Sheffield Business School

BSc (Honours) Events and Leisure Management

Title The key success factors of Disneyland Name LI MAN PING Student No 91206547 Month Year April 2011

Sheffield Hallam University

Sheffield Business School

Title The key success factors of Disneyland FULL NAME LI MAN PING STUDENT No 91206547 Supervisor: Mr. Ray Pine In partial fulfilment of the requirements for the degree of Bachelor of Science in Events and Leisure Management. Month Year April 2011

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Acknowledgement

I am heartily thankful to my supervisor, Ray Pine, his guidance, supervision and support helped me greatly in the understanding and writing of the dissertation. During Mr. Pine’s guidance, I obtained a lot of beneficial suggestions and opinions in completing the dissertation. Lastly, I would like to thank my friend Owina, who gave many ideas to the study. She is my best listener and discussion partner.

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Executive summary

Disneyland is a world famous theme park and which has the six branches to be

distributed over different regions. Many people will want to know why it is famous

and successful. The aim of this study is to identify and understand the key success

factors of Disneyland. Literatures review from the references books and academic

journals. These data provide clear information about the management and operation

strategies of Disneyland. The research involved quantitative research method,

comprised of case study to probe into what are success factors. The quantitative

analysis of the case study was conducted through secondary data in order to indicate

whole world success factors of Disneyland. The findings and analysis mainly related

to human resource management, customer service, marketing plans and designing of

Disneyland are success factors. Results of this study showed above four ingredients

are key success factors; dream and location factors are less essential for whole world

Disneyland. To conclude, this study may be importance in clarifying which factor are

key success factors of Disneyland, as well as in providing people with a distinct

understanding of how to use the above factors to make company toward success.

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Contents Acknowledgement ................................................................................................................ i

Executive summary .............................................................................................................. ii

Chapter 1 Introduction ......................................................................................................... 1

1.1 Background ..................................................................................................................... 1

1.2 Aim .................................................................................................................................. 1

1.3 Objective ......................................................................................................................... 1

1.4 Context ....................................................................................................................... 2-3

Chapter 2 Literature Review ............................................................................................. 4

2.1 Definition of theme park ................................................................................................ 4

2.2 Definition of success factor ........................................................................................ 4-5

2.3 Success factor - Dream ................................................................................................... 5

2.4 Success factor - Location ............................................................................................ 5-6

2.5 Success factor - Designing: Creating Fantasy Environment ............................................ 6

2.6 Success factor - Designing: Keep Facilities Changing, Original and Educational ............ 7

2.7 Success factor - Human Resource Management ............................................................ 8

2.8 Success factor - Customer Service .................................................................................. 9

2.9 Success factor - Marketing ....................................................................................... 9-10

Chapter 3 Method of Investigation ................................................................................ 11

3.1 Definition of Qualitative Research ............................................................................... 11

3.2 Definition of case Study ................................................................................................ 11

3.3 Advantages of Case Study ............................................................................................ 12

3.4 Definition of Secondary Data ........................................................................................ 12

3.5 Data Collection ....................................................................................................... 12-13

3.6 Limitation of the Study ................................................................................................. 13

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Chapter 4 Findings and Analysis .................................................................................. 14

4.1.1 Human Resource Management: Identification and Selection .................................. 14

4.1.2 Human Resource Management: Training ............................................................ 15-16

4.2.1 Customer Service: ‘SCSE’ Service Philosophy ...................................................... 17-18

4.2.2 Customer Service: Guidelines for Serving ................................................................. 18

4.3.1 Marketing: Brand Positioning .................................................................................... 19

4.3.2 Marketing: Promotion ............................................................................................... 19

4.3.3 Marketing: Guestology ........................................................................................ 19-20

4.3.4 Marketing: Localization Strategy ............................................................................... 20

4.3.5 Marketing: Unrelated Diversification ........................................................................ 20

4.4.1 Designing: Fantasy Kingdom ...................................................................................... 21

4.4.2 Designing: Keep Facilities Changing and Original ................................................ 21-22

Chapter 5 Conclusion ....................................................................................................... 23

5.1 Conclusion .............................................................................................................. 23-26

5.2 Recommendation ......................................................................................................... 27

References .................................................................................................................... 28-35

Bibliography ........................................................................................................................ 36

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Chapter 1 - Introduction

1.1 Background Recently, success factors of Disneyland are getting considerable attention not only

from general theme parks but also from different models of companies. Walt Disney

insisted on relying on the dream to establish his fantasy kingdom, the branches

suffuse different regions at present. Despite many years, Disneyland still as a pioneer

in the theme park industry, and build a unique Disney culture, popular in many

people’s hearts, we can see which has its advantages, and these advantages are

object of the study.

