...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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...Culture, Service and Product (Hong Kong Disneyland) Managing Service Operations in the Evolving Business Environment Executive Summary This paper covers the early stages of Disney and its growths in the years that have past. Disney Company is well known for its television series, movies, radio, shops, and theme parks. Disneyland has evolved throughout the years and has opened internationally theme parks in Paris, Tokyo and Hong Kong. It is soon opening its doors to another one in Shanghai in the first half of 2016. Disney branding is global and its value and culture broadens worldwide, but glocalization and grobalization need to be taken into consideration when opening a new concept in different countries. Furthermore, this paper shows the first negative impact of the opening of Hong Kong Disneyland in 2005 and what had to be changed in order to have a successful future and generate productivity for the business. It puts in perspective what needs to be taken into consideration prior to any opening. It describes the problems that have shown the difficulty of the new theme park and the solutions taken in order for them to be victorious. Finally, this paper talks about the recommendations and actions that can be taken into consideration in order to avoid this happening in the future. Disney first opened in 1926 with the name The Disney Brothers Studio. According to Robbins, (2014), “The Disney Company has been a premier entertainment company for over ninety...
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...Disney’s International Business 1. About Disneyland I. Walt Disney Company Walt Disney was a creative legend who transformed the way Americans spend their vacations. From his humble beginnings with the mouse he loved more than women, Disney turned his imagination into something tangible you can share with our family. Disneyland was the first theme park designed and opened by Walt Disney on July 17, 1955 at California. Walt Disney received several requests from fans to see his California studio. After visiting some theme parks with his children, he realized the opportunity to create a theme park for his fans. Although he wanted to build the park adjacent to the studios, there was not enough land to adequately create it. Instead, he bought 60 acres of property in Anaheim and started working with engineers to make his vision become a reality. The park was designed to give fans a place to experience the magic of Disney characters and creativity. Now Disney Land has grown into one of the world’s leading providers of family travel and leisure experiences. It has been in many countries all over the world. For this success, it has gone through a difficult process. To enter a new market, Disney Land must overcome many barriers: taxes, land for building, labor force and especially the cultural barrier. Each country has its own culture and different from the others. Our report is to focus on the way Disney Land acted to adapt to French Culture - a European...
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...The Walt Disney Company is an American institution closely identified with Mickey Mouse and world-famous theme parks. Hong Kong Disneyland was the Walt Disney Company's third international theme park outside America, after Tokyo and Paris. Interesting enough, both the Hong Kong and Paris theme parks had its chief replaced in less than a few months after the park's opening, if these corporate moves were anything but indicative. In September 2006, the Hong Kong theme park announced it had missed its first year attendance target of 5.6 million. Often criticized as the smallest Disneyland in the world, the Hong Kong theme park had been tipped as a "stepping stone" for the American company's entry into mainland China. If it was indeed to serve as a prototype for another Disneyland in China, it would be critical for the management of Hong Kong Disneyland to come up with a recovery plan and realign its strategy to improve its image, boost attendance and deliver its revenue target. This case can be used to explore what could be 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...
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...Write-Up Notes Problem: Walt Disney and its joint venture partner, Hong Kong gov’t. are struggling with Hong Kong park less successful than plan. Attendance lower than expected for three years since opening. Must come up with a plan to turn things around, with or without increased capital investment. Context to problem includes Disney’s mixed results with parks outside US (Paris and Tokyo) and importance of HK park given Disney’s plan for a park in Shanghai. Analysis: Need to look at reasons behind poor performance in order to come up with a plan. Could organize the problems several ways (look at planning vs. tactical problems or 5 C’s, 4 P’s, etc.). Issues include: * Small size * Site problems (environmental issues, too short an evaluation period) * Mismatch between product and target market (local and Mainland visitors * Seasonality issues * Pricing issues * Neglected importance of travel agents * Poor PR * Decision-making power primarily with American expats * Employee relations issues * Underestimated ability of Ocean Park to compete effectively * Poor environmental policies (fireworks) * Opened when not really ready * Poor capacity planning * Culturally tone-deaf * Poor employee relations Should look at what fixes would require capital investment and what could be done with current funds Should discuss issues of standardization and adaptation. What aspects of the Disney experience should be standard across...
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...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 | 2 International Modes of Entry: The Case of Disney Table of Contents 1 2 3 4 ABSTRACT ......................................
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...Statement of Authorship “I confirm that this work is my own. Additionally, I confirm that no part of this coursework, except where clearly quoted and referenced, has been copied from material belonging to any other person e.g. from a book, a handout, or another student. I am aware that it is a breach of LRG regulations to copy the work of another without clear acknowledgement and that attempting to do so renders me liable to disciplinary procedures. To this effect, I have uploaded my work onto Turnitin and have ensured that I have made any relevant corrections to my work prior to submission”. NB: I also understand that under no circumstances should any part of this assignment be published, including on the Internet, or publicity displayed without receiving written permission from the school. Signature: Giuseppe Napoli Date: 16.11.2015 Executive Summary The Walt Disney is an American diversified multinational mass media and entertainment company, founded in Burbank, California in 1923 by two brothers Walt and Roy O. Disney. The companies success can be attributed to the ability exceed customer’s expectation and deliver magical moments to the audience. The main core value of the company can be identified in the cast members, who are considered the main bridge to deliver the company’s core values. As well to support cast members the company equipped the park with new technologies, the process not only reduce waiting time but...
