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Upon review the Disneyland operation in different regions that appear many opportunities and challenges, which are facing to Disneyland. Since the major challenge is cultural crash in different areas that vary from region to region, which together with the problems of Disneyland’s standardization structure.
In the past, Disneyland has difficulty when dealing with the employees in 2006 of Hong Kong Disney that led to high level of anger among dissatisfied. The top management in Disneyland tries to cope with cultural in overseas to solve the problems of conflicts between the employers and employees towards.
On the other hand, Disneyland tries every mean to adapt more to the local environment in order to facilitate the local customers’ needs and wants.
The Walt Disney Company is in the entertainment industry that is tending to spread more globally throughout the world.
History and Company Background of Disneyland
The Walt Disney Theme Park was founded over 80 years that the first Disneyland is lunched in USA, which is going to expand to new territories that go further to market globalization in universal. There is total 11 theme park in worldwide that contain Paris, Tokyo, Honk Kong and Shanghai in future. (DISNEY, 2010)
Mission of Disneyland
That is to deliver quality entertainment experience to all ages with the messages “Dream come true” and focus on the “Imagineering” that focus to provide and create magic hours to all guests and visitors.
This will go on to analysis the marketing environment that consists of micro-environment and macro-environment. The micro-environment concerns the internal factors affecting The Walt Disney Company whereas the macro-environment concerns the external factors that can affect the micro-environment (Kolter, Bowen& Makens, 2006).
SWOT Analysis of Walt Disney Company
There are four things an organization should consider and analyze during various stages throughout the fiscal year that are crucial to keeping up with the competition and giving a relatively accurate perspective on positioning. The SWOT analysis helps an organization understand the current and potential environment for their particular product and service (Hair, Lamb & McDaniel, 2008) which allow adjusting the marketing tactics in order to help focus the strategies. That is going to analysis and recognizes the strengths and weaknesses are internal reflections, whereas the opportunities and threats are external reflections.
Walt Disney Company has developed established and well known brand name and image over many years in the entertainment industry, which has long history and tradition that can facilitate traditional values (Datamonitor, 2007).
In addition, Disneyland has many unique roles of characters and each of it has specific and attractive fairy tales hus, Disneyland are well equipping with broad product portfolio that consist of media networks, parks and resorts, studio entertainment and consumer products as different business segments with Imagineering section.
Walt Disney Company is frequent change in top management level that let to miscommunication and a high chance for a bureaucracy between employers and employees, which cause of high turnover rate.
Furthermore, Disneyland is mainly focus on standardization that each of the theme parks in different region is similar except the one in Tokyo.
Since 1997 decreasing revenues and strong degreasing operating income – no profitable unit
The markets of today are becoming more versatile to outsourcing and globalization. The trend towards globalization is not immune to the entertainment business and The Walt Disney Company is revealing this by expanding outside of the United States and offering theme parks in France, Japan and China.
Threats that are more prevalent in the era of globalization are the laws and regulations of other countries. There is a need for constant monitoring of the differences in the laws of other countries and the United States when organizations are outsourcing. Moreover, the theme parks must meet the safety regulations of the countries in which they operate in order to stay in business and maintain their international status. Furthermore, since the culture difference is vary from region to region that is hard to predict the right social development or interests of the target customers.
As with any business a main aspect of the threat analysis is the competition. The Walt Disney Company and the theme park industry are many competitors like Universal Studios. In addition, there are many other less visible competitors that one might not naturally think of when assessing the competitive market in which Disney deals. For instance, there are various country parks like water parks that can also be considered as cheaper or more valuable competition for Disney. Competition, in any form, can diminish Disney’s market share in the entertainment industry (Datamonitor, 2007
After analysis the external and internal environment of Walt Disney Company that has been figure out some of the problems should be aware afterwards.
The major existing problems facing by The Walt Disney Company that is highlighted the theme parks in Paris and Hong Kong.
For the Disney of Paris has faulty or misguided during the planning of basic assumptions and forecasts. Disney failed to anticipate the major change of economy that European Recession during the Disney opened. Europe was in the middle of an economic slump with financial problem. Thus, this reduced the purchasing power at this time. The graph below illustrates the downturn in France’s GDP during this period (1992-1994), resulting in a reduction in disposable income among the French population.
Moreover, Disney did not anticipate the culture differences of Europeans that incorporate with the language and eating habits, initially, banned alcohol in the park of the world’s largest wine consumption country. The cultural miscalculations with incorrect marketing plan of cross-cultural blunders occurred and were widely, even gleefully as the American cultural imperialism.
Many additional internal and external factors contributed to the initial failure of Euro
Disney, which are communication gaps, increasing interest rates, reduction in the real estate market, operational errors, and high labor costs all contributed to the $1 billion USD total loss.
However, many of these factors have been thoroughly analyzed throughout the years. Fortunately for Disney, many of these factors were corrected. By 2008, Euro Disney was able to make a profit of $19 million HKD.
Besides, Hong Kong Disney fails to reach target numbers of guest arrivals and fails to gain competitive advantages that due to poor management that fail to embrace the importance of corporate social responsibility planning in building up customer loyalty. Although Disney learned lessons and tried to avoid the same mistakes of cultural differences, the management has only focused on risk patterns rather than appraisal and learning about potential chance and risk.
Disney had attempted entry into the growing Chinese market prior opening in china (Kolter & Armstrong, 2006). Since the publication of fairy tales story books in Mandarin and creation of Disney character based on the Chinese traditional legend – Mulan. Thus, Hong Kong Disneyland took the steps to avoid the cultural crashes which happened in France, by preparing the population for the entry of Disney and enabling the identification with Disney character and concepts (Jobber D., 2007). However, Hong Kong Disneyland admitted that the park had only attended around 4.5 million visitors in 2008 and so on in 2009. Apart from this, there are losing money according to the revenue and expenses that shown at the bellowing (HKDL, 2010).
On the other hand, Tokyo Disney regarded as a great success with combined annual attendance and operating income, which is a joint venture operation model operated by Japanese. That successful reason is not only rely on
æ-¥æœ¬äººè‡ªå·±manageç•ªƒ no cultural crash that can â€¦.
As the Japanese had a great interest in Western cultural and do love of fantasy and costume that main visitors of this theme park are the local residents of Japan in fact.
Despite Japan is facing the problem of aging population, the management had set the slight on the growing elderly population as marketing strategy to deal with the problem of aging population. Tokyo Disneyland offers a cut-rate annual pass for visitor who aged 60 or above. This action arise the discussion that Disneyland is icons of entertainment for children, no matter this is the first time a special annual pass for seniors has been available, it also successes to take measure and addressed to the senior. (THINGSASIAN, 2008) http://www.thingsasian.com/stories-photos/29639
After the wavering beginnings of Euro Disney, management quickly learned many valuable lessons about international expansion and acted on these lessons to develop culturally accepted and profitable theme park.
To prevent the consequences of the failure that is needed learn from the pervious experiences and clarify clearly about the key successful factors of managing global marketing strategies.
Q1. The critical success factors in managing a global marketing strategy
Business consultants thus contend that the key to successful international marketing for any business-whether a multinational corporation or a small entrepreneurial venture-is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar (and sometimes unstable) foreign environment.
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