Presentation

International Business

Lecturer: Ho Cheng Kwee

Name : Tran Kim Ngan
 Brief background
Founded on October 16, 1923

by brothers Walt Disney and

Roy Disney - flagship family-oriented brands.

In 1929, the company was reincorporated as Walt

Disney Productions.
In 1986, Company expanded its existing operations

and also started divisions focused upon theatre, radio,

publishing, and online media.
Brief background (cont)
Target segments:

children and family-oriented customers.

Mission is to be “The happiest place on the Earth”.

Disney together with its subsidiaries is a diversified

entertainment company.
Now, is best known for the products of its film

studio, the Walt Disney Motion Pictures Group.

Key aspects - Potential markets
Tokyo contains the world's biggest population,

mixed with millions of tourists per year.

Paris is the most visited city in Europe can attract

the large number of tourists.

Hong Kong is the largest tourist destination with

about 10 million visitors per year, a better

infrastructure and higher family incomes.

 Key aspects - market entry modes

• Partnership
• Licensing
• French government • Joint venture
• Received some returns
provide advantages. • Contribute expertise
from admissions and
• Receive a management and the aura of its
from merchandise and
fee and royalty payment attractions and cartoon
food sales.
on admissions and food characters.
• Limited form of
sales. • Minimize their risks,
participation.
• Smallest risk, reduce financial strength.
• Less potential returns.
the potential losses.
Key aspects - The adaption
 “Think global, act local” is one of the key success.

 Tokyo Disneyland has Japanese restaurant, and a big-screen

attraction showing Japanese history.

 In France, French is the first language, an exhibit based on the

science-fiction stories of Jules Verne, put fireplaces and class dome,

using European actors as virtual tour guide.

 In Hong Kong, Chinese food restaurant, hired a feng shui master to

help to design the layout, response to complaints from environment

groups.
 Internal analysis
Strengths Weaknesses

• High investment will involve with

• “Disney” is a well-known brand all
high risk.
over the world.
• High operating cost with $1.8
• Strong financial background with
billion Park have only 16
US$ 62.497 billion of assets.
attractions.
• Innovative ideas, and differentiates
• Frequently change in top
itself among the other theme park.
management and the tremendous
• Image of Disney is very healthy
amount of employees.
and positive in the entertainment
• Limited range of target audience
industry.
mainly children.
 External – PEST analysis
Political

 In France, Disney was supported and given advantages by

the French government.

 Hong Kong government was so eager to attract Disney in

order to increase tourist industry, and decrease the high

unemployment.
 Disney was welcomed and supported by all government,

but there still have obstacles such as the disagreement of

farmers in France and less participation in Hong Kong.
External – PEST analysis (cont)
Value of Europe currencies were fluctuating greatly, high

unemployment rate, and French real-estate market tumbled.

French and European disposable incomes to shrink.

The collapse of the real-estate market caused the demise of the

planned development around the theme park and Euro

Disneyland did not receive revenue from property development.
In Hong Kong, high unemployment, less expense and incomes,

many families considered to take their children to the park.

 What will be next?
Shanghai Disneyland theme park, pushing the opening to 2015 at

the earliest.
China’s National Development and Reform Commission has

already formally approved the resort, and city officials are

negotiating with Disney over how it will be operated.
Once Shanghai Disneyland opens, those on the Chinese mainland

will go there, reducing patronage at the Hong Kong park.

However, Shanghai Mayor said, “The two cities are brothers and

will work together.”

Conclusion & Recommendation
Companies go globalization due to

 Increases to gain greater market share

 Cheap labor costs

 Expand their market reach

 Create other revenue sources

 Increased flow of communications allows vital information to be shared between

individuals and corporations around the world.

Each of entry had different risks levels (lower to high: Licensing, Partnership, Joint

Venture, Direct Investment).

Internal and external environment analysis also has impact on the decision-making

process of company.
Each country, Disney had learned some lessons from that.
Thank for
listening !