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Norges Handelshøyskole
Bergen, Spring 2011
Master Thesis within the main profile of 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.

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International Modes of Entry: The Case of Disney
Table of Contents
1

ABSTRACT ........................................................................................................................................... 2

2

FOREWORD ......................................................................................................................................... 5

3

INTRODUCTION .................................................................................................................................. 6

4

RESEARCH QUESTION, OBJECTIVES AND MODEL .................................................................... 8 4.1
4.2

OBJECTIVES ........................................................................................................................................... 8

4.3
5

RESEARCH QUESTION ............................................................................................................................ 8 RESEARCH MODEL ..................................................................................................................................... 8

THEORY / LITERATURE REVIEW ................................................................................................... 9 5.1

TYPE OF ENTRY MODES ........................................................................................................................ 10

5.1.1

Exports ............................................................................................................................................ 11

5.1.2

Contractual Agreements ................................................................................................................. 12

5.1.3

Joint Ventures ................................................................................................................................. 12

5.1.4

Wholly Owned Subsidiaries ............................................................................................................ 12

5.2

SELECTING INTERNATIONAL MODES OF ENTRY: FIVE THEORIES........................................................... 13

5.2.1
5.2.2

Transaction Cost Economics: Exploiting a unique asset abroad at a minimum cost ..................... 15

5.2.3

Resource-Based View: Strategical transfer of resources with minimal erosion in value...
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