International expansion has been one of Disney’s strategic priorities since 1941 after many establishments in America. One of the primary targets of this company was Asia; with its large population, economic success, and the low number of theme parks, Asia has a vast and untapped potential which was an opportunity that Disney set out to exploit. Disney had already established a theme park in Tokyo which was considerably successful although it failed to achieve the expected results. After the success in Tokyo, the company realized the available market in Asia and believed that expansion in more Asian nations would enhance the growth of the company and additionally, would register more revenue and profits (Clarke 2006). As a result, Disney engaged with different governments of Asian countries, providing proposals for their intended projects. As the company sets out to expand and establish multiple theme parks in the global market, there are various issues that should be incorporated into the company’s decision-making process.
There are several cultural challenges facing Disney’s expansion to Asia. First, there will be the problem of the language barrier; many Asian nations do not understand English, as it is not their first language. This will affect the plans of establishing the new theme park because Disney is based in America and uses the English language in all of its characters and themes (Bernard 2008). Moreover, the company has to understand the people’s lifestyles in Asian nations to ensure they align their activities and policies with those familiar to the residents to avoid conflicts. For instance, Disney thought it was polite and considerate by offering fin soup on its menu; they, however, failed to consider the reaction from environmentalists in the region. Another challenge that Disney’s expansion faces is maintaining relevance in Asia; the countries have different cultural interests and therefore has to consider integrating the culture and important festivals in the region to the theme park. This will ensure that the local people embrace the new company and enhance its growth. These challenges are similar to those the company faced in Europe; although there was no significant difference regarding lifestyle as the company blended in easily, there was a language barrier since the majority of people in Europe speak French.
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Cultural variables which include behavior, gender, values, and language influence the location and choice of theme parks. It is important for Disney to consider these variables before making decisions on the design, location, and arrangement of the new theme park to be established (Clarke 2006). This is because the cultural variables will greatly determine the success of the company in any proposed area. For instance, theme parks have a different meaning to different people; some people view theme parks as places to have fun and enjoy themselves while others see the parks as places where they visit with their families to spend quality time. Also, children from different countries and different regions have different favorite cartoon characters, and the company should consider the preferences in the area to establish the theme park. Therefore, it is important that the location and design of the theme parks are different and diverse so as to accommodate the different requirements and ensure growth and success of the parks as a business (Luthans & Doh, 2014 ).
Initially, Disney was attracted to set the company in Shanghai for two reasons; one, a Disney theme park in Shanghai would be beneficial to both the company and the government of China; to Disney this would become the world’s largest investment full of potential and to China, this would indicate its international success as a communist nation for attracting foreign investors. The second reason for Disney was the fact that Shanghai was a well-developed region with ample space to accommodate many people and is easily accessible. However, there was a corruption case of the top management in Shanghai’s Communist Party that led to Disney focusing on other options and putting Shanghai on hold since 2006 (Bernard 2008). Moreover, the shift from Hong Kong to Shanghai would probably result in a decline in the number of visitors which will be a disadvantage to Hong Kong Park and to Disney Company as a whole.
I would choose South Korea as the location for Disney’s next theme park in Asia. This is because South Korea has a high population and provides a diversity of products and services. This will attract more visitors compared to the already established theme parts in the region. Even though most of the inhabitants in this area are Koreans, they have embraced the English language over the years which will provide a conducive environment for thriving of the theme park since most of the people are familiar with the Disney characters (Luthans & Doh, 2014). There are several theme parks in South Korea, however, Disney is a global company which has gained popularity internationally, and many people already know about it. This is a competitive advantage that aid in attracting visitors to the park with the high population being the target market.
In conclusion, it is the vision and mission of any company to expand both locally and internationally for a broader market share of the products and services they offer. Also, this enhances more revenue collections and more profits for the companies. Disney Company is no different as it has set future projections of establishing theme parks in the various nations of Asia. This is an ongoing process as Shanghai, and Hong Kong theme parks are already in motion; also, the fact that the company has gained experience and background knowledge relevant to theme parks in Asian nations, shows that it is ready to penetrate further into Asia more successfully. They have also initiated school programs for teaching the English language throughout China to enhance understanding of their characters and themes and to attract more visitors to their parks who will gain a better understanding of English. With all the strategies and plans put in place, the company is destined to succeed in Asian nations.
References
Bernard, M. (2008). Regions in the global political economy: Beyond the local‐global divide in the formation of the eastern Asian region. New Political Economy , 1 (3), 335-353.
Clarke, S. (January 01, 2006). To every platform -- And beyond - Disney's European boss, John Hardie, tells Steve Clarke how the company is extending its TV channels to attract viewers on basic pay-TV, web and mobile platforms. Television, 43, 2, 18.
Luthans, F., & Doh, J.P. (2014). International Management: Culture, Strategy, and Behavior. Irwin McGraw-Hill. Retrieved from https://www.amazon.com/International-Management-Culture-Strategy-Behavior/dp/9814577294
