Hk disney case

HONG KONG DISNEYLAND CASE

1.1.1. Hong Kong Disneyland had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why? What areas, in terms of cultural adaptation, still need further improvement?

Hong Kong Disneyland has been created in 2005 in the largest of Hong Kong’s outlying island. Disney decided to create a new park in Hong Kong because of the opportunities offered by the country. China is a growing market and people are willing to spend money in activities or additional products offered by Disney. The city is also really attractive; Hong Kong has good infrastructures and good annual tourists arrivals.
Moreover, Disney already had the experience to create new park. With the difficulties in the French market and the success in Tokyo, Disney learned about the best practices to develop a good strategy. So, it was supposed that Disney would perform well in the Chinese market.
In reality, Disney Hong Kong faced some problems and has shown some failure.
In this first part, we will analyze the cultural adaptation realized by Disney to enter the market but also the cause of their poor performance.
During the first year, Disney faced many difficulties to develop a good strategy. The company attracted fewer visitors than the estimated projection and they had to overcome some challenge to translate its strategic assets in Hong Kong. * First, Disney lost some competitive advantages because of a negative publicity during its first months of operation with the problem of the Chinese Lunar New Year period. Disney built a specific campaign in order to reach the customers in China using local channels and stars. Unfortunately the efforts realized by Disney were inefficient.
Disney should create campaigns by using local aspects of the culture, like creating special events for example for the Chinese lunar New Year holiday period, for Christmas…
These occasions should provide Disney the opportunity