Competition and Managing Guest Attendance: Hong Kong Disneyland - Case Study Example

Executive Summary

In the year 1999, December 10th, the Hong Kong government legitimately signed an agreement with Disney to construct Disney theme park, dining, retail, entertainment and hotel facilities which were to be opened in 2005. The partnership was much like a joint venture between Disney and Hong Kong Government in 43% to 57% equity share. To monitor and manage the operation and management of the park, they incorporated a joint venture organisation known as Hong Kong International Theme Parks Ltd. The declaration of Disney theme park was a great bang of confidence for the future of the city since Hong Kong had experienced an economic depression in 1997 which led to a drop in tourism and crashed property prices.

At the start of the construction, various problems started to torment the venture. Although Disney had counselled with Feng Shui managers to join, "great Karma," by deliberately putting gold, wood, water, fire and soil into the park, Feng would turn its feedback toward Disney concerning green force. Activists reprimanded Disney for purchasing items from Chinese production lines where working conditions were horrifying. Wild dogs ran uncontrolled at the development site; the menu made problems; costs were set much higher that its nearby rival, major over-swarming problems, ticket problems, and social false impressions. Also, the tremendous flight of regional labourers, upper-administration changes, underestimation of the main year of anticipated guests to the park, and various others tormented the opening and operations. In summary, the development years and the principal year of operations were a Disney disaster due to lack of enough finances, negative publicity and hardships adapting to the Chinese culture.

Hong Kong Disneyland Case Analysis

Introduction

The Walt Disney Company is an American Founded organisation that has a firm connection to most of the popular theme parks in the world. Hong Kong Disneyland can be described as Disney's Universal Park that is situated in China. The company was formed as a collaboration between Walt Disney and Hong Kong. Despite having many difficulties including financial strains and hardships in adapting to the Chinese culture, the company finally made it. The paper is a perfect case study analysis of the Hong Kong Disneyland case. The paper first describes the several findings thoroughly explaining the logic behind each point. After that, there will be a discussion of the findings and recommendations of the case.

Findings

Competition and Managing Guest Attendance

The day by day limit farthest point of 30,000 guests for the park was too high. With roughly 29,000 guests, the normal lining time was 45 minutes at the eateries and over two hours for the rides. Rather than bringing down the day by day limit, Disney broadened opening time by an hour and supported visits amid the weekdays by offering rebates. Clearly, Disney needed to produce the most extreme income from ticket deals, sustenance and refreshments, and stock deals (Phillips, 2013). To keep up a relentless stream of new and returning customers, Disney must guarantee that customers fulfilled by the accessible administrations. Disney can change the impression of to what extent the lines are by giving diversion to the lines with the goal that the reality of the situation will become obvious eventually like it went by speedier. That could incorporate famous Disney characters welcoming customers in the lines, having shown screens airing Disney motion pictures, or having representatives play diversions with them. Additionally, Disney could position the lines so customers cannot perceive to what extent the lines are. Hence, they will not keep on judging how much more they need to hold up or the amount they have advanced in the line.

Negative Publicity

Hong Kong Disneyland had confronted much negative attention. One exceedingly exposed event occurred on Chinese New Year when the park could not suit a substantial gathering of Mainland sightseers with marked down one-day tickets, which could not be utilised on siestas. Hong Kong Disneyland neglected to perceive that Mainland China had two additional days for the general population occasion that Hong Kong did not have. Hong Kong Disneyland later apologised for this episode and guaranteed to keep on learning how to be better. Hong Kong Disneyland has additionally gotten different customer dissensions that they were abused, subjected to carelessness and separation. One approach to reducing these declarations is to be stricter with who gets contracted and the kind of representative preparing they get (Matusitz, 2011). There were likewise representative objections of being exhausted and came up short on.

Low Profitability and High Entry Costs

Hong Kong Disneyland has been battling with lower-than-anticipated profits for right around three years since its opening; elements, for example, park's little size, badly arranged area, the absence of one of kind elements and Chinese components, and insufficient engage grown-ups have been guaranteed as could reasonably be expected real causes. Luckily, with the taking off participation by Chinese terrain guests, Hong Kong Disneyland is making a profit for the first time following seven years of operation (Yim, 2007). Participation at the park expanded in 2012, and along these lines making a net profit of fourteen million dollars for the year finished September 2012. Although Hong Kong Disneyland has finally been making a profit for the first time following seven years of operation, contrasted with different branches.

