Disneyland Hong Kong

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Executive Summary Hong Kong Disneyland (Disney HK) is owned by Hong Kong International Theme Parks Limited, a joint venture company with 57 percent shares from the Hong Kong Government and 43 percent shares from the Walt Disney Company. One of the key reasons Disney HK was constructed is to create new jobs for both within Disney and through other employment opportunities and was also estimated to generate economic benefits for Hong Kong. This report would include a comprehensive analysis of the company, Disney HK. It aims to analyse the current situation of the company and propose strategies that would help Disney HK to improve and attain better achievements. The report would consist of an introduction, discussing Disney HK’s current…show more content…
It is part of Disney HK 's rationale in creating a unique experience of Disney 's magic and Chinese culture to position itself as a premium theme park in Hong Kong and the Asian region, a theme park that would come to mind for international tourists and to engage potential mainland Chinese visitors (Disney HK, 2012). It is the core strategy for Disney HK in sustaining its position, profitability and competitive advantage in the long run.


Disney HK has failed to reach its target number of 5.6 million visitors in the first year of operation, achieving a total of slightly over 5 million visitors well under its expectation. In the second and third year of operation, the park visitors were recorded at 4.17 and 4.5 million respectively (Tai and Lau, 2009). This led to a loss in profit incurred by Disney HK over three years of operation despite its effort on integrating to Chinese culture and attempt to create a high value and unique customer 's experience to the Disney magic. As a result of the loss, Walt Disney and the creditors of Disney HK had eased the pressure on payments over management fees and royalties, performance targets on its commercial loan were also removed (HK SAR, 1999). In the following year, an opportunity presented itself as Walt Disney had cleared its commercial loans, where Walt Disney was relieved from a major obstacle from realising
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