MINISTRY OF EDUCATION AND TRAINING

UEH UNIVERSITY
UEH BUSINESS SCHOOL

INTERNATIONAL BUSINESS -MARKETING DEPARTMENT

CASE STUDY REPORT - GROUP 9

CASE 2-1: The Not-So-Wonderful World of
Euro Disney

Course number: 22C1MAR50309605

Course name: International Marketing - EN
Members of group 09 – Pink Organization
Tran Ngoc Thien Kim - 31201020435
Le Thi Thao Trang - 31201024368
Ngo Thi My Hanh - 31201025745
Le Ngoc Yen Nhi - 31201024647

Ho Chi Minh City, October 26th, 2022

 TABLE OF CONTENTS
1. Case study Summary.................................................................................................2
1.1. The problems that caused Disneyland to fail in Paris................................................2
1.2. The problems that caused Disneyland to fail in Hong Kong.....................................3
1.3. Disneyland's workaround and the result after............................................................3
2. Case study analysis according to individual opinions of our group...........................5
2.1. Problems that EuroDisney faced...............................................................................5
2.2. Cultural differences between the United States and France.......................................8
2.3. Evaluating the cross-cultural marketing skills of Disney...........................................10
2.4. Why did success in Tokyo predispose Disney management to be too optimistic in their
expectations of success in France? In China?............................................................12
2.5. Lessons learned from the faults of Disneyland..........................................................13
2.6. Recommended measures for Disneyland in Paris and Hong Kong............................14
3. Case study analysis based on class answers..............................................................15
3.1. Discussion question 1................................................................................................15
3.2. Discussion question 2................................................................................................16
3.3. Discussion question 3................................................................................................20
3.4. Discussion question 4................................................................................................21
4. CONCLUSION.........................................................................................................23
5. APPENDIX...............................................................................................................23

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 1. Case study Summary
1.1. The problems that caused Disneyland to fail in Paris:
Disney failed in both aspects: In culture and in international marketing
Foreseeable factors: staffing problems, advert problems, and cultural differences
● Disney ought to have anticipated how the recession in Europe would alter the
economic climate in France.
● Given the amount of the investment and the number of jobs eventually reliant on
the project's success, the relationship with the local government should have been
handled with more care and delicateness.
● Foreseeable events: 1992 Barcelona Olympics & World's Fair in Seville, Spain in
1992

Unforeseeable events: Gulf War in 1991, currency & airfare wars

Unforeseen issues: The outbreak of the European recession, the 1991 Golf War, and
rising interest rates were among the factors that management really couldn't see. The
downturn of the Franc currency on the global market was another external that had an
impact on company and caused rivals to use other websites to attract customers. These
competitors represented the entire world at the Barcelona Olympics in 1992 and Seville
in 1999.

Controllable factors:
● Price: Expensive (should be cheaper to encourage attendance)
● Product: Mickey and Co. (should be French cartoon characters)
● Promotion: American Culture (should be European culture)
● Channels of Distribution: Europe

Uncontrollable elements
Aspects of trade co. have no control or influence over.
● European recession in early 1990s & summer heat wave in 2003, competition,
weather, government controls, etc.
● Out of more than 200 other possible locations, Paris was selected for its more
central location
● Dismal winter weather
● The different legal systems
● Foreign uncontrollable and Exchange rate.

1.2. The problems that caused Disneyland to fail in Hong Kong:

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 - Disneyland Resort Paris was on the verge of bankruptcy (2005).
- Visitors felt that the entrance price was still too high.
- Complaints about too much focus on American rather than European film making
- Ecological disaster
- In Hong Kong, a lack of knowledge about the culture led to advertisement failure.
- Hong’s’s guests lack knowledge of the American Disney characters.
- Cultural differences and the inputs of ethnocentrism.
- Disneyland Hong Kong also had some cultural missteps:
A Disney ad in 2006 featured a family consisting of two kids and two parents.
China's government, however, limits most couples to just one child

1.3. Disneyland's workaround and the result after

EuroDisney
● Change in Marketing:
- Pay attention on differing tourist habits around the continent
- Separating marketing office open in London, Frankfurt, Milan, Brussels, Amsterdam,
and Madrid. -> Change with tailoring advertising and packages to its own market.
- Price cut down 20% for park admission and 30% some hotel room rates.
- Special promotion for winter months. Transformation in park’s name to be Disneyland
Paris (October, 1994). Now it is called “Disneyland Resort Paris”.

