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.
At the Global Breakthrough and Expansion phase, expansion to new markets and increased pres-ence to existing markets continues with globalization degree 25-50% and sales in three continents (Gabrielsson & Gabrielsson, 2009b). As the firm matures and with the new fear of losing overseas markets, they establish their own sales office in the form of foreign direct investment in addition to relying on exports and partners (Hashimoto 2011, p.27). With the drive to achieve global break-through, firms will start to take on distant and challenging new markets thus coming across difficul-ties in cultural, legal, and localization aspects (Rönkkö et al., 2008).
Question 2a: Identify two of your firm’s ownership advantages that allow it to successfully compete internationally. Please explain your answers?
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.
Disney did not give up on their global expansion, despite the fact that Disneyland Paris Resort didn’t go as well as planned. Their third attempt was in Hong Kong, China with the opening of Hong Kong Disneyland (HKD). Using Brannen’s concept of recontextualizing strategic assets, one could have concluded that HKD would have an advantageous position in undertaking the venture. The ideologies of foreignness and Disneyland was a big interest to the
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.
They have to be responsive to different forces of home country and host country at the same time although Euro Disney do not have any big competitor as it was the largest amusement park opened in France but it failed to study accurately external environment, needs and wants of people, culture, price, policies, economic, social and legal issues. They should keep local employees rather brining from foreign countries.
For the globalization of competitors, companies are aware that if they leave companies overseas too long without challenge or competition, their investments or foreign operations in the world market may be so solid that competition will be difficult. Therefore, they try to act quickly.
I think that cross cultural marketing skills of Disney was very poor when they first open the euro Disney in France. I think this is because they ignored Most of the French culture also their habits and norms that they have. I think that when they changed the management people the new people saw this as a problem and that’s where they started to fixed this. They start to show good cross cultural skill when they begging to change the parks name also when they allowed alcohol back and finally when they fixed the breakfast problem.
Globalization may be defined as the integration of the world 's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements. The WTO and NAFTA are two examples of such bilateral trade agreements. With such agreements, cross-country investment increases. This increase in investment is aided by the increase in information technology and communications, which has undergone a significant advancement over the last two decades with the rise of the Internet and mobile telephony (Green, 2013). It is important to the business to expand; global expansion and globalization would a positive business decision to complete in this process due to the strategic goals and objectives the company possesses. Healthy growth can be accomplished by globalization of specific areas selected and determined through research of market and development of these areas outlined within.
First of all, I can say that Disney is the world 's leading producers and providers of entertainment and information. Hong Kong Disneyland is the fifth them park in the worldwide. Here also Disney has one purpose is strategically to reach the growing Chinese market. But Local residents of Hongkong understood that its country should be proud that it is selected as a fifth for having Disney theme park. So it’s a two way strategic action.
This paper explores the “application of theory of comparative advantage in Vietnam’s export and import and the gain and loss of the economy in trade”.
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
In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.