Introduction
In 1923, Walt Disney created a short film called “Alice’s Wonderland,” leading to the formation of the Disney brothers cartoon studio by Walt and his brother Roy Disney. In 1926, it was renamed to Walt Disney Studio. The mention of Disney often evokes a sense of happiness for everyone. The company’s five business segments are Optimism, Decency, Trust, Creative, and collectively, they form the fifth one. In 2012, Disney was ranked as the number one entertainment company. Mickey Mouse ventures to Hong Kong.
After nine months of discussions and negotiations between the government and the company, Disneyland in Hong Kong has achieved a preliminary agreement. The theme park is considered crucial for stabilizing the local economy.
It can be divided into different segments as follows:
- Tourism from mainland China
- Tourism from Taiwan and Southeast Asia
- Tourism from Other countries
Market Barrier
The market barriers can be classified into:
- Pricing
- Competition
- Culture
The main market barrier was competition. The large amusement park in Shenzhen posed a threat to Hong Kong Disneyland because Ocean Park had become a well-rounded competitor. 1.) Despite Hong Kong Disneyland’s efforts to adapt to local Hong Kong culture, these attempts seemed ineffective. What areas still require further improvement in terms of cultural adaptation? Using Professor Brannen’s concept of decontextualizing strategic assets (see case Exhibit 2), do you believe Disney’s strategic assets are advantageous or disadvantageous in the Chinese cultural context? Please explain. Answer: Hong Kong Disneyland made great efforts to align itself with the local culture as closely as possible.
The Hong Kong Government utilized Disneyland and integrated their own culture, eliciting a substantial global reaction, both positive and negative. The integration of cultural concepts permeated the entire process, with particular emphasis on incorporating Feng Shui, a practice embraced by the people of Hong Kong to ensure auspiciousness. This method meticulously accounted for factors such as location, timing, and others in order to ensure proper execution due to the event’s significance. Furthermore, it should be noted that the people of Hong Kong possess deep-rooted traditional beliefs.
The creation of HKD incorporated aspects from ocean park, its main competitor. However, HKD gained significant popularity due to the success of Disneyland in other countries. They adapted the Disneyland concept to fit Chinese entertainment preferences. In Hong Kong, using sign boards for marketing and providing information is a common practice, which proved effective for HKD. Certain cultural details, such as the slogan “Disneyland: a happy place on earth,” would not have resonated well in Hong Kong due to various reasons, including the country’s congestion and high population density on the island. These factors would have hindered the success of Disneyland. Notable mistakes were made during the development of HKD.
1.) Sales of discounted passes initially caused a prevalent reduction in profits which impacted the park.
2.) An overdependence on Chinese Lunar Year has made the park more rigid, resulting in one of its biggest mistakes.
3.) A chaotic situation arises from a small island with a dense population, which prevents Disneyland from being a happy place.
4.) Negative publicity occurred due to public response during the construction of Disneyland, as well as sales and discounted prices, leading to chaos.
5.) Some complaints have emerged stating that people would never return to Disneyland in Hong Kong if given the chance.
6.) Legal allegations related to environmental issues have arisen throughout this process.
