As stated in the book International Business, there are three major operating objectives that encourage businesses to engage in international business. These three objectives include expanding sales, acquiring recourses, and to minimize risk. I feel that Disney was motivated by all three of these aspects, and possibly others when deciding whether or not he should move more of his business abroad.
After seeing how successful the two theme parks in the United States were doing, the next option would be to expand.By expanding the parks into five international parks, Disney’s theme parks outside the United States would reportedly exceed that inside the country. I think that Disney also wanted to diversify and to let others experience the unique atmosphere he had created at Disneyland, Magic Kingdom, MGM Studios, and Epcot. The Walt Disney Company had to push through some obstacles along the way that were hindering its success. After investing millions of dollars into their Paris location, Disney ran into numerous problems.Many believed that the park would “contribute to the destruction of French Culture.
” These early problems almost sent Disney into bankruptcy. After renegotiating and changing some of the parks policies, such as changing prices, eliminating the alcohol policy, and promoting Disneyland Paris, the park is now successful and making some profit. After expanding Disney to Tokyo and Paris, there has been somewhat of a success. The Hong Kong Disney Land is making changes after seeing the backlashes of Disneyland Paris.Some improvements include, making the park a smaller scale, giving the hotels and restaurants a “strong Chinese flavor”, and improving things that went wrong at Disneyland Paris. Some other obvious pros to expanding internationally would be their sales expansion, resource acquisition and risk minimization. 2.
Because this was the first offer for a Disney theme park outside the United States, I feel the Walt Disney Company was skeptical about starting a new park overseas.It was a gamble for the company and not worth the risk. After doing more reading online, I learned that at the time that the Oriental Land Company made their offer to the Walt Disney Company, Disneyland was creating Epcot.
Because of their financial state and currently working on Epcot, the company did not want to back this idea but agreed to provide the master plan, design, manufacturing, and training services during the time of the construction. Disney would therefore not have to pay a penny and still make profit.The Oriental Land Company built the park and in return for Disney allowing the company to use its characters and ideas, Disney would receive licensing royalties from admissions, merchandise and concessions. After seeing the success of the park in Japan, I think the Disney Company realized how much potential the parks would have internationally. The company saw how the people were excepting Disney into their culture and wanted to invest in Paris, where the advantages were great due to the central location and the most visited European city. This was also the case for Hong Kong as well.Disney saw this as an opportunity to improve its relationship with China as well as business opportunities. This was also a central location where the American culture was accepted, using English as the main language and American food throughout the theme park 3.
I think Disney had many successful strategies with Japan’s Park. The Tokyo Park is basically an exact replica of the ones that were built in the United States. The Japanese culture accepted and embraced the U. S culture, and wanted to get the “real experience” and atmosphere one would get in the United States theme parks.Disney made this possible by creating signs in English and most food in U.
S style. According to the book, the Oriental Land Company demanded this because it wanted all tourists and guests visiting the park to get the “actual experience”. However, this idea was not as successful in Paris. As I stated earlier, many believed that the park would “contribute to the destruction of French Culture. ” To accommodate, Disney had to make some changes to better fit with the French Culture. If these changes were not made, the problems would cause Disney to go bankrupt.After finding an investor, Disney immediately took action.
The company lowered their prices, agreed to make French the first language, terminated the no-alcohol policy, and took on more promotional projects to advertise the park more efficiently. Another great contribution to making Disney Paris a success was the French government. The government decided to expand the Paris railway and connect it to the park. This would allow the park to be joined to the rest of Europe. 4. In my opinion, yes, I think that Disney should set up a park in Shanghai.
The other parks that have been opened and running for a few years have shown great success. I think this is a perfect city to create and begin another Disney theme park. Shanghai is a successful and fast growing city full of trading and profit. Because there is so much traveling and tourists going through China, Shanghai’s Disney theme park would attract a vast majority of these people to their park.
China is also extremely over populated and will have plenty of local families visiting the park to give their children the Disney experience.The builders of this theme park need to be aware of the mass amount of people who will be visiting the theme park, and take in to consideration the size of the park during the planning and construction. I can see it being overly crowded and becoming a problem if these risks are not examined carefully. I also think that the government should provide some sort of transportation like Pairs’ government did.
Because of the over-crowding in China, there will need to be some sort of way to get from point A to point B easily and more sufficiently.With the mass amount of tourists that would be visiting the new theme park, there needs to be some sort of mass transportation to avoid traffic and parking problems. With the idea that there will be new and improved technology that comes along with the 21st century, this will also attract more tourists. People want to see things that have not been done yet. New rides, theaters, and computer technology will help Shanghai easily become one of the most popular tourist attractions as well as the most successful Disney theme parks.