Disney Theme Park Case Study

Disney Theme Park Case Study Questions

1. The things that motivated Disney to set up theme parks abroad were more business opportunities. The management realized how successful they were in the US and that their resorts attracted a lot of foreign travelers. Realizing this allowed them to consider tapping into the global market, which would mean more profits and a more global company. The pros from the standpoint of the Walt Disney Company would be more profits, gaining global product and differentiation, and better diversifying their company. The cons from the standpoint of the Walt Disney Company would be research costs, political risks in other countries, and cultural problems with other countries.

2. Disney Land leaders questioned whether a Disneyland-style of entertainment would succeed outside of the United States, because of culture differences. For that reason they did not wanted to take the risk, but as we can see they made a mistake, hence the Tokyo Disney Park is the entertainment park most visited in the world.

3. Factors In The External Environment that Contributed To Disney's Success:

-Current popularity Disney has with movies, television shows, and products.

-Focus on regions that are great potential markets:

-Paris central location enables a large population to drive there easily.

Factors in the External Environment that Contributed to Disney's Failure:

-Not adjusting to the foreign culture (Disneyland Paris almost bankrupted Disneyland Parks; people believed the park would contribute to the destruction of French culture).

-Not adjusting to societal norms. Disneyland Paris put a no alcohol policy in the park.

- Not adjusting or preparing for the environment climate: all of Disney's American parks are in

warm climates and climates in foreign regions were too cold to attract many winter visitors to the park.

Factors in the External Environment that Contributed to Disney's Adjustments:

-Disney had to adjust to the climate by installing fireplaces, protecting waiting lines, and placing a dome over the tea-cup ride.

-Problems in France because people believed the park would contribute to the destruction

of French culture and added some attractions to cater to French tastes and made French language in the park.

4. No, it would not be a good idea to open another Disney Park because of the fact that Disney already has two parks in that region. Setting up another Disney park in that region could take away business from the other two Disney parks: Tokyo and Hong Kong.

5. The similarities of the Disney websites are many. The main similarity is that all websites are in English. Other similarities include access to information about the parks, purchasing tickets online, making reservations, and information on the transportation in and around the park. There are not many differences in the websites, though. The main difference is that although all websites are defaulted in the English language, depending on which country website you chose, you have an option of the language, For example in the US, you can either view the website in English or Spanish and in Paris, you can view the website in such languages as Dutch, German, or Italian. Other than the language differences and the obvious differences of the Parks and their rides in other countries, the websites are generally the same.

PROGRESS REPORT

Executive Summary:

Three potential countries of interest for a Disney Theme Park would be Brazil, Chile, and Colombia. All are located in South America, a market in which there is no theme park yet. These three potential markets each have their own benefits and risks. By examining the country background, the economy which includes income and population, weighing the political and legal risks, and researching the basic cultural aspects of the country, our team has decided that Brazil would be of most interest to invest the time and effort of building a Disney theme park there. Brazil's benefits of being the 9th largest country in the world and the largest country of South America are of particular interest in building a theme park in the region. With a growing economy and strong US relations, a business venture into that region would be of great consideration for the Walt Disney company.

Country Background

Brazil: Brazil became an independent nation in 1822. It is the largest and most populous country in South America. It continues to pursue growth in both agriculture and industry. It has many natural resources and a large labor pool becoming the leading economic power in South America. Unequal income distribution and high debt remain the main problems of the economy (CIA World Fact book).

Chile: Chile became an independent nation in 1818. Chile continues to grow economically due to good economic policies and a democratic government. It has also gained regional and international leadership roles because of its stable, democratic environment (CIA World Fact book).

Colombia: Colombia became a free nation in 1830. Since then it has many problems with drug trafficking and other drug related problems. It is highly corrupted and violence is widespread, but it doe show some signs of improvement with an ongoing peace process in the works (CIA World Fact book).

Country Comparisons on Country Background:

Of the three countries we chose, we think Brazil is the best country to build a Disney Theme Park in. Referring to Table 1, Brazil has the largest land mass and the best climate of the three countries. Its climate is temperate, which would mean the theme park could be open all year. They also have a higher population which would mean a higher labor pool than the other three countries. Compared to Chile and Colombia, Brazil also has the least and less severe natural disasters. They only experience droughts and occasional frost, while Chile and Colombia both experience volcanoes and earthquakes which would be detrimental to a theme park. Brazil also has the advantage of bordering almost all countries of South America, which could mean more attraction and an easier way to get to the theme park if one were to live outside the country.

Economic