Introduction
Disney Corporation is planning to move its operations to other parts of the world. For the company to compete favourably in these markets it has to come up with workable strategies. The targeted market is in the far- east and Australia specifically Shanghai and Sydney. Disney has a burning desire to serve as many cultures as possible all over the world.
The Company’s unique sense of creativity and imagination can be well utilized to conform to the culture of both Sydney and Shanghai communities. In every place all over the world, there is always a desire to create some sense of learning within the young generation. This can be achieved through improvement of the facilities that are used to foster the love for learning. This idea gives the young people the confidence to tackle new discoveries identified throughout the world (Fogler and LeBlanc, 2008).
Brainstorm and Mind-map
The following mind-map helps in generating ideas on how to approach the operations within the targeted areas. It gives valid information concerning various segments that are of great interest.
In the case of Shanghai, there are some elements that must be considered to generate an idea on how to plan and approach the market. The population of Shanghai should be considered in order to determine the amount of space required to establish the operations. The average income per person should also be considered, the likes and dislikes of the community and the tourists.
Majority of the young population within this area like products with cartoon pictures on them, this provides a good market base. The urban population is considered the wealthiest; however they should be grouped according to their financial ability. The criterion to be used to estimate the economic status of the market should be addressed. The city is reach in domestic tourism; this provides Disney Corporation with a sure and available market.
Disney Corporation can do well in the entertainment sector in Sydney, majority of the children in Sydney enjoy watching Disney’s animated films. However, the older generation must be convinced that the films are free from staff that may endanger their children’s social lives.
Problem Statement
In both markets majority of the rural population live in poverty, this is a limitation on Disneyland. This is a problem since Disney Corporation will not be able to profit from this market. The city lacks middle income earners, this shows that there is a very big disparity between the rich and the poor.
The area is dominated by communist and this puts a lot of risk to Disney Corporation unless they give the government a big share to control. There is also the risk of terrorist attack and wars which is a big threat to tourism within the region, and also the risk to natural disasters since China is a country prone to Natural calamities.
In the entertainment sector, Disney Corporation is considered to present their films in a discriminating manner encouraging anti-socialization between cultural groups; they present their films in an acceptable manner. The films are considered to abuse cultural integrity.
There is the challenge of using meaningful scribbles to suit every local culture served, this might seem a challenge especially when it comes to Chinese way of writing. The use of magic does not at interest at all majority of the cultures in the far-east (Brand Channel, 2009).
K-T Problem Analysis
Situation Appraisal
The market demand for Disney Corporation is growing weaker due to the nature of services it offers to consumers. A lot of questions have been raised on the cultural integrity of Disney productions and the impact it has on the younger generation.
Problem Analysis
The situation within the cities provides some risks that have to be faced by Disney Corporation before penetrating the market. In Shanghai there is the problem of natural disasters and also the risk of facing it off with a communist society where there is a big disparity between the rich and the poor. Then there is the sharp criticism from the Sydney community which believes that though Disney’s animated films attract millions supplies, they are more stereotypical. This is believed to promote social division amongst individual races and communities.
Decision Analysis
One of the best actions to be taken by Disney is to first of all monitor the economic and general performance of some related companies involved in the same targeted opportunity, and then evaluate on what steps they need to take in order to deal with the shortcomings. This presents a good channel on which point they should start exploring the market.
Potential Problem Analysis
The question lies on how to convince the general community that the services provided are culturally friendly and means no harm to children. The other issue how much finances will be required to cater for the risks involved which includes terrorism, wars, community risk and natural disasters (Sawyer, 2008).
K-T Situation and Decision Analysis
Decision Analysis
Decision statement: It is a good move for Disney Corporation to explore Shanghai and Sydney Markets. This would make sure that there is an increase in income and revenue collection, it will also ensure that Disney has a wider market to satisfy presenting it with opportunity to build its brand name (Fogler and LeBlanc, 2008).
Objectives to be achieved by the decision
Must
- To develop a strong image amongst the consumers.
- To develop a strong economic and social status amongst different communities having diverse cultural set-up.
Wants
- To ensure that every consumer all over the world is reached by the services offered.
- To attract and serve foreign, urban and rural markets.
- To nurture close ties with the governments within the countries they serve.
List of alternative or options (Fogler and LeBlanc, 2008).
Concise Decision Statement
The company must incorporate social responsibility to its audience so as to gain the ability to penetrate market as fast as possible. However, there are several benefits involved that outweigh the disadvantages, this makes it very ideal for Disney Corporation to stage its foot in these regions, focus on the rate of return and face the challenges which will ultimately lead to more gain.
Recommendation of Disney’s location
Disney Corporation should first of all monitor at a close range the performance of other companies offering the same services in these areas. This is of advantage since it could give Disney the chance to evaluate and set its investment priorities right.
It should first of all start by building a theme park to assess the market potential then include other projects like hotels later. The shanghai government also regulates the number of films to be released in the market annually; this might pose a big challenge to Disney’s animated films (Brand Channel, 2009).
Disney Corporation should first of all test the market’s worth through the building of parks. This may help in determining the actual size and status of the market since it serves both local population and foreigners.
It is easier to influence local community and foreigners to visit parks than hotels or buy animated films. In addition Disney should put strategies on how to attract through their services, the large number of tourists that visit these areas. The amount of money it will cost to put up these projects must be calculated based on the level of risks involved.
Conclusion
The success of Disney Corporation has long been linked with the generation it served at an early age. This means that taking Disneyland to Shanghai will not attract much attention since their children are nurtured on a totally different culture. This may lead to poor sales because the services might not seem to be of much interest, hence better they focus on Sydney as opposed to Shanghai.
Reference
Brand Channel, 2009. Is Disney’s Shanghai Dream a World of Make Believe?. Web.
Fogler, H. S. & LeBlanc, S., 2008. Strategies for Creative Problem Solving, Prentice- Hall, New Jersey.
Sawyer, K., 2008. Group Genius: The Creative Power of Collaboration. New York: Basic Books, Perseus Books Group.