Hong Kong Disneyland 2005 Grand Opening commercial.wmv

• Founded on October 16, 1923 as Disney Bros.

Studios

• Incorporated in 1938 as Walt Disney Production

Walter Elias Disney (1901-1966)

Roy O Disney

(1893-1971)

Hero

Walt Disney

• Born on 5th Dec 1901 in

Chicago Illinois

• American film producer, director, screenwriter, voice actor, animator, entrepreneur, entertainer, international icon and philanthropist, well known for his influence in the field of entertainment during the 20th century (source : Wikipedia)

Assistant Hero

Roy Oliver Disney

• Born on 24 Jun 1893 in

Chicago Illinois

• While Walt was the creative man, Roy was the one who made sure the company was financially stable

Source : http://thewaltdisneycompany.com/sites/default/files/reports/q4-fy12-earnings.pdf

The Walt Disney Company Reports Fourth Quarter And Full Year Earnings For Fiscal 2012

The Walt Disney Company Reports Fourth Quarter And Full Year Earnings For Fiscal 2012

46%

30%

14% 8%

2%

Revenues

Media Networks Parks & Resorts

Studio Entertainment Consumer Products

Interactive

Theme Park Chronological

Source : http://cdn.media.ir.thewaltdisneycompany.com/2011/annual/2011-fact-book.pdf

Case Study, Question 2

Disney plans to make certain adaptation to its previous strategies

to enter the European (Paris) and Japanese market.

Do you agree with its decisions?

YES, we agree with its decision!

Strategies

LEGAL

GOVERNMENT ALLIANCES

& SHAREHOLDINGS

ECONOMICAL STATUS

SOCIAL IMPACT

TECHNOLOGY

ENVIRONMENT

MEDIA & ENTERTAINMENT

INDUSTRY

Competitive Strategy

Current

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Political • Supportive • Stable • Democratic

• Supportive • Stable • Democratic

• Very supportive • Stable • Democratic

• Government support

• Shareholdings • Tax benefit

• NA • Oriental Land:

100% Walt Disney: 0%

• Monetary Land Infrastructure • Government &

Public: 61% Walt Disney: 39%

• Monetary Land Infrastructure • Government: 57% Walt Disney: 43%

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Economic

• Status • Job

Opportunities • Tourism

• During the healthy economy, 1982

• Created 13,600 jobs 19% of which are full-time

• 14 million visitors. 3rd most visited theme park in the world in 2011

• During the economic recession, 1992

• Created 10,000 jobs • 10 million additional

visitors

• During the healthy economy 'remarkable time', 2005

• Created 18,400 jobs • 1.4 million additional

visitors

World GDP

GDP @ PPP by cities

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Social • Adore western culture

• Pop: 12.79m

• Similar culture • Pop: 11.6m

• Modern asian • Pop: 7.03m

• Culture Imperialism – Community Sensitive

• Japanese were eager to accept everything American. In fact they insisted to have nothing that was Japanese in Disneyland

• French were angry, because they believed it suppressed the French individualism.

• Chinese are surveyed to accept of the American culture. Also they are fond of theme parks, before Disneyland Hong Kong there are 10 existing theme parks in Hong Kong and the rest of mainland China combined.

Economy and Social Factor

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Technological

• Infrastructure • Accessibility

• NA • High-end and up to

date technologies are accessible and can be bought at an affordable rate.

• The government financed the infrastructure of the park at USD$400 million, extended the Paris subway, improve the motorway that ran by the site. Arranged for TGV to stop at the park.

• High-end and up to date technologies are accessible and can be bought at an affordable rate.

• The government invested USD$7 million of land premium and USD$1.8 million in infrastructure development which include reclamation and more land acquisition.

• High-end and up to date technologies are accessible and can be bought at an affordable rate.

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Environment

• Climate • Land size • Safety

• Warm and rainy in summer, cold in winter

• 82 hectares • Disneyland considers

safety a very important aspect in their operations. The fatality management is operated so that incidents are kept under wraps; clearly showing that Disney is focused on image first.

• Very cold and dry in winter. Cloudy half of the year

• 1,950 hectares • Disneyland considers

safety a very important aspect in their operations. The fatality management is operated so that incidents are kept under wraps; clearly showing that Disney is focused on image first.

• Sub-Tropical, cool and sunny winter. Hot in humid summer

• 180 hectares • Disneyland

considers safety a very important aspect in their operations. The fatality management is operated so that incidents are kept under wraps; clearly showing that Disney is focused on image first.

Disneyland Tokyo Disneyland Paris Disneyland Hong Kong

Legal

• Labor law and Employment law

• Is strict, and protects both employer and employee rather fairly. Therefore Disney's concept of "generally comfortable wearing uniforms, obeying their bosses and being part of the team" was accepted and pursued well by the Japanese.

• There is no flexibility in France. The employers are not allowed to dismiss employees as they want, which lead to high cost in employment in France. Disneyland has strict regulation of employees of employee’s appearance, no tattoos, no dying of hair. French people are not satisfied with the restriction of individual freedom, many organization protests against the regulations.

• Salary grade for is based on their education qualification. Therefore to have higher qualified staff Disney must be prepared to pay more. Therefore, janitors, or front liners may not be well educated enough to take on the challenge of "creating happiness" as a centralised strategy of Disney.

Case Study, Question 2

Why?

the Why…

1) Complies with Hong Kong’s economic and social status in 2005. Hong Kong was ready for a theme park of Disneyland’s nature.

2) Enter the right country at the right time with local adaption and high forecast of domestic and international visitors.

3) Capitalize on how the community will respond to Disneyland in Hong Kong, and therefore forecast realistic profits

Summary

• Social aspects play important role in this business industry

• PESTEL is used to show the comparison on each aspects

• Findings shows the 6 strategies (approach) to venture outside US (or internationalization)

• Experience differentiation – quality service and efficient