The document analyzes Walt Disney's expansion strategies into international markets like Japan, France, and Hong Kong using a PESTEL framework to evaluate the political, economic, social, technological, environmental, and legal factors in each location. It finds that being supportive of the local culture and economy while maintaining Disney's high standards was key to success. Careful consideration of the social and economic conditions in Hong Kong in 2005 made it an ideal time and place for Disneyland's expansion into Asia.

3. Walter Elias Disney (1901-1966)
Roy O Disney
(1893-1971)
• Founded on October 16, 1923 as Disney Bros.
Studios
• Incorporated in 1938 as Walt Disney Production

4. Hero
Walt Disney
• Born on 5th Dec 1901 in
Chicago Illinois
• American film producer, director, screenwriter, voice
actor, animator, entrepreneur, entertainer,
international icon and philanthropist, well known for
his influence in the field of entertainment during the
20th century (source : Wikipedia)

5. Assistant Hero
Roy Oliver Disney
• Born on 24 Jun 1893 in
Chicago Illinois
• While Walt was the creative man, Roy was the one
who made sure the company was financially stable

8. The Walt Disney Company Reports Fourth Quarter
And Full Year Earnings For Fiscal 2012
Source : http://thewaltdisneycompany.com/sites/default/files/reports/q4-fy12-earnings.pdf

9. The Walt Disney Company Reports Fourth Quarter
And Full Year Earnings For Fiscal 2012
Revenues
Media Networks Parks & Resorts
Studio Entertainment Consumer Products
Interactive
2%
8%
14%
46%
30%

10. Theme Park Chronological
Source : http://cdn.media.ir.thewaltdisneycompany.com/2011/annual/2011-fact-book.pdf

11. Case Study, Question 2
Disney plans to make certain adaptation to its previous strategies
to enter the European (Paris) and Japanese market.
Do you agree with its decisions?
YES, we agree with its decision!

12. Strategies
LEGAL
GOVERNMENT
ENVIRONMENT ALLIANCES
& SHAREHOLDINGS
MEDIA
& ENTERTAINMENT
INDUSTRY
ECONOMICAL
TECHNOLOGY STATUS
SOCIAL IMPACT

13. Competitive Strategy
Current

14. Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Political • Supportive • Supportive • Very supportive
• Stable • Stable • Stable
• Democratic • Democratic • Democratic
• Government • NA • Monetary • Monetary
support • Oriental Land: Land Land
• Shareholdings 100% Infrastructure Infrastructure
• Tax benefit Walt Disney: 0% • Government & • Government: 57%
Public: 61% Walt Disney: 43%
Walt Disney: 39%
Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Economic
• Status • During the healthy • During the economic • During the healthy
• Job economy, 1982 recession, 1992 economy 'remarkable
Opportunities • Created 13,600 • Created 10,000 jobs time', 2005
• Tourism jobs 19% of which • 10 million additional • Created 18,400 jobs
are full-time visitors • 1.4 million additional
• 14 million visitors. visitors
3rd most visited
theme park in the
world in 2011

15. World GDP

16. GDP @ PPP by cities

17. Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Social • Adore western • Similar culture • Modern asian
culture • Pop: 11.6m • Pop: 7.03m
• Pop: 12.79m
• Culture • Japanese were eager • French were • Chinese are surveyed to
Imperialism to accept everything angry, because accept of the American
– Community American. In fact they believed it culture. Also they are
Sensitive they insisted to have suppressed the fond of theme parks,
nothing that was French before Disneyland Hong
Japanese in individualism. Kong there are 10
Disneyland existing theme parks in
Hong Kong and the rest
of mainland China
combined.

18. Economy and Social Factor

19. Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Technological
• Infrastructure • NA • The government • The government
• Accessibility • High-end and up to financed the invested USD$7 million
date technologies infrastructure of of land premium and
are accessible and the park at USD$1.8 million in
can be bought at an USD$400 million, infrastructure
affordable rate. extended the Paris development which
subway, improve include reclamation
the motorway that and more land
ran by the site. acquisition.
Arranged for TGV • High-end and up to
to stop at the park. date technologies are
• High-end and up accessible and can be
to date bought at an
technologies are affordable rate.
accessible and can
be bought at an
affordable rate.

20. Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Environment
• Climate • Warm and rainy in • Very cold and dry in • Sub-Tropical, cool
• Land size summer, cold in winter winter. Cloudy half of and sunny winter.
• Safety • 82 hectares the year Hot in humid
• Disneyland considers • 1,950 hectares summer
safety a very • Disneyland considers • 180 hectares
important aspect in safety a very • Disneyland
their operations. The important aspect in considers safety a
fatality management is their operations. The very important
operated so that fatality management aspect in their
incidents are kept is operated so that operations. The
under wraps; clearly incidents are kept fatality
showing that Disney is under wraps; clearly management is
focused on image first. showing that Disney operated so that
is focused on image incidents are kept
first. under wraps; clearly
showing that Disney
is focused on image
first.

21. Disneyland Tokyo Disneyland Paris Disneyland Hong Kong
Legal
• Labor law • Is strict, and • There is no flexibility in • Salary grade for is
and protects both France. The employers based on their
Employment employer and are not allowed to education
law employee rather dismiss employees as qualification.
fairly. Therefore they want, which lead Therefore to have
Disney's concept of to high cost in higher qualified staff
"generally employment in France. Disney must be
comfortable Disneyland has strict prepared to pay
wearing uniforms, regulation of more. Therefore,
obeying their employees of janitors, or front
bosses and being employee’s liners may not be
part of the team" appearance, no tattoos, well educated
was accepted and no dying of hair. French enough to take on
pursued well by the people are not satisfied the challenge of
Japanese. with the restriction of "creating
individual freedom, happiness" as a
many organization centralised strategy
protests against the of Disney.
regulations.

22. Case Study, Question 2
Why?

23. the Why…
1) Complies with Hong Kong’s economic and
social status in 2005. Hong Kong was ready
for a theme park of Disneyland’s nature.
2) Enter the right country at the right time with
local adaption and high forecast of domestic
and international visitors.
3) Capitalize on how the community will
respond to Disneyland in Hong Kong, and
therefore forecast realistic profits

24. Summary
• Social aspects play important role in
this business industry
• PESTEL is used to show the
comparison on each aspects
• Findings shows the 6 strategies
(approach) to venture outside US (or
internationalization)
• Experience differentiation – quality
service and efficient