...1.-What factors contributed to Euro Disney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? The primary reason for the failure was its high cost. Hotel rooms at the park were charging rates comparable to luxurious hotels. People found it cheaper to fly to Disney World Florida and get an additional benefit of enjoying the weather. The Gulf war in 1991 also had a negative and during the same period, Europe was facing a recession. The French, for some reason, did not like the American culture while Disney tried to enforce this culture. The world fair in Spain and the Olympics in Barcelona in 1992 attracted holiday visitors hence, EuroDisney did not have many guest visiting it that year. Hong Kong Disneyland faced different issues. Firstly, people were not familiar with the characters since Disney was banned for 40 years in China. The park was small, with just a few rides compared to other Disneyland's, therefore customers were not interested. Despite these issues, it fared better since it incorporated a lot of Chinese culture. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney? Since the cost of Disney World Florida was cheaper, customers preferred to fly to the US. This meant that prices in Paris could also be controlled. There were several other mistakes made...
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...Disney’s global expansion – An Asia Perspective Executive Summary Disney theme parks had a long history of aggressive market expansion, started first with their first Disneyland opened in Anaheim in July 1955, Disney World Florida 1971, Disney theme park in Tokyo in 1992, and Disneyland Paris in France (Tsai & Liu 2011). Since introduction of its first theme park, Disney has been attaining global profit through expanding their existing parks while entering the new territories. Their ventures into the new Asia market, HongKong, met great hurdles and challenges as there were gaps between Hong Kong Disneyland offer and the local customs that need to undergo urgent local adjustments in order to become accepted among the Chinese and Hong Kongers. Although major changes have addressed incompatibility issues which in turn provided Disney with high profits and competitive advantages, the park faced serious problems including the frequent overcrowded flow of customers, the lacks of creativity and innovation, or the overloaded staff. As HongKong Disneyland has proved fairly successful with increased park occupation and revenues from growth especially from mainland China sector (Matusitz 2011, Tsai & Liu 2011, Zhang 2007), an unexplored market segment in China or in particular the chosen Shanghai catched Disney’s full attention along with many favored factors such as supported environment with lower cost of labor and materials (PR 2011, Schmidt et al. 2007). The decision to expand the...
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...International Business Thesis Advisor: Professor Svein Ulset Title: International Modes of Entry Subtitle: The Case of Disney By, Carlos Gonzalez Hernandez This thesis was written as a part of the master program at NHH. Neither the institution, the supervisor, nor the censors are -through the approval of this thesis- responsible for neither the theories and methods used, nor results and conclusions drawn in this work. International Modes of Entry: The Case of Disney 1 Abstract The case of Disney’s theme parks represents an opportunity to test major internationalisation theories in a setting of large investments with little chance for reversal of commitments. The purpose of the research is to study the benefit of different entry modes dependent on Disney’s Theme Parks value-generating resources and capabilities while conditioned to certain local industrial and institutional conditions in foreign markets. Five major theories and frameworks were used to analyze all four Disney’s ventures abroad. This resulted in 20 individual hypotheses analyzed. Results indicate that Disney followed a predictable internationalisation process in the cases of Tokyo, Hong Kong and Shanghai, but that it went off-path in the Paris one. In successful cases Disney followed a cautious approach, involving local partners to transfer and adapt the “Disney Experience”. In the case of Paris the company decided to enter the market alone, which neglected the unique needs of the local market. Page |...
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...done to enhance the smooth delivery of the American fantasy in the alien culture of the Middle Kingdom. (Bennett Yim Josephine Lau). Moreover, Hong Kong Disneyland is one of the world largest entrainment businesses of the world. During the 1920s and 1930s Disney just had studio and theme park but at the end of the 20th century it had several TV networks, several theme park a cruise lines, malls, airports, hotel resorts and so many other entrainment units which in total are able to prove itself as a world happiest place and greatest entertainment organization. 1. Hong Kong Disneyland (HKD) had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why? What areas, in terms of cultural adaptation, still need further improvement? With China expected to become one of the world’s largest tourism...
