Microenvironmental Factors Affected Hong Kong Disneyland

COMPANY CASE DISNEYLAND: NOT THE HAPPIEST PLACE IN HONG KONG
INDIVIDUAL ASSIGNMENT SUBMITTED
TO
MR. LOO CHUNG KING
IN PARTIAL FULFILLMENT OF MKT210
10TH MARCH 2020
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Introduction..................................
Main Argument
Microenvironmental factors...........................
Macroenvironmental factors...........................
Recommendations..................................
Conclusion (Personal Reflection) ..............................
References (APA).............................................
Appendixes..........................................
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TABLE OF CONTENTS
1.0 INTRODUCTION
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Hong Kong Disneyland is a theme park located at Penny’s Bay, Lantau Island, Hong Kong. It
is Hong Kong’s largest theme park, dethroning the iconic Ocean Park ever since it’s grand
opening on 12 September 2005. It is only the second Disney resort in Asia after Tokyo
Disneyland, serving as an important gateway for Disney to the Asian market. Although it is
Disney’s smallest park with a size of approximately 100 acres, the renowned theme park is
still dubbed as the “the happiest place on earth” by many. With an average daily capacity of
34,000 visitors (The Standard, n.d.), the park managed to attract and host a total of 5.2
million visitors in the first year and a total of 25 million visitors since it’s opening (The Wall
Street Journal, 2011).
As a distinguished international landmark, there are many factors which will affect the
business and its operations as a whole, namely the microenvironmental and
macroenvironmental factors. These factors certainly have a great impact in the business
especially in influencing the decision-making process and affecting the performance and
strategies of the theme park.With these factors coming into place, it helps with the
development of long-term business strategies for the company.
Word Count: 205
2.0 MAIN ARGUMENTS
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2.1 Explain the microenvironmental factors that have affected Hong Kong Disneyland
since it opened for business.
2.1.1 The Company- Internal Environment
The Hong Kong Disneyland Resort (HKD) is managed and operated by the Hong Kong
International Theme Parks Limited (HKITP), which is jointly owned by both the Hong Kong
Government and The Walt Disney Company. As of2017, the Hong Kong Government owns
53 per cent of the shares in the company and The Walt Disney Company own 47 per cent.
There is a total membership of 11 directors in the Board of HKTIP, which 5 directors are
appointed by the Hong Kong SAR Government, 4 directors are appointed by The Walt
Disney Company (TWDC) and two independent non-executive directors are jointly appointed
by both the Hong Kong Government and TWDC.In every organization, the company itself
plays a vital role in determining the success or failure of the business. In this case, the
internal environment, which comprises variousdepartments, have to work together as a team
to understand the customers’ needs and to create the customer lifetime value by using the
right marketing strategies in order to bring unforgettable moments and experiences for guests
of all ages and nationalities (Corporate Information & Board of Directors, n.d.).
2.1.2 Suppliers
As a theme park operator, it will need supplies to run the daily operations from food and
beverages to technicians for its rides and attractions. Therefore, suppliers are also another
major factor contributing to the business. Suppliers may not directly affect the business of the
theme park as it is replaceable (Hong Kong Theme Park Analysis, 2020) but the effect is
justifiable to a certain extent. The Walt Disney Company is a big family and they usually
source their suppliers for all the business units in the US, Europe and even Asia and HKD are
part of it. By being part of this prominent international company, the theme park does not
need to find their own sourcing company and all goods and services received are approved by
the parent company following the criteria. Therefore, HKD has an advantage at this factor
since the parent company’s sourcing and procurement works with all business units and their
suppliers across the globe to establish the best value for the whole company (The Walt
Disney Company, 2014).
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