Case Study Analysis Hong Kong Disneyland 1 5a2l18

CASE STUDY: HONG KONG DISNEYLAND

Table of Contents 1.0

Introduction.................................................................................................2

2.0

Question 3...................................................................................................3

3.0

Conclusion and recommendations..............................................................9

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CASE STUDY: HONG KONG DISNEYLAND

1.0 Introduction The Walt Disney Company is an American organization firmly related to Mickey Mouse and world-celebrated amusement parks. Hong Kong Disneyland was the Walt Disney Company's third worldwide amusement park outside America, after Tokyo and Paris. Sufficiently intriguing, both the Hong Kong and Paris amusement parks had its boss supplanted in under a couple of months after the recreation centre’s opening, if these corporate moves were definitely not characteristic. In September 2006, the Hong Kong amusement park reported it had missed its first year participation focus of 5.6 million. Frequently censured as the littlest Disneyland on the planet, the Hong Kong amusement park had been tipped as a "going stone" for the American organization's entrance into territory China. On the off chance that it was without a doubt to serve as a model for another Disneyland in China, it would be basic for the istration of Hong Kong Disneyland to think of recuperation arrange and realign its technique to enhance its picture, participation and convey its income target.

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CASE STUDY: HONG KONG DISNEYLAND

2.0 Question 3 What are some of the challenges Disney HK will face in implementing these strategies? Suggest methods of dealing with these challenges. Hong Kong Disneyland is the third theme part of Disney and part of internationalization. From the experiences of Disney, it has shown that Disney has to choose the right product to enter the right location of country or site at the right time with or without any local adaptation. It is exceptionally urgent for Disney extension in Asia particularly in Hong Kong due to the past business encounters with Japan and Paris, made Disney did a considerable measure of systems in entering Hong Kong market. The challenges Disney HK will face: Environments

Challenges Government control – In China, both domestic and foreign companies have to operate under governmental control, which is quite different from

Political

the western counties. The international theme parks in China have a lot of issues to do with government. However, the inefficiencies of a laissezfaire approach can also affect the marketing strategies of Hong Kong

Legal

Disneyland. Piracy policy – Disney was combating with copyright infringement and protecting its image. The Chinese government has revised its Trademark Law, Patent Law, and Copyright Law. The enforcement measures are less than effective, and pirated American consumer goods, including Mickey Mouse products, are openly sold to millions of Chinese. However, the enforcement of the legal system in China was not fully utilized and made Hong Kong was listed on United State’s International Privacy watch list. Land policy – The land in China is always belonging to government, but companies can use it. The policy is if the companies paid the rent, it should be used totally. There should not be free land for future ideas. A long-standing smoking ban policy – Smoking was only allowed in restricted areas outside the main stream of traffic. The widen use of

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CASE STUDY: HONG KONG DISNEYLAND

cigarettes among Mainland Chinese; this will reflect Disney’s policy. Limited entrance to Hong Kong – The Guangdong government has pledged to ease visa application (the quota of two-way permits from 1,500 Mainland tourists) for Mainlanders travelling to the SAR. Language barrier – Culture has a significance impact on the lifecycle of a theme park. Hong Kong has been critiqued for their weakening English ability and insufficient Mandarin skills. Most employees are local people. Because of lacking in understanding and communicating in English and other languages, most employees are not well in delivering what they should. They are able to guide visitors from the entire world, especially those from China who are not familiar with Disneyland. Blend of American and Hong Kong culture – From the survey on Hong Kong Disneyland project, it was shown that 34.8% of respondents were not willing to blend American and Hong Kong culture, because of Chinese culture has their own identity in local and international markets. Lack of social networks – Hong Kong Disneyland will not local suppliers directly; instead it will cooperate with local companies. Cultural