● Financial help
The new Euro Disneyland brought nothing but debt in its first few years. On March
14, 1994, The Walt Disney Company proposed a rescue plan to reduce debt. At the
heart of the project is the issue of rights to 6 billion Francs ($1.25 billion), of which
51% will be guaranteed by 61 banks and the rest taken over by Walt Disney, which
has a 49% stake in Euro Disneyland (Burgoyne, 2007). A rights issue is an offering
that gives existing shareholders the right to buy shares, usually below market price, at
a rate equivalent to their current ownership percentage.

● Changing name
In order to adapt to European tastes and turn around continued losses and reported
slumping attendance, Euro Disneyland was changed into Disneyland Paris.

● Saving costs
Disneyland Paris cut 950 administrative posts in order to hold down costs and
increase revenues (Greenhouse, 1991).

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 ● Promotion
They also offer a lower-priced "After 5" evening entrance ticket. Responding to
complaints regarding high entrance fees and hotel prices, Disneyland introduced
cut-rate entry and room rates for the off-season (Greenhouse, 1991).

● Expanding market
Disneyland Paris tried to expand their market to countries near Europe, such as
African countries. Disneyland Paris also marketed it as one of many stops on a
month-long European itinerary rather than a vacation destination for a period of
time

=> Result: In 1996, Disneyland Paris became France’s most visited tourist attraction.
Disneyland Paris has been dedicated to change, employee empowerment, and cultural
respect:
+ Disneyland Paris was able to make its first annual profit of $20 million (1995)
+ Disney changed the names of rides, decreased language barriers alongside its
multilingual employees
+ They have also had a great emphasis on intercultural relations as well
+ The park now employs people from 92 different countries
+ The park has become widely accepted in France
=> These strategic changes provided Paris Disneyland with more competitive forces in
the industry.
=> Disney's true success lies in adapting to the surrounding culture of the French and
Europe as a whole, being marketing oriented in finding success in customer satisfaction.

Disneyland HongKong
● Language:
The majority of staff are locals. They are not only outstanding performers, but also
fluent in Chinese, Cantonese, and English. They are capable of guiding guests from
all around the world, particularly those from China who are unfamiliar with
Disneyland.

● Culture:
The change of strategy at Hong Kong Disneyland is revolutionary. Hong Kong's
environment is completely different from the US. To adapt to the Hong Kong
environment, it is necessary to change the culture:
+ Following feng shui principles,

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 + Hong Kong Disneyland tries to combine Chinese culture into the American
theme park, such as the Chinese Gazebo and Mickey‟s Chinese gown.
+ "Journey in the Forest" and "Festival of the Lion King" are two unique
programs in Hong Kong Disneyland that are not merely duplications of
other Disneylands.
+ There are supplies of various types of food from Asian nations such as
China, Thailand, the Philippines, India, and Singapore to avoid the food and
beverage difficulties in Paris. The menus are different on festivals.

● Promotion:
+ Hong Kong Disneyland planners keep on consolidating operations. Having
a clear marketing strategy since the beginning.
+ Disneyland not only offers many types of services in the park, but also
varied advertising campaigns in various regions, in order to attract their
target guests.

● Advertisement:
+ Hong Kong Disneyland has complete and long-term plans of every project
and activity.
+ Disneyland takes the advantage of mass media and different celebrations to
market the fascinating Mickey Mouse.

=> The culture helped Hong Kong Disneyland become more familiar with local people,
thus it can get more competitive forces.

2. Case study analysis according to individual opinions of our group

2.1. Problems that EuroDisney faced:

a. Culture: Euro Disney-An American Icon

One of the most worrying aspects of EuroDisney's first year was that French visitors
stayed away; they had been expected to make up 50 percent of the attendance figures. A
park services consulting firm framed the problem in these words: “The French see
EuroDisney as American imperialism—plastics at its worst.”

● The French don't like Disney characters

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 ○ The well-known, sentimental Japanese attachment to Disney characters
contrasted starkly with the unexpected and widespread French scorn for
American fairy tale characters. French culture has its own adorable cartoon
characters like Astérix, the Gallic warrior…

○ Hostility among the French people to the whole “Disney idea” had surfaced
early in the planning of the new project. Paris theater director Ariane
Mnouchkine became famous for her description of EuroDisney as “a
cultural Chernobyl.” In the fall of 1989, during a visit to Paris, French
Communists pelted Michael Eisner with eggs. The joke going around at the
time was, “For EuroDisney to adapt properly to France, all seven of Snow
White's dwarfs should be named Grumpy (Grincheux).”

