Preview

Case Analysis of Hong Kong Disneyland

Good Essays
Open Document
Open Document
790 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Analysis of Hong Kong Disneyland
Case Analysis of Hong Kong Disneyland
Analysis for Disney’s losing market share due to operational issues
Hong Kong is a set of islands, which are outside the Mainland China. The culture in Hong Kong differs from the mainland due to its rule from the British. Hong Kong was a prime tourist destinations for a large number of people from the mainland, as a result Disney focused on people from mainland, the local residents and international tourists. The local residents were infamous for their low patience. Since its opening, the park has been in news regarding the operational problems associated with it.
The issue with Disneyland lies with the way the park was managed. Based on their previous experiences in France regarding cultural imperialism, Disney made couple of attempts to ensure that the Disney’s presence does not showcase American hegemony and does not hurt Asian sentiments but in spite of that there were some operational issues that tarnished the Disneyland brand after its opening.
Overview
Hong Kong Disneyland was opened in September 2005 through a joint venture between the Walt Disney International and Hong Kong government. The park was the smallest amongst all the other Disney parks located around the globe. Disney has been on an international expansion since it first opened its park in 1980 in Japan and China being the most lucrative market, Disney decided to open the park in Hong Kong after selecting the city in the bidding process. The park was the first American park in Chinese territory.

The following were the key operational issues that the park is confronted with * Issues with Construction of the park which cost HK government US$57.7 million * Issues with the food menu serving endangered species * Issues with the pollution caused due to cheap quality fireworks used * Human rights issues with the supplier providing



References: www.park.hongkongdisneyland.com Shroeder, Roger. (2011). Operations Management. Singapore: McGraw-Hill.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The Walt Disney Company were faced with cultural problems in opening theme parks outside the U.S. They wanted Mickey Mouse to grow international bounds in their foreign theme parks. The other countries did not want the American icon Mickey Mouse as a representation of their culture. They had to develop new attractions, lower admission prices and a massive marketing campaign to increase attendance. Disney had to learn and understand culture in the countries so it can appear universal, events, trends, and cuisine was their expressing their message. They had to understand the culture such as the fourth floor was passed over at all hotels because of a culture belief that the number four was bad luck in Hong Kong. One of the Disneyland ballroom…

    • 161 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    1.1 Tokyo Disneyland opened on 15 April 1983 at a cost of US$1.4 billion. It is located on a reclaimed site about 10 km from downtown Tokyo. Tokyo Disneyland is privately owned by Oriental Land, a land-reclamation company in partnership with Mitsui Real Estate and the Keisei Railway Company. 1.2 Talks between Disney and Oriental Land started in the early 1970’s. Basically, Oriental Land is the owner and licensee; Disney is the designer and licensor. The final contract which was signed in 1979 gave Disney 5 per cent of the gross revenue on all food and merchandise, 10 percent of the gross on admissions, and 10% of any corporate sponsorship agreement, in exchange for a token US$2.5 million investment in the park. In 1980, the construction cost was estimated to be around US$250 million. Disney earned a fee for developing the park, retained complete design control, and retained significant control over park operations through a series of highly detailed operating manuals. 1.3 The partnership plans to build next to the present site a second theme park called Tokyo DisneySea due to open in 2001. Total cost will amount to US$3 billion.…

    • 533 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    The history of Disneyland started with Walt Disney’s vision of a place where parents and children could have a magical time together. According to Just Disney, he started dreaming of creating this place in 1944 but World War II put his plans on hold. In 1953, he had the Stanford Research Institute conduct a survey for a 100-acre site, outside of Los Angeles to find out what people would like to see in this enchanted place. Walt Disney found out he needed space to build rivers, waterfalls, and mountains. He would have flying elephants and giant teacups, a fairy-tale castle, moon rockets, and a scenic railway; all inside a magical place he would call "Disneyland” (Wingert.) Chris Wingert stated that Disneyland was very expensive to build but Disney said “I could never convince the financiers that Disneyland was feasible, because dreams offer too little collateral”. Construction for the park began on July 21, 1954, a year before opening was scheduled. After construction begun, the history of Walt Disney would never be the same. Since the area was an orange grove, 160-acres of citrus trees had to be cleared and 15 houses were moved to make room for the park (Wingert.) After spending close to $17,000,000, Disneyland finally opened on July 17, 1955 in Anaheim, California. Wingert identified that opening day was a complete disaster, with the temperature over 110 degrees, thousands of…

