On the 9th of May 2005, Oriental Land Co, Ltd ("OL.") pronounced changes in the organization 's top management. The entire combined presence at Tokyo Disneyland Park and Tokyo DisneySea Park for the fiscal year (1 April 2004 to 31 March 2005) amounted to 25.021 million guests, 98.2% of the preceding year's attendance. The top management was concerned this decrease in attendance may be a bad sign of tough times and it turned out to be a main example of a triumphant foreign investment in Japan now trapped in a entirely new structural transformation. The variables that had been crucial to its previous success were now declining. The top management thought that the amusement park and leisure acreage industry provided little cause for optimism, due to factors for example demographic changes and slackening consumer spending.
Under these conditions, the top management believed that a study was needed to discover whether the operating base could be diversified by OL. They particularly wanted to know whether the present pricing policy was not ineffective under deflation, which the Japanese market had been suffering for quite a while, and changes in pricing to visitors, if necessary, would affect the organization 's cash flow later on. The top management requested the planning department to analyze the potential price changes and use net present value ("NPV") approaches to appraise these choices on the effect of the future cash flow. The strategy would also be required to incorporate the organization 's long-term strategies.
Tokyo Disneyland (3) New Pricing Policy Needed For Sluggish Demand Case Study Solution
PUBLICATION DATE: November 01, 2012 PRODUCT #: HKU986-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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