● Spending habits of Europeans

○ For the tourists at Tokyo Disney at that time, a trip to the park for a family
of four staying the night at a nearby motel might cost nearly $600. The
same family doesn't want to spend $280 per day at Euro Disney just to
enjoy the park's activities, which include hamburgers and smoothies. Due to
costly hotel room charges (from $340 to $380 per night in EuroDisney’s
hotel), many people frequently wonder whether to stay the night.

● American free markets vs. European caution and conservatism about financial
ideas.

○ Early advertising by EuroDisney seemed to aggravate local French

sentiment by emphasizing glitz and size rather than the variety of rides and
attractions. Committed to maintaining Disney's reputation for quality in
everything, more detail was built into EuroDisney. For example, the
centerpiece castle in the Magic Kingdom had to be bigger and fancier than
in the other parks. Expensive trams were built along a lake to take guests

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 from the hotels to the park, but visitors preferred walking. Total park
construction costs rose by $340 million to FFr 16 billion as a result of all
these add-ons. Hotel construction costs alone rose to FFr 5.7 billion.

○ EuroDisney and Disney managers unhappily succeeded in alienating many

of their counterparts in the government, the banks, the ad agencies, and
other concerned organizations. A barnstorming, kick-the-door-down
attitude seemed to reign among the US decision-makers: “They had a
formidable image and convinced everyone that if we let them do it their
way, we would have all had a marvelous adventure.”

○ Many French bankers financing questions understood the initial financing,

but Disney's response was that their views reflected the cautious, Old
World thinking of Europeans who did not US-style free market. After some
acrimonious dealing with French banks, a two-year financial plan was
negotiated. Disney management rapidly revised its marketing plan and
introduced strategic and tactical changes in the hope of “doing it right” this
time.

b. Economy: Stormcloud ahead

Disney and its advisors failed to see signs of the European recession's end in the 1980s.
Other dramatic events included the Gulf War in 1991, which put a heavy brake on
vacation travel for the rest of that year.

Price competition for plane tickets to Paris and currency devaluation suddenly made
traveling to Disney World in Orlando, (USA) less expensive than traveling to
EuroDisney in Paris (France). They made their effort to "compensate" their customers by
discounting up to 25% for hotel costs.

c. The political:

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Other external factors that Disney executives have cited were high-interest rates and the
devaluation of several currencies against the franc. EuroDisney also encountered
difficulties regarding competition—the World's Fair in Seville and the 1992 Olympics in
Barcelona were huge attractions for European tourists.

d. Ethnocentrism

Disney and Euro Disney executives applied their American corporate procedures,
marketing plans, and ethnic beliefs with the expectation that a foreign nation would adopt
and accept them.

This presented difficulties for Euro Disney's management because of ethnic differences
and a lack of understanding of French culture. Alcohol, entry and accommodation rates,
hotel breakfast, staff, policies regarding house animals, and staffing challenges were
some of the earliest concerns raised.

The Walt Disney Company had a commercial strategy that was similar to what they did
in America and Japan, but this kind of global marketing was highly unacceptable in
France. Japanese culture would have been entirely distinct from other cultures.

2.2. Cultural differences between the United States and France

According to Hofstede’s Cultural Dimension Theory:

● Long-term orientation

United State: Short-term. Most Americans are not pragmatic because of their culture,
although this should not be confused with the fact that Americans are exceedingly
practical, as evidenced by the aforementioned "can do" attitude.

France: Long-term. In societies with a pragmatic orientation, people believe that truth
depends very much on the situation, context, and time. They show an ability to adapt

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traditions easily to changed conditions, a strong propensity to save and invest, thriftiness,
and perseverance in achieving results.

According to the index, in the US, Walt Disney is aware that the external environment
may evolve quickly; hence they should be agile enough to deal with the changes to
achieve a competitive advantage. In the US, traditions are respected and that old-age is
seen as an unhappy time. Moreover, leisure time is important and there is a tendency to
spend money.

● Indulgence vs. the Restraint

United States: The United States is known to be an indulgent society, as displayed by its
scores for this dimension. The nation is known for its “work hard and play hard”
approach. Individuals living in this society believe in going after their goals in an
aggressive manner but also spend time relaxing and indulging in leisure activities

France: France scores somewhat in the middle (48) when it concerns Indulgence versus
Restraint. This, in combination with a high score on Uncertainty Avoidance, implies that
the French are less relaxed and enjoy life less often than is commonly assumed. Indeed,
France scores not all that high on the happiness indices.

