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Ocean Park Fights

Hong Kong Disneyland

Strategic Management BPS 4350

Jessica Revilla
Team Member
Team Member
Team Member

Table of Contents
Introduction

History

Customer & Competitors

Competition

Graph (Attendance)

SWOT Analysis

Future Trends &Product

Strategy & Structure Financial Status

Recommendations and Future Outcomes

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Conclusion

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References

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Introduction
In 2006, Ocean Park, Hong Kongs only home-grown theme park raised $700
million for a master plan to renovate the Park. The master plan represented the Parks
strategic response to the arrival of Hong Kong Disneyland, which had opened the
previous year. Ocean Park had expected attendance to drop significantly with Disneys
opening, but attendance at the park had remained strong. Nonetheless, the competition
posed by Disney Hong Kong was not to be underestimated. Ocean Park and Hong Kong
Disneyland are both considered as major attraction in Hong Kong, a place known as the
financial center of Southeast China.
This paper will focus on the strategic management process of Ocean Park of Hong
Kong and Hong Kong Disneyland towards their foreigner or tourists customers,
particularly those mainland Chinese. It will first tackle the details about the competitors.
Second, it will analyze the external environment such as the economic and cultural
aspect that can affect the relationship of the organization to their customers. Third, it
will focus on the future trends and products of organizations as well as the strategy,
structure and the financial status. Furthermore, it will discuss the internal environment
of Ocean Park such as its core competency, together with its strengths and weaknesses.
History of Hong Kong Ocean Park and Disneyland
Ocean Park Hong Kong, commonly known as Ocean Park, is a marine mammal
park, oceanarium, animal theme park and amusement park, situated in Wong Chuk
Hang and Nam Long Shan in the Southern District of Hong Kong, China. Ocean Park
opened its doors on January 10, 1977 with only 42 acres and has grown over the

years. Today, its 226 acres of land consist of park and some rides which include the
following; Hair Raiser, The Dragon, Bumper Blaster, The Whirly Bird, The Eagle, and
The Abyss. Amusement parks always have a notable themes and animals. At Ocean
Park the notable animals are the great amazing pandas, Ying Ying and An An along with
them there are also two golden monkeys Le Le and Hu Hu. Some of the popular
attractions at Ocean Park consist of; The Expedition Trail, Panda Village, and Pacific
Pier and more.
Hong Kong Disneyland opened its doors September 12, 2005 and is located on
reclaimed land in Penny's Bay, Lantau Island 68 acres of land. It is the first theme park
located inside the Hong Kong Disneyland Resort and is owned and managed by the
Hong Kong International Theme Parks. Disney attempted to avoid problems of cultural
backlash by attempting to incorporate Chinese culture, customs, and traditions when
designing and building the resort, including adherence to the rules of feng shui. For
instance, a bend was put in a walkway near the Hong Kong Disneyland Resort entrance
so good qi energy wouldn't flow into the South China Sea. The park consists of seven
themed areas: Main Street, U.S.A., Fantasyland, Adventureland, Tomorrowland, Grizzly
Gulch, Mystic Point, and Toy Story Land. The theme park's cast members speak in
Cantonese, English, and Mandarin. Hong Kong Disneyland has a dedication statement
to its customers.
To all who come to this happy place, welcome. Many years ago, Walt Disney
introduced the world to enchanted realms of fantasy and adventure, yesterday and
tomorrow, in a magical place called Disneyland. Today that spirit of imagination and
discovery comes to life in Hong Kong. Hong Kong Disneyland is dedicated to the
young and the young at heart - with the hope that it will be a source of joy and

inspiration, and an enduring symbol of the cooperation, friendship and understanding

between the people of Hong Kong and the United States of America. Quoted by
Michael D. Eisner and Donald Tsang.
Customer & Competitors
Ocean Park established a special bond with the Chinese community since their
opening on January 10, 1977. Not only did Ocean Park incorporate many of their
activities and rides around the Chinese culture, they also remained loyal and faithful to
their original roots. Needless to say, Ocean Park was not well recognized outside of the
Chinese community. The transition of Disneyland to Hong Kong brought an advantage
to Ocean Park because Disneyland was a force to be reckoned with in the amusement
park industry and they are well known internationally.
Many visitors who traveled to China to visit Disneyland Hong Kong often visited
Ocean Park as well because they are only 29 minutes apart from each other. Ocean Park
began to implement a differentiation strategy that reached out to potential visitors who
are entertained by animals, nature, and adventure. Ocean Park established their identity
in both the Asian market and foreign market by provided different ideas of
entertainment beyond fairytales and fantasies. On the contrary, Ocean Park focus on
wildlife adventures, animals, and learning opportunities at their amusement park.
Additionally, Ocean Park continues to develop new attractions almost every year
so the park will not feel repetitive for their visitors. New rides and attractions represent
a marketing strategy that will satisfy the needs and wants of their visitors. As a result of
their successful implementation, the number of visitors from the Southern Asian
Markets in countries such as Korea, Indonesia, and India steadily grew over 60 percent
in the last five years. Due to Disneyland unintentionally contribution, the number of

attendance at the Ocean Park Hong Kong theme park skyrocketed as seen in the bar
chart below.
Competition
Ocean Parks major competition is Disneyland Hong Kong. Disneyland
established an identity and hierarchy in the amusement park industry since 1955. Due
their popularity and finances, they saw potential in growth and implemented their plan
to expand into China. Nonetheless, they have succeeded in the number of visitors and
sells since the opening of Disneyland Hong Kong on September 12, 2005. Disneyland
Hong Kong is also a resort and hotel. This additional incentive appealed to many visitors
because of the convenience.
Although, Disneyland Hong Kong benefited from first mover advantages, they
did not consider the liability of foreignness. There are inherent disadvantages foreign
firms experience in host countries because of their non-native status. Unfortunately,
Disneyland failed to establish to develop feng shui or guanxi with the Chinese
community. They did not consider the Chinese culture nor did they incorporate any
aspect of China into their attractions.

SWOT Analysis
Strengths

Weakness

Natural Park

Not a Resort like Disneyland

Price is lower than rival

Limited on land development (hilly)

Education Programs

lack of strong financial support

Time between rides is shorter

Opportunities

Threats

Renovation and expansion of park

Short life cycle

Destination is valuable

Not internationally known

Strong economy

Competition with Disneyland

Strong Attraction

Future Trends &Product

The amusement park industry over the last few years has seen increase in
attendance and financial growth. This growth could be attributed to the resource and
capabilities from applying the VRIO framework. Perhaps Ocean Park has been able to
diversify within the industry by making sure they put important elements into their
park. By implementing strategic components of goods and services Ocean Park Hong
Kong has been able to capture increased revenues.
Even though, family entertainment is considered leisure Ocean Park has created
a unique experience by combining vacation, education, and destination. Being able to
utilize the VRIO Framework has given Ocean Park an edge in the ever changing
amusement park industry. They know the niche or Value (V) in the changing market is
to make an experience destination part of their theme park. The park had to act quickly
to find a competitive advantage against the entry of rival Disneyland Hong Kong in
2005.
Nevertheless, Ocean Park had to answer two prevalent questions in the VIRO
strategy. One is their product and services imitability (I)? And, two was there a
Rarity(R) or difference in their product and services? The answer to these questions will
provide Ocean Park Hong Kong whether to continue current services, revamp old ones,
and or develop new ones. By implementing business strategy to build what the park
offered provided Ocean Park an advantage over their competitor Disneyland Hong
Kong.
Industry trends come and go, but to recognize your own inimitability is
vital. Ocean Park Hong Kong knew essential modification was important for its future
by creating inventive entertainment for every family member. By repositioning the