1.2 Aim To identify the main success factors of Disneyland.

1.3 Objective The objective of this study is to investigate and understand the reasons for the

success of Disneyland, and the success experience of Disneyland can apply into

different models of company.

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1.4 Context: In literature review, this chapter will go through the common success factors for

general theme park industry; which include dream, location, designing of theme park,

human resource management, customer service, and marketing plans. This chapter

will inspire what is the key success factor and which factors need to be analyzing in

next chapter.

In findings and analysis, this study may lead to better understanding of success

factors of Disneyland. The appearance of Disneyland is derived from the dream of Mr.

Walt Disney. He adopted great business principles to make the company successful

towering over three quarters of century. The Disney culture affected different levels.

Hence, I want to understand the reasons for Disneyland are persisted in operating

the business many years in depth. Firstly, there is innovation human resource

management strategies apply into operation of the park, for example, using creative

identification, selection system, offering perfect staff training to cultivate the

enterprise culture. Through all of above strategies to analyze why Disneyland got

success.

Secondly, Disneyland provides good customer service to visitors. Employing ‘SCSE’

service philosophy and service guidelines to analyze how great of Disney’s service to

customers, make Disneyland stepped toward success enterprise.

Thirdly, Disneyland provides fantasy kingdom to visitors, meet their childhood dream.

Because of these facilities are unique to Disneyland, therefore, the designing of

Disneyland enables visitors to escape from everyday life and release their stress. Also,

Disneyland keeps changing the facilities to produce fresh and unique to guests. So

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the tourists intoxicate by the vision of environment to pursue the Disneyland‘s magic.

Fourthly, Disneyland possesses the detailed marketing plan for present market and

future development. For example, Disneyland carries out good brand positioning and

localization strategies, thus, which can build popularity brand image. Furthermore,

using great promotion methods and guestology to maintain the customer loyalty and

make them become repeat customer. Disneyland also adopts diversification strategy

to catch awareness of customer.

In conclusion, there will explain why the dream and location these two factors are

less important on entire Disneyland Company. Also, there will sum up human

resource management, customer service, designing of theme park and marketing

plans are key success factors for entire Disneyland. Lastly, this chapter will provide

some recommendations for Disneyland future development at the end.

Disneyland’ success base on well plan on human resource management, good quality

service, varied marketing plans and special designing. These above factors maintain

substantial profits of Disneyland and their status.

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Chapter 2 – Literature Review

Theme parks play a significant role in today’s society. Because of many people pursue

to release from norm and rule of everyday life. People’s heart captured by attractions

of these theme parks. These attractions are success factors of theme parks.

2.1 Definition of theme park About the definition of theme park, according to Tucholka and Weese (2006, p 2)

defined that “A theme park is an amusement park in which all the settings and

attractions have a central theme…It is a commercially operated park offering various

forms of entertainment, such as arcade games, carousels, roller coasters, and

performers, as well as food, drink, and souvenirs…Some amusement park, know as

theme parks, are designed to evoke distant or imaginary locales and/or eras…Today,

amusement parks have largely been replaced by theme parks, and the two terms are

often used interchangeably.”

2.2 Definition of success factor With regard to the definition of success factor, Business Dictionary.com (2011)

describes that “Limited number (usually between 3 to 8) of characteristics,

conditions, or variables that have a direct and serious impact on the effectiveness,

efficiency, and viability of an organization, program, or project. Activities associated

with critical success factors must be performed at the highest possible level of

excellence to achieve the intended overall objectives. Also called key success

factors…” The success factors selection base on “the success factors that are to be

borne in the mind for the development of a park, both at the planning stage and

during operation phase...” (Clavé, 2007, p 317).

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According to a review of the relevant literature it is possible to identify seven points

of success, namely pre-opening and daily operation. It include dream, location,

designing, human resources management, customer services and marketing plans,

which all will be discussed below.

2.3 Success factor - Dream The success of theme parks includes pre-opening planning and the daily operation of

the park. For pre-opening planning, firstly, theme park is come from a dream.

Capodagli and Jackson (2007, p 1, cited in Disney, 1954) express that “I dream, I test

my dreams against my beliefs, I dare to take risks, and I execute my vision to make

those dreams come true.” Finally, Mr. Disney achieved his dream. “According to

Botterill (1997), Disneyland would be a theme park because, in it, its designer, Walt

Disney, and his team transform their talent and experience as comic illustrators to

build ‘credible illusions’, emotive characters and emotionally pure drawing in

landscapes for entertainment” (Clavé, 2007, p 24). Therefore, to insist on a dream,

often take the first step to success.

