Combining all these aspects will create better perspectives that can be used for future decision-making.
First, the marketing capabilities of Walt Disney are a critical asset that translates short-term and long-term benefits. In particular, the brand name Walt Disney is considered as one of the most recognisable names in the market. It has been observed that the company has successfully attracted the market composed of consumers aged 12 years old and below. Indeed, the strategy of enticing children is an effective instrument in expanding the market. For instance, parents are likely to go with their children in acquiring the services offered by Walt Disney theme parks.
Second, the decision to expand the operations of Disneyland to Hong Kong has some perceived weaknesses. As mentioned previously, Walt Disney has suffered consecutive setbacks in its overall operations. Despite the growth in the theme park sector, the company is still burdened by the lack of financial flexibility caused by the decline in revenues.
Third, the market in Hong Kong provides several potentials including the possibility of encompassing the market in Mainland China. With its sheer population, China has the capacity to improve the attendance in Disneyland. In addition, the clients based from other Southeast Asian countries make the proposition more lucrative. The projected annual increase in attendance will assure growth revenues. Apart from the ticket sales, Walt Disney merchandises including the other products will be easily sold. The strength of the market of China and the improving economy will eventually boost the spending power of Chinese and will result to increase in visitors.
After discussing the salient points that were assumed, it is important to provide a solution to the main problem. As stated, the concern of Walt Disney before pursuing the investment is on risk minimization and benefit maximization. The analysis of the strengths, weaknesses, opportunities and threats sums up the suggested methods. In maximizing the benefits of the project, it is important to consider the strengths and opportunities of the company. The brand name that Walt Disney has nurtured will be conspicuous once the investment is manifested. Identification is the first step towards recognition and experimentation. Similarly, the potentials of the forecasted increase in attendance have to inspire Walt Disney to expand its services and embrace the other needs of the customers in theme parks.
In minimizing the risk, Walt Disney has to be adept in translating the weaknesses and threats to positive drivers. First, the lack of financial flexibility has to drive the company towards securing better financial loans and advantageous partnerships. Without the needed resources, the company can still make the investment possible through the efficient allocation of resources. Second, the impending threat caused by the government can be neutralized by forging win-win deals with the government. This has to be done without curtailing the function of the government to protect the consumers.
With some positive forecasts and government intervention, Disneyland Hong Kong is only a few years away. Contrary to the popular notion, the presence of potentials provides no guarantees to success. In fact, the situation becomes more complicated and thorough and critical analysis of the situation is required.