PESTEL Analysis of Hong Kong Disneyland Fantasy and Adventure

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PESTEL Analysis of Hong Kong Disneyland

What is PESTEL? How you can use PESTEL Analysis of Hong Kong Disneyland?

PESTEL is an excellent tool for analyzing businesses by evaluating macro-environment factors like political, economic, social, technological, environmental, and legal. The impact of these factors is really big on a company’s overall business. The effect of geographical situation, socio-economic environment, and industry environment is also huge while doing PESTEL Analysis of Hong Kong Disneyland. Managers at Hong Kong Disneyland must examine the above factors to develop better business ideas and strategies.

Case Study of Hong Kong Disneyland:

This case study highlights the struggle of Disney throughout the years in different countries. Disney started its theme park in 1983 with the inaugural of Tokyo Disneyland. It was considered the most famous amusement park. After this enormous success, Disney tried to replicate another Disneyland in France. Disney opened Disneyland Resort in Paris, which gained more success than Disneyland in Japan. After that, Disney opened its third in Hong Kong, popularly known as Hong Kong Disneyland. They successfully adopted the Chinese cultural environment to make Hong Kong Disneyland successful in that region.

Importance of PESTEL:

The importance of PESTEL in the strategic planning process is immense, and it often requires five steps,

1- I am selecting the reason for Hong Kong Disneyland’s existence and mission, and vision.

2- Examine the Hong Kong Disneyland external competitive factors to investigate threats and opportunities. PESTEL is the most suitable tool for analyzing the external macro factors and gives a great chance to Hong Kong Disneyland to build a sustainable competitive lead.

1. Identify the weaknesses and strengths of Hong Kong Disneyland.
2. Making effective strategies that help to maximize its strengths and reduce weaknesses.
3. Learn how to execute a strategy in the development of Hong Kong Disneyland.

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PESTEL Analysis of Hong Kong Disneyland

Political Factors – PESTEL Analysis of Hong Kong Disneyland

The impact of political factors in the overall business operation of Hong Kong Disneyland is huge. This factor is directly linked with investment strategies. It also has a crucial role in the cost of running a business to achieve long-term sustainability. Factors like armed conflict, law & order, governance, military coup chances, and democracy are some important political factors.

• The governance system of a country indicates its stable political condition. In this kind of environment, it will be easier for Hong Kong Disneyland to make strategies and policies.
• The overall record of Hong Kong is really great in signing treaties and agreements with global partners. It shows the consistency in rule and regulation, which creates a better opportunity for Hong Kong Disneyland.
• After the incident of 9/11, companies like Hong Kong Disneyland are operating under the shadow of fear, such as terrorist attacks. It is necessary to invest in security and insurance in order to mitigate the loss.
• Currently, Hong Kong is dealing with armed conflicts of neighboring countries. But, Hong Kong Disneyland has no connection with such armed conflicts.
• Government regulations and deregulations impact the performance of Hong Kong Disneyland. Sometimes, government policies can benefit the company and sometimes not.
• Change of government and policies are also important factors that fall under the political scenarios. If a government follows the rules and policies of the previous government, then it is really suitable for Hong Kong Disneyland.
• In Hong Kong, plenty of government agencies works really hard to reduce the risk of nuisances. But, it also increases the operational costs of the company and getting clearances.
• Both national and local governments can enhance the company’s growth in the short term. The company can employ it in its favor by taking advantage of the current political scenarios of the country.

Economic Factors – PESTEL Analysis of Hong Kong Disneyland

Besides political factors, economic factors have a significant impact on Hong Kong Disneyland. It involves various factors such as GDP, disposable income, inflation rate, etc., that directly impact Hong Kong Disneyland.

• Due to forex risk, many companies like Hong Kong Disneyland have faced losses in the last few years. Hong Kong Disneyland must understand the forex risk in order to avoid big losses.
• The stagnant household income and increasing consumption is leading to several problems in the United States. So, the concept of saving is totally diminished because people don’t have much to save. It is important for Hong Kong Disneyland to make useful strategies according to customer purchasing power.
• The rise in disposable income also has a massive impact on companies like Hong Kong Disneyland. Hong Kong Disneyland can exploit this trend by creating various marketing campaigns.
• In today’s era, people are more experienced and skilled. It gives an excellent opportunity to Hong Kong Disneyland to hire a skilled workforce in order to remain competitive in the market.
• The increment in employment rate will affect Hong Kong Disneyland in two ways – it will increase its customer base, and secondly, it will create problems for the companies to hire skillful workers.
• The change in the inflation rate can affect the need for Hong Kong Disneyland products. In case of a high inflation rate, Hong Kong Disneyland must increase the price of its products, which impacts its customer base. In such a scenario, cost-based pricing could be fatal for the company.
• If the GDP growth rate is high, it indicates the growing demand of products in the country. Hong Kong Disneyland can utilize this trend and expand its business. It is essential to understand customers’ purchasing behavior before making any policy or strategy.

