Question

Why was Disney's Shanghai theme park so controversial? What are the risks and benefits of this project?

Answer 1

One major controversy was as the project was under consideration b y Beijing, Shanghai's Communist Party boss was implicated in a big corruption investigation. This put project approval at risk, and threatened to lengthen the approval process. Delays could have meant that the park would not open as planned, in time for the 2010 Worlds Expo. Schedules have dragged, and costs have escalated.

Risks: Failure could mean not only lost investment, but could also cause brand damage that could inhibit other international plans for Disney Parks. Success could mean that attendance at Disney’s Tokyo and Hong Kong ventures could be cannibalized.

Benefits: Getting this right could be a big feather in Disney’s cap, showing that they have learned their lessons with their previous international projects. Success could mean that the lessons learned could be applied to Tokyo, Hong Kong, and Paris to improve their performance. Success could mean that Disney will find it easier to repeat the ‘right recipe’ in future international endeavors.