Preview

The Problems of Adaption to the Local Market in Cross-Culture Management and Operation ——Case Analysis of the Euro Disneyland

Powerful Essays
Open Document
Open Document
1919 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Problems of Adaption to the Local Market in Cross-Culture Management and Operation ——Case Analysis of the Euro Disneyland
Disneyland is one of the best known and most highly visited recreation locations in the world. With this visibility and audience reach, the action of the Disney Company extends well beyond the boundaries of their theme parks. However, once a foreign expansion experience, named Euro Disneyland did not prove to be the successful venture that had been anticipated by its creators.
Just a short time after the opening of the park in April 1992 reality proved to be not so magic. Euro Disney was much criticized, slipped into heavy losses and nearly went bankrupt.

The case of Euro Disneyland is widely analyzed and discussed, not only by scholars, but also by some management consulting companies. The factors that resulted in its failure include lots of aspects, including financial strategy, human resource, long-term strategy, promotion strategy, segment market… However, of the essence, the most important factor that brings about all this is the culture difference. So I will analyze this case from the perspective of cross-cultural management.

Theatrical framework

1. Dimensions of culture, by Fons Trompenaars
According to this theory and its research results, the cultural difference in business between the United States and France lies in three aspect: Universalism vs. Particularism, Individualism vs. Communitarianism and Achievement vs. Ascription.

Universalism vs. Particularism Universalism is the belief that ideas and practices can be applied everywhere without modification. Particularism is the belief that circumstances dictate how ideas and practices should be applied. When individuals from universalist cultures do business in a particularist environment, they should be prepared for personal meandering or irrelevancies that seem to go nowhere and should not regard personal, get-to know-you attitudes as mere small talk.

Individualism vs. Communitarianism Individualism refers to people regarding themselves as individuals, while Communitarianism

You May Also Find These Documents Helpful

  • Good Essays

    In order for Disneyland Paris to keep running successfully, it has to look at the main factors that can affect its business. The main factors should be analysed by the developing company to be more aware of how to manage their target market. Disneyland Paris has many target markets which the main one is “Disney family” so they need to think through what kind of products that they have to offer to this type of customers and how they’re going to market it. This type of customers “Disney family” is a really important because it’s such a large target market and so therefore the market team needs to be more aware of how they’re going to take advantage of this large market.…

    • 718 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Walt Disney paper

    • 1102 Words
    • 3 Pages

    Since opening in 1992, Euro Disney, or currently recognized as Disneyland Paris, has become one of the largest tourist attractions in all of Europe. Though touted as one, if not the happiest places on earth, financially it is not much but a mirage. Euro Disney has not turned a profit since 2008, and has already had to be bailed out on 3 other occasions over its 2 decade existence. To many investors, this does not surprise them that it is happening a fourth time. Euro Disney has followed the same cycle that all products go through. This is known as the International Product Life Cycle Theory. Much like the regular product life cycle, the international theory adds on three stages, new product, maturing product and standardized product. In 1992, Euro Disney would have been going through the new product stage of the cycle. A theme park of the magnitude that Disney has to offer would have been completely different than anything already existing. In this sense, it was innovative in what it had to offer. This allowed Disney to uniquely place their product within the European marketplace. Eventually over the next couple decades, demand for the Disney product slowly started to decline. This is the company entering into the mature product stage. There are many factors that can go into this transition,…

    • 1102 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Euso Disney Stakeholders

    • 859 Words
    • 4 Pages

    Euro Disney S.C.A is a French public company that owns the well-known Euro Disneyland Paris. I have chosen to study this company because it was the subject of many controversies .The French society considers that by encouraging the American brand ``Walt Disney`` will unfortunately lead to `cultural imperialism`. French media and labor unions mounted protests against ``Walt Disney`` because the American managers tried to enforce specific rules without taking into consideration cultural differences. A journalist in the French newspaper ``Le Figaro`` wrote, “I wish with all my heart that the rebels would set fire to Euro Disneyland."[i] It is not easy at all to import a brand especially when USA and France have different cultural and economical backgrounds, codes, regulations and laws. I find it challenging to understand how Euro Disney S.C.A succeeded to pursue its goal and what assurances they gave to its stakeholders as the environment becomes more and more volatile.…

    • 859 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Euro Disney

    • 2985 Words
    • 12 Pages

    I found two mission statements for this company one is “to make people happy” and the other one is “we create happiness by providing the finest in entertainment to people of all ages, everywhere” (Strauss, h. n.d.). Each and every employee from maid to the president knows the mission statement. All employees are motivated to create happiness for their guest, and they do everyday. From what I have read and heard, Disney lives up to both of these statements.…

    • 2985 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    History of Disneyland