2.4 Success factor - Location Secondly, the location of the park will affect definitely the desire of tourists.

According to the survey of Urban Land Institute of Washington studied that the main

choice of theme park’s location require within 1 hour, the number of population in

these area at least 200 million people. The secondary location is within 2 to 3 hours,

population need to more than 200 million people. United States accounted for 75%

of the theme park visitors are generated within a radius of 240km (Zhao and Ye,

2006). Also, accessibility is one of the considerations of tourist. “…accessibility are

two of the most important customer concerns often overlooked by management of

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Asian theme parks…and public transportation access is important because many

potential patron do not have cars (Emmons, 1999)” (Woodside and Martin, 2007, p

224). And Conklin (2006, p 8) state that “Since accessibility of the park location was a

key success factor in the industry, theme park developers chose land sites in a central

area which was relatively expensive. Alternatively, they could choose a remote area

at a low cost and develop the transportation network.”

2.5 Success factor – Designing: Creating Fantasy Environment Thirdly, theme park planner must have a carefully designing blueprint to establish a

characteristic park. Nye (2000, p 66) state that “Creating an engineered environment,

carefully planned to manipulate visitors into having fun but also spending money in

an orderly, safe, relaxed atmosphere.” However, there are not enough to meet the

visitors’ needs. “Unlike other entertainment installations, a theme park regards and

conveys its inauthenticity as normality. As Donaire (1999) says, a theme park is,

literally, a utopia for consumption. It is not only, therefore, a place produced ‘for’

leisure. Like the traditional amusement parks, but a place of fiction that bases its

existence on the materialization of a fantastic narration through shapes, volumes and

performance. It considers itself an ‘alternative world’, which is organized like a

sequence of scenes in a film”(Clavé, 2007, p 21- 22). Visitors seek their dream

country due to they want to get rid of the constraint of reality from the transient

happiness. So that people regard theme park “As an alternative world to that of our

daily lives.” And “an amusement park is to consider it as a release from conventional

behavior, a place where some of the restraints of daily life may be relaxed…The

amusement park, said one analyst in 1907, “was not founded for the culture of

decorum, it was founded for the culture of hilarity” (Nye, 2000, p 66, 68). It represent

fantasy is important part of designing.

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The all of above mentioned are hardware for cornerstone of theme park plan, but

the following are the software for the operation of the park.

2.6 Success factor – Designing: Keep Facilities Changing, Original and Educational Maintain facility changing is part of Designing. Theme park must keep changing

enables it maintain enduringly the operation. “Theme parks are continually changing

and adding dimensions. Disney World has become a resort in itself”(Ryan and Page,

2000, p 233, cited in McClung, 1991). Thus, Zhang (2005, p 342) believe that theme

concept is not limited to one, it requires extended scalability. Even the best theme

park, it also needs to make regular updates and additional investment in facilities to

attract repeat customers. This shows that freshness is very important for tourists,

which make the park become popular. Furthermore, Zhang (2005, p 343) mention

that theme parks need to have their own original facilities. Also, the education

element cannot be ignored because it is also a part of the success. Thus, theme park

operators should add some educational things in park. “The latest trend is to provide

education as an integral component of theme parks”(Ryan and Page, 2000, p 233,

cited in McClung, 1991). “Also belonging to the socio-culture aspect is the growing

desire for a culture and educational experience. Visitors want to learn something

new during their stay at a theme park. Therefore it is likely that theme park will

embody ‘a greater educational function to introduce, interpret and sensitize the […]

tourist to the environment and host community and its values’ (http:// www.

Econres.com, 25.04.06)”(Tucholka and Weese, 2006, p 18). For example, Ocean Park

Hong Kong is famous park in the world, which constructs “Symbio” recently. The

show not only brings wonderful performance to audiences, and also to promote care

for the earth (Ocean Park Hong Kong, 2011). The facility has unique appeal to visitors,

which builds brand of theme park and customer loyalty.

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2.7 Success factor – Human Resource Management In addition, Clavé (2007, p 400-401) has points out that “The quality of the operation

in a theme park and therefore of its visitors’ experience depends on the facility

mangers’ ability to employ the best human resources for each available work post. …

Watson and McCracken (2003) single out three essential issues for a theme park’s

human resources management strategy: selecting …quality staff, Training and

development to meet new and changing demand,…According to Storey’s (1995)

model …people are fundamental for the success of a business…” Furthermore, Clavé

(2007, p 403) noted that “According to Aragon and Kleiner (2003), this process is

essential because how well an employee is matched to a specific job greatly

influences the quality and quantity of the employee’s work and affects the company:

Identification…Each work post is designed in accordance with the needs of the

organization. This means deciding what the purpose of the job will be and where it

will fit in with other people’s jobs.” Robbins and Coulter (2007, p 358) provide clear

definition of selection which is “to determine who is best qualified for the job. This

step is called selection or screening job applicants to ensure that the most

appropriate candidates are hired.” Hence, human resource is foundation for

operation of park.

