Business Plan for 上海迪士尼.docx

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Business Plan for 上海迪士尼.docx

BusinessPlanfor上海迪士尼

 

BusinessPlan

for

ShanghaiDisney

TableofContents

1.Introduction1

2.TheReasontoChooseShanghai1

2.1.Political1

2.2.Economic1

2.3.Social2

2.4.Technology2

2.5.Environment2

2.6.Legal2

3.LessonsLearnedfromPastExperience3

3.1.Financial&Economic3

3.2.Cultural&Environment4

4.DifferentiationStrategies4

4.1.DifferentiationinScale4

4.2.DifferentiationinCost6

4.2.1.PricingDifferentiation6

4.2.2.AdditionalCost7

4.3.DifferentiationinProduct7

4.4.DifferentiationinCulture10

5.DisneyFlavor&ChineseCharacteristics10

5.1.ArchitectureStyle10

5.2.ContentDesign11

5.3.EatingHabit11

6.Conclusion12

1.Introduction

WaltEliasDisney,whowasthemostfamousanimationmasterdesignerinAmerica,establishedthewell-knownWaltDisneyCompany.HecreatedthecartooncharactersMickeyMouse,whichispopularamongtheworld.Tobringhappytotheworld,theWaltDisneyCompanydecidedtobuildathemeparknamedtheDisneyland.

TheDisneylandhasbecomethemostpopularthemeparkallovertheworld.TheDisneylandisapartoftheDisneyamusementpark,whichhasthemehotel,Disneydowntownandsomeotheramusementfacilities.

2.TheReasontoChooseShanghai

Tofindouttheanswertothequestion,PESTELModelcanbeusedtoanalyzethemacroenvironmentoftheShanghaiDisneyland.ThePESTELrepresentsixelementsinfluencedthecompany,whicharepolitical,economic,social,technology,environmentandlegal.Itshouldbenoticedthatitisjustamodeltoanalyzetheenvironment,andishardtoclassifyeveryaspectintoexactoneelementinreality.

2.1.Political

Withthenationalbecomemoreandmorepowerful,theChinesegovernmentembracestheforeigncapitaltoinvestinChina.ThisshowstheculturalconfidenceoftheChinese.

AlthoughtherearemanyVisaWaivercountries,manyChinesedonotorcannothaveavisatoleavethecountry.IfthepeoplewhodonothaveavisaandwanttovisitaDisneyland,theycouldgiveuptheideasregrettably.Sincethereasonmentioned,theShanghaiDisneylandcouldattractthesecustomerstovisititwithoutanyvisa.

2.2.Economic

SinceChinabecametheworld’ssecondlargesteconomy,thedisposableincomesofChinesearemuchmoresufficientcomparedwithlastfewyears.ThedecreasingofEngel’sCoefficientthesesyearsshowsthattheyarewillingtospendmoremoneyonamusementfacilitiestoentertainthemselves,includingvisitingShanghaiDisneyland.

ThetransportationinfrastructureofShanghaisavedplentyofmoneyforWaltDisneyCompany,sinceithasmorethan1,000busroutesinthecity.Intheairroute,ithasShanghaiHongqiaoInternationalAirportandShanghaiPudongInternationalAirport.Intherailroute,ithasmetro,lightrail,magneticallylevitatedtrain.TheFrenchgovernmentofferedtoextendtheParisrailwaytotheParkatacostofalmost$350million.ComparedwithFrench,thedestinationofNo.11ShanghaiMetroLineisShanghaiDisneyland.

MagiccityisanothernameforShanghai,indicatingthatitisacharmingcity.Shanghaiisoneofthebiggestmetropolisesinscaleandarea,andalsothefinancialcenterofChina,includingallelementsoffinancialmarketinChina.ItisnodoubtthatShanghaiDisneylandcanattractmoremainlandtouristthanHongKongdoes.

InsteadofDisneylandParis,theexperienceofbeingforeignsettlementwillmakeShanghaiembraceforeignculturemoreeasily.

Between1994and1999,Chinabuiltmorethan2,000amusementparks.After16years,manyofthemwentbankruptcybecauseoftheout-of-dateform.ThiswillnothappentoDisneylandasithasinnovationofcartooncharacters.

2.3.Social

Chinahashadaone-childpolicy,whichmadeparentsreluctanttodenyanythingtotheironlychild,suchasvisittoathemepark.(ThiscanalsobeincludedinPolitical)

2.4.Technology

TheimprovedtechnologyoftransportationisanotherelementthatDisneychoseShanghai,andcanalsobecontainedinEconomic.

2.5.Environment

TheweatherinShanghaiisrelativelymoderatethanBeijingorGuangzhou,whichiswarminwinterandcoolinsummer.

2.6.Legal

ThelegalsystemofChinaisreasonablyperfectthanitofFrancein1985.ItishardlytoseethesituationthattheDisney’schairmanwaspeltedbyeggsinParis.

3.LessonsLearnedfromPastExperience

In2016,DisneyhadfourthemeparksinoperationoutsidetheUnitedStates:

TokyoDisneyland,TokyoDisneySea,DisneylandParis,WaltDisneyStudiosPark,HongKongDisneylandandShanghaiDisneyland.SomeissueshavebeenappearedthroughtheconstructionofDisneyland.

