...DISNEYLAND CASE ANALYSIS | CCM ASSIGNMENT | | | Augustine George (32)Balaji Subramanian (36)David Aditya Solomon (45)Eliza Mathew (52)Eliza Pani (53) | | EXECUTIVE SUMMARY The given case “Euro Disneyland” elaborates about the issues faced by the Walt Disney Company when expanding to international borders. It first begins with the history of how Disneyland became so successful and expanded to various states across the country. It then describes about its first international success namely the Tokyo Disneyland and the factors affecting it. The case then describes Disney’s decision of expanding into Europe. The various differences and problems faced in setting up of the amusement park. Some of the major issues in setting up of the park were: * Cultural differences between the European and the American market * Environmental and location factors for setting up the amusement park * Financing and initial business plan were not analysed thoroughly in synchronisation with external economic factors * French labour laws were not taken into account while inducting the workforce * Management issues such as different attractions in the park It was understood that the chief reason for Euro Disney’s failure was a lack of understanding of European culture on Disney’s part. Based on the understanding from the case following recommendations were made: * A study in history and an understanding of the European market place would have enabled the Disney executives...
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...Expansion of D isneyland : Cases Study of Disneyland’s Overseas Expansion in Shanghai Master Thesis in Business Administration Author: Li Zhu & Dan Xu Tutor: Tomas Mü llern Jö ping nkö August 2010 Master Thesis Acknowledgements First of all, we would like to take the opportunity to thank our tutor Mr. Tomas Mü llern. Thanks to his guidance and valuable suggestions, we correct our mistake on time and finish our thesis in the end. From the first meeting to the last one, you are always concern us and the process of our writing. Every time, we handed in chapters, you always provided useful opinion to let us revise the thesis better and better. We thank you for patient guiding and providing us a good opportunity in our study to learn more and more. Secondly, we would like to thank Mr. Zhang and Edward. Thank you for taking time to find interviewees of our interview. You are busy with your own job, but you still use your private time to help us. You also share your experience about contacting skills with us. Last but not the lease, we are thankful to our families and friends who were helping and supporting us during this writing period. Li Zhu & Dan Xu Jö ping University nkö 2010 i|Page Master Thesis Master’s Thesis in Business Administration Title: Marketing Strategic Change in Expansion of Disneyland Authors: Li Zhu & Dan Xu Tutor: Tomas Müllern Date: August 2010 Key Words: Theme Park, Disneyland, Marketing Strategy...
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...Introduction: Euro Disneyland is a foreign venture of very successful American company known as Walt Disney Company which was established in 1923.The organization has been very successful over the years operating in USA, California and Florida and also expanded its business in Japan and Europe. Their operation in Europe widely known as Euro Disneyland was not successful for various reasons which include planning , cultural differences etc. Evaluating some of the areas that went wrong in case of Euro Disney: Walt Disney, a highly successful organization of US, comes up with a theme park, Euro Disney located outside of Paris, France. The Walt Disney Company was one of the American organizations which expand its business to the foreign soil. Doing a very successful and profitable business throughout US, California and Florida, the company established its first foreign venture Tokyo Disneyland, another winning and profitable business of Walt Disney. Being successful from Tokyo Disneyland, the company decided to further expand abroad and enhance its foreign presence, Euro Disney comes forward. But in case of Euro Disney, the company made some wrong steps in decision making which in turn experienced numerous complications from its inception. Below some areas are discussed critically that went wrong in case of Euro Disney. Location or area and environment selection were wrong in first place. Though French suggested to building the Euro Disneyland into the East Paris despite the...
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...Pace University DigitalCommons@Pace Case Studies Lubin School of Business 3-1-2002 Disney in Asia, Again Raymond H. Lopez Pace University Recommended Citation Lopez, Raymond H., "Disney in Asia, Again" (2002). Case Studies. Paper 3. http://digitalcommons.pace.edu/business_cases/3 This Article is brought to you for free and open access by the Lubin School of Business at DigitalCommons@Pace. It has been accepted for inclusion in Case Studies by an authorized administrator of DigitalCommons@Pace. For more information, please contact rracelis@pace.edu. CASE STUDIES No. 26 March 2002 Disney in Asia, Again? by Raymond H. Lopez, Ph.D. Professor of Economics and Finance Lubin School of Business Pace University DISNEY IN ASIA, AGAIN? by Raymond H. Lopez, Ph.D. Raymond H. Lopez is Professor of Finance at the Lubin School of Business of Pace University. Introduction INTRODUCTION “We could be getting close to the time for a major Disney attraction in the world’s most populous nation.” 1 “I am completely confident that Chinese people love Mickey no less than they love a Big Mac.” 2 Early in 1999, Michael Eisner, CEO of The Walt Disney Company, voiced his opinions concerning potential markets for his firm’s entertainment products and services. A major thrust for the new millenium would be development in Asia. The firm had now achieved a certain level of experience with owning and/or managing assets and operations outside the United States...
