When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007). Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney …show more content…
Any business looking to operate in a foreign market should always take into consideration the local cultures and customs. Disney failed to consider how the French would react to their bombarding them with an overgrown theme park that was perceived as nothing more than an American attempt to push their culture off on the Europeans. Just as with the many of the wars of the world, who is to say that the nation that is trying to force a government on a people s right? Is fair to say that just because I like the thought of organized religion that everyone in the world has to like and accept my thoughts and beliefs? No, and that is exactly what Disney tried in Paris. Disney assumed that since they could branch out of American in Japan and be successful that the French would be just as receptive. They also let someone else own and operate their park in Japan and achieved success, but they were greedy when moving into Paris. They refused to give up any proposed profit, thus eliminating the upper hand of having a native offer suggestions and insight (Cateora & Graham, 2007). If Disney had simply taken the time to research the new market and the European cultures and vacationing practices, they could have achieved profitability much sooner. Profit is always the ultimate goal of any corporation; however how can one expect profitability if they have no clue about their target market? Would Disney have taken the same approach in South American? It is highly likely that
Similar problems occurred in Disneyland Tokyo, where management didn’t even think about the height difference of Asians and Americans, resulting in too high public phones for Japanese guests. Concluding it is clear that the American company originally tried to implement a standardization strategy, when launching theme parks in other countries, without taking the local culture into consideration. Country specific procedures and regulations, and different local customer preferences forced Disney to adapt features of the US theme park business model to the local markets.
The case “Euro Disney: First 100 days” talks about the issues faced by the Walt Disney Company when expanding to international borders. The case begins with the history of Disneyland and then describes the reasons behind its success and expansion to various states across the country. It then describes the success of Tokyo Disneyland, first Disney theme park outside America and the factors affecting it.
However, the opportunity should have not been ‘taken for granted’. Other cultural factors should have been analyzed to decide the positioning of Theme Park. Their prevalent mistake has been the failure to recognize the cultural differences between Americans and French people. Locating the Theme Park near Paris and acquiring agricultural land as well as imposing the U.S spirit undeniably negatively affects french citizens. The French peoples’ lifestyle deeply depends on the gratitude to their traditional agriculture. Thus, the land takeover by an American Company mainly does not provide pleasure to them.
The Walt Disney Company has seen their share of success in taking their parks and resorts into global markets. “60 years ago, the first Disney theme park opened, in California and was the brainchild of Walt Disney himself, who was motivated by the lack of entertainment options available to him and his two young daughters.” (Forbes, 2016). Disneyland California penetrated the market rapidly, and its popularity led to the opening of Disney World in Florida, followed by global expansion in Tokyo, Paris, and Hong Kong. Their latest expansion came in June 2016, on a 963 acres’ site in Shanghai, China (Xu, 2012). After one year in operation, Shanghai Disneyland is outpacing their most optimistic projections, and the park’s
Along with his serious Down to earth side Disney also lived part of his life in the realms of fantasy and imagination. His great love of fantasy and the great lack of family entertainment in America inspired Walt to build a theme park of his own. All of America thought that this time Disney had really gone crazy. As Disney once said about the reactions to his ideas for a park "Almost everyone warned us that Disneyland would be a Hollywood spectacular - a spectacular failure. But they were thinking about an amusement park, and we believe in our idea - a family park where parents and children could have
Globalization is forcing all companies, large and small, to focus on a larger competitive landscape. For many companies hypercompetition arises and they are left with stunted growth while competing with other businesses across the globe. Fortunately, Disney has constructed one of the world’s most recognizable and beloved brands in the entire world. To understand the external environment in which Disney competes, we must first discern which market we wish to analyze. Disney owns a plethora of companies across an extensive list of industries including publishing, game production, retail, theme parks, and software. By far the two largest segments of Disney’s business are its parks/resorts and media networks; those will be
Culture difference will influence the number of tourists and the acceptance level of customers. Euro Disney followed the brand policies to the English instructions only, no wine providing in the theme park, high price of ticket, and standardized merchandise and food items,consequently wide spread dissatisfaction among the customers. When a new brand enters different cultures, it is inevitable for customers in new market to repel it or spend much time to accept it,so the new brand should be brought closer to local culture by providing a platform to interact with the brand in customer’s terms. Also culture different will bring different consumption patterns, Europeans are likely to spend reasonable price on entertainment, so the price of Euro-Disney will be too high to accept and decrease the number of tourists in Euro-Disney. Different culture has different drinking and eating habits,Euro-Disney forbad drinking wine in lunch time,but most French like to drink wine when they enjoy their meal. All of these elements deriving from culture difference will influence the revenue of Euro-Disney and even result in the failure of Euro-Disney.
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by
The wonderful world of Disney is alive and well all over the world, in the United States, China, Japan and Paris, bringing in an impressive 2.2 billion dollars and boasted a record number of nearly 134.4 million visitors worldwide, according to Themed Entertainment Association. (Themed Entertainment Association, 2014) Disney Paris, unlike other Disney parks, has not seen the same kind of success, due to a variety of issues, including cultural, financial, and business related decisions they did not factor well into the European market. It was not until Disney (US) bailed Disney Paris out, not once, but many times, before profit was seen by the popular European attraction.
Three years after its opening in September 2005, Hong Kong Disneyland had yet to gather
Disney’s target market consists mainly of family-oriented Asian tourists, primarily those from mainland China, Taiwan, and Southeast Asia. The mainland China accounted for large number of incoming visitors. At the time of Hong Kong Disneyland’s establishment, Hong Kong already enjoyed booming business and tourism sectors, but the government believed that the latter would be invigorated by the creation of a then absent “family tourist” niche. Below are the
Euro Disney could not modify the main theme of other Disney parks to create something unique for Europeans. Restaurants were not prepared according to the European eating habits and one of the biggest mistakes was not selling alcoholic beverages in the park which has very close connection with French culture. Customers had to leave the park to buy those from outside.
5. Tokyo’s overwhelming success encouraged Disney to conquer the European market. They felt that they were able to evoke international appeal of the Disney concept and it would not be a hard task to wet their feet in Europe.
Walt Disney Company had always been successfully operating theme park until 1992. Starting in 1955 where the first Disneyland set its foot at Anaheim, California and in 1983 in Florida (Hill, 2000). While in 1983, Disney faced a true challenge as they opened the first international Disneyland in Tokyo. In a fear of wide cultural differences between American and Japanese, it turned out an unexpected massive successful Tokyo Disneyland. As a result, Disney did not hesitate to invest a big sum of money for Euro Disney in Paris.
The main problem of the Euro Disney was that all calculations made by Walt Disney Company were based on parks in the USA and Japan considering Europe as a mass of people rather than many countries with different languages and cultures. Americans see theme parks as a destination where you can stay between 4 and 6 days. In Europe, Euro Disney was seen as a part of the experience when traveling to Paris. The cost was also a problem for the park. A night in a hotel inside the park costs as much as a high quality hotel in the French capital. So, given that the park was located 40 minutes by car from Paris, visitors preferred to spend a night in the romantic city of Paris.