Case Analysis of Hong Kong Disneyland

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Case Analysis of Hong Kong Disneyland

Table of Contents
Service Concept2
Current Issues3

Hong Kong Disneyland was opened in September 2005 through a joint venture between the Walt Disney International and Hong Kong government. Disney has been on an international expansion since it first opened its park in 1980 in Japan and China being the most lucrative market, Disney decided to open the park in Hong Kong after selecting the city in the bidding process. The park was the first American park in Chinese territory. Hong Kong was a prime tourist destination for a large number of people from the mainland. Disney focused on people from mainland, the local residents and international tourists. The culture of Hong Kong differs from the mainland and the local residents were infamous for their low patience and different tastes for entertainment. Since it’s opening, the park has been in news regarding the operational problems associated with it. The issues with Disneyland were primarily due to Operations, Marketing and Finance. Based on their previous experiences, Disney left no stone unturned to ensure flawless operations but in spite of that there were some operational issues that tarnished the Disney brand after its opening. Overall Disney failed to gauge the Chinese market and provide a park that was unique in nature and different from the other parks in the region. Service Concept

Hong Kong Disneyland was expected to serve 5.6 million visitors for its first year. To facilitate thousands of visitors to park, like other Disney parks, Hong Kong Disneyland adopted service factory concept, to take the advantage of its scale and employ less expensive unskilled workers to provide low customization service. As the park ran with line flow process, the operation was highly efficient with the costs greatly reduced. To differentiate itself from other theme parks, Disneyland kept its distinctive competence while building park in Hong Kong, those include cartoon characters, theme park structure/ attractions, efficient operation of theme parks, customer service value and so on. They are the unique capabilities that Disney possesses, allowing it to gain advantage over the competition. Hong Kong and China mainland were perceived to be the major tourist markets for the new park. Learnt from the failure in Euro Disneyland, Disney paid attention to observe Chinese culture. It planned park in Hong Kong through careful consultation from a local feng shui master; the costumes of Disney characters were modified to suit Chinese tastes; it offered various Asian foods besides American burger to make visitors from all over the world feel at home; in addition, the park had trilingual staff speaking English, Mandarin and Cantonese. Overall, Disney was willing to change the "peripheral" of its service to adapt to Hong Kong. Issues and Recommendations

Hong Kong Disney land got lukewarm response since its opening. The attendance rate just could not reach a satisfactory level. A lot of issues have been identified. These service related issues according are analyzed with operations strategic decisions P(I)CQW 1. Process issue

As service factory concept was used by Hong Kong Disneyland, generally the park provides a standard service at less flexibility with low cost labors. However, to be a order winner, the park has to differentiate itself from other theme parks. Customized service should be provided. Disney should turn its service to mass customization so as to satisfy different group of customers. Hong Kong Disneyland should consider adding environment and sustainable operations to its process. One way is to adopt ISO 14000 standards. It not only helps to solve the problem like fireworks pollution and human rights complaint but also provides Disney social advantages and financial benefit. 2. Quality issue

Hong Kong is known for its fast life where people were infamous for their...
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