    • 1433 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Walt Disney believed that its themes parks would be an international success based off of the reception the parks had received in the past. Disneyland themed parks were quite successful when introduced in the United States. Mickey Mouse stood as the representative character for the parks. Serving as an American icon, Mickey Mouse has been a highly recognizable figure since his introduction in 1930. Many people flocked to the parks to catch a glimpse of him and the many other characters introduced since then. Walt Disney opened the first park in 1955 in Anaheim, California. Having found success with the operation a second park was opened in 1971 in Orlando, Florida. Large numbers of people would travel to the US to attend the theme parks,…

    • 248 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Building and investing in a multi-billion dollar theme park would represent another major, long-term commitment for The Walt Disney Company. Therefore, much research and planning were involved in this decision. In addition to the attractiveness of each of the remaining cities, Shanghai and Hong Kong, the market characteristics of the demand for theme park experiences by the Chinese people would have to be carefully evaluated.…

    • 1290 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    As we all know Walt Disney is an American icon, and has been since the 1930s (Ferrell, Hirt, & Ferrell). With the popularity of the company in American, that made the company want to expand to other countries. The two Walt Disney parks were started first in California and second in Florida (Ferrell, Hirt, & Ferrell). Walt Disney seen how well they were doing, and decided to spread the business to Paris and France 10 years later. There was also a Disney that opened in Hong Kong in 2005 (Ferrell, Hirt, & Ferrell).The Disney parks that were opened in the other countries were not performing well.…

    • 802 Words
    • 4 Pages
    Good Essays
  • Better Essays

    One way that the ability to adapt to local cultures and tastes is the key factor in determining the success of a business in china is because it makes sure that the business has a product that the market wants to buy. Disneyland is one company who did not manage to initially adapt their product to the chinese market. Disney did not research the chinese market enough before entering the chinese market assuming that they would like the typical American image that they had. This proved wrong as consumers were unfamiliar with the product and did not connect with the typical Disney characters. This meant that Disney had entered the market with a product that the chinese did not feel comfortable with because it was not the type of product that they were used to. Therefore the Hong Kong based park did not attract many customers resulting in low sales for Disneyland costing them money. In the long run this meant that they had to spend more money on adapting the park to the consumers needs in order to attract the chinese customers. They did this in ways such as reducing the price to meet chinese low income levels and having to adapt the labour practices, décor and settings and to the local visitors customs. Because of these mistakes made by Disney that cost them more than was expected they could have potentially failed as a business in china if it was not for them…

    • 1809 Words
    • 8 Pages
    Better Essays
  • Good Essays

    The piece “Barrier” performed by NobleMotion Dance is a somewhat simple yet intriguing piece. Both of the dancers in this piece are wearing pretty normal clothes with the girl wearing a nightgown type dress and the boy wearing a button down shirt and black pants. The dance takes place on a stage in front of a white screen in which the dancers work with throughout the piece as a part of the message they are trying to convey. From my point of view, the dancers and choreographer are trying to convey a conflict or conversation between a couple and this conflict is emphasized by the way the dancers use their bodies to react to the syncopated quick music.…

    • 741 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    History of Disneyland

    • 554 Words
    • 3 Pages

    Disneyland is a place with a lot of wonderful stories. Therefore the history of Disneyland is an epic story. One very fine day, Walt Disney the founder of Disneyland had an objective that he would really like to accomplish. It was about making his imagination came true to live. His imagination was to build a land where people of all ages could have fun together, his is plan was to build Disneyland. The first plan was on the 8 acres land opposite the Burbank studios. But due to the World War 2 the plans had to stop for some time. But the war gave Walt an advantage of coming up with new ideas. So after the war ended Walt started with the creation of Disneyland, then the construction started on 21st July 1954 and then it was all ready on 17th July 1955 revealed by a special televised press preview. Disney had experience bad times after the special televised press preview. The preview was terrible and it was later given a name ‘Black Sunday’ but then is became a big blast in the first year operation. Unfortunately, on 15th December 1966 Walt Disney was passed away by lung cancer in Burbank, California. After he died, his brother Roy Disney took over the whole Disney company. After several years of Disneyland opened, there were few expansion that happened in Disneyland which were included the expansion of New Orleans Square in the year 1966, Bear Country which is the Critter Country today in the year 1972, and Mickey's Toontown in the year 1993.…