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...STRAT Case Study “The Walt Disney Company: Its Diversification Strategy in 2012 LELE SONG February 9, 2015 February 9, 2015 KEY ISSUES * Understand why a company’s resources and capabilities are central to its strategic approach: Diversification is Disney’s main strategy for constant growth. The company is broadly diversified, including five major segments. Disney attempted to capture synergies existing between its business units. * Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of letting technology throw threats at the company, Disney decides to embrace technology to enhance quality of products and improve customer experience. Disney’s success is highly dependent on technology. * Become aware of the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions: Disney has a very clear acquisition strategy, and they have successfully acquired some valuable brands. Acquisition also benefits Disney for global expansion. ANALYSIS The Walt Disney Company (“Disney” or “the company”) was a broadly diversified median and entertainment company. In 2012 the company’s business units were organized into five divisions, which include media networks, parks and resorts, studio entertainment...
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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) and at Marne-la-Vallee...
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...Hong Kong Disney: the good and the bad Introduction:Disney Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, travel, and theme parks (The Walt Disney Company, 2012). Disney went on to construct theme parks in California, Florida, Tokyo, Paris, and Hong Kong. Today Disney is the largest media conglomerate of the world and their theme parks alone generate almost $13 billion reported in 2012 in annual gross revenues (The Walt Disney Company, 2012). The Disney parks in the United States had been very successful and that is why Disney expanded into Tokyo. This was a wonderful idea, because Asian love fantasy and Disney is all about fantasy; moreover Asians were excited about the Disney Park. Disney Tokyo was constructed and opened with much success; however, Disney did not own the Tokyo location and they only received royalties from that location, but they soon realized the possibilities that could come with expansion. Disney decided to spread their wings again since Tokyo had been very successful, but they chose the wrong location for the next undertaking; Disney Paris. Who in their right mind would choose Paris as a site for a huge American themed park? Parisians hate Americans, this is a very well known fact. They hate us when we visit their city and they hate the way we live, so...
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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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...performance was the lack of market research and cultural awareness. EuroDisney was built just like American Disney parks, without giving though to cultural differences. American characters were used, instead of French cartoon characters. Disney banned alcohol in a culture that enjoys drinking wine. Everyone showed up for breakfast in the mornings, when Disney had cut down their serving because they were erroneously informed that Europeans do not eat breakfast. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that EuroDisney was charging. In addition, Europeans do not vacation as long as Americans do. Other factors were the transatlantic airfare war and currency movement. This made it cheaper to go to Disneyland Orlando than EuroDisney. In addition, the park opened during the Olympics in Barcelona, and the World’s Fair in Seville. Hong Kong Disney had the exact opposite problems. Disney did its research and tried to make the park fit in with its surroundings, and guests were disappointed. The park was very small, and visitors thought it was just like all the other amusement parks in China. The park was undifferentiated. People did not know the traditional Disney characters, and did not appeal to them. 2. Many factors could have been foreseen and controlled by the mere study of history and culture of Europe. This study would have found that Europe has their own famous cartoon characters, and how long they usually tend to vacation...
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...Regardless of point-of-view, the events surrounding Disney’s America theme-park provide compelling lessons to policy makers, business interests and citizen activist groups. The purpose of this paper is to examine the Disney’s America controversy through the lens of public policy process. I first analyze the core issues of the case. Second, I identify predominant actors and stakeholders. Third, I point out policy instruments and processes germane to the case. Finally, I discuss the outcome and lessons to be gleaned from the case. Issues Haymarket, a community with a population of 375, is located approximately 30 miles southwest of Washington D.C., in Prince William County, Virginia. It is situated in an area characterized by farmland in view of the Blue Ridge Mountains to the west. Nearby is a Civil War battlefield site, now a National Battlefield Park administered by the National Park Service, where 20,000 Union and Confederate soldiers died during two battles fought at Bull Run: the first land battle of the Civil War in 1861, and in 1862, when Robert E. Lee defeated Union forces as he led the Confederate toward the Potomac River. In the early 1990s, Chairman Michael Eisner of Disney, envisioned an American history theme-park to be called Disney’s America. Colonial Williamsburg in southeastern Virginia initially provided inspiration for Disney executives. Prior to 1993, Disney officials surreptitiously acquired land-options in Prince William county using false names in...
