Disneyland Hong Kong

Topics: Walt Disney Parks and Resorts, The Walt Disney Company, Walt Disney Pages: 27 (8221 words) Published: August 26, 2013
Executive Summary Hong Kong Disneyland (Disney HK) is owned by Hong Kong International Theme Parks Limited, a joint venture company with 57 percent shares from the Hong Kong Government and 43 percent shares from the Walt Disney Company. One of the key reasons Disney HK was constructed is to create new jobs for both within Disney and through other employment opportunities and was also estimated to generate economic benefits for Hong Kong. This report would include a comprehensive analysis of the company, Disney HK. It aims to analyse the current situation of the company and propose strategies that would help Disney HK to improve and attain better achievements. The report would consist of an introduction, discussing Disney HK’s current situation, followed by the analysis of the environment. The report also comprises of an extensive analysis of the external, industry and internal environments. The external analysis uses the PESTLE factors to identify key environmental forces and trends. The industry analysis includes the Porter's five forces being employed in the case of Disney HK to analyse the competitive environment in which the potential profitability and survivability are greatly dependent on followed by the key success factors, competitor analysis and strategic group analysis. In the internal analysis, value chain and the TOWS analysis was used to analyse the organisation’s competencies and capabilities. Disney HK’s financial health would also be analysed in the report. Implications are also included in the respective sections to outline the possibilities which are affecting or in favour of the company. Subsequently, the challenges faced with the short and long term objectives are being discussed. Then the report would mention some competitive strategies and growth strategies that could be viable for Disney HK. The strategies recommended were discussed by using the Porter’s Generic Strategy and Ansoff Matrix. Next is the implementation and budget proposed for the specific activities for the year of 2012 to 2014 and due to the change in strategy, value chain activities need to be redefined and implemented with the proposed activities and budget. Lastly is the evaluation and control using a balance scorecard to manage the progression of its financial, customer, internal and innovation perspectives. With the aid of the recommended implantation plan and control measures, Disney HK is anticipated to prosper and achieve sustainable growth in the industry.

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1.0 Introduction
Disney HK is owned by Hong Kong International Theme Parks Limited, a joint venture company with 57 percent shares from the Hong Kong Government and 43 percent shares from the Walt Disney Company. The theme park was opened on 12th September 2005 and it was designed for potential expansion. Although Disney HK faced a decline in the number of visitors in the second year of operation, it has increasing number of visitors from the second year of operation onwards. However, the company’s success thus far has no guarantee for future due to the threat of the new Disneyland theme park in Shanghai. The opening of theme park in 2014 will threaten the stake of Disney HK, and attendance is estimated to drop as much as 60 percent. The report focuses on a comprehensive analysis of the joint venture company. It aims to provide an in-depth analysis of current situation of Disney HK and propose superlative strategies that would aid the company to sustain and gain competitive advantage.

2.0 Current Company Situation
Disney HK is the fifth theme park on Walt Disney Company's portfolio; it is the first direct overseas venture of Walt Disney and the theme park is the product of both Walt Disney and the Hong Kong Government's collaboration (Tai and Lau, 2009). Since its inception from September 2005, Disney HK has been constantly seeking integration to the Chinese culture of its main target customers from mainland China and the South Asian region, albeit with...

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