How Technology and Globalization Enhanced Disney Land - Report Example

Disney Land

Table of Contents

Introduction/Background of the Company1

How Technology and Globalization enhanced Company2

Development of company over the last three years5

SWOT Analysis6

Conclusion7

Work Cited9

• Introduction/Background of the Company

Tourism and hospitality have been on the growing trend over the last decades, thanks to globalization. Tourists from different parts of the world are increasingly becoming aware of different destinations they can visit and spend their holidays. Technology has increased the people’s awareness since they have to search and find the best places to spend their holiday. Today, Disney Land is one of the organizations that is on the expansion mission because of the lucrative business in the tourism and hospitality industry. The organization was established in 1955 in California, USA (Allen 37). It was a theme park built under the supervision of Walt Disney as an attraction property. Since it was established, the organization has been expanding each day and developing new products and services that meet the client’s expectations as well as the changing preferences of the visitors. Additionally, the organization has been customizing its services to meet the interest of different cultures across the globe. It is through this that the organization has expanded to Asian and European nations with tailored products and services to meet the interest of the locals as well as the visitors. Despite all these progress made, Disney Land is facing different challenges such as competition from the new entrants in the industry as well as diminishing returns due to harsh economic conditions that most people experience. Overall, the organization is still stable and is ranked one of top tourism destination in the world. It also receives many visitors from all over the world within its operational areas.

• How Technology and Globalization enhanced Company

Technological advancements and globalization have been a blessing to many organizations operating in the tourism and hospitality sector. The borderless of many nations because of globalization has opened many markets for Disney Land where it has maximized the opportunity by investing as per the local culture. For instance, Disney Land began its operation in California, but it has since spread to other nations such as Japan, China, France, and Hong-Kong (Tsai and Shubo 180). This is an indication on how globalization has helped the organization move to other parts of the world since the barriers to expansion and entry into other markets have been reduced.

The globalization has enabled the organization to expand to other markets because of varying economic trends witnessed over the years. For instance, the organization conducted a comparison between the US economy and the Japanese economy and found that Japanese economy was bouncing back faster than the US and Europe (West 27). Through this comparison, Disney Land was able to make a right decision on where to invest as well as caution itself in case others fail. Therefore, globalization is helping the organization to make a comparison when investing hence warning it from risks associated with the unfavorable corporate environment.

Moreover, Disney Land is using technology to customize its products and services to meet the local preferences and the demand of the tourists (West 47). For instance, Disney is producing cartoons made in Japan to suit a local market that results to expanded market. In today’s business environment, organizations are trying all they can do within their means to ensure that customers remain loyal to their services and products. It is through this approach that Disney Land is embracing technology to produce services and goods that meet the preferences of Japanese as opposed to imposing the American cartoons on them. It would be difficult achieving this mission without technology, which necessitates customization of cartoons to look like the Japanese. Thus, the organization has expanded its market coverage by entering Japan with customized products and services.

The adoption of internet courtesy of advanced technology has enabled the organization to reap hugely from tourists (West 83). The Internet allows people or visitors to search for destinations and find their locations. Through this, the organization has been able to receive visitors from all over the world as well as to make customer inquire from them without necessarily traveling to their physical offices. Through this, most visitors can assess what the organization offers and make an inquiry or any other activity that they might require (Xu and Zhu 7).

Moreover, technology has eased marketing by the organization. Different modes of advertisement are available at the disposal of the organization because of advanced technology. Today, Disney Land markets its destination through online platforms such as social media and their website. These adverts are available to everyone all over the world as long as they have supporting gadgets to allow them to enter online. Besides, technology has enabled the organization to reach every corner of the world with its marketing strategy (Roberts 1). This has helped the organization to disseminate information and create awareness among the target tourist with minimal time and spending. Thus, technology has helped get value for money that leads to minimizing the production costs.

Harmonized laws and operating environment among different nations have facilitated the growth of Disney Land. For instance, globalization has resulted in the harmonization of various laws among countries to pave the way for the mutual existence of organization (Xu and Zhu 4). This has helped various organizations to leverage their services and ensure they enjoy a competitive environment for their success. Thus, globalization has leveled the playing ground for other foreign investors in eth domestic market. Disney Land has used this opportunity to further operations in the Asian nations hence increasing its market share (PR 2). Through this, the organization has been in the expansion mode due to globalization.

• Development of company over the last three years

The profitability of the organization has been steady because of the shifting consumer or visitor’s preference. With entry into the Asian market, the organization has been reaping from it to gain a market share as well as to increase revenues generated. For instance, Disneyland Paris made 1,309.4, 1,279.7, and 1,373.1 million Euros in the last three years subsequently (Disneyland Paris 2). This is a strong indication that the organization is doing well in the foreign markets. Similarly, the number of current assets has been increasing steadily from 2,154.9 million Euros in 2013 to 2,160.2 million Euros in 2014 and lastly 2,290.4 million Euros in 2015 (Disneyland Paris 2). This is a strong indication that the organization is performing well in the Paris market.

