This paper will analyze Hong Kong Disneyland that was built y Disney in conjunction with the Hong Kong government. The local culture of the people of Hong Kong and how it is related to the operation of business especially the tourism industry, which Disneyland will fall under, will be closely examined. The author chose Hong Kong Disneyland, a theme park built and operated by a new-joint venture, between the Government of Hong Kong and the Walt Disney Company. In this report the author uses Disney as the subject of the paper as it is a new business venture in the tourism industry in Hong Kong. Disney started its business in Hong Kong since September 12th 2005 therefore evaluations and analysis are still in their early stages. This report will give a brief background of Disney and will then go on to analyze the various methods for strategic analysis to examine the culture. The paper will use some cultural theories in order to provide a comprehensive background as to the cross cultural awareness of the company with the culture of a state.
Hong Kong Disneyland (HKD) is among five such theme parks located on a reclaimed area in Penny’s Bay, Lantau Island. According to Miller (2007), it was opened on September 12, 2005, considered a good date by Chinese calendar for opening a new business. Hong Kong Disneyland was built and operated by a new-joint venture company, the Hong Kong International Theme Parks Ltd (HKITP), as formed by the Hong Kong Special Administrative Region Government which owned 57% and the Walt Disney Company owning 43% according to Miller (2007). According to Hills and Welford (2006), although Disney invested $316 million and the Hong Kong government invested $2.9 billion, Disney has no ownership of the land.
Disney tried to avoid the culture clash that was experienced when Disneyland Resort Paris was opened in France by incorporating local cultural elements in HKD. It was projected that the theme park would to attract between five to six million visitors in the year it opened who mainly comprised of Hong Kong locals and tourists from mainland China. It is predicted by the World Tourism Organization that in the next 15 years, HKD will become one of the world’s biggest tourist destinations, Hills (2006). Plans are already in place to expand the park in a next few years. With the government of Hong Kong owning a majority of Disney’s stock, any change in the political scene in Hong Kong will have a significant effect on the business. Economically any change whether micro or macro will affect businesses as well as HKD significantly. ANALYSIS
Disney went international in order to generate some form of importance for its organization, and did this by expanding to Tokyo and Paris as well as to Hong Kong. According to Daniels, Radebaugh & Sullivan (2011), companies increase their knowledge about products and services and how best they can generate and distribute them to their customers, by bringing people of varying backgrounds and experiences together.
The beginning of HKD has been rough. Disney made attempts to incorporate elements of the local culture into HKD by serving predominantly Chinese food in the restaurants at the park. According to Coker (2009), “An organization can achieve legendary service excellence in one part of the world, yet struggle to meet customer expectations when the same formula (content) is applied in a different country (context)”. When Disney decided to go to Hong Kong, the struggle was to extend US’s exceptional service thriving principle to the new expectations of the Chinese and Asian culture. Disney
According to Porter the following are the four determinants of national competitive advantage: firm strategy, structure, and rivalry: factor conditions; demand conditions; and related and supporting industries. It was found out that the company strategy is to relay advertise...