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Social Factors – PESTEL Analysis of Hong Kong Disneyland

The importance of social factors is considerable in PESTEL analysis. It involves various factors like demography trends, gender equality, societal norms, etc. These elements have a bigger impact on the country’s economic condition and the company’s performance too.

Hong Kong Disneyland

• Hong Kong Disneyland needs to conduct ethnographic research to fully identify customers’ attitudes towards comfort. By identifying such things, Hong Kong Disneyland can make strategies accordingly to stabilize its business.
• The focus on the health and safety measures indicates the manufacturing process and cost structure of products. Hong Kong Disneyland has strict standards for safety and health in emerging as well as developed economies.
• Before stepping into a specific country or region, Hong Kong Disneyland must identify the social relation between society and government. For example, it is very tough for US-based health companies to make a place in the UK health system.
• It is necessary to evaluate the education level of society before entering into it. If the education level is high, it means the chances for jobs are high, and you can easily hire a skilled workforce.
• Before entering any country, Hong Kong Disneyland must identify its level of social awareness and social concerns. If it is high, then you will face immense pressure from pressure groups, individuals, and non-governmental organizations.
• The birth rate is another good sign for the company for future demand.
• By evaluating the level of societal issues, liberal nature, women’s rights, etc., you can easily decide whether this market or country is suitable for work or not.

Technological Factors – PESTEL Analysis of Hong Kong Disneyland

Having the latest technology enables you to gain a competitive edge over competitors in this modern era. It involves artificial intelligence, machine learning, analytics, and other tools. These things are necessary for the constant growth of Hong Kong Disneyland.

• Hong Kong Disneyland should assess the production costs in which it operates. Technological innovation is a must for constant growth. Otherwise, you will lag in every segment.
• It is essential to evaluate the intellectual property rights and patents protection before going to any country for doing business.
• If a country is highly advanced in technology, then Hong Kong Disneyland should evaluate whether they can go with this fast pace of technology or not.
• For the business model of Hong Kong Disneyland, e-commerce is one of the most critical factors. Due to this reason, they should see the e-commerce infrastructure before going to a new region or market.
• Companies like Hong Kong Disneyland need to assess the legal position of intellectual property rights and other property rights.
• China is leading in mobile payment services. Hong Kong Disneyland should evaluate a country’s local mobile payment process and the business model.
• In order to deminish the risk of corruption at the local level, Hong Kong Disneyland should pay attention to the digitalization of several processes.
• The penetration of the internet and mobile phone indicates the business model of that country. It shows the local business needs because small businesses are based on these two factors nowadays.

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Environmental Factors – PESTEL Analysis of Hong Kong Disneyland

Climate change, carbon footprint, ecosystem, and other eco-related concerns really matter nowadays. People are now more aware of the environment.

• Before entering a new market, Hong Kong Disneyland must analyze the role of environment norms enforcement agencies to avoid any controversy in the future.
• It is crucial to know the per capita carbon emission of the region or country. It will help Hong Kong Disneyland identify the country’s eco-related policies.
• The influence of climate change can make or break the business performance of Hong Kong Disneyland. Sudden climate change will lead to problems in the supply chain and distribution.
• It is necessary to identify the government policies regarding Paris Climate Agreement. If they are following the rules and regulations of the Paris Climate Agreement, then it is a great place for doing business.
• To follow all guidelines, Hong Kong Disneyland must identify a country’s waste management policy. It will save Hong Kong Disneyland from many troubles and nuisances.
• The impact of the environment will also affect the production cost of the products.

Legal Factors – PESTEL Analysis of Hong Kong Disneyland

Factors like entering the market, laws, and resolving any issue, fall under the legal category of PESTEL. If the legal system of a country is strong, then it provides plenty of opportunities for growing business.

• First of all, uncover the employment laws of the country in order to run your business smoothly.
• It is important to identify how much time a country takes to resolve a court case. It will save the company from several legalities and challenges.
• Health and safety laws are also important for operating in a specific country. It requires to follow all the safety and health laws in order to prevent the risk of trouble.
• In order to make effective and consistent decisions, Hong Kong Disneyland must evaluate how transparent is the judicial system of a country.
• Hong Kong Disneyland must identify the security laws of the country.
• Data laws are also crucial in order to work safely in a country.

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