Tokya Disneyland , Disney in Asia

Beyond capital of Japan Disneys Expansion in Asia DISNEY IN ASIA Early in 1999, Michael Eisner, CEO of The Walt Disney Company, voiced his opinions concerning potential markets for his firms entertainment products and services. A major thrust for the new millenium would be development in Asia. We could be acquire close to the conviction for a major Disney attraction in the worlds most inhabited farming. The Walt Disney Company, Annual Report, 1998. I am completely confident that Chinese people love Mickey no slight than they love a Big Mac. Statement by Michael Eisner, CEO of The Walt Disney Company, during a trip to china in January 1999, Knight-Ridder/Tribune Business News, 16 June 1999. INTERNATIONAL THEME PARKS AND RESORTS DISNEY EXPERIENCE Tokyo Disneyland pic Euro Disney (now Disneyland Paris) pic DISNEY AND CHINA IN THE 1990s Relations between the Disney Company and the government of chinaware had non been particularly tranquil in recent years. Disney held firm on i ts position on the movie. Disneys potential business in chinaware is infinite.But Disney has to decide whether it wants to facilitate business or stand for free speech. Not all of Disneys relationships with China were negative however. The liberalization of Chinas markets had catchd benefits for the firm. The Lion King had brought in almost $4 one thousand million in 1996 and the soundtrack had sold 1. 4 million copies. POTENTIAL OF THE ASIAN MARKET Building and investing in a multi-billion dollar case park would represent another major, long-term commitment for The Walt Disney Company. Therefore, much look for and planning were involved in this decision.In addition to the attractiveness of each of the remaining cities, Shanghai and Hong Kong, the market characteristics of the rent for theme park get a lines by the Chinese people would have to be carefully evaluated. Although the victor of the Tokyo Disney theme park would strengthen the case for another facility in Asia, o ther data and experience brought up additional questions. Between 1993 and 1998, more than 2000 theme parks had been opened in China, developed and financed by both domestic and foreign investors.Disney management was convinced that a huge, child-loving populace would support a fresh theme park business. Instead, many projects were swamped by excessive competition, poor market projections, high costs, and relentless limp from topical anaesthetic officials. Cultural Factor The Chinese had a ethnical disposition toward pampering children, which had been accentuated by the nations one-child per couple policy. Although many theme parks in China had not been successful, it was still generally believed that an exciting experience of high quality would attract visitants to a park.A mundane experience would be unlikely to spark pertain in a second visit. Based on the repeat visitors at both other Disney theme park, management was sort of confident that they would be successful in a ttracting Chinese visitors not only the first time, but also the second, third, and fourth times. CASE Questions for Review 1. What heathenish challenges are present by Disneys expansion into Asia? How are these different from those in Europe? There are nearly cultural challenges posed by Disneys expansion into Asia.For example, Disney in Hong Kong soon realized that its attempts at cultural sensitivity had not gone far enough. For instance, the decision to serve shark fin soup, a local favorite greatly angered environmentalists. The park ultimately had to remove the dish from its menus. Furthermore, there is negative media reporting of the relatively new theme park for Hong Kong Disneyland in terms of cultural challenge. On the other hand, in order to make the park culturally sensitive, Hong Kong Disneyland would be trilingual with English, Cantonese and Mandarin.The park would also accommodate a fantasy garden for taking picture with the Disneys characters, popular among Asia tic phaetons, as rise up as more covered and rainproof spaces to accommodate the drizzly climate. Attendance and operating income in France were less than anticipated and a major restructuring of the Euro Disney operating company was affected in 1994. Cultural challenges, as substantially as a European recession in the early 1990s, resulted in less than expected success of the park and its related hotels and facilities.Renamed Disneyland Paris early in 1994, and with enhanced performance, the Disney European experience finally began to patch up off for this facility, which, by the late 1990s, was the largest theme park in Western Europe With these two, quite different, experiences in operating a large theme park and resort facility outside of the continental get together States, the Eisner management team was ready to move into China. Two fixs were in the running early in 1999, representing quite different operating and financial strategies and structures.Either Hong Kong or Sh anghai would likely be the site of the contiguous Disney theme park. This was the challenge faced by the Disney management team, with a target decision date of June 1999. 2. How do cultural variables influence the mending choice of theme parks around the world? Cultural obstacles influence the location of new theme parks in Asia. One is finding the right location. Often, more important than sum is whether a venue is located in a metropolis, whether it is comfortably accessible by public transportation.However, in cultural perspective, there is an additional threat of competition, both from local attractions and those of other international corporations because of the position that it seems that Asian travelers are loyal to their local attractions. Therefore, the stiff competition of the theme park industry in Asia leave behind center on not only which park can throw a surge of interest in its first year but also which can build a loyal trading floor of repeat customers. In d eciding on a site for a China theme park, a number of factors had to be identified, considered, and evaluated.In consultation with the Disney Board of Directors, they were looking for an international character for this park. A diversified visitor base would reduce the risks of problems in one country having an adverse effect on international visitor flow. Infrastructure in the area of the park and the region supporting it were also important. Visitors should be able to orbital cavity the park easily, by a variety of forms of transportation airports, railroads, roadways, tunnels, bridges, bus lines, etc. hould be well establish or enhanced while the park was being constructed. A prime area would be easily accessible and would also support a park most efficiently. The park and the region should contribute to visitors extending their time spent at the Disney facility. Management knew that convincing visitors to stay at the site, in a Disney hotel, was likely to generate greater cas h flows from the park and its ancillary facilities. A stock of hotel rooms to upport park visitors was also important. cortege at a variety of price points, from economy to luxury should be available when the park opened. 3. What location would you recommend for Disneys next theme park in Asia? Why? We recommend Malaysia for Disneys next theme park in Asia. Therefore, one of such strategic locations is the state of Johor in Malaysia due to the fact that Malaysian officials wanted to develop Johor in order to rival its neighbor Singapore, as a tourist attraction.In fact, there can be a Disneyland in Singapore however, we dont want to create a competitive environment between Hong Kong and Singapore. For us, there shouldnt be two large Disney lands per region. Therefore, the scoop location in Asia to build a new theme park is Malaysia. We think that Malaysia Disneyland can kinda bring in a new set of customers. EPILOGUE Despite its already large size, the Asian theme park industry i s still developing.