...Contents 1. Introduction 3 2. External Analysis 3 2.1 PEST 3 2.2 PEST Analysis Overview 6 3. Internal Analysis 7 3.1 SWOT Analysis 7 3.2 Implications of Assessment 9 4. Industrial Analysis 10 4.1 Perceptual 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...
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...80-year-old Disneyland in the United States now appeals only to families, as Mickey Mouse is no longer an attraction for young Americans (October 20, 2005, Kyodo News International, Tokyo). The Walt Disney Company has also opened parks in Paris and Tokyo on the assumption that family values are relevant to any part of the world. Disney, however, has a mixed record of walking the cultural tightrope. It was criticized for ignoring French culture when it built Euro Disney in Paris, but Tokyo Disneyland has been well received by the Japanese (June 16, 2005, The Wall Street Journal). Since 1983, people in Japan and around the world have enjoyed the dreams and magic of Tokyo Disneyland, the first Disney theme park to be built outside the United States. Tokyo Disneyland did not try to adapt to the culture in which it was built. It worked because of the Japanese attachment to Disney characters and the ultimate US entertainment experience (Amine, 2005). Euro Disney, opened in 1992, lost almost $1 billion in its first 18 months of operation and quickly developed into one of the most costly mistakes in the company‟s history. The French perceived Euro Disney as a symbol of American influence (Spencer, 1995) and many Europeans would not visit the theme park because they believed the real Disney experience was in the US (Marsh, 1996). Euro Disney mistakenly ignored environmental and cultural differences between Florida or California, Tokyo and Paris. Paris winters are particularly uninviting in comparison...
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...S HONG KONG DISNEYLAND w 907M13 Michael N. Young and Donald Liu wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, Ivey Management Services Version: (A) 2007-08-27 September 12, 2006, marked the one-year anniversary of the opening of Hong Kong Disneyland (HKD). Amid the hoopla and celebrations, media experts were reflecting on the high points and low points of HKD’s first year of operations, including several controversies that had generated some negative publicity. At a press conference and interview to discuss the first year of operations, Bill Ernest, HKD’s executive vice-president, acknowledged that the park had learnt a lot from its experiences and that the problems had made it stronger. Ernest also announced that HKD attendance...
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...types of customers can be defined. Customers who visit one time only and will not visit again. They refers to the foreigner and Mainland visitors. Customers who visit the park repeatedly, such as once or twice a year. It is not difficult to deduce that they are mainly local residents and annual passage users. Concerning the customer knowledge is used by the firm to refine its marketing process, the fact that is the firm collects and analyzes the feedback which from the customers who visited the park so as to adjust the price of the tickets as well as to offer the premium to annual passage users. 3. Use of direct marketing The firm has put lots of efforts on direct marketing. It uses various forms of direct marketing method to access the customers, for example, Web-based catalog, E-mail and Fax mail. For Web-based catalog, the firm has placed it to its own website already. People who are interested to visit can buy the tickets through this...
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...request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 1996, Ivey Management Services and Samsung HRDC Version: (A) 2002-11-22 In October 1994, Her Tae-Hak, President of Samsung’s Joong-Ang Development Company was driving to his office, past the “Yongin Farmland” (Farmland), an amusement complex sprawling over 3,700 acres in the Yongin valley. Her was spearheading a major drive within the company to position the theme park as one of the world’s leading vacation resort towns. His master plan called for an investment of about US$300 million over the next five years, to be internally funded by the Samsung Group. Despite the booming Korean economy and the increasing demands for leisure attractions, the global competitive environment of the theme park industry raised several concerns. Should Samsung invest in such an aggressive expansion plan for Farmland? Was this an attractive industry for investment? Her was...
