Disney Swot Analysis
CLASS: Global Public Relations ASSIGNMENT: Analyze any SWOT factors that may affect Disneyland when built in Shanghai
Strengths: ‘About 300 million potential customers live within two hours of the [Shanghai] sight’ (Source 4) Creates opportunity for word-of-mouth advertising. Locals of the Shanghai/Pudong District will most likely be the early adopters to the park and have the money to spend there. Shanghai has the highest GDP in China. ‘[China has] 1.3 billion increasingly wealthy people--290 million of them under 14, Disney's prime audience’ (Source 8) Situation is ideal. Children have a strong influence regarding how their parents spend money. ‘Retail sales are growing 17% a year in China after adjusting for inflation, almost twice as fast as the overall economy’ (Source 5) This could mean high profits from merchandise sold within the park. ‘In 1995 The Lion King became one of the first Western films to premiere in theaters since the communists took over China in 1949. More than 15 other movies have followed, an impressive record, given that Beijing allows only 20 foreign films to be shown in the country each year’ (Source 8) This is a great strength. Disney clearly has a lead among the Western media permitted into China. High brand exposure already. Weaknesses: Disney typically relies on the creation of new Disney TV channels to pump its brand abroad (Source 4) Without the availability of a Disney TV channel in China, it will be more difficult to promote the brand than it was in other markets. Until a few years ago, hardly anyone knew Mickey Mouse and Donald Duck even existed. Disney characters were banned for nearly 40 years after Mao's takeover. Now Chinese kids are familiar with the classic characters--in part from pirated DVDs--but their knowledge of Disney lore is limited. (Source 8) In most countries the Disney characters have long been a part of popular culture. Parents are attracted to Disney parks not only for their children, but also
Strengths: ‘About 300 million potential customers live within two hours of the [Shanghai] sight’ (Source 4) Creates opportunity for word-of-mouth advertising. Locals of the Shanghai/Pudong District will most likely be the early adopters to the park and have the money to spend there. Shanghai has the highest GDP in China. ‘[China has] 1.3 billion increasingly wealthy people--290 million of them under 14, Disney's prime audience’ (Source 8) Situation is ideal. Children have a strong influence regarding how their parents spend money. ‘Retail sales are growing 17% a year in China after adjusting for inflation, almost twice as fast as the overall economy’ (Source 5) This could mean high profits from merchandise sold within the park. ‘In 1995 The Lion King became one of the first Western films to premiere in theaters since the communists took over China in 1949. More than 15 other movies have followed, an impressive record, given that Beijing allows only 20 foreign films to be shown in the country each year’ (Source 8) This is a great strength. Disney clearly has a lead among the Western media permitted into China. High brand exposure already. Weaknesses: Disney typically relies on the creation of new Disney TV channels to pump its brand abroad (Source 4) Without the availability of a Disney TV channel in China, it will be more difficult to promote the brand than it was in other markets. Until a few years ago, hardly anyone knew Mickey Mouse and Donald Duck even existed. Disney characters were banned for nearly 40 years after Mao's takeover. Now Chinese kids are familiar with the classic characters--in part from pirated DVDs--but their knowledge of Disney lore is limited. (Source 8) In most countries the Disney characters have long been a part of popular culture. Parents are attracted to Disney parks not only for their children, but also