Case study Disney




1. EXECUTIVE SUMMARY

Disney Company - one of the world leaders in media entertainment, company branded consumer goods, and theme parks and resorts - signed the agreement with Hong Kong concerning the opening of a "Disneyland" amusement park in Hong Kong in the year 2005. This case study only concentrates one of the business fields explored by the Disney Company - theme parks and resorts.
The Disney Company occupies a strong position developed in the international business world over the years. Their outstanding success is based on several internal principles. One of them is Disney culture, whereby the company relies heavily on its heritage and traditions, ensures the company\'s quality standards, demonstrates the former two in their behavior. Another one of the principles is the so-called performance excellence as regards the company\'s responsibilities towards its clients, its employees, and its shareholders and other businesses.
Yet another important factor contributing to the company\'s success is their marketing policy. The Disney company has a wide range of products and services of an exceptionally high quality, which allows them to employ premium pricing and promotion strategies.
These factors, as well as the fact of having had several experiences on the international market, allows the Disney company to be confident of their intention to "go abroad" again.
Hong Kong, which has become a part of China after 150 years of British ruling, is monitored to be one of the largest and most active economies in Asia and in the world. The analysis on Hong Kong\'s economy show convincing figures of stable growth and development. These facts make Hong Kong a highly attractive market for Disney\'s expansion with the aim of bringing "the vision of happiness" to the whole world.
Furthermore, Hong Kong is considered to be a major international trading, financial center in the world, and the most famous tourist destination in Asia. A highly favorable taxation system that exists in the country, and the absence of direct competitors for a theme park like Disney\'s, add to the factors that are important for the Disney company in order to achieve their objectives.
The set-backs of the Hong Kong market exploration are mainly of political nature and are concerned with the relationship between China and the USA.
However, the people\'s perception of western ideology is said to be strongly positive. This is advised to be used as a theme for the promotion campaign conducted by Disney on the Hong Kong target market. The latter is to be the people who are "young or young in heart", where the western tendencies are in particularly affective. Thus, the company is advised to adopt its promotion policy to suit the new market better in order to achieve better results and avoid confusions. The media to be used in the promotion activities are recommended to act in consensus with the company\'s overall image, thus being highly perceived TV channels, local and international magazines and newspapers. The marketing costs are therefore budgeted to be quite high and are expected to be covered while employing the objective-and-task promotion budgeting method, which is viewed to be affordable for the Disney company.
Other aspects of the marketing strategy do not need to be changed/adopted, since considered to be internationally successful, as well as control systems, which include certain standard procedures that the company employs all over the world.


2. INTRODUCTION

I1. INTRODUCTION

In 1928, Walt Disney started as an animator drawing short black-and-white cartoons.
Today, Disney\'s main businesses are television, cinema entertainment, and theme parks. Disney owns national TV channels and radio stations that broadcast all around the USA. Since 1991 Disney cooperates with Pixar, a company specialized in computer animation, and together they produce and publish exclusively animated movies (e.g. "Toy Story").
In 1945 its first theme park "Disneyland" was opened in Anaheim, California, USA, followed by "Walt Disney World" in Orlando, Florida, USA, in 1971. In 1983, the first international Disneyland opened to the public in Tokyo, Japan, and in 1992, the corporation expanded its business to Paris, Europe. Furthermore, Disney operates a theme Cruise Ship since 1998.

The company has been very successful with its theme park business. However, Disney was confronted with a major crisis in its past when first operating its "EuroDisney" park near Paris. Insufficient knowledge of the European