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...10 1 Introduction Pricing Els Gijsbrechts and Katia Campo Objectives This chapter does not have as its aim the provision of ready-made methods for the assessment of price levels. Its objectives are: 1 to indicate the importance and complexity of price decisions for marketing managers; 2 to consider what is a ‘price’; 3 to identify the factors internal to the firm that influence price decisions; 4 to identify the factors external to the firm that influence price decisions; 5 to discuss pricing strategies and tactics. C onsider a Belgian couple contemplating a shopping trip to London during the Christmas period. The cheapest way to cross the Channel would be to take a ticket on the ferry from Oostende to Ramsgate, which would amount to about Bfr. 1,500 per person. While they can afford this from a budgetary viewpoint, taking the boat would mean spending about five hours travelling, which would mean losing almost half of the ‘available’ weekend to hunt for interesting bargains in the London shopping area. Taking the plane would drastically reduce travelling time, but the air fare of Bfr. 4,900 per person is not overly appealing. Friends recommend that they buy a combined ticket from the Belgian Railways and the Channel (regular price: Bfr. 3,465 per person). This seems to be the most interesting option, but unfortunately no more regular tickets are available for the morning of the Christmas weekend. The price of a first classRailway/Channel ticket (Bfr. 6,960 per person,...
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...Colorado, looked out of bis office and saw the lines at the ticket windows on a warm, sunny day in March 1993, he smiled to himself. SSRCwas having its best year ever and had maintained its position as one of the premier North American ski resorts. SSRCwas not, however, immune to the difficulties faced by the ski industry. First, Mayfield was concerned about the trend among customers of coming to Steamboat and other ski resorts and spending fewer of their vacation days skiing on the mountain, preferring instead to participate in other wintertime activities such as snowmobiling. Second, while skier days1 had continued to increase in Colorado over the last several years, the number of skier days in the entire United States had actually decreased. Furthermore, Steamboat's share of the Colorado skier market had steadily decreased since 1990. FinaIly, Mayfield was concerned about Steamboat's low percentage, relative to other resorts, of visitors who intended to make a repeat visit to the resort. In the 1991-92season, the percentage of Steamboat destination skiers intending to make a repeat visit to Steamboat declined to 55%; other resorts, such as the group of Disney Resorts, claimed as high as a 90% repeat visit rate. These trends, combined with Steamboat management's belief that the average length of a ski vacation at Steamboat had also declined, concerned Mayfield. He was worried about how Steamboat could continue to attract new customers and retain its current ones in what was an increasingly...
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...exploratory, descriptive and/or causal) for the market research study. Some or all of the studies may require more than one research design. Explain your recommendations. a. When Frito-Lay first entered the Thailand market, Ms. Janjaree Thanma who directed marketing for Frito-Lay in Bangkok, Thailand, was faced with a number of marketing problems. First of all, she had to decide on the flavor for the chips. She was told that the favorite flavors of Thais were prawn and tom yam. However, that did not necessarily mean putting these flavors in the chips. Frito-Lay had learned that lesson in China. Second, she was not sure whether the Thais would accept a Western snack like potato chips. She thought she had better get some information about definite demand before she took over the production plant from the Thai partner and hired 1,500 farmers to grow potatoes for Frito-Lay. (5 points) For the first question, she should use exploratory method to do the research. First, because the company first entered the market, she has no useful information to base on. Even though she was told that Prawn and Tomyam are the favorite flavors for Thais, this information cannot be made up into an assumption that the two flavor chips would be the potential products. Second, if the prawn chips and Tom Yam chips are not accepted by the audiences, they cannot make conclusion and also decision. She does not know whether Thais do not like the two flavor chips or they do not like chips itself...
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...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...
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...Osman Raghunathan T. Saranathan | | Table of Contents I. Overview 3 II. Positioning and Value Proposition 3 III. Brand Identity 13 IV. Market Segmentation 19 V. Financial Information, Industry Reports and Recent Press 26 VI. 7 P’s: What to emulate, what to improve 30 VII. Appendices 35 VIII. Endnotes 37 Overview According to a 2011 report, the amusement park and arcade industry in the United States includes about 3,000 establishments and boasts combined annual revenue of roughly $13 billion. Close to 85% of the combined annual revenue is generated by the 50 largest companies in the industry. Three of the largest companies include Walt Disney, SeaWorld, and Universal Parks & Resorts.[i] This analysis places...