Organization (O) the park has generated new trends within the amusement
industry. Adding value with programs for school children which teaches about nature
and conservation awareness has allowed for a steady growth.
Strategy & Structure Financial Status
In efforts to survive competition and transform the park to world class, Ocean
Park implemented a 6-year $700 million plan in place that could potentially give them a
competitive advantage against Hong Kong Disneyland. This plan proved to be a success
and it dramatically expanded and altered the entire park.
Ocean Parks strategy here was not to outdo Disney but rather incorporate its
current vision in a different light. This was to increase its nature theme and wildlife
experience by enhancing rides and bringing in more animals. In doing this it looked to
position itself as a world-class marine-based attraction. Following this vision, Ocean
Park adopted a sea lion named Whiskers to appeal to young customers. It gave a much
warmer and easily approachable feeling.
Plan efforts included a new roller coaster that was to be fully operational by 2012,
a subzero Ice Palace, a 7.6 million liter aquarium along with an underwater restaurant,
33 additional new animal species for customers to enjoy, and the parks rides doubled to
a total of 70 rides. This renovation did place a financial burden on Ocean Park where
half of the funding ($350 million) originated from bank loans. Furthermore, Ocean Park
recorded a profit of only $15 million in 2005.
Regardless of Ocean Parks financials in 2005, it proved correct to have a wellthought out business plan to pan out long-term. Ocean Parks highest attendance shortly
after Disneylands opening was in 2010 with 5.1 million visitors, passing Disneylands 5
million, and today that figure for Ocean Park is at 7.1 million per year. The increased

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traffic for Ocean Park was not only deriving from locals but also from tourists in Hong
Kong that would come to visit the worldwide-known Disneyland. Ocean Park was able to
thrive on the traffic brought in from tourism and strategically capitalized on it to see
higher profits.
For fiscal year 2013, Ocean Park generated a total of HK$1.9 billion, increasing
both in-park revenue and admission revenue from the prior year. Hong Kong
Disneyland reported record revenues at HK$4.9 million, up 15% from the prior year.
Recommendations and Future Outcomes
Hong Kong Disney opened with a lot of potential but left their customers with the
aftertaste of disappointment, while Ocean Park Hong Kong maintained their clientele
with various tactics. Since, Hong Kong Disney has the available capital, coming from the
successful Disneys various ventures in the United States, and they can afford to invest
in much needed improvements. Ocean Park Hong Kong however, needs to focus on a
different strategy; their goal should be to focus on a defense before Disney can recover
and gain some customers, resulting in a loss of their profit margin.
Hong Kong Disney could have done more research and development before
investing in a foreign market amusement park. Hong Kong Disney was also missing
some significant items that create their brand, rides such as Autopia and Its a Small
World. These rides have been a staple of Disney and often the first ride that comes to
mind for Disneys amusement park frequenters. This issue can be solved with simple
implementation of research, expansion, and customization. Future financial growth of
either amusement park can be achieved depending on who takes action to implement
the necessary changes.

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Conclusion
Despite its efforts, Disney Hong Kong failed to fully appreciate the gap that
existed between the American brand and Chinese culture. Ocean Park Hong Kong
diversification over its rivalry Disneyland Hong Kong has made a strategic move to
demonstrate destination is valuable. Since, the park has completed the overhaul it has
inserted efficient advance technology by reducing waste, recycling products, and energy
conservation. Creating year round revenue potential in education, offering multiple
discount packages has set them apart from Disneyland Hong Kong.
As the growing amusement industry sustains, it only makes sense for the park to
build on what makes them money. To create future development they have to change
attractions periodically, create continual educational phases, and rejuvenate trust in the
community. By placing order objectives a balance product for the organization will
occur. This recurrent process will allow Ocean Park Hong Kong planning strategies to
develop into the future by aligning the industry with its innovativeness. Certainly, the
future of amusement parks will face rivalry from other entertainment options. But, the
developing industry opportunities have given Ocean Park a new entry to build and
create a product transformation.

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References
HK Disneyland. (2013). Annual Business Review for FY13. Retrieved from
http://ahongkongdisneyland.disney.go.com/media/hkdlcorp_v0100/en_US/aboutOur
Company/AnnualBusinessReview13.pdf
Hong Kong Tourism Board. (2014). Ocean Park Hong Kong | Hong Kong Tourism Board.
Retrieved from http://www.discoverhongkong.com/us/see-do/highlightattractions/top-10/ocean-park-hong-kong.jsp
Ocean Park HK Annual Information. (2013). Ocean Park Annual Report. Retrieved from
http://www.oceanpark.com.hk/doc/common/footer/ar/ophk_ar12-13.pdf
Ocean Park Hong Kong | Hong Kong Tourism Board. (2014). Retrieved from
http://www.discoverhongkong.com/us/see-do/highlight-attractions/top-10/oceanpark-hong-kong.jsp
Peng, M. W. (2014). Global strategy (3rd ed.). Mason, OH: South-Western.