Disney’s global expansion – An Asia Perspective
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 ...view middle of the document...
Table of content
Issue Statement 5
Analysis of Problem 5
Action & Implementation Plan 7
Since introduction of its first theme park, Disney has been attaining global profit through a double approach: to expand their existing parks while at the same time entering the new territories (Tsai & Liu 2011). Put in another words, Disney has tried to reserved the theme in their parks in which current customers were attracted to the former by the new park upgrades, and first-time visitors were attracted to the latter simply due to its presence in a previously untapped market rather than trying to change the offer concept to customers at different markets. Continuing this process is the entrance into Asian market with its Hong Kong Disneyland opened in September 2005 (McKercher, Wong & Lau 2006). However, the introduction of Hongkong Disneyland has met hurdles and challenges. First, the challenges come from the size of the new park itself which was too small to accommodate vast number of customers and the competition from nearby parks with bigger and more familiar to Chinese visitors (Huang & Hsu, 2005). Next, Disney culture and characters were found aliened to vast number of customer who mainly came from mainland china who merely had no idea about how to behave or what to enjoy at an Disney Land park (Fowler & Marr 2006, Lee, Garbarino, & Lerman 2007).
Soon, Disney executives realized that gap between Hong Kong Disneyland offer and the locals that need to undergo urgent adjustments in order to gain more popularity among the Chinese and Hong Kongers. The theme park real challenge is on how to adjust their operations to fit into the local culture, traditions and context while at the same time keeping the Disney theme intact (Matusitz 2011). The four major globalization changes that have been employed at Hong Kong Disneyland to make the theme park more successful: reduction of prices; adaptation to local visitors’ customs; change of décors and settings; and adaptation of labor practices. These changes and modifications have turned Hong Kong Disneyland into such a successful venue with increased interest from mainland Chinese visitors (Hong Kong Disneyland May Miss Lenders’ Target 2007). This showed that Disney’s flexibility and adjustment to local preferences has proved an effective strategy in order to produce high profit and remain competitive in the global market (Matusitz 2011).
Despite of Hongkong Disneyland’s higher profits and competitive advantages, the park also face serious issues including the frequent overcrowded flow of customers, the lacks of creativity and innovation, or the overloaded staff as the consequence (Fenster, 2007, Matusitz 2011). The success of Hongkong Disneyland and these issues of limited capacity have led executives to consider expanding the current market in Asia with their plan to...