Hong Kong Disney
Hong Kong Disney
Q1. What are the three most important success factors in the theme park business?
Well-defined vision: One of key success factors is DisneyЎ¦s vision that is giving eternal life to cartoon characters and creating a place where people can meet these life-size characters. This vision helps Disney to persevere to provide different kind of rides and tame entertainment to visitors. Obviously, DisneyЎ¦s heritage and traditions attract visitors worldwide.
Balanced entertainment offering: A successful theme park should also emphasis on show different light entertainments such as parade and fireworks compared to hard rides. Theme park is supposed to be an ideal place for family trips, so it should provide entertainments suitable for family members in all ages. If a theme park can also offer tame entertainment, it should probably attract both thrill-seeking youngsters and families.
Marketing strategies: Innovative marketing strategies also contribute to the success of a theme park. Having life-size character to greet and treat visitors, having different events such as sponsoring sports competition to remind visitors of the theme park and having different merchandise to sell in the park. All these create an ace memory and this experience is supposed to last during the whole voyage to the park. Peripheral
Q2. What are the three key considerations for Disney when choosing mode of entry in foreign market?
Risk: The risk factor for any investment is very important. Disney should conduct detailed analysis on the total estimated debt it expects to bear and cost of building the whole amusement park and resorts. It is not preferable for Disney to bear the risk and cost of a new theme park only by itself because competition in the theme park business in fierce and Disney cannot guarantee success. For example, universal studio is doing very well in the United States and competing with Disneyland in that region. If the cost for the new theme park is too large, Disney should find ways to reduce it in order to minimize risk and decide investment mode carefully.
Return on investment: The profit in different mode varies a lot. The whole ownership mode should have the greatest profit if the attendance rate is high because all the revenue goes to Disney account while the licensing mode gives the lowest profit as Disney will just receive loyalties and small portions in different service provided. Disney should consider how much profit they want in a foreign Disney theme park.
Ability to exit: When choosing mode of entry, Disney should consider the worst situation. If a theme park is doing badly such as Disneyland Paris, Disney should have the power to quit the business as soon as possible. Different modes give different degree of flexibility and adaptability during adverse scenarios.
Q3. What are the congruence and conflict between Chinese and American cultures and values from Disney Perspective?
Belief in myths: Both Chinese and Americans tend to believe in myth, which help Disney to create a fantasy world that satisfies the young and the young in heart. For example, Chinese believe Pangu created the world while Americans believe spirits would come out during Halloween.
Emphasis on family: Both Chinese and Americans attach great importance to their families; this makes perfect sense for Disney to create an ideal place for family members to get together and thus making Disney a household name as a provider of balanced entertainment for the whole family.
Apathetic vs. Passionate: Chinese is far more dispassionate towards enjoying life while Americans are more passionate towards entertainment. Maybe Chinese just want to try something new for once only and they will not have much change to become recurring visitors. While the Americans will put themselves in DisneyЎ¦s fantasy world and will miss the voyage in Disneyland and become recurring visitors. This conflict is very important towards the prosperity of Disney theme park in Chinese region.
Different spending habit: Chinese will be reluctant to spend on other things rather than necessities which means that they much buy many souvenirs from Disney stores. Americans pursue a better quality of life which implies that they are more likely to buy souvenir from Disney stores in order to retain the memory in Disneyland. In other words, the spending per capita of Chinese in Disneyland would be expected to be much lower than that of Americans as they are more like to pay extra for entertainment.
Q4. How is Hong Kong Disneyland operating now? How to cope with the key challenges?
Low attendance rate: Disneys idea is to attract