    • 554 Words
    • 3 Pages

    Disneyland is a place with a lot of wonderful stories. Therefore the history of Disneyland is an epic story. One very fine day, Walt Disney the founder of Disneyland had an objective that he would really like to accomplish. It was about making his imagination came true to live. His imagination was to build a land where people of all ages could have fun together, his is plan was to build Disneyland. The first plan was on the 8 acres land opposite the Burbank studios. But due to the World War 2 the plans had to stop for some time. But the war gave Walt an advantage of coming up with new ideas. So after the war ended Walt started with the creation of Disneyland, then the construction started on 21st July 1954 and then it was all ready on 17th July 1955 revealed by a special televised press preview. Disney had experience bad times after the special televised press preview. The preview was terrible and it was later given a name ‘Black Sunday’ but then is became a big blast in the first year operation. Unfortunately, on 15th December 1966 Walt Disney was passed away by lung cancer in Burbank, California. After he died, his brother Roy Disney took over the whole Disney company. After several years of Disneyland opened, there were few expansion that happened in Disneyland which were included the expansion of New Orleans Square in the year 1966, Bear Country which is the Critter Country today in the year 1972, and Mickey's Toontown in the year 1993.…

    • 554 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Two years after Walt Disney Co. opened its new part in France, Euro Disney was losing $1 million per day, despite over a million visitors per month. What had gone wrong?…

    • 696 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    b. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that Euro Disney was charging. In addition, Europeans do not vacation as long as Americans do.…

    • 1286 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Euro Disneyland Case Study

    • 2236 Words
    • 9 Pages

    1. INTRODUCTION: The primary objective of this case analysis is to evaluate the proposed Euro Disneyland (EDL) project by applying Capital Budgeting techniques such as Net Present Value, analyze financial and economic risks, measure exposures of Euro Disneyland (EDL) such as economic exposure, transaction exposure and translation exposure, and develop strategies to mitigate these exposures. The case findings reveal that Disney should invest in Euro Disneyland taking into account the benefits arising out of French government subsidies and ……

    • 2236 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Disney Corporation faced lots of problems when launching Euro Disneyland in Paris. Most of them were caused by poor research of the European market, European people’s traits and habits.…

    • 1359 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    IB207 case2

    • 410 Words
    • 2 Pages

    First, Euro Disney’s poor performance due to the management lacked on understanding of the cultural difference between two nations. Disney goes (very deep) into the American consciousness, its themes were chosen to appeal to a wide variety of American interests and tastes, its parks were filled with images of American culture, and its cartoon characters had become staples of the American youth experience. In conclusion, Disney is too "Americanized." Although Euro Disney did some work to adapt, it is not good enough to convince consumers. After all, since Paris is the culture capital of Europe, French think their culture being deserved more respect.…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The major factors led Euro Disney’s poor performance was the lack of cultural consciousness and market survey. Euro Disney was built according to other American Disney parks without thinking about the culture difference. They used all American characters instead of French famous cartoon characters. Alcohol was prohibited in the park where enjoy drinking is a part of local culture. Costumers needed breakfast while they downsized the breakfast supply cause they were informed erroneously. Price policies were wrong so that costumers cannot afford it. Europeans vocation was not as long as Americans’ so they cut the hotel expense. In addition, the transatlantic airfare went down make it cheaper to go to Florida than costumers go to Paris.…

    • 1454 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    The purpose of this assignment is to prepare as director of Disneyland Europe, two strategic scenarios for the next 5 years plan (2009-2014) for consideration by the board. Firstly will assume that the credit crunch is short- lived and that the European growth starts again in 2010-11. Secondly will assume that the credit crunch effect will get worse, combined with increasing prices in particular construction materials and fuel. It will provide recommendations and description on how Euro Disney will look at the end of 2014. Current economic circumstances will be addressed.…

    • 2355 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Disney in Tokyo and Paris

    • 1231 Words
    • 5 Pages

    When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007).…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Disneyland Paris

    • 634 Words
    • 3 Pages

    Disneyland Paris was one of Disneyland 's Global projects. Please discuss its advantages and disadvantages, and from reading and understanding the case suggest what was/were the mistake/s that Disney committed from the beginning till now.…

    • 634 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The venture into Hong Kong by Walt Disney was a simple example of a large successful western company not doing its homework. The case presents a clear picture of the importance of understanding a foreign market thoroughly before doing business there. Several factors led to an unsuccessful first year of operations and a majority of these factors could have been avoided with a better cultural understanding in the planning stages. One of the culture differences that was obvious to Disney was the fact that the children are not familiar with the Disney characters. Disney has established its brand and is a marketing poster child in the United States, however this advantage goes out the window in a country such as china that has sheltered itself from the outside world until recently. Disney thought that making a meager attempt at introducing the characters before the launch of the park would help, however familiarity isn’t synonymous with brand attachment. As listed in Global Marketing Management by Kotable & Helson, “Cultural Distance” is one of the six external criteria for choosing a mode of entry into a foreign territory, which was not accounted for by Disney. Cultural distance also recognizes the fact that different cultures have different expectations. This was also the case with China. As stated in the case, “for the tourists of Mainland China, going to Hong Kong means a shopping experience, and so they choose the cheaper alternative to Hong Kong Disneyland…” The case goes on to allude to the fact that the culture in China is one about dollars and cents – when a Chinese person spends his/her money, they are more interested in what they are physically getting. This is very…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays