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Lecturer: Ho Cheng KweeName : Tran Kim Ngan
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y Founded on October 16, 1923
by brothers Walt Disney and
Roy Disney - flagship family-oriented brands.y In 1929, the company was reincorporated as Walt
Disney Productions.
y In 1986, Company expanded its existing operations
and also started divisions focused upon theatre,
radio, publishing, and online media.
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y Target segments:
children and family-oriented customers.
y Mission is to be The happiest place on the Earth .
y Disney together with its subsidiaries is a diversified
entertainment company.
y Now, is best known for the products of its film studio,
the Walt Disney Motion Pictures Group.
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y Tokyo contains the world's biggest population,
mixed with millions of tourists per year.
y Paris is the most visited city in Europe can attract
the large number of tourists.
y
Hong Kong is the largest tourist destination withabout 10 million visitors per year, a better
infrastructure and higher family incomes.
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LicensingReceived some returns
from admissions and
from merchandise and
food sales.
Limited form of
participation.
Less potential returns.
Partnership
French government
provide advantages.
Receive a management
fee and royalty payment
on admissions and foodsales.
Smallest risk, reduce
the potential losses.
Joint venture
Contribute expertise
and the aura of its
attractions and cartoon
characters.Minimize their risks,
financial strength.
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y Think global, act local is one of the key success.
y Tokyo Disneyland has Japanese restaurant, and a big-screen
attraction showing Japanese history.y In France, French is the first language, an exhibit based on the
science-fiction stories of Jules Verne, put fireplaces and class dome,
using European actors as virtual tour guide.
y In Hong Kong, Chinese food restaurant, hired a feng shui master to
help to design the layout, response to complaints from environment
groups.
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Strengths
Disney is a well-known brand all
over the world.
Strong financial background with
US$ 62.497 billion of assets.
Innovative ideas, and differentiates
itself among the other theme park.
Image of Disney is very healthy
and positive in the entertainment
industry.
Weaknesses
High investment will involve with
high risk.
High operating cost with $1.8billion Park have only 16
attractions.
Frequently change in top
management and the tremendousamount of employees.
Limited range of target audience
mainly children.
Internal analysisInternal analysis
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y Politicaly In France, Disney was supported and given advantages
by the French government.y Hong Kong government was so eager to attract Disney in
order to increase tourist industry, and decrease the high
unemployment.y Disney was welcomed and supported by all government,
but there still have obstacles such as the disagreement of
farmers in France and less participation in Hong Kong.
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y Value of Europe currencies were fluctuating greatly, high
unemployment rate, and French real-estate market tumbled.
y
French and European disposable incomes to shrink.y The collapse of the real-estate market caused the demise of the
planned development around the theme park and Euro
Disneyland did not receive revenue from property development.y In Hong Kong, high unemployment, less expense and incomes,
many families considered to take their children to the park.
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y Shanghai Disneyland theme park, pushing the opening to 2015 at
the earliest.
y China s National Development and Reform Commission has
already formally approved the resort, and city officials arenegotiating with Disney over how it will be operated.
y Once Shanghai Disneyland opens, those on the Chinese
mainland will go there, reducing patronage at the Hong Kong
park.
y However, Shanghai Mayor said, The two cities are brothers and
will work together.
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y Companies go globalization due toy Increases to gain greater market sharey Cheap labor costsy Expand their market reachy Create other revenue sourcesy Increased flow of communications allows vital information to be shared
between individuals and corporations around the world.
y Each of entry had different risks levels (lower to high: Licensing, Partnership,
Joint Venture, Direct Investment).y Internal and external environment analysis also has impact on the decision-
making process of company.
y Each country, Disney had learned some lessons from that.
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