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Index:

1. Introduction:
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This report is delineated to propose the arrival of Disneyland theme park into the Indian market. It will shed
light upon how Disneyland plans to enter with their theme park and how they will attain it. This report
notably will pivot around three central aspects – Firstly, the historical context of Disney land in relation of
the economy and the backdrop of Disneyland. Secondly, the evaluation of the elements of Disneyland and
ultimately, how Disneyland would subsequently enter the country. PESTLE analysis and Uppsala model
will be used to evaluate the business environment and the modes of entry in India.

Disneyland theme park is universally acknowledged as the ‘’Happiest place on Earth’’ (Wolk, 2020). With
its mystical and individualized approach towards customer experience, it has successfully created an
impassioned loyal aficionados. The ‘’real world’’ tends to get stressful, exhausting and hectic, hence,
Disneyland is the perfect getaway from all the strains of reality. There are infinite reasons to why people
love Disneyland. Mesmerizing theme park – the theme plays a remarkable part in what shapes Disneyland in
being so exceptional and phenomenal. The sensational rides, fantasy parades, live shows, firework displays,
the majestic castle, adventures for various age groups, 5-star quality food and leisure-filled lively water
parks and resorts and numerous more fun-packed activities can be performed at the Disneyland theme park.
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2. Historical context:

Disney, headquartered at the Walt Disney Studios in Burbank, California, is a worldwide mass media and
entertainment business. Walt and Roy Disney founded Disney Brothers Cartoon Studio on October 16,
1923. The Walt Disney Studio and Walt Disney Productions existed until 1986. Disneyland became a
globalized company by expanding into Tokyo in 1983, followed other parks. Disneyland theme park should
launch into India as Disney already has an established loyal customer base who frequently travel to Disney’s
theme park which are situated all over the world; hence, Disney won’t have to perform many marketing
events in order to attract customers. The income levels, Indian economy, infrastructure is at peak point at the
moment.

Disneyland opened its entryway on 17th July, 1955, with the inclusion of 18 various appealing rides, five
main land; Main Street USA, Adventureland, Fantasyland, Frontierland and Tomorrowland. July 17 was
marked as a premier day where in, it was served as a preview day for invited guests and media personalities.
However, it turned into a complete ruckus when more than half of the 28,000 people who were present had
‘’invited’’ themselves to the event by forging tickets or jumping the fence to enter. A gas leak resulted into
the closure of three of five theme parks just hours later it opened, adding into the injuries. Walt Disney,
always optimistic, gave his official dedication nonetheless. After receiving all of the negative press and
criticism since its opening, Disneyland's history appeared to have ended, but Disney made amends for its
heinous errors. (Murray, 2020).

India is a developing country, where no such ultra-high quality theme parks exist. Indians travel to foreign
Disneyland locations in order to indulge themselves into this immersive experience. There are various theme
parks in India but none of them have experiential theme parks hence, Disneyland is presented with a perfect
opportunity. India’s income levels have increased over time and people want to adopt high quality lifestyle,
therefore, they will certainly visit the Indian version of Disney’s theme park. Over the years, India has
developed at a secured pace and it has a stabilized economy, latest automation and technology, modern and
enchanting infrastructure, the logistics and connectivity has increased to diverse bounds. India is one of the
emerging and rapidly expanding aviation markets in the world. India abodes a lot of highly skilled
professional workforce which would increase customer satisfaction. India is a globalised country hence a lot
of companies want to invest, entering right now would be an accurate decision. Tourism from foreign
countries in India is to a great extent and they would be keen on exploring the Indian Disney theme park and
in the long-run Disney could also open up their hotels, various lands after the theme park which will help
accommodate and attract more customers.

3. PESTLE Analysis:

PESTLE analysis is a marketing analytical method that businesses use to monitor the environment they are
already operating in or one they intend to enter. One of the most crucial components of strategic
management, this framework enables a deeper understanding of the company environment.

Political factors: India is a democratic republic and a developing country with a stable government since the
past nine years which will help Disney’s theme park thrive as there is political stability in the country’s
environment. The taxation policy is quite stable making easy for businesses to predict forecasts, amusement
parks in India have a 18% GST policy since 2018 (Matre, 2023). Various initiatives have been adopted
through privatisation by the government in order to support independent growth of business by less
governmental intrusion in corporate activities and businesses.