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... 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 acres wide. They should have emphasized the benefit one could get from visiting the park. * Over-confidence – Overwhelmed by the success of Tokyo Disney Land, Euro Disney overlooked many...
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...Executive Summary The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media corporation headquartered in Walt, Burbank, California. It is the largest media conglomerate in the world in terms of revenue. 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. In addition, Disney has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands. The company is best known for the products of its film studio, the Walt Disney Studios, and 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...
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...Netflix Case Analysis Netflix is an American provider and the world's leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the video game industry could be an option, however various factors such as competitors, viability and sustainability of the company as a whole need to be further analyzed in order to assess whether this proposal is feasible. Competitor Analysis AREA| NETFLIX| HULU| BlOCKBUSTER| REDBOX| market share| 55%| 35%| 5%| 5%| Subscribers| 23.6 mil| 24 mil| low| 12 mil| Brand Popularity| HIGH| LOW| MED-HIGH| MEDIUM| start date| 1998| 2007| 1985| 2003| Revenue in 2011| 705.7 mil| 420 mil| bankrupt| 363.9 mil| Revenue increase from 2010| 29.00%| 48%| | | Growth in customers| 30%| 50%| | 30%| (in 2011)| | | | | Netflix's success has inspired a number of other DVD rental companies both in the United States and abroad, but none of the purely online companies appear to approach Netflix in terms of market share or revenues as can be seen above. Hulu is a close second in terms of Market share and it can be seen that its entry into the market was nearly...
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...“Euro Disneyland” elaborates about the issues faced by the Walt Disney Company when expanding to international borders. It first begins with the history of how Disneyland became so successful and expanded to various states across the country. It then describes about its first international success namely the Tokyo Disneyland and the factors affecting it. The case then describes Disney’s decision of expanding into Europe. The various differences and problems faced in setting up of the amusement park. Some of the major issues in setting up of the park were: * Cultural differences between the European and the American market * Environmental and location factors for setting up the amusement park * Financing and initial business plan were not analysed thoroughly in synchronisation with external economic factors * French labour laws were not taken into account while inducting the workforce * Management issues such as different attractions in the park It was understood that the chief reason for Euro Disney’s failure was a lack of understanding of European culture on Disney’s part. Based on the understanding from the case following recommendations were made: * A study in history and an understanding of the European market place would have enabled the Disney executives to anticipate many of its problems. * The mantra “think globally, act locally” would have helped Disney in better catering to the local needs. For instance, Disney does not sell alcohol within...
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...ACKNOWLEDGEMENT Firstly, we would like to express our greatest appreciation to Allah for His love and blessings upon us. Secondly, we would like to express our sincere appreciation to Sir Ahmad Suhaimi for his guidance and advice in making sure our research project is completed within the timeframe. We would also like to thank him for all his support and patience in supervising. Our work, which greatly motivated us throughout the completion of the research project . Thank you so much. Lastly, we would also like to thank our parents, as well as our fellow friends , for their constant support and encouragement throughout our studies at KLMUC. The research project would not have been possible done without the care and concern shown. We would also like to dedicate our appreciation to Malaysian Government for PTPTN and MARA financial aid, which has helped us with the funding and support necessary to study. Introduction of Internet and E-commerce History of the Internet began with the development of computers in the 1950s. Point-to-point communication between mainframe computers and terminals was the beginning. Since then, the development of Internet had grown in alignment with the rapid development of computers1. E-commerce emerged during the 1990s when Internet was opened to commercial use and in 2000; E-commerce became a hit in United States and Western European where a great number of businesses represented their products or services in the World Wide Web2, promoting...
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