Hong Kong Disneyland 4- What would be some of the foreseeable challenges for The Walt Disney Company if it chooses to enter the China market? According to a report, the Walt Disney Company has agreed for the development of another Disneyland in China. A new theme park is consented to develop in Shanghai. It has been estimated that the new theme park will cost around US$3.7 billion. Disneyland Shanghai is planned to operate in 2014. Unlike the Disneyland Hong Kong, the Disneyland Shanghai is focused to and targeting the Chinese consumers (Disneyland HongKong - Park Overview).
It was previously noticed that the Chinese consumers had to get a visa for Hong Kong in order to visit Disneyland, however this will not be the case with Disneyland Shanghai as it is located in the Pudong district (Ridley 522-524). A large number of Chinese consumers who live at a distance of few hours can easily come to visit the new attraction by drive. Where on one hand the new Disneyland in China is a huge investment aimed for the entertainment of the Chinese consumers, on the other hand, it has created a number of hurdles for the World Disney.
It should be understood that it is not simple for World Disney to go to China as the country has greater cultural restrictions. For this purpose, it has been strategized that the traditional Disneyland theme and framework is not going to work in China and a fresh strategy is required that focus only the Chinese consumers. It is predicted that the country specific framework for Disneyland Shanghai will effectively cater the needs of the Chinese market while it is also predicted to be a super hit venture (Ridley 526).
Another challenge that the World Disney will have to face is regarding the restriction of its local media. The distribution is very limited, and the brand does not have any channels in China as well. There is a strict limitation on the amount of imports from the US. However, to counter this challenge, the brand had decided to collaborate with local media partners. Furthermore, the issue of human resource is a serious one as the majority of Chinese only speak Chinese, this will certainly create problems for World Disney to hire its staff for Disneyland Shanghai (Disneyland HongKong - Park Overview). 5- How can experience gained from running Hong Kong Disneyland help The Walt Disney Company’s intended expansion into the Chinese market? World Disney has learnt lessons from Disneyland Hong Kong.
It will certainly allow the brand to come up with a more tactical and effective strategy to modify its functioning in the Chinese market. Firstly, it is recommended that there is a focus of the brand after its investment from the HKD is the size.
It was studied that Chinese consumers like big things; therefore, the size of the new theme park and the attractions should be big. Moreover, since the park is being developed in mainland China, therefore, it should have the potential to manage the engulfing crowd that is expected on weekends and public holidays (Disneyland HongKong - Park Overview; Ridley 528). It was observed that the HKD had a weak management in terms of handling audience. At the restaurants, the average ‘queue-time’ was around forty five minutes while at the rides it was noted as more than two hours.
Keeping these issues in mind, the HKD was forced to limit its daily capacity of consumers however it decided to adopt a different approach. The Disneyland China should address these issues first and should implement a proper and effective strategy for its new theme park (Ridley 530). Works Cited Disneyland HongKong - Park Overview. 2014. Online. 2014. Ridley, Linda L. Managing Diversity in a Global Economy. New York: University of New York, 2010. Print.