1) What is the Disney Difference and how will it affect the company’s corporate, competitive and functional strategies? Disney Differences is a “high-quality creative content”. Not only that, it also is the undoubted champion going all holiday destinations, and theme parks in particular. To be sure, differences Disney exit strategy should include a few questions like “will it work?”, “It can be made to work?” The possibility, or “they will work?”. It is apparent that the difference shows the advantages that the world of Disney magic acquired through the years. They manage to maintain their competitive advantage through innovation, high quality services and entertainment that they offer, through a volume buyer and many other factors. They also have a clear strategy in order to increase the value of the background. Based on the functional strategy, remains every department is trying to do a role in meeting overall corporate objectives.
Whatever Disney make or create for their clients want to provide the highest quality creative content and exceptional storytelling. Corporate strategy decisions including mergers and acquisitions, new ventures, allocation of corporate resources. With the use of a corporate strategy it set mission to make the magic happen from books, toys, and games to online media, soundtracks, and DVD and make it a real experience. According to the aggressive strategy is complete in the business because Disney provides more than one product to cater to all ages and groups of customers from the theme park for the channel on the television.
Strategy function provides various functional departments to support a competitive strategy to be in the same city as the largest studio in the global competition is and provide lower prices at theme parks and products. Apart from that Disney also use business strategies to achieve and different from others. Definition of corporate strategy and business is not separation but hierarchy. In this hierarchy, the next level is a strategy that works, that identifies the decision function for R & D, personnel, finance, production, and sales and marketing. As the firm gets larger, the difference between the tactics worked, and business grow and achieve a superior.
2) What challenges do you think Disney might face in doing business in Russia? How could Iger and his top management team use planning to best prepare for those challenges?
Disney may face challenges of doing business is the economic situation of Russia will lower and control and a large number of viewers in Russia. To meet the challenges of the Russian Disney management team should establish goals for success. They need to create short-term and long-term plans at the project launch Disney channel. Instead of traditional goal setting is necessary to use the company’s management by objectives, the process of setting mutually agreed upon goals and use goals to evaluate employee performance. Disney should apply benchmarking strategy to find the best practices among competitors or no competitors that lead to their superior performanceIn order to come in front of them should have a good planning process. Disney, they should focus on the objectives they want to achieve and also in target markets. Disney, creating a real plan, establish specific objectives and key resources they need. Disney Third, they need to analyze alternatives, and the size of the list of possible actions, and finally implement the plan and evaluate the results.
Apart from that Disney also some challenges that Disney might face in doing business in Russia, especially from the opposition, customs regulations, piracy, media inflation, the size of the market and the competition was due to the increased range of products including local publications. Disney also faced with transparency Russian politics, and ethics. So, Iger and the management team must to investigate the needs and sensitivities of doing business in Russia. Iger has recognized the importance of enhancing the company of media debate different platforms, but the effectiveness of the strategic approach is still ambiguity in the long run.
Disney has the know how to stabilize and reduce uncertainty in managing all business risks across the economy to ensure that the economic recession is not affected as a result of the performance and affect the profit decline. Iger use the opportunity that they have in the media market to expand and strengthen brand power products Disney company, and also enhance creativity and innovation to enrich the decision to provide funds to build a new theme areas and assume that will increase the number of visitors may be in vain, the company need to perform strategic analysis tonsure what being the cause of deterioration of visitors.
3. With the announced expansion of Disney Hong Kong, what goal might the company set? What type of planning will be necessary?
The company has set a goal to increase the number of visitors and improve their management options to attract customers back and give the best customer service and knowing the culture, Disney Hong Kong to use a specific plan that identifies the resources leads to increase number of visitors and establishing certain procedures, budget and schedule for achieving goals. Disney also spent time and energy to fundamentally change the way our guests experience their properties.
* Expecting profits in year of 2014. Since Hong Kong Disneyland Resort is a large investment. It needs time to recover the cost. But the payback period cannot be too long. So it hopes there will be a balance on cost and revenue. * They try to reducing the loss in the following years. It can help to make a profit from this investment. * They have the huge financial commitment, with the Hong Kong’s government and got a 57- percent ownership share in the joint venture.
* The Hong Kong Disneyland development and growth of the entire tourism industry influence the performance of the entire enjoyment park land. * The Hong Kong Disneyland doing this kind of activities to increase their country GDP and making it the newest member of the world’s seven largest economies. * They also want to increase their profitable economic more than other country Disneyland.
Disney has used some sort of panning to bring them to achieve goals. Disney should use a strategic plan that can create their overall goals for their target sample to make Disneyland Hong Kong is a destination that brings a touch of magic to attend the meeting. Disney Hong Kong should strive to put the organization in terms of the environment such as Disney Disneyland to get their position within the environment and that it fits with the culture of Hong Kong to attract more customers and cover a long time. In addition, the Disney Hong Kong to carry out a specific plan to determine the details of how the overall goal can be achieved without any interpretation such as the use of information technology, especially the Web, helping drive greater customer involvement in the Resort.
Hong Kong Disneyland can use the web to create an exciting experience for the influence to take the required action. The ultimate goal is to build the trust that results in long-term relationships with customers. Disney can also use the stand plans that provide guidance for activities performed repeatedly as always provide guidance and check the condition of a game like roller coaster safe and does not lead to a situation that is not enough ants. Plan a flexible way to set general guidelines and focus, yet allow discretion in implementation should also be used by Disney to reach the goal. For example, Disney should focus on keeping customers aware of entertainment with feedback from customers and keep improving their service to customers. This type of plan should be and it is necessary for Disney to take action to achieve their goals.
