Competition With Ocean Park Case Studies Examples

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Hong Kong Disneyland has been opened for over a period of ten years .It is beautiful and attractive place to visit. Being so famous it still has many problems till today. Below discussion describes the issues faced by the Hong Kong Disneyland.
- With over emphasis on China market, Hong Kong Disneyland has focussed on China market for a long period. With the opening of Shanghai Disneyland this year, Hong Kong Disneyland predicts that they will lose 50 percent of tourist’s attendance.
- Brand image of Hong Kong Disneyland is diluting because it has created too many issues like environment pollution, lack of social responsibility. Hence it is leading to negative publicity (David Hunger & Thomas. L. Wheelen, 2011).
- Hong Kong Disneyland is the smallest Disneyland in the world. It is considered to have a very low level of repeated visits as the entertainment factor is not as good as other Disneyland. So it can be said that Hong Kong Disneyland has lack of ‘WOW’ factor.
- Hong Kong Disneyland has lack of Chinese culture. This means that it lacks in Chinese elements and also it is not sufficiently localized.
- The working conditions in Hong Kong Disneyland are very harsh and the salary given to the employees i.e. very low. This has led to less motivation among the employees and they do not enjoy their work.
- Hong Kong Disneyland is dependent upon the mainland travel agents for ticketing, so these travel agents and hotel affect the number of people visiting Disneyland (Fred R. David, 1989).
- There is no control on loyalty of customers; this means that the switching cost is low for the customers as they always like to visit other parks especially when they wish to re-visit. So they lack in the quality of bringing back the visitors.
- Chinese travellers require a visa to travel Hong Kong Disneyland. Visitors are more interested in visiting US Disneyland (David Hunger & Thomas. L. Wheelen, 2011).
Ocean Park is a real competitive threat for Hong Kong Disneyland. Ocean Park was opened 30 years before and since 1977 it has drawn 70 million visitors. Ocean Park emphasis on the aspect of education. It is called with the name ‘edutainment’. The main attraction is educational activities. They have been ranked seventh in the Forbes list of world’s most popular theme parks. It has spent HK$5.55 billion on renovation and like Disneyland it has also opened on-site hotel. The ticketing price is cheaper than Hong Kong Disneyland and they have a good reputation among the travel agencies. It is the best place to work at, because it has low staff turnover, career training and succession planning (Fred R. David, 1989).
Disneyland Brand Positioning
It is one of the major challenges faced by Hong Kong Disneyland that is has the inability to deliver on its brand promise and also consumer sentiments. The synonym of its brand is ‘magic’, but it failed to control brand image and quality. The size of the park is small as compared to the other parks around the world and also the rides in this park are limited in variety and thus the entertainment factor is also lacking. It is considered that Chinese customers prefer taking pictures and strolling, so rides and entertainment activities are given less importance by the authorities. It is also due to inadequate market research conducted.
Hong Kong Disneyland appears to over license its brand and diluting its image because Disney aimed at teaching good life values to children, but this aim made the situation worse because, in Hong Kong they did not practice what they preached. This situation arises because rigorous quality control was not exercised (Hill and Jones, 2006).
Lack of Quality control
Hong Kong Disneyland is not particular about the quality control. This is because the price of its products is increasing, but the quality is decreasing. With the survey conducted, it is found that 54 percent do not prefer to visit Hong Kong Disneyland and 79 percent will visit to Ocean Park (David Hunger & Thomas. L. Wheelen, 2011).
Environmental issues
- Land is a precious commodity in Hong Kong and also availability of land is very scarce. In order to create space for the establishment of Hong Kong Disneyland theme park it was decided by the government to take the practice of reclamation. Land reclamation is the process in which mining of substantial amounts of marine and earth is done from nearby areas with cutter. The fill that is taken out is transported to the area that is to be reclaimed. In the case of Hong Kong Disneyland, this reclamation process would take 16 months time. The land will be used for the development of theme park, resorts, hotels, water recreation centre and roads .This will lead to about 3500 meters of seawall. This will lead to following results:
1) Gorging and dumping during the reclamation process would lead to destruction of local habitat.
2) It will lead to stirring up of fine oceanic sediments (Brown, 1995).
The next three major consequences will rise due to increase in suspended solid levels:
I) there will be a reduction in clarity of water, decrease in penetration of sunlight and reduction in photosynthesis process.
II) Due to the increased concentration of silt in the water, the invertebrate species, will get affected because they need clean water for survival. This may lead to death of these species.
III) With increase concentration of suspended solid the fine particles get entrapped in the gills of fish. This results in impossible breathing and which causes slow and painful death of these fishes (Brown, 1995).
