Q-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? Ans:
The Walt Disney Company also known simply as Disney is the largest media and entertainment conglomerate in the world. Founded on October 16, 1923 by brothers Walt Disney and Roy Disney as the Disney Brothers Cartoon Studio, the company was reincorporated as Walt Disney Productions in 1929.An early and well-known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt Disney Company. Walt Disney Parks and Resorts is the segment of The Walt Disney Company.
Disney is motivated to set up parks in abroad because of some reasons. Those are:
To expand sales of their merchandise goods as well as attendance to their theme parks. It can attract more tourists to visit in it.
Disney is motivated to also acquire more resources by their expansion, for example, Disney wants to create theme park in Shanghai so that it can facilitate in probably creating a Disney channel for the Chinese people in Chinese language.
Disney is motivated to set up parks abroad to minimize the risks of their parks in United States. If the theme parks in United States do poor business then Disney could gain profits from Disney theme parks which are situated in abroad.
Pros standpoint of the Disney:
To Sales expansion
To Resource acquisition
To Risk minimization
To gain profit
Cons standpoint of the Disney:
Cultural factors: There are cultural factors which will inhibit the company from conducting business. For example, Paris was concerned that Disney was ruining their culture with American products and ideology. So this problem almost bankrupted Euro Disney.
Geographic influences: There are geographic influences to see where to place the park and where it would be profitable. Also, which area is closer to the population of the area and mass transportation facility is very much needed. ...
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