Question

When Disney relied on licensing agreements with the Oriental Land Company to open its first foreign theme park, Tokyo Disneyland, 35) A) Its licensing partner, the Oriental Land Company reaped the windfall, because the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain. B) Japanese consumer buying habits and demographics no longer posed a challenge for Disney. C) It was Disney, not the Oriental Land Company, that reaped the windfall because of learning curve effects. D) Disney no longer needed to contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements. E) Disney was able to meet the challenge of localizing its product offerings in Japan, leading to a low-cost advantage.

Answer 1

Answer:

Letter A is correct. Its licensing partner, the Oriental Land Company reaped the windfall, because the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain.

Explanation:

When analyzing the other Disneylandia around the world, we can see a different case in Tokyo Disneylandia, which is the first in the world that does not belong entirely to Disney. Upon being opened under a license agreement in Tokyo, Disney receives only a royalty fee, and Oriental Land Company receives a substantially favorable profit from the existing value of the Disney brand in the world, and from its stable and well-structured operations model .

So in this license agreement, Disney controls the creative part of the business, and the Oriental Land Company operates the business, which means that there are profitable advantages for both companies.

Answer 2

A) Its licensing partner,