* The Hong Kong Disneyland also used the long term plan to on this project of launching a Disney channel because not involve any problem base on the product distribution. * The Hong Kong Disneyland used the long term plan to the project construction. The long-term plan construction with the reclaimed land reserved for the Phase 2 Extension, it is expected that the resort’s second Disney theme park will be built on that site. A Phase 3 Extension is also being considered by the Walt Disney Company and the Hong Kong Government. * They also are doing the long term plans to the benefits of “going green” and adopting socially responsible and ethical practices in environment.
* The short term plan use by the Hong Kong Disneyland in a few activities only such as need to minimize the amount of guest allowed into the park on a daily basis to reduce capacity and many more.
4. How might Iger and his top management team use the strategic management process to “keep the magic coming” in the current economic climate?
Hong Kong Disneyland Resort is one of Asia’s leading manufacturers and suppliers of entertainment and information, using a portfolio of brands to differentiate content, services and consumer products. The main goal is to maximize financial income and cash flow, store loyalty visitor and to allocate capital profitability toward growth initiatives that will drive long-term shareholder value.
Hong Kong Disneyland Resort is Asia’s premier resort destination creating magical memories for our Guests, Cast and Community.
Hong Kong Disneyland Resort inspires happiness and delivers a world-class experience through creativity, great leadership and an obsessive Cast. In the Hong Kong Disneyland have the internal analysis and external analysis. The internal analysis concerns factors that affecting the company internally whereas the external analysis concerns the factors that affecting the company externally.
In the pre-opening, Hong Kong Disneyland guests unable to meet expectations. There are a lot of negative feedback before opening of Hong Kong Disneyland and it failed to reach the target number in the first year of arrival. Instead, the business environment of Hong Kong Disneyland motivation is very competitive because of the threat of a direct competitor with (Ocean Park), a new entrant (Shanghai Disneyland), and substitute (Hong Kong entertainment industry) produced harsh environments competitors.
Competitors threatening possibility Disneyland Hong Kong. However, the cost to build is more expensive activities of Ocean Park, and the elderly do not have free entry and any special offers to defect. Finally, Disneyland has a strong direct competitor Ocean Park. Although, there is not enough game in Hong Kong Disneyland, Ocean Park, particularly focusing on a different theme other than Hong Kong Disneyland. But the difference between the games is quite large. They focus on the need to reduce the difference. Therefore, the Ocean Park into a strong competitor Disneyland Hong Kong.
Hong Kong Disneyland to follow their culture based on cartoon characters. For example the traditional Chinese legend Mulan character, and then by giving Mickey and Minnie Mouse Chinese clothing designed by famous designer Vivienne Tam Hong Kong. Therefore, Hong Kong Disneyland has taken steps to avoid clashes of culture, by providing for the inclusion of Disney’s population and enable their identification with the Disney characters and concepts. It ‘s also, apart from the size and structure of the population, values, beliefs, religion and customs have also been affected Disneyland Hong Kong in the marketing of their management decisions. They must understand the importance of cultural differences and have tried to avoid the problem of cultural criticism as experienced by Disneyland Resort Paris. They can also replace stands of American culture in Hong Kong, Disneyland has put a lot of effort to embody both American and Chinese cultures.
Staffs are the most important element in any organization. In the service industry, employees are involved in the service delivery that directly affects guest’s experience. Therefore, Hong Kong Disneyland will do the best to promote the service well.
Hong Kong Disneyland has an implementation plan to stay focused on a major holiday, entertainment and convention destination resort for Hong Kong. It will continue to focus on delivering great guest experiences and build brand and sales channels in the target market, using special events and seasonal promotions programmed to attract visitors, optimize operational effectiveness and cost efficiency, and increase the attractiveness of the park is to encourage repeat visits . In addition, the forecast is the most important in Disneyland Hong Kong as they launch many new projects to attract customers and increase their profits.
They also evaluate and control the changes only need that marketing managers and staff should always have an open communication. Communication is everything that monitor progress, to receive early warning of the dangers, to promote cooperation, motivation through team participation. Effective assessment also provides a number of benefits. This can happen with performance marketing strategic change management and quality of strategic change. In this way, changes in the strategic plan of Hong Kong Disneyland, as part of their strategic management activities need to be monitored to ensure that they are on schedule and within the boundary of the plan.
SWOT in Hong Kong Disneyland
* Strong financial background
First, Disney store has a very strong financial back up by Disney. It is very important for Disney Store to have market development and store improvement. * Exclusive for Disney’s products Second, Disney Store is an exclusive agency for selling Disney’s products: Toys, clothing, stationary and gift items etc. It provides many choices for the customers and satisfies their needs. Customers might think of Disney Store immediately when they want to buy Disney’s items.
* Well-known brand
“Disney” is a well-known brand all over the world. The image of Disney is very healthy and positive. It is welcomed easily accepted by its target segments.
* Unchanged visual merchandising
One of the drawbacks is that the items do not change often visual; same window display for years. In this way, customers will feel boring because there is no stimulus and attraction for them. * Stores are lack of theme decoration
Monotonous decoration in every Disney store fails to attract customers. Because there is no excitement, customers tend to stay in the store for short time. * Passive staff’s attitude
Staff are seldom greet and farewell customers. Although they answer enquires from customers, few of them introduce products and new information to customers proactively. Therefore, they fail to identify customers’ needs.