Hong Kong Disneyland Case Study

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Hong Kong Disneyland Case Study In the case of Hong Kong Disneyland (HKD), it has been a long road from startup to Disney Magic; since the gates were opened in 2005, HKD did not report a profit until the end of the 2012 Fiscal Year (Barnes, 2013). After major issues with the Disneyland Paris Resort—construction cost overruns, major cultural miscalculations, and a lack of support from the government—Disney was determined not to make the same mistakes with HKD and worked hard to mitigate these types of issues before the park opened. Through a marketplace study, marketing plan to build brand value and extreme attention to cultural sensitivities, HKD seemed prepped for success. However, before the gates even opened, HKD faced environmental, governmental and scandal issues. The hits just kept coming once the park opened. An overrated brand, misjudged Chinese Labor force and overestimated capacity led to negative ratings and a lack of profitability for Disney. Despite its many setbacks, HKD implemented reactive measures and is finally reporting a profit. Albeit slowly, HKD is showing signs that it can bounce back from is mistakes. After facing various issues with Disneyland Paris Resort, Disney worked hard to mitigate the issues it felt might arise in HKD’s new market. Disney studied their marketplace, implemented a marketing plan to build up the brand and, of major note, worked hard to mitigate cultural sensitivities. From the time the HKD deal was signed until the park opened, tourism was on the rise in Hong Kong. Disney also saw the potential of major events planned for 2005/2006, such as “Discover Hong Kong Year”, to attract even more visitors (Cravens & Piercey, 2013). Likewise, the success of tourist attractions like Ocean Park provided the warm and fuzzy during HKD’s completion stages that the park should have no problem attracting guests. After assessing

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