Disney Joint Venture Strategy

A Joint Venture
When a company decides to enter a foreign market, they must decide on the best mode of entry. There are many modes of entry that a company can choose from and all have their advantages and disadvantages. Different local conditions at different foreign locations require specific entry mode strategies. One entry mode strategy that many companies choose to use is a joint venture. A joint venture involves establishing a firm that is jointly owned by two or more otherwise independent companies (Hill, 2013, p. 458). Joint ventures involve direct investment in the foreign country and can entail the company be a minority, a majority or equal owner. Joint ventures are usually used when the foreign country has established rules against

This was one of the motivating factors in the decision to enter into a joint venture (Hernandez, 2011). In Hong Kong, Disney went out of its way to tailor the park to local tastes (Schuman, 2006). So the obvious advantage of the joint venture for Disney was the close relationship with the local government that Disney formed. Asia is a complicated market and it usually pays to not only have the government on your side, but to have it as a major investor. The Hong Kong government also provided the knowledge on cultural traditions and norms that Disney stressed as important (Hernandez,

If these beliefs and values are too different the joint venture will be set up for conflict from the get go. For Christians, this is extremely important. Having representation from a company that is seen as opposite of Christian beliefs and values could hurt the impact the Christian or Christian company can have. However, that does not mean that the other company has to believe in Jesus or the God of the Bible. The values are what are important. Examples of God using “non-Christian” entities to further His purpose are seen throughout the Bible. It could be foolish of a person or company to disregard the opportunity to venture into a market that needs a Christ-like example just because they do not hold to the same exact belief in Jesus or the God of the Bible. If Daniel refused to work with the King he may not of found favor and in turn, God found favor with King Nebuchadnezzar (Daniel 1-3 ESV). The same goes for Abraham, Joseph, and even Paul the Apostle. The key for a Christian is to not compromise their faith in venturing in business and understanding that God and His will is more important than profit or “worldly”