Economic factors: The IMF World Economic Outlook (April - 2021) projects that India's nominal GDP per
capita will be $2,191 at current prices in 2021. (statisticstimes.com) Therefore, Indians will be able to afford
Disney Land’s prices as the income levels have significantly increased. According to the Future Market
Insights (FMI) report, the Theme Park Tourism Market will increase at a CAGR of 13% from 2022 to 2032,
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from its current anticipated value of US$ 49.1 billion in 2022 to US$ 166.67 billion by 2032. (Chittilapilly,
2022) Even though the Indian amusement park business is only getting started, Disney Land might see
significant development there because of India’s dearth of high-quality and exceptional amusement parks.

Social factors: The social environment has an impact on consumer behaviour, thus any business that wants
to turn a satisfied customer into a devoted one must determine the appropriate target population. Short
weekend getaways are common in India, theme parks make for wonderful vacation spots, and as Indians
strive for a high standard of living, they will be able to afford Disney. The 36–50 age range has long been
the main target audience for amusement parks. This is due to the fact that they get their children along to
keep them entertained. As a result, the owners of theme parks are emphasising more superior, well-rounded
family entertainment. Consumers now prioritise experiences over purchases when choosing how to spend
their free time. The demand and growth of the amusement park’s revenue are being driven by a variety of
factors, including shifting lifestyles, societal transformations, and a growing emphasis on leading a
balanced, holistic existence.

Technological factors: Due to technological advancements, India's IT industry is thriving and rapidly
growing. A highly advanced information technology industry makes constant advancements in software
possible in this country. As a result of India's rapid technical development, several international IT firms
have set up shop there. This is good for Disney since they need software to run their machines and games.
Tech advancements have been very helpful to the entertainment industry. Investing in state-of-the-art
equipment to create superior content will give Disney room to grow. Generation Z is very interested in
innovative ideas like AR and VR, which explain their widespread popularity. As a result, more people will
know about the theme park and visit. More people using smartphones, more engaging content, and more
engaging video games are all good for business. It is projected that by 2022, India would have the world's
third-largest construction market, surpassing China in that respect. The Indian logistics industry is expected
to reach $ 320 billion by 2025. Overall infrastructure investment is forecast to grow at a CAGR of 11.4%
between FY21 and FY26, led by spending on urban infrastructure, transportation, and on water supply.
(ibef.org)

Legal factors: There is really a comprehensive set of rules developed by the Association that are applicable
to both permanent and movable amusement parks and have been adopted by the Bureau of Indian Standards
of the Union Government. The fundamental issue, however, is that these recommendations are voluntary
and not required. As a result, except from sporadic inspections by local authorities, these amusement parks
are mostly in charge of conducting internal safety audits and self-safety checks, and no one is in charge of
ensuring that they do so. This could be a comparative advantage for Disney as they will ensure all the safety
protocols are followed. Disney should behave ethically by adopting consumer rights, employees laws, etc.
being ethical could also lead to Disney obtaining incentives in taxes or subsidies.

Environmental factors: India is on the path to become a sustainable country therefore, renewable energy is
one of the ways to become sustainable. Disney should adopt renewable energy while constructing the park
and afterwards also, this will improve Disney’s brand image, reputation and project Disney as an ethical
organisation in front of potential target audience. A big environmental friendly location will be picked for
the theme park and Disney won’t harm the environmental policies in India.

4. Modes of entry:

Uppsala model is a 1970’s theory which was meant for the Swedish manufacturing company, which claimed
that if a company wants to expand internationally, they should take a step by step, cautious approach. This
theory consists of 4 steps for companies to choose from; step 1 talks about companies expanding through
exporting small quantities in order to conduct test marketing, to understand the market and if the
transactions proceed smoothly for frequent transactions in order to assess the businesses traded with so that
the chances of frauds decrease. Step 2 talks about; now that your company has learnt about exports, hire an
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agent to help with indirect exports for them to be processed smoothly with adept experience. Step 3
highlights that once a business has learned enough tactics, they should conduct operations directly without
the help of any agent which will help them gain high profits as there is no middlemen. The last and the final
step considers starting the business’s own branch, retail store or manufacturing factory. In the recent times,
this theory has evolved and instead of following the steps, businesses choose anyone step as per their
convivence and strategy. Disney land will choose step 4 for their theme park, which talks about directly
entering the country. There are various ways to enter in a country as an MNE, such as; importing and
exporting, licensing, franchising, contract manufacturing and outsourcing, foreign direct investment and
joint ventures. One area of global business is the import and export of goods. Many businesses connect to
the global market in this way. Exports of goods and imports of services occur between nations. The second
area of global business is licencing. Some businesses charge a fee to use a foreign company's intellectual
property or sell their products (royalty). An international franchise agreement enables a business (the
franchisee) to market or sell the goods or services of another business (the franchisor) in return for royalties.
One area of international business is franchising. Contract manufacturing and outsourcing is quite common
in the modern world, businesses adopt this method in order to reduce labour costs. Foreign direct investment
(FDI) occurs when a company directly enters a country with their operations. Companies and individuals
can take part in global markets by investing directly in businesses that are based in different nations. To
conduct business there, these corporations or individuals construct factories and offices. A joint venture
occurs when business entities come together to gain benefits for the parties involved. Disney as a company
already exists in India, however the amusement park will be constructed. Disney will enter into the Indian
market through foreign direct investment in order to construct the theme park. Disney could also opt for
joint venture with a local Indian firm, but Disney is a high-end amusement park organisation and venturing
with another firm could lead to low quality and brand value in India may decrease. Foreign direct investment
will enable Disneyland to achieve market diversification, lower labour costs, tax incentives, subsidies and
preferential tariffs. There are 2 routes for businesses to enter in India through FDI: the automatic route and
the government route. The automatic route is for Indian companies and individuals and the government
route is for international firms who need to seek former government approval and perform documentations.
FDI is the best option alternative as Disney can benefit of India’s economic growth and low labour rates.
There are various locations for Disney to set up their amusement park, outskirts of Delhi, Gurgaon, Karjat,
outskirts of Lonavala. All these locations get weekend family crowd and are hotspots of India in terms of
upper class and middle class people, they will be able to afford Disneyland’s theme park and
accommodations.

