Disney in China

Topics: Walt Disney, Amusement park, United States Pages: 2 (568 words) Published: April 4, 2009
Case Study: Disney in China Walt Disney Company was founded by two brothers Walt and Roy Disney in early 1920s. Since then the company has become a giant in media and entertainment sectors; be it the Hollywood studios, television networks, and theme parks. Their amusement park has served and brought smiles to many faces in different parts of world. They have already settled themselves in California, France, Tokyo, and Hong Kong. Now they want to move ahead to different part of the world. Problem As Disney wants to expand its Theme Park to China, it faces several concerns over China’s governmental policy on Foreign Investment, cultural, language, and economic barriers. Analysis *Governmental* Restrictions Cultural Barrier Language Barrier Language is a huge concern if you go anywhere around the world. This is the mean of communication in many businesses. In many public schools in China, kids are not taught English. This creates a little bit of concern of how will Disney convey its message about the theme park to local Chinese. Solutions might be to have advertisements as well as brochure in Chinese or in Mandarin for that matter. Economic Barrier Value of dollar varies around the world. Some country’s currencies worth more than the dollar and some are less. China’s Yuan is 6.85 for one US dollar. And so is China’s GDP per Capita less than that of US. This means that Disney cannot have same charges in China as they would in California. Also, the labour in China is cheap which would be beneficial for Disney. Not just Disney but also China will gain from this because it will open many employment opportunities for the locals. Taking all these factors into consideration, economic barrier would definitely favour both parties. Rationale Disney, after the opening of its first theme park about 50 years ago, realizes it needs to move on and serve the country with the biggest population to spread the enjoyment around, at the same time making maximum profit. The...
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