When a company is highly successful in its own land it can think of expanding its business abroad. But before entering into the foreign market it needs some proper research regarding the issues of foreign culture, laws and regulations, political structure, economical conditions, competitions, environment, consumer behavior and so on. It should not be thought that the company who is successful to satisfy its own land’s customers, it can easily attract the foreign customers. If any company proceeds with this thought then they will face loss within short period. So it is important when a company is planning on expanding abroad, it will be helpful to study the history of companies, which previously have developed in other countries. A company also can learns and identify lots of things from the other company’s mistakes and success stories. Walt Disney Company was one of the American companies who wanted to expand its business into the European country. The company did mistake not to making proper market research regarding the European market. They assumed that as the company was successfully run into the American market and got high range of acceptance from the American people; European people also accept it at the same way. Disney’s first foreign venture Tokyo Disney land proved to be so successful that the decision made to further expand abroad. This next foreign expansion experience names Euro Disneyland all hopes were high and it was promising to make the Euro Disneyland the most lavish project that Disney had ever built. But this assumption proved badly wrong by its creator after running the business into the European market. Euro Disneyland a theme park comprised of an updated state of the art Disney’s Magic Kingdom has experienced numerous complications from its inception. Because the Walt Disney Company executives were determined to adhere to American philosophies, they did not thoroughly investigate all aspects of the European environment.
APPROACHING THE PROBLEM
Question No. 1: Critically evaluate some of the areas that went wrong in case of Euro Disney.
Disneyland is known as one of the most entertaining theme park of the world. After the success of Tokyo, California and Florida Disney theme park the management expands this subsidiary of Walt Disney Company into Europe. But after having extensive research and planning they ignored some of the most important cultural aspects like environmental and location factors, labor law, financial, cultural difference and management hubris. The errors made by Euro Disneyland in various aspects are describing bellow: Environment and location factors: After examining over 200 locations in the Europe, Disney gave preference to the Europe’s biggest appeal for tourism. Considering the ease of transportation to the Disneyland management of Walt Disney chose the location on the east Paris while French advised to make it in west to decrease the long term population from the east. Beside that because of the French Colder weather than California and Florida they had to spend extra money to make waiting areas which protect visitors from cold wind and rain. And because of this cold weather visitors were not encouraged to visit the park on a year round basis. Cultural Differences: In operating Euro Disneyland the management also made some mistakes those are as follows: 1. Walt Disney Company’s policy was not to serve alcohol in the parks in California, Florida and Tokyo, which they also wanted to extend to France. But in Europe a glass of wine for lunch is a given. So in this case Disney fails to see alcohol a normal beverage which initially created a big problem for them. 2. Disney misunderstood European Breakfast norms. They thought European do not eat a big breakfast and they also do not eat a sit-down breakfast. As a result restaurants were planned for small number of guest which created a negative Disney experience in the customer mind. 3. Cultural...
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