Walt Disney Parks and Resorts

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Disney Theme Park to India

Disney Theme Park to India

Abstract:

This report is aim to analyze profitable adventure of The Walt Disney Company to set up Disneyland theme park in India. As one of main emerging markets in Asia, India might be the next destination for The Walt Disney Company to target on. Therefore, this report uses a series of marketing tools to demonstrate the macro-environment and micro-environment in India, such as PESTEL, SWOT, Porter’s Five Forces Model and Self Referencing Criteria. Based on this analysis, the current situation of India shows an attractive prospect to Disney in terms of economic and technological development, the diversification of culture, and the acceptance of Disney products and services.

Introduction:

India with its rich and various cultural heritages is now on one of the top industrialized nations in the world. India being the seventh largest country in the world with the coverage area of 32,87,263 sq.km (Indian government, 2010 a). India is divided into 27 states and 7 union territories (Indian government, 2010 b). According to WHO (2011), the total population of India was 1,151,751,000 approximately. The Walt Disney Company was founded in 1923 by Walt Disney and the first Disney theme park was opened in California in the year 1955, ever since Disney theme park has expanded to encompass Disney Cruise Line, eight Disney Vacation Club reports, Adventures by Disney, and four more resort locations. This report will analyze the profitable venture of The Walt Disney Company to India through PESTEL, SWOT and further on this report will use Porters’ 5F and self-referencing criteria as a tool to analyze the possibility of achieving success in the Indian market and will discuss in the discussion section. Finally it will give a conclusion at the end.

PESTEL Analysis

Political Analysis

Since the independence of India in 1947, India has generally been thought as the few political stable democracy country in the western world because it has a powerful political party, namely national congress party whose stability and dominant position seems difficult to challenge (India: Country Profile, 2005:13). However, both the Country Profile (2005) and Business Asia (2010:10) highlight that although the fundamental political keeps stable, the efficiency of political is low. The cause of this existed problem is that the national parties weakened gradually while the regional parties which influenced by the coalition government strongly (Business Asia, 2010:10). Current President is Pratibha Patil. (BBC News, 2011). As a result, India began to conduct a relatively free liberal market reform. Nonetheless, because of the interests of coalition government members are dissimilar, the speed of market reform is limited (Business Asia, 2010:10).

Economic Analysis

India’s economy is the fourth largest GDP in terms of purchasing power parity (Gupta and Gupta, 2008:68).

Table 1: The Growth of GDP in India from 2003-2008

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during the global economic crisis, India’s financial markets recover largely and India’s economy increase at 6.1% which was among the highest growth rates in the world in the last quarter of 2009. In 2007, Eleventh Plan (2007-2012) was published by Indian government and government formulate target of 9% per year on GDP growth. In the past 16 years, India’s steady reforms make India has...
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