Disney Theme Parks

Disney Theme Parks

Disney had reasons to establish theme parks in the United States and abroad for many reasons. Theme parks are capable of generating huge profits while giving people the opportunity of employment and distraction. The bigger and more interesting the theme park is the more business it gets. Even six flags great America generates huge profits and since I live right next to one I can see that the amount of people that go there is incredible.

Discussion

Disney was motivated to set up parks abroad to expand and improve its sales of merchandise and the amount of tickets sold. Since Disney was successful in the Unites States, I do not see a reason why they would not be in other countries. Of course, since every economy is different, Disney had to strategically adjust costs according to the local economies. Theme parks have a huge potential in advertisements and merchandise sales. This also includes beverages and food. In additions, if parks in one country do not do well, others might make up the difference in profits. This will greatly benefit Disney in the long run even in changing economies.

Pros for setting up business abroad;

Worldwide recognition.

Spike in sales of branded products.

Different cultures like to have fun.

Increased market share.

More resources.

Cons for setting up business abroad;

Possible cultural problems.

Transportation could be an issue in poor countries.

Legal drawbacks.

Increased risk.

Disney made no financial investment in Japan because Japan is an entire different country. Japanese are nothing like the American people and this was a great risk for Disney. Paris in the other hand was entirely different. Paris currently has attractions which translate to more tourists or customers. Disney was lucky to have the French government to create a railway to link all of Europe to its theme park. This turned into even more profits for Disney. Hong Kong has a huge population. After an agreement, Hong Kong...