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2.8 Success factor – Customer Service Last but not least, high quality customer services make the park turn into forerunner

in this industry. Cavitt (2007, p 17-18) believe that “In terms of customer service,

most organizations need to understand that friendly people will always help to

enhance this sense of entertainment that most consumers are after. As an example,

theme parks need to hire on basis of friendliness first. This is because families enter a

park with the mindset of having fun. When employees at the park are cheerful and

friendly, the overall experience for the customer becomes more meaningful. Fun is

definitely what today’s consumer is looking for. And when everything is said and

done, it is only the friendly people who are most qualified to enhance this

entertaining environment in our experience-driven economy.”

2.9 Success factor – Marketing On the other hands, many theme park operators set up marketing plans for future

development, because it can keep competitiveness of the parks. Brand position as

such is playing critical role in marketing plan. “Product positioning…are strategic

issues of the marketing planning process. Deciding on the target position of a

product brand, the marketing manager determines the key attributes of the product

brand…Positioning always refers to one or more particular groups of customers…”

(Jafari, 2000, p 464). Clavé (2007, p 412) notes that “a theme park marketing plan

should define future goals…For the generation of strategies; park may establish

option like…market development and diversification. …Market development is also

expensive, because it implies considerable expenditure on advertising. Finally,

diversification implies a large amount of investment with risk.” “The primary types of

diversification fall into two well-know categories: related diversification and

unrelated diversification” (Bamford, 2010, p 296). But unrelated diversification is

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worth to analyze. The definition of unrelated diversification is “It is when a business

add new, or unrelated, product lines or markets. …there is no direct fit with the

existing business” (Voice Marketing Inc., 2011). Guestology helps theme park

operators know more about their customers. Clarke and Chen (2007, p 337) state

that “A popular method of marketing that Disney uses is guestology, which allows

them to research their clients directly by looking at their needs and wants.”

Also, some theme park is more concern the localization strategy. For example,

“Disney adopted an International Strategy. They transfer the skills and products

derived from distinctive competencies to the foreign markets, while undertaking

some limited local customization.”

In conclusion, the study of relevant success factors of Disneyland literature, there are

some points need to be summarized. General theme parks are successful because of

insisting on the dream, choosing the high population location, well designing to make

visitors feel fantasy and keep facilities changing, good human resource management

to hire right people, providing high quality customer service to guests and varied

marketing plans. The all of above are success factors for general theme park industry.

However, dream and location these two factors are not suitable for entire Disneyland.

The next stage of the study will detail the method of investigation to be used the

case study to probe into the success factors of Disneyland. This chapter will be

explain the reason for why select these methods.

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Chapter 3 –Method of Investigation

3.1 Definition of Qualitative Research According to Carter and Thomas (2005, p 31) defines that “my own definition of

qualitative research methods is that they are methods for collection, analysis and

interpretation of data on phenomena …” and “in order to add a body of knowledge”

(Baker, 2008, p 157). Thus, the method to carry out this study was using qualitative

research, which included case study to probe into the real success factors of

Disneyland.

3.2 Definition of Case Study About case study, Klenke (2008, p 62, cited in Klenke, 2004) states that “Case studies

can be both qualitative …” Also, Silverman (2010, p 138, cited in Punch 1998, p 150)

describes that “The basic idea is that one case (or perhaps a small number of cases)

will be studied in detail, using whatever methods seem appropriate. While there may

be a variety of specific purposes and research questions, the general objective is to

develop as full an understanding of that case as possible.” The study apply case study

to understand deeply Disneyland. The example is very good evidence to prove

success of Disneyland. The reason for why choose this method because of the study

was decided to investigate the whole world success factors of Disneyland. Therefore,

to research deep into different literatures to find it better than other theme park

aspects.

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3.3 Advantages of Case Study Concerning the advantages of the case study research involves the results and

findings would be more credibility, due to the source of information were examined

by a lot of savants or researchers, so the resources get higher credibility. Also, case

study method is truer, because the resources base on the facts of Disneyland. Thirdly,

this method can help researcher find or create new things through many academic

resources. Thus, the case study method is exploratory. These benefits are drive to me

choose case study as research method.

