A. SWOT of the Shanghai location
1. Through the SWOT analysis, as found in Figure 3, the WDC has many strengths in regard to its expansion into Shanghai. In addition to the strengths, highlights in this analysis regard its segments, brand reputation and recognition, as well as diversification, Disney adapts products and services to appeal to local tastes both nationally and internationally. Since the WDC is focusing more efforts in China and especially Shanghai, it is adapting more for the Chinese market to attract more consumers and visitors. Few competing studios and parks make these efforts.
2. Oppositely, the WDC also has some weaknesses in expanding. Even though Disney has operations in more than 200 countries and over 166,000 employees, it relies heavily on the United States and Canadian markets for the bulk of its income. More than 70% of its revenues are from the Unites States alone. Disney’s biggest news competitor, News Corporation, earns less than 50% of its revenues from the U.S., so Disney is less vulnerable in the national market versus the international market. There are not many opportunities for growth through acquisitions (Interbrand 2012).…show more content… In utilizing Michael E. Porter’s Diamond of National Advantage Model, as illustrated in Figure 4, the best way to analyze the Disney Shanghai concept is to look at the Disney Hong Kong park that is already established. At Disney Hong Kong, the firm strategy and structure is that Disney has a popular and recognized image. Any rivalry the WDC may experience is minimal because it has the advantage. The demand conditions in Hong Kong reflect the middle class growing in number and local adaptations being made to attract consumers in the area. In looking at the related and supporting industries, Hong Kong already has a very well established tourism industry. Another factor regarding conditions in Hong Kong is government collaboration to align Hong Kong’s regulations, with