In this part we will analyze why Disney theme park took those strategic moves when entering foreign markets. Taking Tokyo Disney as a specific example to analyze by applying Industry-based, Resource-based and Institution-based considerations.
Industry-based considerations on the degree of competitiveness
Rivalry among firms-In some patterns of theme park, Tokyo Disney is similar to that of other Japanese theme parks, but the profit produced by Tokyo Disney making greatly contributions to the Japanese economy. The revenue made by all other national theme parks combined is smaller than Tokyo Disneyland. Why? Its success due to accurate first mover advantage and perfect location which with a populations of 30 million. It was the first Disney Park to be built outside the United States, and it opened on April 15, 1983. The first mover advantages provide more opportunities for Tokyo Disney like more opportunity for relationships with key stakeholders.
Entry barriers-the entry barriers for Disney theme park is low because not only the hard-working citizens are eager to escape from the reality through the Disney theme park, but also it boost the GDP for Japan like tourism and investments.
Bargain power of suppliers-The reasons of success of Tokyo Disney is not only just Disney Company but also depend on the partnership from all suppliers. Aiming to provide high-quality product and service to customers, The Walt Disney Company sets high standards for the outsourcing and suppliers. Maximizing value and profit is Disney Company’s goal. They abide by Code of Ethics with suppliers. Some important criteria like quality, on-time delivery and environmental protection. Disney Company pay attention to the financial situation of suppliers and willingness to share risks with them.
Bargaining power of buyers-from the official website of Tokyo Disney, taking an adult as an example, one-day ticket price is 6400 yen ($67). Comparing with the America domestic Disney, the price is lower about $34 per adult. The lower price attract more customers from all over the world and lower the bargaining power of buyers.
Resource-based considerations on firm-specific assets:
Value of firm-specific resources and capabilities- Disneyland calls itself the happiest place in the world. How to spread and share the happiness with more people is the value of Disney. The advanced technology used by Disney like Epcot and Disney Hollywood studios. What’s more, the social responsibility is also taken by Tokyo Disney like Volunteers from Tokyo Disney sites brought holiday joy to young patients and orphans. The Social Media Director Thomas Smith said, citizenship is important to Disney culture and they will committed to give back to communities in many different ways.
The rarity of firm-specific assets-The Tokyo Disney Park is known for its extensive open spaces.
In 2013, Tokyo Disneyland hosted 17.2 million visitors, making it the world's second-most visited theme park behind the Magic Kingdom at Walt Disney World Resort.
Organization of resources-Disney defend their resources by Disney licensing and trademark. Disney licensing are using across thousands of categories from toys and apparel to books and fine art. Disney is the largest licensor in the world. They defend their intellectual property by licensing business like Disney Media, Classics & Entertainment, Disney &