Oriental Land Use Disneysea example essay topic

Introduction Tokyo Disneyland, being the most successful Disney Theme Park, was opened in 1983. Oriental Land which is Japanese Corporation got franchise from Walt Disney and did a good management work on Tokyo Disneyland. Deeply considered, Oriental Land decided to build DisneySea right next door to Tokyo Disneyland. Some argue that Oriental Land has made a bad decision but some do not.

We would analyze the case and have detail discussion in the followings. Background Situation of Japan Economy and Tokyo Disneyland In fact, Japan's ailing economy has kicked out a lot of domestic theme parks. Three quarters of them are in dilemma situations. An example was Nagasaki's Huis Ten Bosch, which has gone bankrupt with liability of 229,000 billion yen. While Tokyo Disneyland has been the Disney Park with the highest daily spending per guest.

Even though Japan's economic downturn has continued in the last two decades, Oriental Land reported that the attendance of Tokyo Disneyland has been raised to the peak in 1998. In recent years, however the sales has increased by 15 per cent the net profit has fallen by 15 per cent. Having more than 96 per cent of visitors are domestic Japanese who visit the park repeatedly, Oriental Land has done its best to add value to its Tokyo Disneyland. This time it chose to open a new theme park next to the original one to sustain the market and profit, believing Tokyo DisneySea will act as a catalyst to increase the number of visitors to both parks. What is DisneySea? DisneySea is a $2.8 billion joint venture by Disney and Oriental Land.

The main purpose of DisneySea is to act as a catalyst to boost up the total visitors of Disneyland in Tokyo. Also due to the recession of Japanese economy, Oriental Land use DisneySea to attract more foreign visitors in order to survive in recent hard environment. DisneySea offer certain unique functions that never appear in Japanese's theme parks. It contains seven distinct content ocean based theme parks around the Tokyo Bay. Also the market segment and focused customer group are slightly different from original Tokyo Disneyland.

DisneySea focus on more mature, male visitors. The park also provide traditional dinner, wine and alcoholic drink which will not be provided in Disneyland. The group expects that the new theme park will provide $15 billion a year in economic activities. From the 5 percent slide of sales in last two years after a 13-year streak of gains and the drastic fall of 52% in net profit, the old Tokyo Disneyland no longer guarantee to be a cash cow. The poor Japanese economy may be one of the reasons, but definitely not the most significant one because Disney had been able to shield itself from Japanese ailing economy in the past 10 years. Old Tokyo Disneyland has already lost her attraction.

As a result, Oriental Land is trying to use the new DisneySea to re-establish the premium image of Disney in Japanese's mind.