Therefore, in the US, people might tend to go to the amusement park more than the
French. Disneyland enhances this feeling; “My business is making people, especially
children, happy”

● Masculinity Vs Feminine

United States: Masculinity. A 2017 Pew Research Center survey found that about half of
Americans (53%) say most people in our society these days look up to men who are
manly or masculine, with women more likely than men (62% vs. 43%). About two-thirds
of men who say society looks up to masculine men (68%) say this is a good thing; a
narrower majority of women (56%) say the same.

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France: Feminine. This may be implied by its well-known social security system (securité
sociale), 35-hour workweek, five weeks of annual vacation, and emphasis on quality of
life. However, French culture as a model has another distinctive quality. The working-
class scores are masculine, whereas the upper-class scores are feminine.

According to the index, in the US, employees are highly competitive; each of them is
motivated to outperform their counterparts. These individuals are driven by success and
are not afraid to show off their success.

Behavioral Insights of French

French demonstrate a capacity to easily adjust traditions to new circumstances, a high

predisposition to save and invest, thriftiness, and persistence in getting things done.
Contrary to popular belief, French people are less relaxed and less likely to enjoy life.
French behavior pays greater attention to the bigger picture, especially when it comes to
relationships with coworkers. They also place high importance on life's quality and
purpose.

2.3. Evaluating the cross-cultural marketing skills of Disney?

2.3.1. Overview

After seeing the strategies that Disney employed in various parts of the world, it is clear
that they need to do more research into their market and the potential risks of entry. They
tried to show these folks how to have a good time, but they didn't realize that different
cultures have different ideas about what is enjoyable and practical. As they were already
familiar with the iconic Disney characters, Japan appreciated the "U.S. experience," yet it
is obvious that each culture responds to things differently. The ideas of high and low-
context societies are strongly related to this. When it comes to expressing their ideas, the
Japanese are renowned for being more reserved.

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Additionally, it wasn't acknowledged that the French and Americans have different
cultures, therefore changes had to be made. Later, restaurant seating was increased and
meals were offered with alcohol.

The French are very unionized and quite socialized in a political sense, so the belief that
the society operated similarly to that of America was just incorrect. The French have a
stronger cultural affinity for liberty and independence than the Americans. They think
they created the ideas, and the Americans stole them to use in their constitution.

2.3.2. Frenchman Philippe Bourguignon’s strategies

In 1993, Frenchman Philippe Bourguignon took over as CEO of EuroDisney and

successfully led the company back to profitability. He changed the name to Disneyland
Paris, reduced the cost of park admission and lodging rates, and overhauled the marketing
strategies. With the addition of new thrilling parks like the Walt Disney Studios, which
combines Disney entertainment with the history and culture of European filmmaking,
Disneyland Paris has continued to grow its theme park in the twenty-first century.

2.3.4. Marketing Strategy in Hong Kong Disneyland

The competing forces perspective is used to develop language and cultural strategies.
Disneyland had to adapt to the local context when it decided to enter the Hong Kong
market. First and foremost, Disneyland needs to speak the same language as Hong
Kongers. Hong Kong residents would not be able to fully appreciate Disneyland if they
did not speak the language there. Additionally, the culture made Hong Kong Disneyland
more familiar to the locals, which allowed for the development of stronger competitive
pressures.

The development of the other strategies—cooperation, government assistance,

promotion, and advertising—is based on the strategic conflict perspective. Since Hong
Kong's entertainment sector is so well-known, there are many different techniques used
there. Hong Kong Disneyland needs strategies to conflict with other entertainment groups
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if it is to thrive in such a complex environment. Because of Tokyo Disneyland, the
collaboration between Disneyland and regional businesses is a good way to create a win-
win situation. Hong Kong Disneyland became more powerful than other theme parks or
amusement parks because of government assistance. Advertising and promotion allowed
Hong Kong Disneyland to surpass its rivals in market share. Hong Kong Disneyland
established these strategies, which might conflict with others and adapt to the changing
market, even though other competitors must have their own strategies that may have an
impact on the entire business.

Hong Kong's environment is very dissimilar from that of the US. A shift in culture is
required to adapt to the Hong Kong environment. Furthermore, the adjustment must be
made quickly to be implemented before Hong Kong Disneyland opens.