    • 554 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Disneyland History

    • 1571 Words
    • 7 Pages

    Construction for Disneyland began on July 21, 1954, a meager 12 months before the park was…

    • 1571 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    To keep consumer confidence high and competition low, Hong Kong would not allow any additional construction in regards to theme park attractions within the region. We would also like Disney to help ensure a favorable revenue stream for both parties by agreeing to not construct any additional theme parks in the region.…

    • 437 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The venture into Hong Kong by Walt Disney was a simple example of a large successful western company not doing its homework. The case presents a clear picture of the importance of understanding a foreign market thoroughly before doing business there. Several factors led to an unsuccessful first year of operations and a majority of these factors could have been avoided with a better cultural understanding in the planning stages. One of the culture differences that was obvious to Disney was the fact that the children are not familiar with the Disney characters. Disney has established its brand and is a marketing poster child in the United States, however this advantage goes out the window in a country such as china that has sheltered itself from the outside world until recently. Disney thought that making a meager attempt at introducing the characters before the launch of the park would help, however familiarity isn’t synonymous with brand attachment. As listed in Global Marketing Management by Kotable & Helson, “Cultural Distance” is one of the six external criteria for choosing a mode of entry into a foreign territory, which was not accounted for by Disney. Cultural distance also recognizes the fact that different cultures have different expectations. This was also the case with China. As stated in the case, “for the tourists of Mainland China, going to Hong Kong means a shopping experience, and so they choose the cheaper alternative to Hong Kong Disneyland…” The case goes on to allude to the fact that the culture in China is one about dollars and cents – when a Chinese person spends his/her money, they are more interested in what they are physically getting. This is very…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Hong Kong Disneyland's advantages: 1. Hong Kong has advantages such as geography, population, adjacent to the largest market in the world. Within 5 hours flying time, covering half of the world's population. 2. well-known brand--Magic Kingdom of Walt Disney World cultural genius lies in its culture around the world to be "United States-processing". Classical inheritance of the culture has a strong sense of self-ability, Disney have cultural capture world of classical culture that last forever tree body, to fight the United States fashion the essence of "production" rather than "writing" mode to bulk sales of 3. Advanced technology and management philosophy of "SCSE" charm at Disney University, is the most typical dialogue exercises training new employees: Instructor: "we all know that McDonald's hamburgers. What did Walt Disney production? " New employee: "Disney to bring joy to people!" "Happy" Disney whether or not it is located in what part of the world, is pursuing a "SCSE" business philosophy, safe (safe), polite (civility), performance (show), efficiency (efficiency). Disney connotation to it: to ensure our guests comfort and safety; our staff polite; ensure that our performances are full of magic; guarantees our business with high efficiency. 4. the Romans do, positive Park localization. Disneyland after transplanted to Hong Kong attach great importance to the Feng Shui layout. Regardless of is paradise entry, also is small to a spent a grass, and a tree a wood, are after Feng Shui Division carefully planning; Disney Company more in Park within Hotel ad hoc a to "five" for theme of "Feng Shui in the restaurant", not only in restaurant layout joined "gold, and wood, and water, and fire, and soil" elements, even meal single also to "five" for theme. Disadvantage: cultural differences; Preparation for 6 years of opening of Hong Kong Disneyland on September 12. Back in 1999, in the face of financial crisis, economic downturn, high unemployment rate in…

    • 507 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Hong Kong Disneyland Hotel is the second Disney hotel in the Hong Kong Disneyland Resort in Penny's Bay, Lantau Island, Hong Kong. The theme of the hotel is of a Victorian style, and is located near Disneyland Harbour. The hotel is built on reclaimed land, and opened on September 12, 2005.…

    • 210 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    BADLANI CLASSES

    • 140425 Words
    • 378 Pages

    Q ue st io n : W ha t do y o u mea n by f i na ncia l ma na g e me nt ?…

    • 140425 Words
    • 378 Pages
    Satisfactory Essays