3.4 Definition of Secondary Data Secondary data is “If the required data had already been collected by some agencies

or individuals and are now available in the published or unpublished records, these

are known as secondary data.”(Singh and Mangat, 1996, p 2) Owing to this study is

according the facts of Disneyland to do analysis about success factors, so that those

information and data are secondary.

3.5 Data Collection The data consist of books and academic journals articles. Thus, the study will through

the all of above data to investigate and identify what make Disneyland be successful.

These two types of data collection are main information source. Furthermore, the

books and journals were described mostly about management strategies of

Disneyland, such as the corporation set up systematic human resources management

includes identification, selection system, and training programs and varied marketing

plans. What is more, the authors also mentioned the reasons for why Disneyland‘s

staff offering high quality services to visitors. Some books and academic journal

articles noted that the designing of Disneyland, it includes facilities designing and

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continue to change.

3.6 Limitations of the Study For the limitation of case study, because of this study only focus on secondary

resources, so lack of primary information to assess the perspectives of the greater

part of population such as visitors to measure what is success factors. The method is

not comprehensive enough.

Lastly, the data credibility is high, because the authors after data analysis or filed

observation to obtained the results. Generally, the resources are objective, because

most resources were generated by different types of books and academic journal

articles.

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Chapter 4 – Findings and analysis

The finding and analysis will be focus on human resources, customer services,

marketing plans and designing of Disneyland. It is because above operation strategies

of Disneyland are famous in the world and good operation management strategies

will make your organization has the effect of value added so Disneyland’s strategies

are worth studying.

4.1.1 Human Resource Management: Identification and Selection “The growth and development of the Walt Disney Company is directly related to the

growth and development of its resources-our cast” Capodagli and Jackson (2007, p

149, cited in Disney). It shows that human resource is critical for Disneyland. A

systematic and institutionalization human resources management was existed in

Disneyland. Human resources management comprises identification, selection and

training. About the requirement of identification, Disneyland requests to imagination

indentified. They require previous work experience but most important thing is ask

about the applicants’ childhood dreams (Clarke and Chen, 2007). Furthermore,

Disneyland announces the detailed provision of clothing during recruitment at the

beginning. People cannot comply with the rules will not be hired (Xi Chun, 2005). The

second step is selection; candidates need to attend a one hour presentation about

“what Disney stands for, what the values are, and what working at Disney is like.

Disney wants people to self-select themselves out before ever seeing a guest if they

have any doubt they will like the work” (Brown, 1991, p 170). Disneyland uses this

method to select people who are suitable for the job.

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4.1.2 Human Resource Management: Training In order to achieve Walt’s belief and vision, so he formulates the training program,

and then evolved into the familiar Disney University. Every new employee must

undergo training before they take over their duty. The training program is not only

instructing knowledge about specific job skills and abilities, but also ensuring every

employee knows the Disney culture and traditions (Capodagli and Jackson, 2007).

Disneyland provides internal and external training program to students. There are

four main programs include Disney College, Walt Disney World College Program,

Disney Collegiate and Disney Imagi-Nations, which based on innovation and

imagination, to cultivate their competences about management performance,

designing, art and music producing (Clarke and Chen, 2007). Also, employees

requiring to accept “a day-long orientation program as a part of a 40-hour

apprenticeship program” and “are given a very thorough introduction to matters of

managerial concern and are tested on their absorption of famous Disneyland fact,

lore, and procedure.” Culture of Disneyland is formally defined. The employee

handbook mentions that “Disney Corporate Culture 1. Of or pertaining to the Disney

organization, as a: the philosophy underlying all business decisions; b: the

commitment of top leadership and management to that philosophy; c: the actions

taken by individual cast members that reinforce the image” (Staw, 2003, p 298-299).

It prove that Disneyland provide a systematic training program for new employees.

Language is main characteristic of university for new employees. For example, when

customer at Disneyland, they are “guest”, Disneyland is a “Park”, not an amusement

center, and it is separate “back-stage”, “on-stage”, and “staging” regions (Frost et al.,

1991). The all of above are internal intensive training programs. These will help

strengthen the staff to understanding of Disneyland culture. For the external training

program, Disney University offer “called guest program” and professional

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development courses such as leadership and people management (MCB University

Press, 1998). Those courses can increase the employees’ abilities.

