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Introduction

Euro Disney Case Study Table of Contents Introduction--------------------------------------------------------------------------------------3 Analysis Culture Differences with Hofstede's Dimensions---------------------------3 Power Distance------------------------------------------------------------------------------3 Individualism---------------------------------------------------------------------------------3 Masculinity------------------------------------------------------------------------------------4 Uncertainty Avoidance--------------------------------------------------------------------4 Analysis the Mistakes Made During Euro Disney Operations-----------------------5 Ignored differences in living habit-------------------------------------------------------5Ignored French Culture-------------------------------------------------------------------5Ignored the differences in transportation preferences----------------------------6 The lessons the company should have learned---------------------------------------6 Conclusion--------------------------------------------------------------------------------------6 Reference---------------------------------------------------------------------------------------7 Introduction:The Walt Disney, a multinational company, which was founded by Walt and Roy Disney in 1922, has become the leader of family entertainment industry. From 1955 to 1983, Walt Disney has built Disneyland theme parks in California, Florida and Tokyo. Those parks were all running very well from the beginning. However, Euro Disney, a new theme park that was open in 1992 in France, has lost almost $1 billion in the first 18 months of operation. How could it failed after three very successful parks like Disneyland in California? This article compares the culture differences between the United States and France, and analysis the mistakes made by Euro Disney while translating its experience of the previous theme parks to another country.Analysis Culture Differences with Hofstede's Dimensions:Power Distance:This dimension reflects the degree of inequality between people with more power and with less power that is accepted by the less powerful people, it also measures the gap between wealth and poor. High Power Distance indicates that society is differentiated into classes and people understand "their place" in the society. ...read more.

Middle

dominance and coherence culture are essential qualities of successful companies (Trigg & Trigg, 1995) Uncertainty Avoidance:Uncertainty Avoidance refers to the degree to which people feels threatened by ambiguous, it also reflects the extent to which individuals attempt to minimizing uncertain situations by establishing more structure. The high scores on the Uncertainty Avoidance reflects the society prefer to avoid uncertainty and dissent whenever it is possible. Cultures with low Uncertainty Avoidance scores have a high tolerance for uncertainty and accept and enjoy the changing environment. People feel more comfortable with new things and taking risks than the people in high UA society. France's Uncertainty Avoidance score is 86 which is much higher than US's score of 46, French prefer to avoid uncertainties while Americans risks more and are more comfortable with rapid change. Analysis the Mistakes Made During Euro Disney OperationsIgnored differences in living habitAlcohol was banned in the park at the beginning of Euro Disney operating. It was also no alcohol allowed in its parks in US and Japen as well, so they thought it would be alright for doing the same thing in the Euro Disney. Actually, French really loves and enjoys having alcohol during the meals. Thus, later on, the Walt Disney Company had to change its policy and allowed alcohol in the park later on. Euro Disney also misunderstands the European food norms. ...read more.

Conclusion

use (Keegan, 2002).The lessons the company should have learned: Disney should realize that strategies that succeed in one country may not succeed in other countries (Hodgetts and Luthans, 2003, p.271). The succeed in the parks in US and Japan is not the guaranty to the succeed of Euro Disney. Disney should always consider about the difference situations and different cultures. According to the Hofstede's Dimensions, before doing the business, comparing the difference between the two countries will be benefit for the result. To respect of other's culture is another way to success, Americans are too ambition to money and achievement while they are usually ignored to concern about caring others. The lesson Disney should have learned from this case is to put the customer on the first place but not their own feelings. If Disney wants to consider a new market, the reseach should be directly toward the market situations. Even thought Disney is a great company, but it still needs to ensure objectivity in overseas evaluations. Also, Euro Disney's high price result its poor attendance. Disney should have learned to consider to care about the consumers. Conclusion: This article illustrates how important of understanding cultural differences between the expatriate country and the host country. Misunderstanding the culture differences will result in a bad issue like the beginning of the Euro Disney.No matter how big and successful a company is, understanding cultures and values of other countries is the key to better result. ...read more.

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