Strategy+analysis

==**Strategy Analysis** == ===**SWOT** ===

__Strengths__
 * It is easy to go to Disneyland. There is an unique line - Disneyland Resort Line for going to Disneyland by MTR, and there is an unique design train with its characteristics. According to the statistics, most of the visitors are non-local residents, and MTR is the key way for them to go to Disneyland. Visitors can also go to Disneyland by bus and taxi, or drive their own cars. Also, as it is mentioned before that most of the visitors are not local residents, some overseas visitors may stay in the two Disney Hotels. Since it is only a short distance between these two hotels and Disneyland, it may increase the attractiveness for hotels' residents to visit Disneyland rather than Ocean Park.
 *  Disneyland has parade and firework shows which are very attractive for visitors. It is a competitive advantage as Ocean Park does not hold such events. The link below is a video of the firework called “Disney in the Stars” which turns the sky above the Sleeping Beauty Castle into a stunning event spectacle. []
 * Disney has a strong brand name which is well-known around the world. Apart from parks and resorts, its business includes media networks, studio entertainment and consumer products. It has multiple channels to reach the customers, creating a deep image. Visitors can meet cartoon characters shown on TV in its theme park.
 * The Hong Kong SAR government owns a majority of the equity of Hong Kong Disneyland. The Walt Disney Company only bears half of the financial risk, but it is responsible for the management of the park. It can make many strategic and operational decisions.
 * Hong Kong Disneyland is only a business unit of the Walt Disney Company. It can provide various supports to the theme park, including extra funds, management consultancy, and technical solutions. Moreover, it benefits from the backup of Hong Kong government, so it can develop successfully.
 * Walt Disney Company has already built 4 resorts in the main cities of different countries. They are mature and able to generate profits. It can refer to their previous experiences to run the 5th resort in Hong Kong.

__Weaknesses__
 * The ticket price of Disneyland is higher than the ticket price of Ocean Park. For each adult, the ticket price of one-day pass of Disneyland is HKD350 and Ocean Park is HKD250, and the annual pass of Disneyland is HKD2400 and Ocean Park is HKD695. Both type of tickets are more expensive in Disneyland than Ocean Park. Also, we found that the price of some special events in Disneyland like wedding party is more expensive than Ocean Park. Therefore, Disneyland lacks of price competitiveness.
 * The area of Disneyland is smaller than Ocean Park. The area of Disneyland is 137 hectares, and the area of Ocean Park is 27.4 hectares. As the area of Disneyland is smaller, the quantity of available facilities is relatively lower. It is more economical and attractive to visit Ocean Park rather than Disneyland. Therefore, visitors have more choices of using which facilities in Ocean Park than Disneyland.
 * It is in a remote place that it is not convenient for going to Hong Kong Disneyland. Ocean Park is close to urban district, but Hong Kong Disneyland, but Hong Kong Disneyland is far from town.
 * Hong Kong Disneyland has fewer facilities than Ocean Park. These limited facilities could lower its attractive as people have fewer entertainment in the area of Hong Kong Disneyland. It is hard for people to play whole day in Disneyland, and people may think it is not worth.

__Opportunities__ 
 * <span style="font-family: Arial,Helvetica,sans-serif;">Individual Traveling scheme was launched in 2003. Many people from Mainland attend this scheme and travel to Hong Kong. They account for 42% of the total attendance. It becomes the largest sources of visitors for Disneyland now.
 * <span style="font-family: Arial,Helvetica,sans-serif;">The economy of Mainland is really strong in these few years. The middle class with high purchasing power keep growing. They create demands for travel to foreign countries, especially Hong Kong.
 * <span style="font-family: Arial,Helvetica,sans-serif;">The merger of MTR in Hong Kong and Shenzhen turn to the ease of going to Disneyland. Since there are many visitors from Mainland China, it is convenient for them to take MTR directly from Shenzhen to Hong Kong Disneyland. The guide of MTR is clear for vistors, so it is simple for them to go to Hong Kong Disneyland by themselves.
 * <span style="font-family: Arial,Helvetica,sans-serif;">Hong Kong Tourism Board recommends that Hong Kong Disneyland is an attractive and popular spot to visit.
 * <span style="font-family: Arial,Helvetica,sans-serif;">Hong Kong-Zhuhai-Macao Bridge is under construction. It will complete in 2016. It will be more convenient for people from Zhuhai and Macao to visit Hong Kong.

<span style="font-family: Arial,Helvetica,sans-serif;">__Threats__
 * <span style="font-family: Arial,Helvetica,sans-serif;">Hong Kong Disneyland engage in the business of wedding events. It provides comprehensive services and provide a great wedding memory in a legendary fairytale kingdom. However, its main competitors - Ocean Park also engage in this business field, and Ocean Park has a competitive advantage on the price of wedding package. It may affects the performance of Hong Kong Disneyland in this business field.
 * <span style="font-family: Arial,Helvetica,sans-serif;">Shanghai Disneyland is coming soon. Since there were 42% visitors were came from mainland China, some potential visitors may visit Shanghai Disneyland in the future. Shanghai Disneyland are with the same characteristics, and a variety of facilities may be the same. But the areas of Shanghai disneyland will be larger than Hong Kong Disneyland, and it will have more facilities. It is convenient and economical for visitors from mainland China to visit their local resort. It is unforeseeable that how the establishment of Shanghai Disneyland could affect the income of Hong Kong Disneyland.
 * <span style="font-family: Arial,Helvetica,sans-serif;">Ocean Park has been expanding and increasing its facilities which may lower the attractiveness of Hong Kong Disneyland. Also, Ocean Park continue to have huge investment on the promotion in local and mainland China market. Facing great effort of Ocean Park, it may has negative impact on the income of Hong Kong Disneyland as a result.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 1.1em;">**BCG**
<span style="font-family: Arial,Helvetica,sans-serif;"> <span style="font-family: Arial,Helvetica,sans-serif;">Hong Kong Disneyland is a star. It has about half of the market share in the market of theme park. Besides, its growth rate is very high. It consumes a large amount of cash to develop its business, but it is worth if it can become the market leader. It requires large investment and supports by the HKSAR government and the Walt Disney Company to succeed. Joint venture is already adopted. Now, it should implement intensive strategies to grow rapidly and improve profits.

<span style="font-family: Arial,Helvetica,sans-serif;">Ocean Park is a cash cow. It is the main competitor of Disneyland with high market share but low growth rate. It generates a huge amount cash in exceed of the amount needed and further investment is not required, so it has many current assets. It is expected that Ocean Park will put in some new elements to compete with Disneyland.