3. Executive Summary:
This case study is conducted on opening of a new theme park in Paris named as Euro Disney. Opening of this theme park resulted in a failure which was due to many reasons which at first includes the cross cultural differences in their operation in America and France. There were problems related to operations and staffing as well.
Policy of Disney for having no alcohol to be served in its hotels and restaurants was having a very bad impact on the French people who cannot have a single bite without the glass of wine. Furthermore, the main problem was related to the chosen town of Paris for the home of park. Although Paris was the perfect city for building the famous park due to its demography but wrong decision it was
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• Not adjusting to societal norms of the country. Like policy of no alcohol in Disneyland Paris.
• Not adjusting for the environmental climate like all of the Disney parks in America are having a warm climate having climates in foreign climates very cold for attracting many visitors in winter for the park.
• There is an issue of affordability like in China, CPP is lower as compared to Hong Kong having an acceptable entry fee.
5. Data Analysis
As analyzed from the case data, Paris was selected for opening new theme park due to its demographics along with subsidies. Around 17 million people of Europe live in areas having drive of less than two hours from Paris. Other 310 million people can reach there is similar or less time. Furthermore, the government of France was having so much eagerness for attracting Disney that $1 billion was offered to the company having diverse incentives having expectation that 30,000 jobs for French people will also be created. From the very start, Disney made cultural mistakes. Then comes mistakes related to operations. Policy of Disney for serving no alcohol in the park besides being changed became the point of astonishment in the country where with lunch, glass of wine is being served as valuable custom. It was thought by Disney that for visitors, Monday is going to be a light day and Friday will be the crowded one and the staff was accordingly allocated but in real, this was not the situation.
Another
Disneyland was Walt Disney’s dream of a theme park that would be, in his words, “The Happiest Place on Earth”. Walt understood too well that the people that were hired would need to be taught how to create that elusive atmosphere. He called on Van France to assist him in creating what has become a world renowned training program. This program taught their employees, or “cast members”, to achieve the ultimate result, a “good show”.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
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.
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
Disney believed in magic. Disney is a common household name. In fact, some toddlers can recite the name of their favorite characters from their favorite Disney movie. It is not uncommon to see adults watching a Disney movie, and I would venture out and say most Americans have been to Disney Land or Disney World once in their life. Needless to say, Disney is part of the American culture. However, translating the success that Disney has had in the United States to another country can present a lot of challenges. As we will see, in this case, Disney did not do their homework when it came to planning this project in Europe. Some of the challenges that the company had were their makings such as hubris management and a lack in understanding their customer’s cultural differences
When Walt Disney opened Disneyland July 17th 1955 it was culmanation of ideas he had been formulating for ten years. Walt had a specific vision of what the park should be and how it should look, but also left the park open to the interpretation and ideas that each child who visited left with in thier memories. The idea of a place to welcome all and have no credance on who a person is but of the value of thier imagination and heart is an astounding thought, not only for the mid 1950s, but for today also. Disneyland has never been limited by what people believe are normal limitations but has strived to always shock and inspire with each visit to the park. Walt had been using this same formula of groundbreaking inoventions and a never
“Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.” – Walt Disney (Goodreads). The success of Walt Disney films, theme parks and company has built a legacy and attracted the attention of millions of people. Through the animated stories they enable to fill children’s imaginations with entertainment. Disney has embodied American culture with its catchy tunes and mass marketing. It has portrayed different repertories through movies and TV shows that shine light into different cultures, which is centered to be a controversial aspect. Not only has Disney become controversial, it has also become popular with its accomplishment in being able to create a wide spectrum of animated characters.
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
Competing amusement parks has upgraded their attractions to attract more consumers and Disney is has recently strategizing this approach to a more concentrated perspective. This can ultimately lower their revenues until the plan is complete.
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.
Even in the United States, Disneyworld (Florida) and Disneyland (California) vary in there social forces. Cast Members (Disney’s term for employees) in CA are trained to be friendly and greet every guest, while in FL they are trained to only greet guests who seek them out. The political, legal, and regulatory factors again, vary from theme park to theme park. The parks in the United States have more restrictions than say those of Hong Kong, China. In the U.S, minors (age 15-17) are only allowed to work 20 hours a week. In Hong Kong, young persons (ages 15-17) are allowed to work up to 48 hours a week. Regulatory factors such as this differ in each region. The Walt Disney Company Parks and Resorts has quite an extreme variety of natural environments. The weather in Florida for example can get in the 100’s regularly whereas in California it can get as cold as the low 50’s. These weather conditions actually are a big factor in guests determining which park they want to visit. Technology seems to stay consistent between most of the theme parks. In fact, many of the theme parks have some of the same rides at their parks. The global forces actually can create threats to the company. The addition of the newest theme park to the company, Shanghai Disney, took several years to become accepted. This has been common throughout the duration of The Walt Disney Company. Many people vote against a new theme park or resort because of the crowds that it
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
As a conclusion, all of these factors are foreseeable by Disney. Lack of knowledge of the local culture and the American ethnocentric tendency make the foreseeable things covered with the mist. Global recession, wrong pre-assumption, and Unknowledgeable of local culture are controllable things that can be managed well. For example, during the global recession, Disney can introduce affordable packages which may attract people on visiting Euro Disney. The wrong pre-assumption that affect the construction design can be overcome by building a fast and temporary facilities while waiting for the permanent building is being built. Hiring local French advisor is one of the solutions to the lack of local culture knowledge. Yet, The intense competition that came from the Olympics, world fair, and landmark’s event are foreseeable but it’s hard to be controlled as such Olympics is just happening once in 4years and other events might happens once a year. People are more interested to visit those events rather than Euro Disney that can be visited anytime.
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.