Disney Theme Parks

Disney Theme Parks-Lesson 1

Answers-

1. Disney was motivated by wanting to create as much attendance in their parks outside the U.S. as in their parks within the U.S. By creating amusement parks in other parts of the world, Disney would get more money, which would ultimately result in more business/profit. Companies engage in international business because they want to expand sales, acquire resources, diversify sources of sales and supplies, and minimize competitive risk. Disney is engaging in all four of these objectives. They are amplifying their sales by expanding all over the world, in France, Japan, and China. While in these countries, Disney is using the country's natural and unnatural resources to build their theme parks, hotels, parking lots, etc. Disney is most likely using companies in China to create their products and the supplies they need for their business. Disney is minimizing competitive risk by getting bigger and stronger making it more difficult for others to enter into the "theme park" business. By creating parks outside the United States, Disney is creating more name recognition, thus advertising themselves to other parts of the world and creating more business for themselves.

Some pros and cons of having Disney parks outside the United States are illustrated by Disney's experience in setting up their park in Paris. Since Paris is the "most visited European city," (Daniels and Radebaugh 27) tourists will be able to not only get a cultural experience from the Louvre or the Opera National de Paris, they will be able to have a fun American family experience without having to fly across the Atlantic and go either to Florida or California. Some "cons" to this are figuring out how to compromise with the country and their government or having to play countries against one another in order to get incentives. The