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4.2.1 Customer Service: ‘SCSE’ Service Philosophy The success of Disneyland based on providing friendly and joyful customer service to

create fantasy experience for the customers. Employees observe strictly ‘SCSE’

service philosophy. ‘SCSE’ stand for safety, courtesy, show and efficiency. Ensuring

the safety of tourists is the primary requirement at Disneyland. Disney launched

internet website to encourage employees and guests to concern safety sense of

children (Research, 2008). Also, in some exciting entertainments, Disneyland had

detailed safety suggestions for visitors and providing special service, for instance, the

first row fixed seats are specifically prepare for the elderly and children during the

4D movie (Glzy8, 2010). So that they can feel the realistic effect of film and also

protect their safety. Courtesy is other factor to decide revisiting. Disneyland requires

employees providing passionate, sincere, polite and considerate service to the

guests. The sight of employees must be look at the same level with customers. If the

guest is child, employee must squat down with a smile and give the commodity in

child’s hands. Disneyland also attaches great importance to develop employees’

sense of respect for guests, such as “It’s been our pleasure to serve you” (Sangiorgi,

2006, p 184, cited in The project on Disney, 1995). Disneyland would be positioned

as acting company. Therefore, deliver the highest satisfaction of entertainment and

recreation by the shows. Employees are called “cast member” and customers as

“guest”. Every attractions and event have “show” (Paik, 2010). These special

languages are continued to strengthen their awareness of performance for future

foundation. The efficiency stands for above three criteria are met to ensure that the

work with high efficiency. But we can through other aspect to see employees how to

keep efficiency. Sangiorgi (2006) has point out that “cast members are required to

be knowledgeable and to be able to find the right answer for park visitors, or at least

to find another cast member who can help them out before guests become

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dissatisfied.” Hence, the reason for why Disneyland can maintain the magic-“70

percent of visitors to Disneyland theme park are repeat visitors” (MCB University

Press, 1998).

4.2.2 Customer Service: Guidelines for Serving What is more, employees need to abide by other guidelines to achieve service goal.

At Disneyland, the satisfaction of customers is top priority. Thus, they have mission is

exceeding guest expectations. Imai (1997, p 191) states that “Each new cast member

receives the following list if guidelines for serving the guest:

1. Make eye contact and smile.

2. Greet and welcome each and every guest.

3. Seek out contact with guests.

4. Provide immediate service recovery.

5. Display appropriate body language at all times.

6. Preserve the magical guest experience.

7. Thank each and every guest.”

It shows that Disneyland persists in delivering meticulous services to every guest. The

insistences make Disneyland success.

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4.3.1 Marketing: Brand Positioning Marketing plans also make Disneyland accomplish success. It comprises brand

positioning, promotion, know customer’s needs and wants, localization strategy and

unrelated diversification. In terms of Disneyland, brand position is very significant.

According to Interbrand (2011) indicate that Disney’s brand value is $ 28,731 million,

rank is ninth on 2010. Brand has become Disneyland’s core competitiveness. Also,

Disneyland on behalf of fun, pass the message of ‘world’s happiest place’ to the

guests (Zuo, 2009). Furthermore, Disneyland only focus “family fun”, this term covers

old, adult and teenagers these three age groups. Thus, the brand positioning of

Disneyland would be very successful at the beginning.

4.3.2 Marketing: Promotion About the promotion, Disneyland employs a variety of marketing tools. They

cooperate with ABC network, used California Disneyland to hold “ABC network’s

reality TV shows-“The Bachelor and Bachelorette” (Clarke and Chen, 2007, p 337).

This increased publicity of Disneyland. Disneyland tries to put more things as an

advertisement channel. For example, has a high cultural influence – McDonald’s and

Coca-Cola publicity jointly, advertising on the Coca-Cola cans (Wu, 2010). Disneyland

is adequately use of the unique promotional techniques to bring substantial profits

every year.

4.3.3 Marketing: Guestology In order to grasp accurately the needs of guests, Disneyland is devoted to study

guestology, which enables them understand the guests’ needs and wants. They use

different research techniques such as face to face surveys, focus groups, telephone

investigation (Kusluvan, 2003). Guestology will helps they know demographics, what

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their expectations and comments are. This aids to develop more new strategies

about management and service.

4.3.4 Marketing: Localization Strategy Disneyland as a global enterprise, so which pay great attention to the operation of

the localization strategy. For the Tokyo Disneyland, there are some changes that

adjust to Japanese taste, for example, Japanese-style restaurants for local visitors.

The early careful planning and consideration makes the financial success of Tokyo

Disneyland (Young and Nie, 1996). Also, Walt Disney Company determined to create

Chinese-style Disneyland in Hong Kong. The cast members have fluent in English,

Cantonese and Mandarin. The programs also take into account the factors of local

language. Many Asia cuisines can be found in the park (CCTV.com, 2005). These

alterations can shorten the distance among the Chinese and accelerate integration

into the local culture.

