Individual Case Analysis-1
Hong Kong Disney
Mktg 412 Sales Management
In the case entitled Hong Kong Disneyland (Ivey Management Services version, 2007) describes the global mega-entertainment corporation’s inability to achieve forecasts in attendance and profit for the facilities first two years of operation (2005-206). Further research has shown that Hong Kong Disneyland (HKD) first year of profit came in 2012 (Nip, Kang-Chung, 2013). This analysis is divided into two sections. The first section discusses two reasons for HKD’s lack luster performance. The second section offers suggestions that would allow HKD to address these performance issues making HKD profitable.
Reasons why HKD has performance issues
The issues facing HKD can be traced to a lack of market-orientation. Cravens and Piercy (2013) define two important components of a market-oriented organization to be customer focused and to be aware of the competitive environment. “A business is market-oriented when its culture is systematically and entirely committed to the continuous creation of superior customer value” (Slater & Narver, 1994). A market-oriented organization continually evaluate the customers, competitors, and the markets. The organization then uses the distinctive capabilities (competencies) to match those capabilities to what the customers have determined as valuable.
Lack of customer focus
Numerous times throughout the case the target market was defined as affluent mainland China. However, the group that seemed to be most dissatisfied with the HKD experience was the target market. The Cravens and Piercy text states, “the market-oriented organization understands customers’ preferences and requirements and effectively deploys the skills and resources of the entire organization to satisfy the customer” (p. 5). Some of the major issues in the case related to the target market that seemed...
References: Nip, A., & Kang-Chung, N., (2013), Hong Kong Disney earns first profit in seven years since its opening, South China Morning Post, February 19, 2013.
Stanley F. Slater and John C. Narver, “Market Orientation, Customer Value, and Superior Performance,” Business Horizons, March-April 1994, 22-27.
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