The scope of the organization has expanded with new services being offered. This has, in turn, led to increased avenues of profit generation and to caution the organization from risks associated with a loss from investments. The customization of services and products to be in line with the local cultures of the new markets has been the latest development by the organization (Palmer 1).

Over the last decades, the organization has been in the expansion mode characterized by the shifting strength of economies. Thus, it has been shifting its gears towards the emerging economies as seen in the opening of the Hong Kong Disneyland Resort (Hong Kong Disney Land 4). Similarly, the organization has expanded to China and now wants to venture into India to have more market share.

The Financial status of the organization has remained steady over the last three years. This is because of the high economies of the emerging markets such as Hong Kong. For instance, Hong Kong Disneyland has proved to be promising by generating record revenues of HK$ 5,466 million as 2014 up from 12% in 2013. This translates to HK$ 322 million, 36% jump from the previous year, 2013 (Hong Kong Disney Land 4).

• SWOT Analysis

One of the organizational strengths is that it is the oldest and original Disneyland Park, and this makes it have an advantage regarding assets base and strong foundation. Secondly, it boasts as the leading world brand regarding amusement parks. Thus, it has established its selling point to the whole world. Thirdly, it has a higher accumulative attendance than any other theme park in the world, and this advantages it when it comes to publicity and marketing since it is well known. Fourthly, it has many offerings that are customized to meet different needs of the family segments such as children and adults. Lastly, the organization attracts more than sixteen million tourists from all over the world, and this makes it generate significant revenues which it can invest in other services (Disney Monash College 1).

The weakness of the organization is that it has a diverse product portfolio with different theme parks and hotels that lead to decentralization. The decentralization of the goods and services makes it difficult to manage and monitor what takes place. As a result, misuse of properties is evidenced on some parks. Secondly, the organization has been unable to curb accidents and incidents, and the more they continue is, the more the organization loses. Losses can be in the form of monetary due to compensation or scarring off potential visitors due to fear of being hurt (Disney Monash College 1).

The opportunity that the organization enjoys is that the flourishing of travel, hospitality, and tourism sector offers excellent prospects hence a bright future. As the organization invests in other areas, the return will be huge as the future is promising. Secondly, there are existing opportunities that allow the organization to innovate other attractive sites to bring imaginary into real life. This means that there are rooms for innovation. Thirdly, the organization can tap from the emerging markets by giving special offerings. This is ideal for bringing new visitors to the existing ones for the benefit of the organization (Disney Monash College 1).

The threat of the organization is from the local and international competitors such as Universal Studios that is increasingly gaining popularity. The competitor is out to market its products and services hence likely to slice some market share from Disney Land. Secondly, many theme parks are opening throughout the world thus offering an alternative destination to visitors. Therefore, the new entrance might steal away some visitors and cut the market share of the existing organizations. Lastly, the organization might lose its charm it has enjoyed over the years in case it is unable to innovate and upgrade itself. Consumers or visitor’s preferences keeps on changing as they prefer new things that come into the market (Disney Monash College 1).

• Conclusion

Disney Land has become a household name when it comes to whole family entertainment. The organization has been in the market for a longer time now and boasts of a high number of tourists visiting their facility. Despite all these successes, there are more that the management can do to attract more visitors and maintain their competitive edge. One of the things is a constant innovation of services and products. This is essential to give the clients or visitors a new experience from what they are used to every day. Secondly, venturing more into the emerging markets by encouraging them to visit these theme parks will be essential in leveraging the business.

• Work Cited

Allen, David. "Disneyland: Another Kind of Reality." European Journal Of American

Culture 33.1 (2014): 33-47.

Disney Monash College. SWOT analysis of Disneyland Hong Kong Theme Park. 2013. Online

https://disneymonashcollege.wordpress.com/2013/05/06/swot-analysis-of-disneyland-hong-kong-theme-park/

Disneyland Paris. Financial indicators: measuring performance. 2016. Online

http://corporate.disneylandparis.com/investor-relations/financial-

indicators/index.xhtml#contentj

Hong Kong Disney Land. Hong Kong Disneyland Annual Business Review For The Fiscal Year

2014. 2016. Online

http://ahongkongdisneyland.disney.go.com/media/hkdlcorp_v0100/en_US/aboutOurCom

pany/AnnualBusinessReview14.pdf

PALMER, JESSE. "Disneyland." Good Morning America (ABC) (2015): 1

PR, Newswire. "Disneyland Resort Offers Southern California Residents Special Prices on

Tickets for a Limited Time, Beginning Jan. 6." PR Newswire US 06 Jan. 2016:

ROBERTS, ROBIN. "Disneyland's 60Th Anniversary." Good Morning America (ABC)

 (2015): 1. 

Tsai, Terence, and Shubo Philip Liu. "Disneyland In Hong Kong - Green Challenge (A)." Asian

Case Research Journal 15.2 (2011): 177-200.

West, Mark. Disneyland and culture: essays on the parks and their influence. McFarland, 2010.

Xu, Dan and Zhu, Li. Marketing strategic change in expansion of Disneyland: cases study of

Disneyland’s overseas expansion in Shangai. 2010. Online http://www.diva-

portal.org/smash/get/diva2:369516/fulltext01