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...American popular culture – is undoubtedly one of the most ubiquitous and long-lasting. Throughout the twentieth century, people around the world have enjoyed film, music, animation, and written works by various authors and artists. One of the most famous and significant American entertainers of the lot has been Walt Disney, introducing millions of children and adults to his world of limitless (or so is widely believed) imagination and magic, from the earliest short cartoons produced in the 1920s, to full-length feature animations such as Snow White and the Seven Dwarfs, to the numerous animations and live-actions films as well as Disneyland theme parks, all kept alive by the thriving Disney Company decades after the death of its founder. Disney’s legacy lives on in a variety of entertainment and consumer-oriented products, enthralling audiences the world over. Nevertheless, one type of art often precedes another, and among the most well known, classic...
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...The Not-So-Wonderful World of EuroDisney: a cultural lesson by Emilio González Introduction This paper introduces some thoughts about the Disney strategy choosing the place for its European park and about the beginnings of its operations; in some way related to cultural factors. It constitutes a personal answer to a case study placed in the book "International Marketing" 13/e by Philip C. Cateora and John Graham, McGraw-Hill 2007. Factors that contributed to Euro Disney's poor performance during its first year of operation. There are several different in nature factors that joined together and contributed to a disastrous beginning of operations. Most of them were management mistakes and others, although external factors, if considered, could have result in different management decisions leading to a better start. In my view these are the most important ones: The timing. EuroDisney opened in 1992, just when two other international events had place: the Olympics games in Barcelona and the World's Fair in Seville; both in Europe and relatively close to Paris. It's obvious that been unrepeatable events, available only for a certain limited amount of time they were a strong competition. A huge amount of people choose attend to these events instead visiting EuroDisney. Suffice it to say that more than 40 million people visited the Seville Expo during the 6 months it was open (versus 9 million EuroDisney visitors accounted for 1992 all year around). To add insult to injury...
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...1. 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 of operation? a.) EuroDisney: * Families were reluctant to spend $280 a day to enjoy the attractions of the park * Staying overnight was out of the question because hotel rooms were so expensive * Old Work thinking of Europeans who did not understand US style free market financing lead to French Bankers hesitating to provide funding * By summer 1994, EuroDisney had lost more than 900 million dollars * Disneyworld in Orlando ended up being cheaper than a trip to Paris due to currency movements and transatlantic airfare wars * French visitors stayed away due to view EuroDisney as “American imperialism—plastics at its worst” * Advertising by EuroDisney aggravate local French sentiment by emphasizing glitz and size instead of the attractions * The Gulf War in 1991: * Put a heavy break on vacation for the rest of the year * High interest rates and devaluation against the franc * Competition due to “The World’s Fair” in Seville and the 1992 Olympics in Barcelona * Ban on alcohol goes against French culture * Disney executives believed in cultural inconsistencies such as: Europeans didn’t eat breakfast which is not true * Disney didn’t stress the entertainment value of visit to the theme park in their promotions which “ruined the magic”...
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...changing trends lead to oversaturation without developing existing core “money makers”? Is the happiest place on earth recession proof? How do they sustain interest and growth to match ever-continuing investment? Background (I focused more on “ generally what’s happened since the case in the text”, instead of reiterating everything the textbook—but I can change that). This year marks Disney’s 60th anniversary- Disney operates television networks including ABC and ESPN, theme parks on three continents, a movie studio, and gaming and consumer products divisions. Revenues at Disney’s parks Unit (their second largest division)- have climbed over the past few years since the written text case. Disney has invested billions to add Cars Land, expanded and added more current attractions to Disney World, built a new cruise ship etc. For the six months that ended March 28, parks operating income rose 22 percent to $1.4 billion. Disney also followed through with ideas of territorial expansion-Opening their first Retail Store in Mainland China. They’ve also continued with their adaptation of technology as a method of growth. Specific examples being the introduction of MyMagic+ armbands (wearable technology for within the resorts that allows multiple services). Disney is also encouraging digital purchasing of its movies by launching its...
