Q-1) What do you think motivated Disney to set up parks abroad, and what might be the pros and cons from the standpoint of the Walt Disney Company?
The Walt Disney Company also known simply as Disney is the largest media and entertainment conglomerate in the world. Founded on October 16, 1923 by brothers Walt Disney and Roy Disney as the Disney Brothers Cartoon Studio, the company was reincorporated as Walt Disney Productions in 1929.An early and well-known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt Disney Company. Walt Disney Parks and Resorts is the segment of The Walt Disney Company.
Disney is motivated to set up parks in abroad because of some reasons. Those are:
To expand sales of their merchandise goods as well as attendance to their theme parks. It can attract more tourists to visit in it.
Disney is motivated to also acquire more resources by their expansion, for example, Disney wants to create ...view middle of the document...
For example, Paris was concerned that Disney was
ruining their culture with American products and ideology. So this problem almost bankrupted Euro Disney.
Geographic influences: There are geographic influences to see where to place the park and where it would be profitable. Also, which area is closer to the population of
the area and mass transportation facility is very much needed.
Competition: Competition of amusement parks is a matter of thinking.
Political and legal situations: Political and legal drawbacks of certain countries becomes very harmful for Disney theme parks in various countries.
Q-2) Why do you suppose Disney made no financial investment in Japan, one of $140 million in France, and then one of over $300 million in Hong Kong?
Walt Disney Parks and Resorts is the segment of The Walt Disney Company that conceives, builds, and manages the company's theme parks and holiday resorts, as well as a variety of additional family-oriented leisure enterprises. It is one of four major business segments of the company, the other three being Consumer Products, Media Networks, and Studio Entertainment.
To my consideration, Disney made no financial investment in Japan because it was the first theme park of Disney outside of the United States. Disney was not sure about that, whether their theme park could do well in abroad or not. Disney knew that very well, it was a serious gamble to place their theme park in Japan. So they made no financial investment in Japan, rather than Disney provided master planning, design, manufacturing and training services during construction of theme park in Japan and also gave consulting services after completion of the facility.
On the other hand Disney made financial investment of $140 million in France, and then one of over $300 million in Hong Kong. This happens because they saw that Disney theme park in Japan was doing so well and they also find the potential of making profit through abroad investment. Also they were surprised by how the Japanese enjoyed the every aspect of Disney even accepting English as the language and American food throughout the theme park. So they invested in the theme parks of France and Hong Kong to earn huge profit as well as to gain reputation internationally.