2.4. Why did success in Tokyo predispose Disney management to be too optimistic in
their expectations of success in France? In China? Why does Disney continue to
make mistakes in Hong Kong?
Disney's overconfidence with their projects and continued presence in the French and
Chinese markets is a result of the enormous success in Tokyo.
The Japanese have a pre-existing love for Disney characters, and they are pleased that the
wonderful American entertainment experience is introduced to their country. That is the
primary reason. Because of the instantly positive response in Japan, Disney was certain
that the same response would be received positively in other areas.
 In Paris (France):
According to several internet sources, more than two million of Western European
tourists visit Walt Disney World in Florida and Disneyland in California each year. As a
result, Disney has expressed a desire to develop a theme park in Europe, particularly in
Paris, which is regarded as a prime tourist attraction and a center of European's culture
and style. Initial favourable circumstances, such as a convenient location, weather similar
to Tokyo, encouragement from the French Government, etc., boost Disney's expectations
for its EuroDisney project. (with predictions indicating that in its first year of operation,
the park will draw 11 million people and bring in more than $100 million in income).
However, they did not take into consideration the issues that suddendly occurred. Disney
made a mistake when it entered the French market as well as the European market since
cultural concerns have always been seen as a highly delicate subject when approaching

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new markets. The managers' subjective attempts to equate American culture with French
culture resulted in numerous waves of local protests, which helped shape the public's
hatred of Disneyland. A prime example of cultural implantation is the requirement that
employees overcome their conflicts toward the traditional culture in order to always smile
and treat park visitors politely. The Disney corporation also actively lobbied for a greater
"local cultural scene" and brought American pop culture to France. Another example is
that people are uninterested in Disney characters or the way the French drink alcohol
beverage at lunch, and so on. These seemingly unimportant problems but these have led
to Disney's failure in the French market.
 In Hong Kong (China):
With the same Asian nation as Japan and Tokyo Disney's positive tourist response,
Disney's managers plans to construct another theme park on this continent. Since China is
one of the most powerful nations in Asia, they have chosen it as the location for the
Disneyland theme park.
Disney aims to avoid the same management and cultural failures in China that occurred at
Disneyland Paris. “Disney has learned that they can’t impose the American will-or
Dissney’s version of it-on another continent”. “They’ve bent over backward to make
Hong Kong Disneyland blend in with the surruondings”. In order to integrate with local
traditions from the start, Disneyland Hong Kong chose to use feng shui in its design and
construction. For instance, they decide on an auspicious day for the opening, perform a
good luck ritual, try to maintain the balance of the five elements, decide where to set the
gate, move the cash registers, and place the stones in various locations that are important
to guarantee the park's prosperity, etc.
But the company only attracted slightly more than 5 million visitors in its first year,
falling short of its target of 5.6 million, and the second year was equally dismal, with a
reduction in visitor numbers of about 30% from the year before. forecast.
The criticism that the park was too tiny, similar to those found in China, and the
unexcitement for those who were not familiar with the Disney's characters were two
things that Disney did not foresee. As can be observed, tourists' lack of familiarity with
Disney characters has created a special obstacle in China. It appears that the business
overestimated how well-known Disney tales and characters were in this "nation of
billions of people.". As a result, visitors to Disneyland Hong Kong have been confused,
which makes the park is less alluring.
2.5. What can be learned about marketing from the faults and responses of
Disneyland in Europe and Hong Kong?

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- Even within the same country or region, multinational corporations should target
markets precisely because traditional culture gives different people varied levels of
control. In order to create a breakthrough and expand, multinational corporations
should entirely rely on thorough market research. They should employ the "point
to an area" model. According to this case study, families are the target market that
Hong Kong Disneyland is looking for. There have been several changes made to
Hong Kong Disney in order to give it Chinese features: it's not so much American
theme park as Mickey Mouse coming to China. For example, the cast members are
extremely diverse, understand various cultures, and, in many cases, speak three
languages (riders can choose form English, Mandarin, or Cantonese on the Jugle
River Cruise). In addition, Disney realized that most Chinese people are unfamiliar
with the majority of its stories and characters. To compensate for it, Disney has
built up the mystery around the Disney vacation experience by running promotion
throughout the year. For instand, the “Stay and Play for Two Days” promotion
was created mainly to give mainland tourists a chance to experience the park for a
longer period.
- Multinational corporations should consider the significance of the impact of
cultural differences on marketing in light of the new multi-cultural environment.
They should adopt an objective attitude toward the cultural variations in consumer
demand and behavior and respect them, completely giving up any prejudice and
discrimination based on culture. Furthermore, while planning to enter the market
of a target country, multinational corporations should be efficient at identifying
and exploiting the points of communication and collaboration between various
cultural groups. After all, whether a company can integrate into the local cultural
and social environment is the primary factor for success. Multinational
corporations should increase their sensitivity and adaptation to varied cultural
environments.
- Multinational corporations should capitalize on the competitive benefits of cultural
differences and develop international marketing. The main demand drivers of
various competitive strategies can also be the goals of global cultural diversity.
Launching cultural promotional campaigns and highlighting the target market's
exotic culture and cultural variety helps open the market quickly on the global
stage. Enterprises should work to create cross-cultural "two-way" communication
channels, adapt to the host country's cultural environment and values, and
implement their localization strategy to ensure that it is well received by the local
government, local partners, customers, and other relevant stakeholders. In addition
to aiding in cultural integration, effective cross-cultural communication can also
build a harmonious internal and external human environment that is conducive to
corporate management.

