In a narrative format discuss the key facts and critical issues presented in the case.
The key facts presented in the ?Walt Disney Around the Globe? case study presented by Ferrell, Hurt, & Ferrell, 2009, discussed expansion and more specifically globalization expansion into international markets. The key facts presented were the history of The Walt Disney Company. Disneyland first opened in 1955 in Anaheim, California with a second location opening in Orlando, Florida in 1971, and the barriers and issues faced when opening international Disneyland theme parks. After enjoying the American successful ventures the company looked to global expansion to build on their brand image. Brand image is the image of the product of the company and
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What are the cultural problems that Walt Disney Company has faced in opening theme parks outside the U.S.?
The cultural problems faced by Walt Disney Company when opening theme parks outside the United States were events, cuisine, and trends, as well as country identity and local labor markets. An article by Spencer, 1995, identified several problems incurred by Walt Disney World in opening Euro Disney including spending habits, miscalculations of quality and design standards, and failure to capitalize on key opportunities that could have been had had they researched more deeply the vacationing habits of Europeans, the seasonal differences to their other locations, political issues such as environmental impacts and foreign national pride, market integration by adapting products to the needs and customs of the foreign nation. ?Disney alienated most of France by imposing intact its American standards of dress, behavior, and morality on the operations of its French-based park (Laitamaki 1994)?(Spencer, 1995).
Spencer, 2009, summarized the early failure of Euro Disney to four trends: European real disposable income per capita, vacation patterns and habits, oil prices, and cultural hostility. As pointed out by our text, new attractions, lower prices, a name change to Disneyland Paris, and a massive marketing campaign has turned the problems around. (Ferrell, Hirt, & Ferrell, 2009)
Ferrell, O., Hirt, G., & Ferrell, L. (2009). Business in a Changing World. (7th ed.).
What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? The factors that contributed to EuroDisney’s poor performance during its first year of operation were their lack of knowledge of their target market and the fact that they did not realize that the target market consisted of more than one culture. Disney tried to force feed American culture with a mixture of what they thought the Europeans would enjoy. By using American characters and the American attitude on ideas such as design, price and experience they were bound to fail; At Hong Kong Disney failed the first year due to their ignorance of the culture again
It then describes Disney’s entry into Europe. The various entry barriers, decision making, differences and problems faced in setting up of the Euro Disney.
Euro Disney marketers have recognized a trend. People are going to theme parks during the weekends for adults as well as children entertainment. Indeed, there is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of.
Other than that, each park is designed and structured towards the country’s culture. As operations exist outside the United States, Disney had to consider and accept the cultural differences between their home market of the United States and different international markets. A key theory that assisted Disney in global expansion to Shanghai, China is the understanding of Hofstede’s cultural factors which focuses on six cultural dimensions; power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, long-term/short-term orientation, and indulgence/restraint (Steers, 2016). “Hofstede compares culture to the “software of the mind” that differentiates one group or society from another.” (Steers, 2016). Figure 1 illustrates the cultural differences between China and the United States through Hofstede’s six cultural dimensions.
Globalization. Walt Disney Products and Services are found all over the world in different forms and areas. Disney has focused on growth internationally in the last few years. As a global brand, Walt Disney International provides oversight of the company’s
In my opinion, these are three main reasons attributing to Euro Disney fail. Firstly, the lack of prior market research and study for European lifestyle and cultural before European Disney built. Euro-Disney chose to spend excessive expenditures on the establishment,but Euro-Disney did not recognize the geographic and cultural differences between Europeans and Americans. For example,most of Europeans will not notice leather wallpaper when they had their lunch in Disney,and most Europeans are not used to stay overnight in the theme park, so the heavy investment in hotels will bring more risk for Euro-Disney. Secondly, higher price did
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
Walt-Disney is popular all over the world yet the social aspects of America’s standards are vastly different than those overseas. Disney struggled to understand what those differences were and for three years they were unable to turn a profit in France. (Cite Book) The citizens of France still saw Disney as an American icon and they were in opposition to it being a focal point in the French community. Disney changed this opinion by renaming the park Disneyland Paris, lowering its price of admission, opening new rides, and launching a massive marketing campaign. (cite book) This worked and the park began to turn around. When it switched its focus to Hong Kong it employed its newly learned tactics and began by focusing on honoring its cultures
Key Facts and critical issues in this case talks about Disney World's big presence in United States with their Anaheim California and Orlando Florida Parks, which allowed national and international tourists to come and experience the wonders of Disney Parks. These parks at the same time created a solid economic stimulus and job opportunities for the State of California and Florida. Due to Disney's great success nationally, it was initially assume that the same success could happen, If Disney expanded business internationally. The journey started when Disneyland first opened on the international front in Tokyo Japan in 1983 (Ferrell, Hirt, Ferrell, 2009). The next international park that followed was constructed in France in 1992 and
Disney parks are known for their clean and well designed atmosphere. However, they felt short in providing the same experiences to Euro Disney customers. Euro Disney failed to deliver the high level of customer service standard to Disney theme parks are known for their, as well as failing to provide the service needs that were unique to the European market.
Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what
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.
Disney management expected some 50% of park attendance to include French visitors. The French people in general proved to be reluctant in their response to this example of “Americana” in Europe. EuroDisney’s management seriously underestimated negative attitudes among the French. Visitors of other nationalities were also unwilling to pay the high prices of EuroDisney or to stay more than one or two days (instead of the expected three days). Clearly, perceptions of the park’s benefits among tourists differed from those of the American.
Firstly, referring to the case Disneyland which is a joint venture between Walt Disney Co. And the Hong Kong Special Administrative Region government has focused on its customers or visitors, they have managed to sort out what is the main needs of its consumers. Like for example when they inaugurated there new outlet in Paris ‘Euro Disney received negative publicity and headlines such as ‘Disney is cultural Chernobyl’, they observed that people had reacted sensitively towards the issues like language, alcohol consumption and price of ticket. The senior analysts of Disney realised that they need to keep the culture of the hosting country in mind. Some small actions like focusing on friendly cast, better training in terms of strategy, and in terms of culture they removed alcohol ban, renamed the park to Paris Disney, decreased ticket, hotels and food prices, empowerment of employees in order to regain its goodwill.
Case 2-1: The Not-So-Wonderful World of EuroDisney’--- Things Are Better Now at Disneyland Resort Paris