Disney Case Study: Reinventing Product Offerings

This assignment examines the Disney case study and identifies key challenges facing the company in the Chinese market. The strengths of Disney are its huge local customer base and lack of serious competition. However, weaknesses include negative public image and cultural unpopularity in China. Opportunities exist to tap into the Chinese market by investing in Chinese artifacts and rebranding Disney's products to appeal to adult Chinese customers. Threats include the park's location outside the city centre and criticism from environmental groups. The assignment suggests strategies for reinventing product offerings, rebranding, and improving customer satisfaction.

Running head: DISNEY CASE STUDY 1
Disney Case Study
Student name
Date

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Customers' tastes and preferences are changing. Disney, therefore, needs to reinvent its
product offerings. Disney has been sourcing its products from low-cost factories in China. This
trend is making Disney’s merchandise not to be attractive to local customers. This is due to the
belief that original and quality products come from Hong Kong. Disney should, therefore,
change where it is sourcing its products from.
Environmental analysis
Disney is located in a small location in Hong Kong. Its small size is making it less
attractive to customers. Following the incident in which a ticket hiccup occurred during a
Chinese new year in February 2006, many customers abhor Disney. During this incident, a
majority of the mainland tourists with valid tickets were barred from entering the park. The cause
of this scenario was due to the small size of the park. Customers require large and spacious
venues. Disney, therefore, needs to work on creating a more spacious venue that can
accommodate more people.
SWOT Analysis
Strength
Disney’s strength lies in the huge number of the local people. If Disney can tap this
resource then it stands a better chance of generating more revenue. So far, Disney does not face
any serious competition in the market. This is advantageous given that Disney has the
opportunity to dominate the market.
The weaknesses

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Disney’s has a negative public image. This is as a result of the February 2006 hiccup
where a majority of the mainland tourists with valid tickets were barred from entering the park.
This negative publicity is affecting the operations of Disneyland. This is affecting the income
generated by the business.
Besides, Disney’s culture is not popular in China. This is partly due to the negative
publicity and also due to the tight media control experienced in China (Farhoomand, 2005).
Opportunity
China is dominated by Chinese ethnic groups who are the majority. Disney ought to tap
this opportunity. It can invest in Chinese artifacts which are loved by the huge Chinese
population.
Threats
The location of Disney Park is far from the City Centre. This is a serious threat to its
business opportunity given that a majority of the people may not like to travel to the scenic
corner out is located outside the city of Hong Kong. A section of the park which was also built
on a reclaimed land faced various challenges starting with the criticism by environmental groups.
Reinventing product offerings
Rebranding
Disney needs to rebrand. Over the years, Disneyland has faced a lot of challenged which
has seriously affected its public image. As a result, Disney has been abhorred by many would-be
customers. The services of Disney have not always been proper. There has been lack of unique

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features which is essential for this kind of business. This has affected its operations and brought
about low income. Rebranding Disney will help Disney to become acceptable and start afresh.
Disney also needs to include in its merchandise sufficient products that appeal to the
adult Chinese population. Chinese kids are often in school and thus have little opportunity to
visit entertainment venues. Sufficient Chinese elements need to be included and well organized
in the tourist and entertainment places. This will help boost attendance rate.
A change of location is also very important. It will help erase the negative publicity and
also help in attracting more people since the small size of Disney has discouraged people before.
Satisfying the expectation of the customers begins by giving customers what they need. A good
name is one of the very important things. Every customer would like to be associated with what
is good not what is bad. Public image is thus very important. Customers need products that add
value to their life too. Disney needs to find products and services that give value.

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References
Farhoomand, A. (2005, August 31). Disney: Losing Magic In the Middle Kingdom. Asia Case
Research Centre, pp. 1-32.