4.3.5 Marketing: Unrelated Diversification Disneyland adopts unrelated diversification strategy to enlarge their business. They

are not only focusing on theme park, but also run businesses include cartoon film, TV

network, toys, albums and books (Clarke and Chen, 2007). Disneyland sells the

licenses to some companies to produce apparel and accessories (Sethi, 2003). Each

new film appears new characters, Disneyland will put the new characters in theme

park, and Disneyland will create the atmosphere of film. It attracts many tourists

keep to visit Disneyland. This is strategy make Disneyland successful.

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4.4.1 Designing: Fantasy Kingdom Walt Disney make impossible thing became a reality. Disneyland is fantasy kingdom;

it let visitors feel temporarily away from reality. Disneyland has detailed designing in

theme park facilities even the entrance. When visitors walk to entrance, whether the

music, building and staff, those are slowly guide the guests to enter the fantasy

kingdom. This created an emotion of ‘coming to Disneyland’ to visitors. There is a

venue for taking pictures in Disneyland Plaza, where are often appear cartoon

characters. Visitors will take photos with them. Guests feel truly themselves in

fantasy kingdom at this moment. Also, Disneyland is composed of different theme

areas. Each theme area has different recreational facilities, restaurants and shops.

These facilities have their own independent story (Xi chun, 2005). Disneyland uses

these designing to establish dream situation for visitors. In addition, they utilize other

method to build relax atmosphere. They will place cartoon characters in the park,

such as Donald Duck and Mickey Mouse (Zuo, 2009). Make guests perceive the

ambiance of film.

4.4.2 Designing: Keep Facilities Changing and Original On the other hands, Disneyland keeps the facilities changing. Keep changing is

important part of designing. “Disneyland will never be completed. It will continue to

grow as long as there is imagination left in the world.” - Walt Disney (Disney dreamer,

2007). Disneyland has always adhere this belief, which insisted on use ‘three-three

system’, it means weeding out one third of the hardware devices every year, building

one third of the new concept facilities. Updating and replenishing the content of

entertainment and facilities continue to providing freshness to guests (Jing, 2008).

Thus, Lane et al. (2009) states that “Offering something new and innovative brought

guests in and would make them come back.” Disneyland also emphasizes the theme

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park facilities were original. Zhang (2002) noted that Space Mountain and Magic

Mountain were original recreation facilities at Disneyland. The original facilities are

raising the brand position and building the customer loyalty.

In conclusion, Disneyland framed special human resource management schemes. The

creative identification, selection and training process differ from other companies.

About customer services, due to the details of services are required to be meticulous,

such as they set customers satisfactions as top priority. So many visitors are willing to

be repeat customers. Disneyland uses different marketing plans to enter the

customers’ mind, for example, they cooperate with large firms- Coca Cola and

McDonald’s to promote their products. These techniques are very effective. Lastly,

Disneyland strives to establish fantasy kingdom for guests, such as keep the facilities

changing and maintain the facilities are original, hope that providing environment to

relax them and escape the actuality.

Disneyland’s success will be due to a large extent to a systematic human resource

management, exquisite and quality customer service, perfect and various marketing

plans, unique and innovative designing.

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Chapter 5 - Conclusion

Before the conclusion, there is a point need be reminded, the entire objective of this

study was to further investigation and understanding of the key success factors of

Disneyland. This section will return the above study objective; summarize the

analysis and findings of this study and provide conclusions according to the findings.

Recommendations for Disneyland will be discussed below, in terms of Disneyland can

be improved for these suggestions on future development.

5.1 Conclusion As a result of literature review and analysis and findings, there are some key points

would be discovered. The daily operation of the park is more crucial in comparison to

pre-opening planning. Dream and location of pre-opening planning are less

important. It is because dream is just a starting point and part of success factors, not

the critical success factors. If the dream lack for knowledgeable and capable of

management employees to support, dreams will be defeated. Additionally, location

factor can be change. For example, Hong Kong Disneyland not locate in downtown, it

locate in Penny’ Bay. Government builds the new roads and new rail to enhance the

accessibility (Horner and Swarbrooke, 2004). It proves that location factor can be

modifying later and perfect management system and operation planning are primary.

Human resources, customer services, marketing plans and designing of Disneyland of

the findings are worth summarizing, because those elements are key success factors.

Disneyland’s success constructed from correct tactics.