Crowd management and maintaining cleanliness in the park – Too crowd in Disney, cleanliness in the park cannot maintain it well. This can distract tourists. Quality concept – To instil the quality service concept among its locally recruited employees. Food different – “Negative publicity plagued the Hong Kong theme park in its preparation leading up to the opening. Green groups asked the park to ban shark's fin soup from the resort's wedding banquet menu. Consumer behaviour – Chinese consumer behaviour will affect also. Although we know Chinese people have more free time to pursue entertainment, as their traditional mind, they are not willing to spend more than one days in Disneyland, instead they prefer have a trip outside of city. But in US, when people visited there, usually people spend three days there to have more fun. Obviously, the US Disneyland’s three day

Economic

trip is not suitable for Chinese consumers. Economic system – In history, China has been practiced command economic system which is the government centralized control and

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CASE STUDY: HONG KONG DISNEYLAND

regulates in resources. High capital intensive investment - Land price in Hong Kong and Disney’s troubled consumer product and film business – it was too risky for Disney to finance the project by its own capital. Competitive industry – Competition in Chinese theme park industry is getting increasingly furious. Not only in of an increasing number of theme parks and other amusement parks, but also relative to other uses of leisure time such as movies and internet bar. Moreover, the competition of space and accessibility has never stopped. Environmental issues – The loss of a green belt, pollution caused by the project, the threat to the endangered nepenthes (i.e. pitcher plants), white Environment

dolphins and the loss of a probable historical site. The expense and natural effect brought on by digging and transfer of the debased mud at the Cheoy Lee shipyard that is essential before recovery work for the Disney site can initiate.

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CASE STUDY: HONG KONG DISNEYLAND

The methods of dealing with these challenges: Environments

Methods Partnership with government – From the experiences ownerships with Tokyo Disneyland and European Disney, Disney took initiative to try out the third model for Hong Kong Disneyland. They made partnership with the government to guarantee uninterrupted financial and gain government to the construction of the project and in the park’s initial years of

Political

operation. Disney t ventured with local government to construct and operation. A fair deal for the government to provide a HK$5.6 billion lowinterest loan for the project and HK$13.6 billion for reclamation and infrastructure works. s from local government – In all Disney international operations, from the local government is critical to the Disney Company. Intellectual rights – Hong Kong has improved its intellectual rights protection; the United States has removed Hong Kong from its international piracy watch list in February 1999. Open Door Policy – After ing WTO, China becomes one of the most favourable countries to attract FDI. China practiced open door policy to

Legal

attract more foreign direct investments especially Disney into the markets. The China’s government has strived to privatize its giant state-owned enterprises and opening more sectors to foreign competition. Agreement with SAR – The SAR government had negotiated with Guangdong officials with a view to increasing the quota of two-way permits from 1,500 to 2,000 daily for Mainland tourists to visit Hong

Cultural

Kong. A unique service standard and practice – A Disney University in Hong Kong would be established to provide on-job training and professional development for each theme park employees. Disney has focused on the establishment of Disney’s management practice and motto, starting with hiring, training and development of its cast . This is because of this can reduce prejudice toward the Mainlanders. Increase awareness of language – Hong Kong needs to patch up its

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CASE STUDY: HONG KONG DISNEYLAND

instructive framework to prepare more skilled bilingual individuals. The government had emphasized the people in Hong Kong to learn and communicate well in English, Cantonese, and either Mandarin or other Chinese dialect. They are not only excellent performers but also master Chinese, Cantonese and English. They are able to guide visitors from the entire world, especially those from China who are not familiar with Disneyland. Hong Kong Disneyland is positioned as a family entertainment resort for both overseas and Mainland visitors. Signs and restaurant menus must be in English as well as in Chinese. Combination of Chinese culture and American – Hong Kong Disneyland tries to combine Chinese culture into the American theme park, such as the Chinese Gazebo and Mickey’s Chinese gown. For example, costume on Mickey can be changed to Chinese Tang costume. And also Chinese food will appear in Hong Kong Disneyland. Response to the influence of American culture upon Hong Kong was mixed. Maintain cleanliness in the park – Disney has to display its expertise in maintaining a clean and orderly environment in the park with high volume of tourists. High capital intensive – Due to high capital intensive investment in Hong Kong Disneyland, the government as the largest shareholder with 57% share of profits, Disney needs to t venture with the government to gain continuous financial and government s to the construction of the project. Maximize its returns on operations – DisneyQuest as an extra source of Economic

