Question

Since its opening in 1977, Ocean Park was the only theme park in Hong Kong. The park, owned by the Hong Kong government, is a nonprofit organization that aims to provide visitors a unique experience in entertainment, education, and conservation. In the absence of competition, Ocean Park had existed without direction and focus. When Hong Kong officials signed an agreement to bring Disneyland to Hong Kong in 1999, it seemed as if it would be the end of Ocean Park. In this unequal competition, Ocean Park emerged the surprise winner. Quickly sprucing up its act, it has managed to outperform Disneyland and has emerged as the number one amusement park in Hong Kong .

How was Ocean Park able to turn a threat into an opportunity?

Ocean park made the decision not to compete head to head with Disneyland. Will this strategy always work when local companies face multinational giants? Explain.

How can Ocean Park further capitalize on Disneyland’s presence? (hint: check out how other parks surrounding Disney, such as Sea World and Universal Studios, survive and thrive in

Anaheim, California, and Orlando, Florida.)

How can Hong Kong Disneyland turn around its lackluster performance?

Answer 1

How was Ocean Park able to turn a threat into an opportunity?

The earlier objective of Ocean Park was not to“out-Disney Disney.” In order to do so, the Park invested $700 million in the new roller coaster that started to operate by the year 2012, it also started a subzero Ice Palace, along with an aquarium having the 7.6 million ltr of water having an underwater restaurant. Apart from this, more than 32 animal species were also introduced and the increase in the number of rides was done up to 70. In doing all this, the par was hoping to position itself as one of the best marine-based attractions in the world. The heavy investment of $700 million was too much for the park as most of the investment was taken in the form of a bank loan. while the park only recovered $15 million as a profit in 2005. Yet, the entrance fee of the park was kept 30% less than that of Disney's park. Apart from this, in order to have the regular visits of the local visors, the park also introduced the annual pass which has unlimited entries in a given year The park also introduced seasonal holiday themes. By the year 2010, the challenge posed by Disney was overcome by Ocean Park and in fact, converted the threat imposed by Disney into a wonderful business opportunity.

Ocean Park made the decision not to compete head to head with Disneyland. Will this strategy always work when local companies face multinational giants? Explain.

Although the practice of not competing with the multinational giants head-on was not adopted by the Ocean Park and it started to create its own marketing strategy, customer base, and loyalty, but in the practical scene, this can't be realized in every industry. This is due to the fact that each industry has different types of driving forces and the basis of competition. This also needs a huge investment to overcome or neglect the competition of MNCs.

How can Ocean Park further capitalize on Disneyland’s presence? (Hint: Check out how other parks surrounding Disney, such as Sea World and Universal Studios, survive and thrive in Anaheim, California, and Orlando, Florida.)

The Ocean park must continue with its successful strategy of not competing with Disney and to in fact differentiate itself from Disney. In fact, this strategy is also used by Universal Studio. Ocean Park can ok to add some more features and services such as the attraction of dolphins and using the myths of Chinese culture. Similar to Disney, the park can also look to create its own character and look to sell toys, t-shirts, and other stuff.

How can Hong Kong Disneyland turn around its lackluster performance?

Disney must focus on foreign tourists rather than visitors from mainland China. More marketing campaigns need to initiate in all over the world. The addition of new attractions can also be helpful in this regard part for this, as in Hon Kong, the size of the park is very small compared to others, so t can also think of expanding the area of the park by adding more services. It can also add some local icons and products that are liked by the local visitors.

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