Disney Japan

Disney Japan

Question 4

SBU Matrix

SBUs are critical in documenting the comparison of a company’s market growth rate and relative market share by analyzing the departments and partners contributing to its success (Rufer, 2022). In this Strategic Business Unit (SBU) analysis, there were a total of seven units identified. While not part of the parent company, some are strategic partners whose role is critical to the progress and success of the Disney Sea Park venture. In this case, the real estate company (MREG) owns substantial shares in the OL group, the primary parent company that brought Disney into Japan (Misawa, 2006). The Main bank also consists of the leading financial partners, including the IBJ and Mitsui Trust bank. The two units and the government play a critical role in having high market growth rates and high market share in the company. The OL and Tokyo Disney have been experiencing a low growth rate based on the value of the shares and projected attendance that is expected to fall (Misawa, 2006). Therefore, the two units have a high market share but have a low growth rate at the time of the case study. Walt Disney, the main licenser of the two Disney ventures, has a high market growth rate but low market share, especially in Japan as a company. This is the same for Disney Sea Park, a new venture that has proven successful though the growth rate and market share are still low.

Question 5

SBU Matrix with Investment and Business Level Strategies

In this investment and business level strategy analysis of the SBU units, it is crucial for Walt Disney, MREG, and the government to maintain their investments. This is because they will get their returns already fixed in the agreement terms, including the new venture that will offer technical advice and help enhance the company’s growth. The government’s primary role is to provide the space for the company’s growth to fulfill its leasing obligations. This is the same case for the estate group, whose stake in the company will increase in profitability is maintained. Therefore, the primary business-level strategy for these three SBUs is to integrate a focus-based strategy to improve and provide means of implementation for the new venture per the agreement terms. However, Tokyo Disneyland, Disney Sea Park, OL, and the Main bank need to increase their investments if they need to realize profit (Misawa, 2006). Most of the audience in Japan and the environments that are returning even more than three times is on a specific segment. However, with the new venture and widening the nature of the content, the company has the potential to widen the audience and expand the age brackets for specific audiences and content. This can be done through the business-level strategy of differentiation. Besides, companies such as banks need to increase their money input to get more returns and go beyond the scope of financing to get more equity as part of the differentiation strategy. The case of differentiation is especially evident from the Tokyo Disneyland experiences proved to increase new attractions and make most of the audience return because of the new experiences such as the Big thunder mountain in 1987, Splash mountain in 1992, and the Tokyo Disneyland Electrical Parade in 1985 among others (Misawa, 2006). Keeping with differentiation can help increase the number of visitors and profitability, even for the new adventure of Disney Sea Park.

Question 6

Segmentation Strategy and Buying Behaviors

The current segmentation of the Tokyo Disney land is mostly the Tokyo region. From the visitor analysis, 70% of the visitors visiting the park come from the neighboring region of Tokyo town, consisting of many people traveling to the town to have the Disney experience (Misawa, 2006). On the other hand, only 30% of the Tokyo population attend the park and enjoy its activities. The second segmentation, especially the one targeted by the new Disney Sea Park, targets adults who were children when Tokyo Disneyland opened and operated in its earlier years (Misawa, 2006). The segmentation, however, leaves out critical people who can substantially contribute to its growth. Kaltura (2022) argues that it is essential for businesses to analyze the market and develop segments that optimize profitability and market share. Therefore, based on the type of content, the recommended strategy will be based on observing the Japanese culture while responding to the needs of the demographic attending most. In this case, the market will be segmented into adults, children, and teenagers content and medium-income earners whose population in japan are highest and contribute mainly to the largest audience whether from Tokyo city or its environs. In this way, the Disneyland and Sea Park ventures will create content specific which is to be marketed to these populations to diversify content, create new attractions, and capitalize on the most profitable segments to expand the company in the Japanese market and even beyond some the borders (Misawa, 2006). For instance, many young adults and teenagers are exposed to technology and have developed concepts of western civilization. Therefore, by integrating such cultures while respecting the values and norms of the region in terms of social issues and traditions of business operations, the company can expand its visitors and profitability.

70% from the Kanto area, which is a neighboring region near Tokyo

Adults that were children when the Tokyo Disneyland was built

Marketing Strategy to Reach Target Market

The target markets identified include middle-income families, especially those in the adult age from 20s to late 50s. The market will be segmented further into content for children and young adolescents, older teenagers and young adults, and older adults. Regarding region, the marketing initiatives will be further classified into the population in Tokyo and the second segment of the market, the environments of Tokyo that draw the most population. However, most advertisements will be made through online media such as Cable networks, television commercials, and social media platforms. The timing of the events will be in a way that it can draw many people to celebrate various cultural events and national days to promote the country’s heritage and provide various entertainment and business options. This can help many people in Japan to associate with the business and get the message of unique events as part of the differentiation process to enable return. Apart from content differentiation, the second marketing strategy includes the pricing aspect. The aim is to lower the entry fees of the park slightly to accommodate a large number of the middle-income earners who form most of the population in the Japanese market to be more profitable from the high number of visitors. Besides, attracting more visitors who are satisfied with the experiences can lead to more park marketing through the networking factor during social interactions.

References

Kaltura, (2022). Segmenting the Market. Kaltura. Retrieved from https://www.kaltura.com/index.php/extwidget/preview/partner_id/1838561/uiconf_id/32098812/entry_id/1_loyycmlz/embed/auto?&flashvars[streamerType]=auto

Misawa, M., (2006). Tokyo Disneyland and the Disney Sea Park: Corporate Governance and Differences in Capital Budgeting Concepts and Methods between American and Japanese Companies. Asia Research Center. The University of Hong Kong.

Rufer, R., (2022). Video 4 - SBU Analysis. Kaltura. Retrieved from https://www.kaltura.com/index.php/extwidget/preview/partner_id/1838561/uiconf_id/30345531/entry_id/1_t2ibgq6u/embed/auto?&flashvars%5bstreamerType%5d=auto