Disney Theme Parks Case
1. What do you think motivated Disney to set up parks abroad, and what might be the pros and cons from the standpoint of the Walt Disney Company? The reason behind Disney's motivation to set up theme parks abroad were mostly because of business opportunities. Based on how successful the Disney Theme Park is in the United States and the attraction they are gaining from foreigners, the management probably realized that it is time to consider entering the global market. By doing this, it would mean an increase of sales for the company. This is somehow a form of advertisement for people to buy their products and even to attract more and more consumers. Opening another theme park in a different country would also contribute to the survival of the company should their theme park in the United States lower in sales.
On the other hand, for the cons, one is concerning the cultural factors that may hinder the company from doing business in other countries. A good example would be the concerns in Paris. They feared that putting up a Disney Theme Park in their country might destroy their own culture. Another con would probably be the area where the park would be best put up. In other words, which area the theme park should be placed that would be profitable. Transportation is another factor as well as competition from other theme parks abroad.
2. Why do you suppose Disney made no financial investment in Japan, one of $140 million in France, and then one of over $300 million in Hong Kong? Disney made no financial investment in Japan because they were considering the risks of building one. They probably think that it might not be as profitable or that putting up a Disney Theme Park in Japan would outweigh the cons than the benefits.
Paris, like what was mentioned in the case, is the most visited European City and the French are the largest European consumers of Disney Products....
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