This essay shall discuss what the Disney difference is and how it affects the company’s corporate, competitive and functional strategies. As Disney have plans on doing business in Russia, the discussion turns to the challenges they are likely to face and how the management team can best prepare themselves for such challenges by planning early. We will then be turning our attention to Hong Kong where Disney has announced its expansions plans of Hong Kong Disney Land. Lastly, the discussion takes to the how strategic management process is to be used to “keep the magic coming” in a given economic climate.
1a: Disney Difference
Disney difference, to sum up, is the “experience”. ...view middle of the document...
This theory in application is highlighted in its plans to open Aulani, Disney Resort and Spa, in Oahu as well as Disney Cruise Line also having expansions in 2012. Randy Garfield (2011), Executive Vice President, World Wide Sales and Travel Operations, Disney, said as much when he mentioned that “We’re spending more money and investing more rapidly than at any other time in our history. We’ve got a lot going on in our world.” Disney knows that to have a high growth, it has to diversify its businesses by expansions and investing heavily, instead of concentrating on single business. This is because it may have hit its saturation point and the market growth returns may not be as attractive
As for the competitive strategy, Disney focus in offering a unique product compared with its competitors to remain their foot hold in the market. The quality and creative content of the Disney's trademark bundling together with “Disney Difference” enables Disney to be different from others. While competitive strategy largely remaining the same, Disney add quality additions to their line up to generate more revenues.
Functional strategy will be affected in the way they do their marketing and research. Customer’s service is another important aspect that will be affected too. For example, in marketing, Disney has realised that TV advertising is “dying out” and there is a need to explore new platforms. Disney plans to do this by putting more focus into a Star Wars presence in its theme parks and the mobile app MyMagic+ program.
2a: Possible challenges to be faced in doing business in Russia
Since Disney is an organization that are affected by, and that affect, their environment, it is an open system. PESTEL analysis could be used to study the general environment to identify opportunities and threats, avoid surprises and respond to competitors of open systems. PESTEL stands for Political, Environment, Social, Technology, Economic and Legal factors.
Among all the factors, the biggest two factors that could pose problems for Disney are Political and Social.
Further elaborating on Russia’s political climate, there are governmental problems that is regularly highlighted, namely corruption and lack of transparency. Russia has come out as 127th out of 177 countries in Transparency International's 2013 Corruption Perceptions Index, a ranking of public sector corruption as perceived by business people and country experts. This is a good indication of how corruption and lack of transparency is rampant in Russia. How it will pose problems to Disney is that, when going into Russia, they might realise paper works/permits needed to run their businesses get moving really slowly unless under-hand transactions to approving bodies are offered. Lack of transparency means that they will not know how governmental decisions are made on businesses. For example, a Disney competitor may obtained a piece of land that Disney wants to operates on, at a lower rental value than...