Disturbance of locally endemic and endangered species
The white-bellied Sea Eagle is rare bird species. Scientists and environmentalists argued that the noise created by the parks would disturb and they will move from their natural residents.
A government Civil engineer submitted a report claiming that disturbance to these birds could be minimized by conducting the fireworks displays 800 meters away from the nesting area. The laser lights should not exceed with thirty watt limit. It was also suggested that there should be the establishment of 10 hectares open water buffer zone, but the environmental groups took this suggestion to be impractical and ineffective. Talks between Disney and Hong Kong government moved from casual dating to serious courting and this Hong Kong Disneyland was making progress. There were a number of risk factors that were considered by Walt Disney in order to get the best deal from Hong Kong Government.
Brand Positioning
Brand position is about getting consistency in customer perception; it is also an identity in the mind of the customer. Disney has created a brand value and the customers, are ready to pay more for Disney products. But from last few years it has been jeopardizing its brand image.
Although Disney has acquired years of good experience from developing theme parks all over the world, developed good understanding of the value chain, but still it is unable to resolve the issues brought up in Hong Kong Disneyland (Brown, 1995).
Repositioning Hong Kong Disneyland
The main objective of Hong Kong Disneyland is to reposition itself and protect its brand image.
Sun Tzu Art Of War Strategy: by using Sun Tzu Art of War strategy Hong Kong Disneyland can attack and defend them to achieve positional and competitive advantage.
Defending Its Position: for Hong Kong Disneyland to reposition them it is essential that they should address the issues right after it arises.
Reduce Negative Publicity: in order to reduce negative publicity it is important to promote social responsibility awareness. The organization staff should be made self aware of social responsibility and making sure that mission and strategies do not neglect its important trade.
Reduce air pollution: due to frequent fireworks in Hong Kong Disneyland, there is an increase in air pollution. So it is recommended that those fireworks display should be reduced. The other reason is the use of low quality fireworks, as they produce more harmful chemicals. So it is recommended that more expensive high quality firework should be purchased as these will produce less air pollution and hence the people, the birds, the animals and other species will be less affected.
Reduce air pollution: Due to land reclamation for Hong Kong Disneyland has led to severe water pollution. The damages that were caused due to reclamation of land were death of more than 500,000 kilograms of adult fish and 3 million juvenile fish of twenty six different species. The fishermen were given HK$428 million as compensation for the damages caused. This land reclamation is still under way. So it is very much essential that Hong Kong Disneyland should minimize this process of land reclamation and should practice only those methods that are appropriate i.e. environment friendly ways in order to reclaim the land. In addition to this campaigns environment cleanup, it will help to minimize the damage done by land reclamation.
Improve customer service: The most common complaint by the visitors about Hong Kong Disneyland is low quality of customer service; bad attitude of the staff is very unprofessional. In order to improve this there should be proper interview of employees and a good selection of employees. The staff whose performance is not good they should be sent for proper and appropriate training before they are allowed to work with the customers. In order to motivate the employee’s, rewards and recognition should be given and at the same time, encouragement should be given so that, they behave in a good manner with the customers (David Hunger & Thomas. L. Wheelen, 2011).
Fixing Management Issues
Improvement of working conditions: another factor of poor customer service in Hong Kong Disneyland is due to the reason that the employees have the feeling that they are not paid fairly. Employees say that they work more and paid less. So the pay structure should be reconsidered. One more important thing that can be added to improve efficiency is career development.
Improving the relationship with value-chain: the flow of visitors visiting Hong Kong Disneyland is affected by the travel agents. It is very essential to improve the relationship with the travel agents by re-establishing better contractual terms and conditions.
Improvement of market research: it was thought that Chinese customers will only prefer taking pictures and strolling, so rides and entertainment were given very less importance. Hong Kong Disneyland lacks in market research, so for this new managing director was appointed those who have Chinese background. It was also done so that they could understand the Asian culture in a better way. It is essential Hong Kong Disneyland pay close attention to the needs of customers in order to meet the demands and perhaps achieve more advantage. With the increased survey, research and observations should be carried in order to improve market research.
Strategic alliance with Ocean Park
- Enhance promotions: by enhancing package ticketing more visitors can be attracted. Like a family package that includes the visit of both Disneyland and Ocean Park and also special discounts in Disneyland after visiting Ocean Park.
- Enhance rides: with both the companies working together, research and development ideas can be easily shared. In addition to this, big financial budget can be added and also risk can be shared.
- Reduce competitive strategy: by getting together they can compete as one instead of competing with one another. Both the companies can price their products as well as the tickets based on other competitors.
- Synergy: with the synergy of both the companies they can be able to complement each other in the areas they are strong and they can overcome in the areas in which they are weak (David Hunger & Thomas. L. Wheelen, 2011).
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