Disneyland UK: Competitive Analysis

This assignment tasks you with conducting a PESTLE analysis to evaluate the feasibility of opening a Disneyland theme park in the United Kingdom. The analysis should delve into factors like new entry threats, substitute products, supplier power, buyer power, and existing competition. Specifically, it examines how these elements impact Disneyland's potential success in the UK market.

Essay

TABLE OF CONTENTS
Description on the PESTLE, in relation to opening of Disneyland in UK.............................1
The SWOT analysis on the Disneyland- ...............................................................................2
Porters models: - ....................................................................................................................3
REFERENCES................................................................................................................................5

Description on the PESTLE, in relation to opening of Disneyland in UK
With the help of this model, called PESTLE, one can identify the external factors that
tends to impact upon the operational decisions of business entities. In the present context, it is
apparent to assist in acknowledging the effects of opening Disneyland in UK where this model
mainly consists of 6 distinct factors and are as described below-
Political factor- The political factor of UK is strong on considering the application of
laws, control in corruption and increment in government regulatory system (Diabate, 2017). The
Disneyland will have a favourable impact due to political stability in UK. The income tax rate in
this country is 20% on earnings up to 33,500 with 40% on earnings above the basic rate of
150,000 and 45% on earnings more than $150, 000. In UK, such fluctuating tax rate tends to
impact upon the businesses. The corporate tax rate of UK is 19% which is an average factor and
is favourable for opening Disneyland in UK.
Economical factor- UK is having a strong economic position in relation to other
countries. It is ranked at 5th highest position for its GDP rate. This is mainly on considering its
diversified economy in both public and private sectors. The inflation rate in UK is 3% that
depicts an average ratio and also has a positive impact on the opening of Disneyland in UK. In
recent period, the economic growth of UK has slowed down in the year 2017 due to a breakdown
in pounds rate that affected the household incomes of consumers as well as their spending power.
This can greatly affect the demand of Disneyland in UK.
Social- In UK, the demand of Disneyland is effective in terms of youth who are more
curious about it. It is therefore to fulfil their requirements, the established Disneyland is required
to provide unique services to attract large number of customers towards it (Lallani, 2017). This
the social factor can be change over the time and this are affect things are as lifestyle, religion,
family of wealth. There is need to be aware of changes so that meet and expectation of consumer
can be satisfied.
Technological- UK is very effective in terms of increasing the quality of their innovative
skills. This is on comparing the same strength of UK with that to the United States. This will
positively impact the growth of Disney land in UK. By using good technological equipment the
firm is able to attract the large number of customers. With the help of introducing technology
and better modification they are able to introduce diversified commodities in market. This
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approach can be known as integration of business, human and technical factor in order to
produce quality products in timely manner.
Legal factor- It is in relation to maintain the imposed laws and legislation in UK for a
favourable opening of Disneyland. The legal structure has long termed implication for
successfully running a business in the market. The health and safety related responsibilities are
needed to be complied and must be followed strictly (PESTLE Analysis: Economic Factors
Affecting Business, 2017). In this health and safety act is need to be compliance in order to
provide safety to customer in relation to rides etc. in this the user of these machines need to have
proper knowledge of its usage. This is need to be followed in order to have safe legal procedure
in order to opening of Disneyland in UK.
Environmental- The current environmental factor of UK is favourable in terms of an
increased globalisation and wealth. Due to which, there is more demand of goods, services and
infrastructure, etc. This is helpful for an effective management of Disneyland in UK and its
related operations. In order to maintain safeguards in environment it is essential to follow
emission standards. The ecological factors are important in order to maintain safety standards
this will be favourable in relation to opening of Disneyland in UK.
The SWOT analysis on the Disneyland-
The SWOT analysis is helpful in order to determine the internal factors by knowing
strength, weakness, opportunities and threats so it is essential to evaluated effectively (Hopkin,
2017). This will be helpful to run the business activities in efficient manner. These are defined
as-
Strength-
1. Strong brand image- UK is the most popular destination in the world. It has built its
image in the market so that organization like Disneyland is able to maintain its
sustainability.
