• Media Networks
• Theme Parks and Resorts • Consumer Products • Studio Entertainment
Paris, 1992
Shanghai, 2005
California, 1955 Florida, 1971
Hong Kong, 2006
policies and have excellent communication tools
T H A N K S
Tokyo, 1983
Why they pick Paris?
About 17 million Europeans live less than a two-
hour drive from Paris
Demographics Another 310 million can fly there in the same time or less.
Unsuccessful pricing strategy
• Prices are too high
•
$340/ night amounting to top hotels in Paris.
Managerial Errors
Use same teamwork model as in the US and in Japan
• Europeans take school more seriously. • Europeans have different traveling expectations.
Different behavior of visitors
• Short length of average stay • Inadequacy of parking space for coaches • Inefficient utilization of transportation facilities in the park
Neglect the fact that French exclude American Culture
Failed to cope with the culture differences • Different eating habits
• Different attitudes on traveling
Legal obstacles Ignore the culture of the Europe
Solutions Conculusion
The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with the following business segments:
• Environment
Paris winters are particularly uninviting . Only six months in a year that are
suitable for outdoor activities
• Location
West of Paris is less populated than other parts of Paris
Criticism
It is neither international nor French in nature, and it failed to satisfy Europeans at all.
Conclusions
• The business performance of Euro Disneyland was not that great and
stable.
• Disney should make use of cultural differences to have a competitive advantage and make it unique.
The Four Lessons
1. Multinationals should have concrete business planning before deciding on the actual process of the project 2. Disregarding or ''attacking'' others' traditions and customs can be destructive 3. Multinationals should do a very deep and targeted market cultural research before opening a business in another country 4. Multinationals should resolve workplace issues, make employees happy with
Subsidies
The French government offered the Disney more
than $ 1 billion in various incentives
What went wrong with Euro Disneyland ?
Geographical Location
Freedom of the employees
Strict dressing and Appearance code was seen to have
offended individual liberty and violated the Labor Law
Ignore the culture of the Europe
• Different behavior of visitors
Different eating habits
• No alcohol policy • Hotel breakfast debacle • Improper lunch time
Different attitudes on traveling
Staffing problems
Most top managers are Americans
Managers don't understand European habits and ethics of life
Disney’s arrogant management style
hostility from French people
Economical Problems
Economic recession in 1990s in Europe • High exchange rate for dollar • Gasoline price of Europe is higher than the price of America.
TheCONTENT
About The Walt Disney Company The Reason of Failure
• • Geographical Location Economical Problem
•
• •
Management Errors
Conclusion & Solutions
• Disney has not implemented cross cultural management and strategies correctly • Disney failed to adapt to the French environment and to foresee the influences of foreign and domestic factors • It's organization and management relied mostly on American cultures, experiences, and understanding
Legal obstacles
• French labor laws didn’t provide flexibility Work schedule
• Waste of human resource during the off season but lack of
manpower in season.
Solutions
• Disney should take controls of the management resolution of problems based on practice in other places • Disney should acknowledge the characteristics and attitudes of the Europeans in terms of the business • Disney should accomplish good marketing strategies and the financial plan must undertake concrete evaluation