About human resources, Disneyland is a creative industry, so identification required

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applicants’ imagination. Staff also requested from the lowest level to be creative,

which is conducive to Disneyland’s overall development. The situation like the

pyramid, there is full of innovation from the bottom to the top level. Creative will

provide endlessly. Thus, the organizational framework is very steady. Self-elimination

as selection method showed better compare with company elimination. The

employees would be more patient and perseverant. After careful consideration

before they remain, so they sincerely want to stay in company and the staff will be

more morale. It can maintain the employee turnover rate is lower. Capodagli and

Jackson (2007, p 21) have point out that “Whereas a 100 percent turnover rate is the

norm at most theme park, rank-and-file turnover at Disney is less than 30 percent.

And within the company’s management ranks, turnover is less than 6 percent.” Also,

staff will be motivated and really enjoy the working process, share the happiness to

customers. Then, customers will feel their enthusiasm. For the training, there is

Disney University offering external and internal training programs for employees. The

university can let Disney management understand what company needs and what

type of employees need to be training. Disney gave employees a better

understanding of the background, history, development and increasing the degree of

belonging and sense of involvement. Disneyland distributed different training

programs among the employees base on their capability, it facilitates the

development of employees’ strengths and their potential. From the training in

language, ability of employees, company background and so forth, to establish the

exclusive and unique Disney culture.

Customer service set distinct guidelines, for instance, providing ‘SCSE’ and a series of

guidelines of serving the guest to stipulated employees’ behavior. Employees more

clearly how to provide exceeding guest expectations service to guests. There exist

- 25 -

definite norms; it will enhance the combat effectiveness of the whole staff.

Furthermore, the rules shaped all front-line employees to provide consistent service,

whether children or adults, they make guests’ dream come true through

extraordinary service. That is why Disney service is world famous reason.

Disneyland’s marketing is very successful. Their brand position is prudent and

different from other theme park. Disneyland accentuated “family fun”, which include

three different age groups. In addition to capture the children market, and even the

adults and elderly are also attracted. The extensive customer sources brought

abundant profits. For the promotion, Disneyland not only adopts general advertising

channel, but also know how to use high-profile companies to promote their products.

These readily attract the attention of customers and quickly enter the market.

Moreover, the company uses guestology to find out customers’ needs and wants. For

example, it can provide clear understanding of whom they are and basic

demographic information. These data help to formulate the marketing plans, such as

offering some discount during festival or providing the campaign against publicity for

particular age group. And this information can improve the quality of service and

administration. Disneyland is successful because they also concern the localization

strategy. The company willing to makes changes due to cultural differences in

different regions. That is the right attitude as a global enterprise. After all, they want

Disneyland enter the local market as soon as possible, must be cast aside their some

old ideas to adapt to local culture and customs. The concessive strategies made

Disneyland soon occupy the local market. What is more, if a theme park rely on ticket

sales at present, it is difficult to support. The operators of Disneyland are very smart,

who use the theme park popularity to carry out varied unrelated diversification

strategies, maintain a substantial income every year. Also, they keep putting the roles

- 26 -

of popular movies in the park, customers feel like in the movie, which only

Disneyland can. So that Disneyland has been able to maintain its uniqueness, other

theme parks are difficult to plagiarize.

Designing is critical success factor for Disneyland. Disneyland keeps to bringing

novelty to customers, so select the plan of ‘keep facilities changing’. In addition,

Disneyland, through roles of movies and unique landscapes and environment to

create a dream scene for guests. Because of Disney have a lot of creative, it can

uphold each facility has its own originality. These facilities only existing in Disneyland

so enhance and cultivate the customers’ loyalty.

All in all, Disneyland used the right strategies that make its business to possess steady

growth, the above four elements are real key success factors. However, following are

recommendations of Disneyland future development.

- 27 -

5.2 Recommendation As the literature review have described that operators should add some education

elements in theme park. Disneyland ought to establish some educational facilities

because it is trend. For example, Ocean Park Hong Kong have a number of facilities

were educational component. If Disneyland use their status to promote some

educational messages, such as inserting publicity of care for the earth or the green

information, that will be received good results, increasing overall business value and

image and further improve the social status. Customers go to Disneyland will not just

simply play and enjoy themselves, there are learning elements, which help improve

competitiveness.

In conclusion, Disneyland invests considerable resources in identification, selection

and initial training to have train the quality employees. Good service attitude is a

must in today’s society. It is because the demand of customer for services increased,

but Disneyland is not only satisfy the customers’ basic needs, also exceeded their

expectation. The park also good at using different marketing plans to expand the

market share, and providing a fantasy kingdom to guests, therefore, Disneyland has

hold the predominant position in hospitality industry.

- 28 -

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