2. Diversified business- With the help of media and social networking, the Disneyland is
able to get huge publicity.
3. Financial strength- This firm is having a good balance sheet and they generate high cash
flow. By maintaining sufficient amount of funds they are able to make proper investment.
Weakness-
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Huge prices- The prices of Disneyland are much higher than the other firm who are offering this
kind of the services. In this each person is not able to deal with this kind of products.
Limited target audience- This is one of the biggest attraction and plays an important role in
increasing the revenue and deal with the competitors of this particular market.
Opportunities-
Online platform- with the help of promotion through online marketing theta are able to gather
the attraction of large number of customer. In the present scenario, most of the audiences have
switched to internet and in this way, they need to create online games for earning large revenue.
International expansion- This company needs to expand in the global market for delivering
good services so that the firm expansion on international level can be possible.
Threat-
Intense competition- In this, the firm faces' competition on several kinds of factors such as
Comcast corporation on cable and satellite service. There are various kind of other firms who are
making modification in their product and provide good service. The increment in the number of
rivalries is the major threat for Disneyland.
Changing culture- The Disneyland in UK needs to adapt the changes in accordance to the
changing needs of the market. They need to distribute their services in such a way that reaches
out the generation of the future world. By bringing changes in the system of Disneyland in UK,
they will be able to generate large amount of profitability and productivity.
Piracy- In this, the technology plays an essential role which is helpful to deal with the rivalries
of firm in market. By introducing the better modification they are able to attract the large number
of customer. With advancement of technology, the firm will be able to develop its business at a
greater level.
Porters models: -
In this context, porters model helps to improve the performance and growth rate of the
organizations in the market. In this way, it is focused on the working environment of the
enterprise and the external factors affecting their undertaken business operations. It is with a
specific consideration of understanding the competitive existence of the firm where this model
consists of the below described factors: -
 Threat of new entry- In this the entrants' barrier in market is relatively high. Due to
which, it is favorable for the opening of Disneyland in UK. It is happening because the
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investment criteria in order to the opening of new venture is high so that the firm is
threatened to make investment and this reduces the chances of new entrants in this
particular market.
 Threat of Substitute- There are major number of substitutes like Cartoon figures, theme
parks and animated movies that imposes a significant threat to the opening of Disneyland
in UK. Due to high entry fees, maximum people will prefer going to theme parks and
other alternatives (Armknecht, Rudy and Forrester, 2017). By controlling price and
modifying the existing products, it will be helpful for Disneyland in UK to cope up with
the substitutes.
 Power of suppliers- The Disneyland is unique and quite different industry, due to which,
their cost of operations is also expected to be high. This firm is largely dependent on
supplier because they need to order large volume of products from the supplier to meet
the requirement of customers. The dependency relationship with that to the supplier is
high because of their unique products and services.
 Power of buyers- The bargaining power of buyer is relatively high because of having
various other options available that are substitute to Disneyland. It is therefore to cope up
with this, they are required to reduce the entry fees. It is very difficult for them to make
the customers understand that they will get a better return.
 Rivalries among existing firms- The large competition of Disneyland is with Lonely
tunes. The services of Disneyland are good and its product are quite unique and for
which, they are having a significant cost. In this, it can be stated that the internal
weakness and strength of the firm can be easily managed but opportunities and thereat are
difficult to control. In the UK market there is high level of competition within existing
firm.
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REFERENCES
Book & Journal
Armknecht, M., Rudy, J.T. and Forrester, S., 2017. Identifying Impressions of Baba Yaga:
Navigating the Uses of Attachment and Wonder on Soviet and American
Television. Marvels & Tales. 31(1). pp.62-79.
Diabate, N., 2017. The Cinematic Language of Naked Protest. Critical Interventions. 11(3).
pp.248-268.
Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Lallani, S.S., 2017. Mediating cultural encounters at sea: dining in the modern cruise
industry. Journal of Tourism History. pp.1-18.
Online
PESTLE Analysis: Economic Factors Affecting Business. 2017. [Online] Available through:
<http://pestleanalysis.com/economic-factors-affecting-business/>.
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