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...performance 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...
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...S HONG KONG DISNEYLAND w 907M13 Michael N. Young and Donald Liu wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, Ivey Management Services Version: (A) 2007-08-27 September 12, 2006, marked the one-year anniversary of the opening of Hong Kong Disneyland (HKD). Amid the hoopla and celebrations, media experts were reflecting on the high points and low points of HKD’s first year of operations, including several controversies that had generated some negative publicity. At a press conference and interview to discuss the first year of operations, Bill Ernest, HKD’s executive vice-president, acknowledged that the park had learnt a lot from its experiences and that the problems had made it stronger. Ernest also announced that HKD attendance...
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...The Influence of Cultural Adaptation on Disney Theme Parks By 駱巧瑜Chaio-Yu, Lou 陳奎因Kuei Yin, Chen 楊凱智Kai-Chih, Yang 徐仁軒Ren-Xuan, Shiu Department of Applied English Ming Chuan University Kweishan, Taoyuan, Taiwan June, 2010 The Influence of Cultural Adaptation on Disney Theme Parks By 駱巧瑜Chaio-Yu, Lou 陳奎因Kuei Yin, Chen 楊凱智Kai-Chih, Yang 徐仁軒Ren-Xuan, Shiu A thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Arts in Applied English Approved by ________________ Chia-Chin Susan Sung, M.S. Chairperson of the Committee _______________ Chao-Chang Wang, Ph.D. Chairperson of the Department of Applied English Department of Applied English Ming Chuan University Kweishan, Taoyuan, Taiwan June, 2010 Abstract Disneyland is a fascinating worldwide industry, and also the most successfully run theme park in the world. When it comes to theme parks, Disney will be the first thing that comes to everyone’s mind. Because of the great success of Disney, researchers want to look into the reasons why it is so important and so attractive to the entertainment industry. For example, Disney’s Asian theme parks usually would apply local customs and festivals into their programs. And by doing so, it draws more local tourists to attend the events. Disney always pays attention to these cultural factors and uses them to its advantages. Plus,...
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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? Both Euro Disney and Hong Kong Disney suffered losses in its first year of operations due to several factors that stems from wrong marketing decisions and lack of research. The following are the said factors: Euro Disney * Location – While the demographics presented by the European government about the number of tourists that comes to Paris is true, Euro Disney failed to make further research on the reasons for this large number. Most tourists go to Paris to visit and wander in the streets of the city and not to visit theme parks. Moreover, the climate in Paris is unsuitable for a theme park thus the off-season attendance was way below target. The French government offered Euro Disney generous incentives that they chose to overlook cultural and weather barriers. * Pricing – Unlike the Japanese, Europeans are not willing to spend much to enjoy the attractions in the park. Euro Disney was confident that Europeans would come flocking to the park despite the premium price. * Euro Disney Marketing Strategy – Euro Disney’s advertising focused on the size of the park rather than the Disney experience. They were trying to sell an alluring bit of American which the European do not particularly like. Europeans do not care that the theme park had cost over $4 billion or that it is 4,800 acres...
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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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...current name in 1986, it expanded its existing operations and also started divisions focused upon theater, radio, music, publishing, and online media. In addition, Disney has created new corporate divisions in order to market more mature content than is typically associated with its flagship family-oriented brands. The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a successful music division. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. An early and well-known cartoon creation of the company, Mickey Mouse, is a primary symbol of The Walt Disney Company. Corporate history 1923–1928: The silent era In early 1923, Kansas City, Missouri animator Walt Disney created a short film entitled Alice's Wonderland,...
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...1. Why is it necessary for Disney to build brand awareness in China and other emerging markets? Brand awareness of Disney Company must be able to be built in the China country and also other emerging markets. Brand awareness is the probability that consumers are familiar about the life and availability of the product. It is because there is an increasingly affluent middle and higher class of people in China which they have quite a big amount of money to spend on purchasing the Disney products and also travelling such as Disneyland. Sooner or later China will be on of the biggest driving forces in forms of profit and revenue. China is now moving quickly towards a country that has the economic freedoms and the closer it comes to then the sooner a massive market will emerge. For example, Shanghai has strong distribution power in the China; it is capture the latest trends in the China market. Shanghai consumers are considered the trendsetters in fashion and lifestyle products across China. As a result, many merchandisers, distributors, and domestic tourists travel to Shanghai to preview the latest fashions and product designs that are set to enter their territory and try to gain a first mover’s advantage. Furthermore, even those broader from China, BRIC (Brazil, Russia, India and China) has been analyzed as countries that will grow rapidly in the future, and having the ability that will help to ensure good results and strong brand recognition when it occurs. With the awareness...
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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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