The business analysis of the Shanghai Disneyland

Summary:
The Shanghai Disneyland Project is viability due to the supports and guarantees from the following four aspects: local government’s encouragement policy, strong economic development of Shanghai, open consumption atiitudes of local people and the large market share, the progress of he-tech industries and conveinent transport network in Shanghai.

Introudction:
In nowadays, the conmmunication between different countries is becoming more and more frequent, especially in term of project investment that can benefits both cooperative gorvenments. In Octbber 2010, the Walt Disneyland Parks and Resorts submitted the Shanghai Disneyland Project, which signified that the ooperation between China and overseas enterprises made a new breakthrough. Meanwhile, whether it’s suitable for Shanghai to take the responsibilty of consturcting the Disneyland has been discussing by public constantly. On the positive side, it is certain that the Shanghai Disneyland Project can bring the magic of popular culture and recreational industry to enliven the local area.

Main Body:
Firstly, the expedient rules has been issued by local authorities domenstrated that Shanghai paid great attention to the Disneyland Project. Shanghai government and relevant firms has invested almost RMB hundred billion in the construction of the Disneyland Project and other related facilities in Pudong New area(The hundred billion investment urged Shanghai setting out the investment spree 2010), which indicated that the local authorities in Shanghai made much of this project. Additionally, the Disneyland Project was to be the important part of the “Twelve Five”(Wealth Never Sleep: Shanghai Disney 107 km2 investment chain "Tipping" 2010), which means the government has taken the Shanghai Disneyland Project as one of the important national constructions. Thus, the construction of the Shanghai Disneyland can be guaranteed with the high investment and much enough attention provided by the local government. After all the sopport from the local political aspect is the basic permission to start one financial project.

Secondly, stable and flourishing economic situation in Shanghai provides the Disneyland Project to be carried out with solid backing. A report stated that comparing with the economy in other areas of China, Shanghai is superior to them in term of the urban competitiveness and was selected the third most competitive city in 2007(Market Herald 2007). Shanghai is also considered as the major financial centre in China mainland(Karreman & Knaap 2007). These two points all emphasized the powerful economic strength of Shanghai, which confirmed that it can fully capable of shouldering the high investment and high insurance of the Disneyland Project.

Thirdly, the powerful supports of society also promotes the establishment of the Shanghai Disneyland. On the one hand, Shen pointed out in his report conducted in 2008 that the vacancy of distinctive large theme park in mainland China brings a tremendous opportunity for the Shanghai Disneyland Project.Although there had four waves of establishing theme park in China. He also mentioned that it’s surprising that in almost every time the investors had to face miserable failure. So far, the 70% of those uncompetitive projects are still unprofitbale, only 10% is gainful(Shen 2008). Consequently, it’s wisdom that Shanghai has seized the favorable moment to start the Disneyland Project. On the other hand, The open consumption atiitude of local people also allows the International brands, sucb as the Disney, to spread in Shanghai. Since Shanghai is the most inclusivity city in China, what was the first trading harbor to foreign areas in 19th Century(Wang 2006). The transmit of foreign adanced culture in the extensive views of Shanghai people to receptive foreign things. To sum up, the breaking-in of Shanghai Disneyland is suitable for the free circumstances in Shanghai and potential market share.#p#分頁標題#e#

Lastly, technical strength is necessary to support the enforcement of Shanghain Disneyland. The immense progress of the hi-tech indusries also increase the viability of the Shanghai Disneyland Project. In 2002, the total output value of Shanghai’s hi-tech industries was RMB 1980.08 bn that rose by 18.7%(Mo 2008),which showed the abundant strength in the local technical field. That’s the main factor to make Shanghai Disneyland to own advanced technology content, for example the dreamy visual effects created by hi-tech facilities that attracts both children and adults. Besides, the local convenient transportation, as the organized underground network in Shanghai, is also the important factor for the establishment of Shanghai Disneyland.

Conclusions and Recommendations:
In word, the Shanghai Disneyland Project has intense feasibilty because of the political support, powerful economic background, open-minded social conduct and advanced technology of Shanghai. Meanwhile, I also have several recommendations for the project. Firstly, lowing the ticket price so as to ensure most of people can afford and enjoy the wonderful time in Disney. Secondly, Developing some characteristic events related to Chinese culture for showing not only the Disneyland culture.

Appendices:
Karreman, B. & Knaap, G.A. van der, The Financial Centres of Shanghai and Hong Kong: Competition or Complementarity?, Society for Economic Dynamics, accessed 4 Novermber,
<http://ideas.repec.org/p/dgr/eureri/300011788.html>

Mo E 2008, The analysis of the viability of constructing Shanghai Disneyland Resort, ChinaHR.com, accessed 2 December, 2010,<http://blog.chinahr.com/blog/ethanmo/post/76199>

The hundred billion investment urged Shanghai setting out the investment spree 2010, accessed 2 December 2010,
<http://comic.qq.com/a/20101108/000023.htm>

‘The rank of the Chinese urban competitiveness was released, Hongkong, Beijing and Shanghai top most league tables for competitiveness’, Market Herald, March 27, 2007, accessed 2 December 2010 from Market Herald database.

Shen，W S 2008，’China has entered the age of possessing ultra-large type theme park,’ Lookout Weekly, September 2008, accessed 2 December 2010,< http://news.sohu.com/20080924/n259718879.shtml>

Wang, Y J 2006, Shanghai: ‘The seeking of Internationalization and the reconstruction of the regional area’, China Academic Journal Electronic Publishing House, accessed 2 December 2010, <http://210.74.184.3/meeting00/060614/07/661.pdf>

‘Wealth Never Sleep: Shanghai Disney 107 km2 investment chain "Tipping"’ 2010, accessed 4 December 2010,
<http://dengruo.info/201010/wealth-never-sleep-shanghai-disney-107-km2-investment-chain-tipping/>