Hardships in Adapting Products to Chinese Society

Due to the apparent absence of Chinese components, Disneyland had not pulled in the flocks of Chinese terrain vacationers that Disney and the Hong Kong government had expected. Subsequently, monitoring the significance of receiving community traditions, Hong Kong Disneyland propelled its first coordinated marketing effort with Chinese social components. In points of interest, for the Chinese New Year of 2008, another accumulation of red Chinese ensembles was intended for Mickey and Minnie, guests were likewise welcomed by the Chinese divine forces of riches, gift, wellbeing and lifespan, who passed out Chinese customary chocolate gold coins.

Discussion

As per the findings from the case study, the considerations that need to be taken to heart when devising a new facility of a similar type are entirely linked to perfecting the flaws evident in the findings section. As such, there is a need for establishing realistic goals with future parks that will not very strenuous for the staffs in line of duty. A good motive behind the establishment of the parks would be provision of customer satisfying services rather than rushing for increased returns from the business. Proper management of the clients considering the time that is spent at the park will be very sufficient in ensuring continuity in running the park and more clients.

Publicity is very essential for any set of business. Finding the right and ethical people group for advertising the affairs of a firm and further engaging in the dealings of the firm, such as the sale of tickets, is very fair for the progress of a given enterprise. Hong Kong Disneyland was noted to engage in a number of controversial dilemmas that left the firm with a negative impact on the people. Future developed parks should therefore focus on dealing with proper and ethical agents that will ensure the firm is advertised in the right way. In line with the issue is the concept of management of the entry cost for the parks developed which will ensure that the firm have a right standing with people. With well and properly maintained facilities, the right costs will ensure that the profitability of the firm is well attained. It should also be remembered that the firm needs to set realistic goals on the anticipated profits so that measures employed are in line with the objectives.

The hardship of the products of the company in adapting to the culture of the Chinese people was a very profound challenge for the firm. The challenge can be linked to poor research and studies done in the area prior to the establishment of the firm. The products need to be in tandem with the cultural preferences of the defined location as well as ensuring that the newly generated products are well in line with the cultural requirements of the place. Future considerations for establishment of the parks in the Chinese arena should therefore feature in great measure.

Recommendations

While Hong Kong Disneyland did a few things to make up to the Hong Kong society, their activities were ineffectual. Serving shark balance soup was engaging a bit of the populace and hostile to others. The control group issue and the poor working conditions majorly affected the absence of allure to the Hong Kong society. As an affront to damage, the nearby government solicited the general population from Hong Kong to be more passable (Xinhua, 2011). Hong Kong, must turn into a more unassuming foundation that sustains its customers. Make a proper open statement of regret, examine enhancements taking shape.

Customers ought to be given hand-outs on global behaviour standards with the buy of a ticket. Multilingual signs ought to be posted all through the park showing the social standards too. All around prepared customer administration agents ought to be accessible to help customers with their inquiries and concerns. If that Disneyland enters the China market, there will be social obstructions. Having had the same issue in Hong Kong, Disneyland ought to have figured out how to arrange widely to overcome such boundaries and dodge future issues.

Hong Kong Disneyland has a frequenting past. The best way to delete the mark that has been given Hong Kong Disneyland is to perceive the earlier slip-ups in an open proclamation, apologise, and clarify new plans in light of the past missteps. Motivating forces to past customers may keep their business. Disneyland has some significant rivalry in Hong Kong, Ocean Park (China Hospitality, 2010). To take customers from Ocean Park, Disneyland will need to include new attractions including both rides and instructions interests. Disneyland could likewise contend by turning out to be all the more gravel benevolent.

From Disney's point of view, they ought to sign the dedication letter. Pursue has had most extreme adaptability with the cravings of Disney. Pursue has likely permitted terms that different banks would not have been so natural to acknowledge, which may be due to the relationship between the bank and Disney (Tsai, 2011). The main condition that may concern Disney is the Market flex procurement. Nevertheless, given how adaptable Chase is with a large portion of the terms, it is just sensible that they shield themselves from a portion of the dangers including the Hong Kong Dollar vacillations.

Conversely, from Chase's perspective, they ought not to adjust any a greater amount of the contracts of the dedication letter. They have as of now been sufficiently adaptable with Disney in giving them the vast majority of their requests. In any case, they ought to be stricter on the reimbursements, since they are permitting them to begin paying up to three years after opening. They ought to incorporate a provision that states least instalments when the park begins running, regardless of the fact that they expand later to oblige to a plausibility of the introductory low request.

Conclusion

In conclusion, Hong Kong Disneyland could procure more labourers and expansion break times. Hong Kong Disneyland additionally could offer rebates to relatives of workers or hold more organisation occasions for the representatives so as to make a superior feeling of solidarity among workers to diminish turnover. To make a decent public image and persuade customers that Hong Kong Disneyland is fun, and customarily, this can be reflected in the appearances and states of mind of workers. If that they looked exhausted and prepared to leave, customers will be pretty much as prepared to leave with them.