HONG KONG DISNEYLAND

ARIZKA-EMIRA-LEONARD-PRASDITYO-NURUL
 COMPANY BACKGROUND
Founded in 1923

Committed to delivering quality entertainment experiences for

all people of all ages.

2006, Disney’s business portfolio consist of 4 major segments.

Studio Consumer Media

Parks & Resorts
Entertainment Products Networks

Greatest decrease 5% increase in Decrease in Growth 27%

(69%)→ overall revenue → higher operating income in revenue→
↓ in units sales occupancy at the (3%) → lower higher rates
in worldwide resorts, theme rev from sales of paid by cable
From home park attendance, Disney goods & operators &
Exhibit 1. entertainment & guest merchandise higher ads
Miramax expenditure revenue
COMPANY BACKGROUND
Start to expand
internationally

Bringing the original

Disneyland model to a
new territory, then if
feasible, adding a
specialty theme park
TOKYO DISNEY RESORT
Disney did not
Opened in assume any
Oriental Land
1983 ownership to
as the owner
minimize risks.
& licensee

Disney as the
designer &
licensor

Tokyo DisneySea was

Well received by a huge success→
the Japanese → annual attendance of
Japanese interest > 25million visitors &
in Western culture operating income of
& the Asian love of US$ 245.47million in
fantasy and 2005
costume.
DISNEYLAND RESORT PARIS
Disney became Higher cost + the
one of the performance in initial
Operated partners (49%
in 1992 years→ caused
stake) severe difficulties in
1992-1994
Added new park:
Walt Disney
Studio(Hollywood
-themed
attractions)→ not
successful

Disney had to Problem: the

assured the French resistance by the
government that French to what they
French would be the considered American
primary language cultural imperialism
spoken Different
approach
in France
DISNEYLAND TOKYO vs. PARIS

Different translation of Disney’s strategic assets

(products, practices, and ideologies)
Mickey Mouse Goes to China
 Chinese consumers wanted to:
 Connect with the global popular culture
 Distance themselves from their previous collective poverty &
communist dictate
 Disney thought it would be a good time to set up a new theme park
in China → potential market, but :
 China’s infrastructure was still sub standards by world standards
 The Chinese currency was not fully convertible
 Choose HK as a location for Disney’s 3rd international theme park:
 HK had world-class infrastructure & a reputation as an international
financial center
 HK had always been a gateway to China
Mickey is looking for another location…

Hong Kong:
 Unusual blend of East &
West → Chinese Roots &
British Colonial heritage.
 Ultramodern sophistication
& ancient traditions
 Tourism → major pillars of
the HK economy
 Exhibit 4.
HONG KONG DISNEYLAND

 ± 18,400 jobs would be

created on the opening
 Increase spending
amount from tourist

• 1st class technological

innovations & facilities
• Gaining hands-on
experience with quality
service training
THE ISSUES
 PROBLEMS Fail to learn cultural
tradition and
consumption habits
of chinese people
Limited park capacity, this
create a problem during Facing negative public
peak time visitor, impression with
meanwhile HKD does not regards to the
have a proper solution to Government
apply waiting line investment in HKD
management

Receiving a lot of
Bad image because of
Facing negative customer complains
Chaotic incidets during
impression in front of because of limited local
Lunar New Year Holiday,
their employee due to attraction, customer
this is due to incapability to
some issues such as mistreated and do not put
handle accumulated
overworked, underpaid, customer safety as priority
problems
turnover among
executive staff.
Some action that has been done by
HKD to solve the problems :
 Applying new ticket promotion:
 By adjusting its pricing strategy,
 Promoted ticket express package,
 Promotion through taxi drivers,
 One day trip guide in Chinese to explain HKD to local travel
guides
 More proactive and collaborative moves with Chinese
travel agents→ by giving price discount and incentives
 HKD management announced the new break regulation
for employees
Analysis
 HKD should improved their waiting line management in
order to offset their efforts in increasing the number of
visitors. The imbalance of both strategies will create
another problems of overloaded visitors. The impression
here is, HKD is under pressured by their management to
increase their revenue because of very high investment
developing capital.
 The problems of customers complaint resulted from the
unsatisfied working conditions. Because the unsatisfied
employees will generate poor customers satisfaction.
Meanwhile, HKD focus on quality of service that stress on
customers satisfaction.
Analysis

 The learning of local traditions and consumption habits

has not been done totally, only on symbolic ( feng shui,
good luck ceremony, etc). HKD has not fully translated
their strategies assets to the Chinese context on products,
practices and ideologies.

 Lack of government involvement (held 57% of HKD

ownership) to solve the internal problems in HKD.
Recommendations
 It would be critical for the management of Hong Kong
Disneyland to come up with a recovery plan and realign
its strategy to improve its image, boost attendance and
deliver its revenue target.
 HKD should solve their main operational problem→
waiting line management, working conditions, promotion
 HKD should optimalizing their resources, in order to
increasing the amount of visitors.
 HKD should learn more about cultural traditions and
consumption habits, furthermore they have to translate
their strategic assets into Chinese context.
Exhibit 2.
Exhibit 3.
Exhibit 4.