Disney relied on licensing agreements with the Oriental Land Company to open its first foreign theme park, Tokyo Disneyland, which resulted in

A. Disney's meeting the challenge of localizing its product offerings in Japan, leading to a low-cost advantage.

B. Disney's taking advantage of the Japanese consumer buying habits and demographics that no longer posed a challenge.

C. Disney's reduced concerns over fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.

D. Disney's licensing partner, the Oriental Land Company, reaping the windfall, since the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain.

E. Disney's reaping the windfall from the agreement because of learning curve effects.

Question

Madison Green

Business

19 February, 19:26

Disney relied on licensing agreements with the Oriental Land Company to open its first foreign theme park, Tokyo Disneyland, which resulted in

A. Disney's meeting the challenge of localizing its product offerings in Japan, leading to a low-cost advantage.

B. Disney's taking advantage of the Japanese consumer buying habits and demographics that no longer posed a challenge.

C. Disney's reduced concerns over fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.

D. Disney's licensing partner, the Oriental Land Company, reaping the windfall, since the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain.

E. Disney's reaping the windfall from the agreement because of learning curve effects.

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Answers (1)

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Dalton Holland · Answer 1

D. Disney's licensing partner, the Oriental Land Company, reaping the windfall, since the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain.

Explanation:

The Japanese Disneyland is the first in the world to be opened under a licensing agreement. All other Disneylands are fully or partially owned by Disney. However, for the Tokyo one, Disney only receives a royalty fee, which is common for licensing agreements.

On the other hand, the Oriental Land Company reaps the benefits of the already stable Disneyland business model. Disney does control the creative part, but the operating is under the Oriental Land Company, meaning they would largely benefit from this licensing agreement.