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...“The Light In the Forest”, but there was also a film adaptation. Many of the points that were given in the book were also in the movie. For example, as True Son was traveling to the European town, he was accompanied by Half Arrow to aid with the unfamiliarity of the journey. True Son was also reluctant to speak English with the Europeans, only talking when he absolutely needed too. Another similarity was when True Son stays in the town for a number of days, then Little Crane and Half Arrow attempt to take him back to the Native American village. Little Crane is then killed, but Half Arrow successfully transports True Son back to the Lenni Lenape Indians. Though, there were also differences between the adaptation and the source material. One of the most interesting is that True Son develops a love interest with Shenandoah, a European servant girl. This is first seen when True Son confronts her for lying about the death of her family but is more expanded on during a party (In which he asks for her to marry him). Del Hardy is also much more of a character than what he was in the book. He is represented as a nobleman from the military who eventually ends up marrying and retiring at the end of the movie. One last change that was made to the movie was how True Son interacted with the Europeans. In the book, he was alienated and was very hostile towards the townspeople. Though with the movie, he was much more adapted to the cultural ways of the Europeans. True Son even found a liking...
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...Introduction: Ever since the concept of globalization has come into existence, the studies of cultural differences, dimensions and attitudes have began to take place and different scientists and observers started coming out with their own set of discoveries and observations (McGregor, 2004). The main reason behind cultural difference and dimensions started when workers of different countries started working together on unified projects and conflicts started arising between the people of different races and culture (Kotler, 2008). Keeping in view of such situations, Dutch Sociologist Gerard Hofstede came up with a study named as Geert Hofstede’s Cultural Dimensions in which he laid stress upon five aspects naming Power Distance Index, Individualism, Masculinity, Uncertainty avoidance index and Long term Orientation. The case study in this paper focuses more towards the cultural difference between employees of Disneyland that are located in different countries. Using Hofstede’s 4 culture dimension, highlighting main cultural differences between United States and France: Disneyland is an American Idea of a theme park which serves as a recreational place for children and families. This theme park originally started from Anaheim, California (United States) and later on after receiving massive response from visitors all around the globe, the directors of the company started off with opening similar type of theme parks with the same name of Disneyland in Orlando (US), Tokyo (Japan)...
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...Appeal to Chinese culture ii. Communications conducted in three different languages b. Weaknesses i. Crowd control problem ii. Replaced chief in less than five months after opening iii. Poor working conditions c. Opportunities i. Growing population of youth and growth of middle class ii. Hong Kong economy had a notable rebound in 2004 d. Threats i. Ocean Park competition ii. 2,000 theme parks built in China between 1994 and 1999 III. Questions a. HKD had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why? What areas, in terms of Cultural adaptation, still need further improvement? b. What can HKD do to alleviate the problem of Chinese guests often not knowing the norms of international behavior when traveling abroad? c. Identify two issues challenging HKD’s current operations, and propose corresponding solutions. d. What would be some foreseeable challenges if Disney enters the China market? How can experience gained in Hong Kong help? IV. Case Update a. Southern California Disneyland i. Overcrowding b. Hong Kong Disneyland i. Increased business ii. Expansion c. Shanghai Disneyland i. Joint venture ii. Size iii. Expected completion...
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...Disney Company strengths can be grouped in three main categories: 1) diversified distribution channels, 2) strong brand portfolio, and 3) financial strength. Despite Walt Disney’s success, the company has some declining segments in their domestic business. In addition, Disney’s biggest challenge in creating theme parks and resorts abroad is their inability to tailor the attractions to the local market while maintaining Disney’s brand image. In the past, international theme park implementations, Disney had failed to adapt their strategies to the local market. Therefore, Disney’s weaknesses can also be also grouped in three categories: 1) declining segments, 2) difficulty adapting to other cultures, and 3) weak managerial skills in terms of international operations. Diversified Distribution Channels Disney has a strong diversified distribution channel. The company operates by four strategic business units (SBU): 1) Media Networks and Broadcasting, 2) Parks and Resorts, 3) Studio Entertainment, and 4) Disney Consumer Products (Banton, 2007, p.31). The Media Network segment comprises of all broadcast television network, television production and distribution operations, television stations, cable networks, broadcast radio, publishing and digital operations (“Fiscal Year 2010,” 2011, p.1). Some of Disney’s main media brands are: The Disney Channel, ABC, ESPN, Radio Disney, Disney.com, and ABC Newspaper. The Disney Channel is a very effective global ambassador. It helps Disney...
