Licensing Arrangement Or Joint Venture (4): An Ex Post Case Study Of Tokyo Disneyland
In the late 1970s, Walt Disney Corporation sought to expand its enterprise to Japan. Oriental Land Corp, which represented the Japanese side of the negotiations, and Walt Disney had to decide on a licensing arrangement or a joint venture. The objective of this study is to examine the actual determinants, models and data of that investment choice. This case study is of value to governments and multinational enterprises that want to explore an optimal alliance with a foreign partner. Based on the law, the Japanese government intervened in the negotiations between the Oriental Land Corp and Walt Disney as to the form of the arrangement for Tokyo Disneyland. Thirty eight years later, it is worthwhile to examine the validity of their decisions and which arrangement benefited the project and the partners most. This case study presents ex post empirical evidence for this discussion. The efficacy and effectiveness of the law that allows the Japanese government to intervene are also questioned.