fact. They hate us when we visit their city and they hate the way we live, so...
Words: 1678 - Pages: 7
...Disney’s global expansion – An Asia Perspective Executive Summary Disney theme parks had a long history of aggressive market expansion, started 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...
Words: 2286 - Pages: 10