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...A Qualitative Study on two Case Studies I. Disney makes a Comeback II. The Downfall of Uptown Letter of Transmittal 23 April, 2015 Ms. Rumana Ferdous Course instructor, Introduction to Business, Green Business School, Subject: Submission of Term Paper Dear Ma’am, With a great pleasure and interest here, we submit our report, which you have assigned us to prepare by today as a term paper. This report is focused on “Marketing strategy of Disney and Uptown cigarettes and their impacts”. Here we analyzed marketing strategy of those companies according to what we’ve learned through the whole term. Though we are in learning curve, this report has enabled us to gain insight into the core fact of marketing factors. It has been a unique experience to carry out such a research work. The contents provided in this report are all our own, though some information and references have been taken from different sources to facilitate our report. However, we will be glad to clarify any discrepancy that may arise. Finally, we would love to express our gratitude for your supportive thoughts and kind consideration in and outside the class. Yours Sincerely Md. Abdullah Al Noman - 151006021 Md. Kamrul Hasan - 151006011 Jewel Rana - 151006007 Rubana Islam Piya - 151006094 Acknowledgement We would like to use this opportunity to express our gratitude to everyone who supported us throughout the project of this...
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...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 | 2 International Modes of Entry: The Case of Disney Table of Contents 1 2 3 4...
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...Euro Disney had a very hard initial experience in France. Due its lack on accurate informationabout the French and European preference and culture, further on their inability on forecastingexternal problems and inability on controlling both controllable and uncontrollable forces,Disney acquired a huge debt. Instead of analyzing and learning from its potential customersDisney chose to make assumptions, turned out that most of those assumptions were wrong.Disney made wrong assumptions in many areas as well. In the cultural area for example itassumed that customers would be ok not having wine to drink, turned out customers wereastonished but the decision of breakfast was another cultural mistake, but in the opposite way.Disney assumed that French customers would want to eat French breakfast while they wantedAmerican one. Operational errors were also committed for Disney, for example Disney assumedthat Monday would be a light day and Friday a heavy day, so they arrange the staff accordingly,turned out to be the opposite and Disney had a big problem with that. Another assumption suchas optimistic assumption about attendance was also made. If Disney had conducted a primaryresearch and learned from their potential customers, French and Europeans, they would haveforecasted those mistakes and prevented them from happening. Also if Disney had controlledbetter the controllable forces, price and promotion for example, they would have a betterinitial experience. Disney could have followed...
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...The Walt Disney Company Assignment 1: Assignment 1: Strategic Management And Strategic Competitiveness Professor: BUS 499: Business Administration Capstone April 20th, 2014 The Walt Disney Company The Walt Disney Company started in October 16, 1926. It was at the time known as The Disney Brothers Studio. It was established by Roy and Walt Disney. The company rapidly began to expand and introduced the world to Mickey and Minnie Mouse. They are the image of the Disney Company. During the 1940’s Disney issued its first stock, this made it growth as a company. The Disney Company expanded to the world of television and written entertainment with the opening of a theme park. Disneyland was opened on July 17, 1955. Walt dream was to open different theme parks in a big area. He chose Florida because of the nice weather; the inexpensive land; and the interstate 4. Unfortunate, Walt Disney, died on December 15, 1966. Despite the loss of Walt, Disney Company continued to grow. And in October of 1971, Walt Disney World Resort opened in Orlando, Florida. (Disney History) Globalization and technology changes have impacted The Walt Disney Company in positive way. According to Strategic Management, “globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital and knowledge across country borders.” ( Hitt, Ireland & Hoskisson, 2013). Globalization also increases the amount...
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... China E-mail: bobo1012@sina.com Euro Disneyland a theme park comprised of an updated, state of the art Disney's Magic Kingdom, is a subsidiary of the Walt Disney Company located outside Paris, France, and has experienced numerous complications from its inception. This article introduces the fretful of Euro Disney, analyzes the reasons why it goes to wrong and give the recommendation to overcome the rattrap. Keywords: Euro Disneyland, Cultural differences, Management hubris 1. Introduction Many companies throughout the United States and beyond are resorting to developing their business abroad. The Walt Disney Company was one of the American organizations to expand on foreign soil. Its first foreign venture Tokyo Disneyland proved to be so successful that the decision was made to further expand abroad. This next foreign expansion experience, named Euro Disneyland all hopes were high, with Michael Eisner, the chairperson of Walt Disney promising to make Euro Disney the “most lavish project that Disney had ever built”. He had an obsession with maintaining Disney’s high reputation, as Disney had already seen the success of California and Florida Disneyland. While Euro Disney did not prove to be the successful venture that had been anticipated by its creators. Euro Disneyland a theme park comprised of an updated, state of the art Disney's Magic Kingdom, is a subsidiary of the Walt Disney Company located outside Paris, France, and has experienced numerous...
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