revenues and a big ment of Disney’s brand in addition to being a testing ground for new rides and features. This can misuse the tremendous capability of its brand image to upgrade the company's general execution. the low cost of Resources – Resources in China save lot for Hong Kong Disneyland, such as lower human resources cost and lower infrastructure cost. It is wise to cooperate local company as one of strategies in Hong Kong

Environment

Disneyland. Preventions – In reply to the environmental issue, Hong Kong Disneyland can follow the measures in United States California

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CASE STUDY: HONG KONG DISNEYLAND

Disneyland to use environmental friendly firework. For example, it can use compressed air instead of gunpowder to lift fireworks so as to reduce emission of ground level smoke. Also, it is suggested that the length of time for the firework displays be shortened to reduce the amount of pollutants released. By the way, the Hong Kong Disneyland should carry out environmental impact assessment before any construction work in the future, to minimize the negative impact on the environment. During reclamation, nets can be put into the sea to block the flow of mud water and stone so as to prevent the contaminated water from destroying the habitat of sea creatures. Furthermore, it should finish the reclamation as soon as possible to reduce the duration for water pollution.

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CASE STUDY: HONG KONG DISNEYLAND

3.0 Conclusion and recommendations Conclusion Hong Kong Disneyland is a dreamland for many youngsters. It fails to improve its tourism industry effectively and Hong Kong people’s dream cannot be realized since it started with a series of problems. With a shaky base, it is quite difficult to attract more guests to come if existing problems remained. These prove that Disneyland is being a white elephant at this moment. As a result, it is very important for the Hong Kong Disneyland to improve its cooperation with the government and the public. And, raise its competitiveness in the future in order to survive in Hong Kong. Recommendations Hong Kong Disneyland should divert its targeted tourists from Mainland Chinese to high-end foreigners by launching more ments overseas. So the Hong Kong Disneyland can be better known among the world. As a new Disneyland will be built in mainland in the future, Hong Kong Disneyland cannot rely greatly on Mainland Chinese. It should expand its range all over the world. Language and society procedures are created taking into aggressive strengths view. At the point when Disneyland chose to go into Hong Kong market, it must adjust Hong Kong environment. Firstly, Disneyland must be worthy through same dialect Hong Kong individuals utilized. On the off chance that Hong Kong individuals did not comprehend the dialect in Disneyland, they cannot encounter the quintessence of Disneyland. Furthermore, the way of life aided Hong Kong Disneyland turn out to be more acquainted with neighbourhood individuals; accordingly it can get more focused powers. With government , Hong Kong Disneyland got more capable than other amusement parks or carnivals. Promotion and ment Hong Kong Disneyland to get more piece of the overall industry than different contenders. Albeit different contenders must have their own procedures which may influence the entire business,

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CASE STUDY: HONG KONG DISNEYLAND

Hong Kong Disneyland built up these methodologies which could struggle with others and adjust the variable business sector. In order to return the magic back to Disney in Chinese Market, it has to add in more effort from management. First of all, staffs are the best sales force and must be well managed otherwise employees morale is threatened. In order to recover and build up a strong intellectual capital, a proper reward system should implement to increase motivation. A good working environment should be provided and flexibility built into working practices. It is important to increase employee’s relationship in order to ensure they share the same values as Hong Kong Disneyland and provide the best visitor experience. Moreover, employer branding can also attract and retain human capital, this directly relate to HKDL’s corporate social responsibility planning as CSR (Corporate Social Responsibility) directly affects the image of the company.

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