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...have experienced an innocent version of the gruesome and dark tales that are the Grimm fairy-tales. In the beginning of their journey, the brothers had no intention of becoming story-tellers. The article “Grimms' Fairy Tales” states that the brothers found that the best way to allow someone to share the sounds of their dialect was to share the stories that had been passed down to them; the brothers kept a record of the stories they heard and had a book published in 1812 called Kinder und Hausmarchen, which translates to “Tales of Children and the Home”. Fairy tales during the brothers' time didn't have the same purpose as the ones today do. Bayer explains that during the Grimms' time, fairy tales were told to teach lessons and to pass on cultural values and wisdom to younger generations, not to entertain them. Because the purpose of these tales wasn't to entertain, the story-tellers weren't concerned about frightening their younger audiences (“Grimms' Fairy Tales”). Norton states that the tales were told around the fire to children and adults alike. Norton also tells us that, because these stories were dark and provocative, society decided that the nature of the tales had to change. Society had to protect their children from the gruesome nature of the Grimm fairy tales. Society may take the bulk of the blame for the changing tales, but, in the beginning, it was the brothers who began that change. The brothers, before publishing their first collection, censored the gruesome stories...
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...during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? The biggest factors that contributed to EuroDisney’s poor performance during its first year of operation were: a poor understanding of the marketplace, the cultural differences between the two countries, and the different approaches to business and life. One major factor was the ethnocentrism, or the viewing of a foreign culture through the lens of your own culture, displayed by American leaders offset by French national insecurities. But, the problems spanned beyond arrogant leadership. Disney assumed people would travel from all over the Europe to visit the park, but really did not cater to the diversity of the guests. Even though the countries are united as the European Union, they are distinct and sovereign culturally. Put simply, EuroDisney was marketed poorly. Disney built, promoted, and communicated EuroDisney as a piece of America in Europe. Cultural differences were neglected. In the case, we see that Fresh culture also has its own cartoon characters such as Asterix, who has a theme park not far from EuroDisney. Furthermore, Disney banned alcohol in a culture that has a deep appreciation for wine. Disney failed to understand French national character, their insecurities over cultural invasion, and their deep commitment to maintaining their identity. Hong Kong Disney faces cultural problems as well, but in a different way. Many Chinese people were not...
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...thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in 1984 to launch Euro Disneyland (“Euro Disneyland” or “EDL”)6 in Marne-la-Vallee, France. The ´ realities of opening and operating EDL in France were far different than Disney’s expectations when it began negotiations—so much so that the Resort narrowly escaped bankruptcy.7 For an “entertainment empire”8 like Disney, this was an unprecedented * Assistant Professor of Law, Ohio Northern University, Pettit College of Law; B.A., Georgetown University, 2004; J.D., Harvard Law School 2007. 1 As used herein, “Resort” refers to a Disney resort property, consisting of (unless otherwise indicated), Parks, hotels, all entertainment facilities, and the transportation systems that connect them. “Park” refers to a Disney theme park, including (unless otherwise indicated) the park grounds, rides, and attractions, and surrounding resorts, hotels, and other Disney-affiliated entertainment facilities. 2 Tokyo Disney was Disney’s third Park and first international venture, located in Tokyo, Japan. See The Walt Disney Co., Annual Report (Form 10-K), at 11–12 (Nov. 21, 2012) [hereinafter Annual Report]. 3 Disney refers to Resort visitors and patrons as “guests.” This terminology derives from Walt Disney, who, at the opening of Disneyland Resort (“Disneyland”), established the motto “At Disneyland...
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