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Presentation International Business: Lecturer: Ho Cheng Kwee Name: Tran Kim Ngan

Walt Disney Productions was founded in 1923 and has expanded into a diversified entertainment company known for its film studio. Potential international markets for Disney include Tokyo, Paris, and Hong Kong due to their large populations and tourism. Disney can enter these markets through licensing, partnerships, or joint ventures to minimize risk. Disney adapts to local cultures by including local food, designs, and languages. Its brand recognition and financial strength are advantages, but risks include high costs and management changes. Political support from governments can help entry, but economic factors like currency and incomes also impact success. Disney's expansion to Shanghai in 2015 may affect its park in Hong Kong.

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49 views

Presentation International Business: Lecturer: Ho Cheng Kwee Name: Tran Kim Ngan

Walt Disney Productions was founded in 1923 and has expanded into a diversified entertainment company known for its film studio. Potential international markets for Disney include Tokyo, Paris, and Hong Kong due to their large populations and tourism. Disney can enter these markets through licensing, partnerships, or joint ventures to minimize risk. Disney adapts to local cultures by including local food, designs, and languages. Its brand recognition and financial strength are advantages, but risks include high costs and management changes. Political support from governments can help entry, but economic factors like currency and incomes also impact success. Disney's expansion to Shanghai in 2015 may affect its park in Hong Kong.

Uploaded by

cosieunhan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Presentation

International Business

Lecturer: Ho Cheng Kwee


Name : Tran Kim Ngan
Brief background
Founded on October 16, 1923

by brothers Walt Disney and

Roy Disney - flagship family-oriented brands.


In 1929, the company was reincorporated as Walt

Disney Productions.
In 1986, Company expanded its existing operations

and also started divisions focused upon theatre, radio,


publishing, and online media.
Brief background (cont)
Target segments:

children and family-oriented customers.


Mission is to be “The happiest place on the Earth”.

Disney together with its subsidiaries is a diversified

entertainment company.
Now, is best known for the products of its film

studio, the Walt Disney Motion Pictures Group.


Key aspects - Potential markets
Tokyo contains the world's biggest population,

mixed with millions of tourists per year.

Paris is the most visited city in Europe can attract

the large number of tourists.

Hong Kong is the largest tourist destination with

about 10 million visitors per year, a better

infrastructure and higher family incomes.


Key aspects - market entry modes

• Partnership
• Licensing
• French government • Joint venture
• Received some returns
provide advantages. • Contribute expertise
from admissions and
• Receive a management and the aura of its
from merchandise and
fee and royalty payment attractions and cartoon
food sales.
on admissions and food characters.
• Limited form of
sales. • Minimize their risks,
participation.
• Smallest risk, reduce financial strength.
• Less potential returns.
the potential losses.
Key aspects - The adaption
 “Think global, act local” is one of the key success.

 Tokyo Disneyland has Japanese restaurant, and a big-screen

attraction showing Japanese history.

 In France, French is the first language, an exhibit based on the

science-fiction stories of Jules Verne, put fireplaces and class dome,

using European actors as virtual tour guide.

 In Hong Kong, Chinese food restaurant, hired a feng shui master to

help to design the layout, response to complaints from environment

groups.
Internal analysis
Strengths Weaknesses

• High investment will involve with


• “Disney” is a well-known brand all
high risk.
over the world.
• High operating cost with $1.8
• Strong financial background with
billion Park have only 16
US$ 62.497 billion of assets.
attractions.
• Innovative ideas, and differentiates
• Frequently change in top
itself among the other theme park.
management and the tremendous
• Image of Disney is very healthy
amount of employees.
and positive in the entertainment
• Limited range of target audience
industry.
mainly children.
External – PEST analysis
Political

 In France, Disney was supported and given advantages by

the French government.


 Hong Kong government was so eager to attract Disney in

order to increase tourist industry, and decrease the high


unemployment.
 Disney was welcomed and supported by all government,

but there still have obstacles such as the disagreement of


farmers in France and less participation in Hong Kong.
External – PEST analysis (cont)
Value of Europe currencies were fluctuating greatly, high

unemployment rate, and French real-estate market tumbled.


French and European disposable incomes to shrink.

The collapse of the real-estate market caused the demise of the

planned development around the theme park and Euro


Disneyland did not receive revenue from property development.
In Hong Kong, high unemployment, less expense and incomes,

many families considered to take their children to the park.


What will be next?
Shanghai Disneyland theme park, pushing the opening to 2015 at

the earliest.
China’s National Development and Reform Commission has

already formally approved the resort, and city officials are


negotiating with Disney over how it will be operated.
Once Shanghai Disneyland opens, those on the Chinese mainland

will go there, reducing patronage at the Hong Kong park.


However, Shanghai Mayor said, “The two cities are brothers and

will work together.”


Conclusion & Recommendation
Companies go globalization due to

 Increases to gain greater market share

 Cheap labor costs

 Expand their market reach

 Create other revenue sources

 Increased flow of communications allows vital information to be shared between

individuals and corporations around the world.

Each of entry had different risks levels (lower to high: Licensing, Partnership, Joint

Venture, Direct Investment).


Internal and external environment analysis also has impact on the decision-making

process of company.
Each country, Disney had learned some lessons from that.
Thank for
listening !

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