The Growth of Disney Theme Parks

Running head: THE GROWTH OF DISNEY THEME PARKS

The Growth of Disney Theme Parks

Shawn Morris

August 3, 2013

Dr. John Theodore

The Growth of Disney Theme Parks

Disney was motivated to build aboard because the company had a vision to become one of the largest sources of park and resort destinations world-wide. The company was use to operating at a domestic level, and in order to make an impact in the international market, Disney had to learn how to operate like a global company. The company operations in the United States is based off of a products, prices and services based on the local market. However, in order to utilize their current business model in a global market, Disney has to be willing to adjust their products, prices and services in order to meet the needs of consumers.

Disney saw the potential to increase their profit. Therefore, considering building a theme park internationally would reduce the risks of their theme parks in the United States. Which means, if the theme parks in the United States experience a slow fiscal year, Disney can count on their international parks to make up the difference in revenue. The two main advantages to this strategy is for Disney to gain profit by targeting international families that cannot afford the expense of flying to the United States to visit Disney theme parks and to minimize risk by having additional sources of revenue.

The disadvantages to this strategy is derived from the impact of cultural and geographic influences. Disney may experience cultural factors that may prohibit the company from conducting business. For example, citizens in France thought that building a Disney theme park would destroy the French culture. The geographic conflict would be where Disney had to figure out where an ideal area to build the theme parks that will generate the most profit. Also, the company had to take into consideration the dense traffic situations that are evident in foreign countries. Other...