5. Conclusion:

India is a good location for Disneyland to base their amusement park as there is rapid boost in the evolution
of technology, India has one of the best software engineers in the world which will be resourceful for
Disney. Disneyland will achieve comparative advantage over the other theme parks in India as they are on a
mediocre level. Disney should also use other analytical methods such as SWOT analysis, Boston Matrix,
Ansoff Matrix, Porter’s 5 forces Lewin’s force field analysis, core competences and decision trees in order
to assess the India’s business environment thoroughly.

6. References:

Bakshi, D. (2018). Theme Park Industry In India : Industry survey report. [online] Entrepreneur. Available
at: https://www.entrepreneur.com/en-in/starting-a-business/theme-park-industry-in-india-industry-survey-
report/315257 [Accessed 25 Jan. 2023].

CFI Team (2022). Foreign Direct Investment (FDI). [online] Corporate Finance Institute. Available at:
https://corporatefinanceinstitute.com/resources/economics/foreign-direct-investment-fdi/.
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Chittilapilly, A.K. (2022). The scope and growth of the Amusement Park industry in India. [online]
Financialexpress. Available at: https://www.financialexpress.com/lifestyle/travel-tourism/the-scope-and-
growth-of-the-amusement-park-industry-in-india/2695303/.

Fickley-Baker, J. (2013). Family Traditions: How Do You Show Your Disney Side? [online] Disney Parks
Blog. Available at: https://disneyparks.disney.go.com/blog/2013/11/family-traditions-how-do-you-show-
your-disney-side/ [Accessed 25 Jan. 2023].

India, M. (2023). GST On Amusement Park Tickets And Other Recreational Activities. [online] Masters
India. Available at: https://www.mastersindia.co/blog/gst-on-amusement-park-tickets/.

LEVY, C. (2022). 10 Reasons Why Is Disney World Really Is So Magical. [online] TheTravel. Available at:
https://www.thetravel.com/why-disney-is-so-magical-worth-it/.

Morgan, B. (2020). 5 Lessons From Disney’s Magical Customer Experience. [online] Forbes. Available at:
https://www.forbes.com/sites/blakemorgan/2020/01/23/5-lessons-from-disneys-magical-customer-
experience/?sh=bcb464075558 [Accessed 25 Jan. 2023].

Murray, S. (2020). History Of Disneyland And Timeline. [online] A Day In LA Tours. Available at:
https://www.adayinlatours.com/blog/the-history-of-disneyland/.

One, A. (n.d.). FDI Advantages and Disadvantages | Angel One (Angel Broking). [online] Angel One.
Available at: https://www.angelone.in/knowledge-center/share-market/advantages-of-fdi.

statisticstimes.com. (2021). India GDP per capita 2020 - StatisticsTimes.com. [online] Available at:
https://statisticstimes.com/economy/country/india-gdp-per-capita.php.

Wolk, A. (n.d.). Disney’s Indian Advantage. [online] Forbes. Available at:

https://www.forbes.com/sites/alanwolk/2020/03/31/disneys-indian-advantage/?sh=19d8c403537d [Accessed
25 Jan. 2023].

www.ibef.org. (2022). Indian Infrastructure- Industry Analysis | IBEF. [online] Available at:
https://www.ibef.org/industry/infrastructure-presentation.