3.1.Financial&Economic

DuringtheconstructionofTokyoDisneyland,theOrientalLandCompanyproposedtheparktoDisneyandownedtheParkastheDisneydidnotwanttoprovideanyfinancing.Disneyjustreceivedfeesforitseffortsduringtheconstructionphase,anditfoodsale.Thiskindofincomeislimited.ForShanghaiDisney,itisbettertogetenoughfinancingsourcetocompletetheconstructionandoperation.

InbuildingHongKongDisneyland,theyexpectedthattheParkwillcreate18,400directandindirectjobsinitsfirstyearofoperationand35,800inlateryears.TheShanghaiDisneylandshouldhirethelocalpeopleorChineseasthevirtualtourguidestosatisfytheChinesevisitors.

ThroughbuildingtheDisneylandParis,transportationhasbecomeasignificantproblemsofsavingcost.AlocationnearParishadadvantagesbecauseitscentrallocationenabledalargepopulationtodrivethereeasily.Becausetheparkwouldemploythousandsofpeopleandattractlargenumbersoftourists,eventually,theFrenchgovernmentofferedtoextendtheParisrailwaytotheparkatacostofalmost$350million.Shanghaidoesnothavetheseconcerns,forithasmetroandbusrouteheadedforShanghaiDisneyland.

HongKongisAsia’slargesttouristdestinationandhasabetterinfrastructureandhigherfamilyincomesthanmainlandcities.DoestheticketpriceofShanghaiDisneylandareaffordableformainlandtouristsorothervisitors?

Thepricingpolicyshouldbeconsideredthoroughly.

Between1994and1999,Chinabuiltmorethan2,000amusementparks,whichmayhaveimpactonDisneybusiness.CouldtheShanghaiDisneylandformitsowndifferentialcompetitivepower?

3.2.Cultural&Environment

BeforeDisneysignedanagreementwiththeFrenchgovernment,itbegantohaveproblemsinFrenchbecausepeoplebelievedtheparkwouldcontributetothedestructionofFrenchcultureandsufferedagreatdealofopposition.Tostopthishappeningagain,ShanghaiDisneylandshouldinvestigateandsurveyabouttheacceptanceofDisneycultureofresidents.

AlthoughDisneylandParistakenmanysafeguardstoprotectthepark,theParisianclimatewastoomuchcolderthanCalifornia’sandFlorida’stoattractmanywintervisitorstothepark.Beforeconstruction,thecompanyshouldalsoconsiderwhethertheclimateissuitableforvisitingDisneylandinanyseason.

Differentcountrieshavedifferentsituation.WeshouldnotconsiderthesuccessofJapanissuitableforChina.Stayingalarmandadjustingtochangeableenvironmentisagoodideatodefensetheriskanduncertainty.

4.DifferentiationStrategies

4.1.DifferentiationinScale

ShanghaiDisneyResort,locatedinChuanshaNewtown,PudongNewDistrict,ShanghaiCity,coversanareaof7squarekilometers,whichisalmost6timesofHongKongDisneylandand3timesofTokyoDisneyland(asshowninFigure1).Astheworld'ssixth,themainland'sfirstChineseDisneyPark,theShanghaiDisneyResorthasaDisneythemeparkof"MagicKingdom"type,whichownstwothemehotelsandretail,catering,entertainment,parkinglotetc.ShanghaiDisney'sfantasyfairytalecastleistheoneofthehighestandlargestDisneycastleintheworld,andinthecenter,thereisabreathtakingrotatedladder,leadingvisitorstostepona"roamingoffairytaletime"journey.

 

Figure1.ComparisoninTotalArea

Itisnottoohardtoimaginewhythereisawidegapinthetotalareaamongthesethreecities,Shanghai,HongKong,andTokyo.Althoughallthesethreecitiesareacknowledgedasaninchofland,aninchofgold,comparedwithanothertwocities,ShanghaihasadistinguishedadvantagefortheHongKongandtheTokyohavetoestablishthewholeprojectbyseareclamationwhichcostisextremelyhigh.What’smorethewholeareaofShanghaicityisaslargeas3timesofTokyoand5timesofHongKong,whichformsadirectfactortothelandcost.

Inaddition,thetotalinvestmentscaleofShanghaiDisneyResortamountsto34billionyuan(US$55),andShanghailocalgovernment’sinvestmentintheconstructionoftheDisneyfoundationisalsoquitehuge.AccordingtotheShanghaiInternationalTourismResortManagementCommitteereleasedthenews,withtheopeningoftheShanghaiDisneyPark,thegovernmentofShanghaiinternationaltourismresortsupportingprojectconstructionhasbeenbasicallycompleted,the8supportingroadprojects,whichofferthedirectaccesstothecoreareaoftheResorthasbeencompleted,includingDisneyAvenue,Westbushubcoreprojecthasbeenbasicallycompleted.ChinaamusementparkassociationsecretarygeneralFengYuguosaid,ShanghaiDisneyresortinvestmentscalehasmorethanonehundredbillionyuan,includingtheconstructionofthemeparksandsupportinginfrastructureconstruction,

WhilethetotalinvestmentofHongKongDisneylandisjustaboutUS$5.7billion(asshowninfigure2).

Figure2.ComparisoninTotalInvestment

4.2.DifferentiationinCost

4.2.1.PricingDifferentiation

Basedontheofficialdata,theticketpriceofTokyo,HongKongandShanghaiDisneyisUSD59,USD64,andUSD55respectively,anditisclearlytoseethatcomparedwitht

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