Case Study Hong Kong Disney Land

CAGE Analysis

Disneyland is a part of the Amusement and Theme Parks industry per the 2012 NAICS definition (713110). The following is an analysis of the factors affecting this industry in Hong Kong.

Supporting Expansion:

Cultural:

Perception: American amusement and theme parks are famous all over the world, including in Hong Kong. A theme park opening locally is very likely to be well received by the public.

Administrative:

Liberalization: Individual Visit Scheme introduced by the Chinese government allowed Chinese residents to visit Hong Kong in individual capacity without traveling with a tour group. Just like tourists from all over the US visited Disneyland in Anaheim, tourists from Mainland China could soon be flocking in Hong Kong.

Government involvement: The Government of Hong Kong’s direct involvement and partnership in a local project goes a long way in facilitating the business.

Jobs: A large investment in Hong Kong is likely to create thousands of local jobs. This will go well with the Government and public.

Geographic:

Proximity to China: Hong Kong is strategically located just off Mainland China and is easily accessible to Chinese tourists.

Economic:

Spending capacity: China continued to perform well as an economy which in turn meant increased tourist spending. A large percentage of tourists to Hong Kong Disney were expected to be from Mainland China.

Threats to Expansion:

Cultural:

Cultural Icons: While a theme park in itself may be well received in Hong Kong, many of the iconic American characters associated with it may not be significant or popular among local residents.

Holiday/ Travel: The holiday season in China peaks at a different time than the USA company in the theme park business has to understand this well to realistically estimate tourist numbers and manage crowds.

Language: Most Hong Kong residents understand English. However, tourists from Mainland China may not. In addition, the...