International Business Case Study: Problems and Key Issues of the Joint Venture Between Walt Disney Co and Hong Kong Special Administrative Region

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Summary of Problems and Key Issues of the Case The joint venture between the Walt Disney Co and Hong Kong Special Administrative Region (HKSAR) government (Landreth 2005) is at a risk and the magic of Disney is no more working in Hong Kong due to several reasons. The purpose of writing this paper is to analyze the case and find out why the park which was perceived to be a profitable market is suffering from losses since its opening in September 2005. The case shows many flaws due to which Government of Hong Kong and Disney failed to do this international business deal. These are as follows: Overcrowding The story begins just before the opening of the park, when it was criticized for over estimating the expected daily capacity limit (Bradsher 2005). This became evident on September 4, the charity preview day, when more than thirty thousand people visited the park resulting into a disaster. The park was overcrowded; people waited for hours to get a ride and stayed at least forty five minutes in queues to get food from fast food outlets. Overcrowding issue also took place during Chinese New Year in 2006, when visitors having valid tickets were not allowed to enter in the park due to its full capacity. As a result, visitors climbed gates and made their way to the work. The result was again a mess which destroyed the enjoyment of people. These events gave such a bitter experience to the visitors that they stopped visiting the park even in the normal days. Staff Issues and

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