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2.6. Recommended measures for Disneyland in Paris and Hong Kong
- For many travelers to visit, they must first be familiar with Disney characters. To
raise awareness, particularly in the Chinese market at the time, the corporation
must promote additional tales and characters using a variety of media, including
films, comics, advertisements, toys, etc.
- Disney needs to create more characters and stories that are more relevant to the
European and Chinese markets to increase locals' positive perceptions of Disney
characters. After this, Disneyland can draw more visitors, particularly locals.
- The company must offer a variety of incentive packages, such as combo tickets to
the park and two nights at the hotel, which will reduce the price by 30% (perhaps
approaching the cost of the entrance ticket and one night at the hotel). As a result,
the hotel will be able to attract more new customers and provide the best
conditions for them to enjoy its services. When they are satisfied, the likelihood of
them returning is very high.
- Add new tourist destinations to Hong Kong Disney wants to differentiate itself
from other Chinese theme parks. Disney's parks are now more competitive as a
result.
- Plan numerous extraordinary and significant events to draw in new guests and
boost the proportion of return visits.
- It is essential to go through the culinary and cultural barriers of the period, such as
offering breakfast and alcoholic drinks at lunch at the Disneyland Paris hotel.

3. Case study analysis based on class answers:

3.1. Discussion Question 1
Question 1: Do you believe that the company should have allowed Euro Disney to
close in 1994 because of its financial headaches? Give the Reasons.
Based on the answers, all 4 groups believe that the Walt Disney Company should not
close Euro Disney despite the huge financial loss. Instead, the company should give
EuroDisney a chance and find the mistake to fix. The main reason the groups give is that
Disneyland in Paris is an attractive market as Paris is the most popular tourist destination
in Europe according to the mentioned case study. Therefore, Disney should not give up
this market but must find a way to fix the mistake by changing its business strategy, and
carefully studying the culture of Europe, especially the French.
When some groups were asked one more question: “Do you think EuroDisney would
have encountered the same problems if a location in Spain had been selected?”. Two
groups gave opposing answers. One group argues that Disney will still make the same

15
mistake when opening the park in Spain instead of Paris because the mistakes Disney
made are all related to cultural misunderstandings in Europe, and these mistakes were
entirely foreseeable and controllable, but Disney still let it happen and made serious
mistakes before they could see the problem. This proves that from the beginning, Disney
did not carefully study the culture of Europe and underestimated the impact of culture, so
even if Disney did not choose Paris as the location and chose Spain, even if Spain’s
culture is more receptive, Disney still makes the same mistakes.
The other group gave the opposite opinion that it is possible that Disney in Spain will not
make the same serious mistakes as Paris, the first reason is that Spain has more pleasant
weather than Paris as in the mentioned case, so it may be there are more tourists and they
will stay at the hotel in Disneyland to enjoy the weather here, and the second reason is
that each country, each region will have different cultures, habits, and behaviors so
people's reaction to Disney's entertainment model will be different. Therefore, Disney
will face different obstacles when operating in Spain, depending on the reaction of people
in that area.
Comment on the group’s answer: To the main question, the answers of the 4 groups are
the same: Disney should not close EuroDisney in Paris because this is a lucrative market,
and needs to correct mistakes in strategy. But when they were asked additional questions,
we noticed the difference in the understanding and analysis of the problem of question 1
of each group. Although there are two groups giving opposing opinions, if you consider
many aspects of the problem, both opinions are convincing. Although the two points of
view contradict each other, both answers have in common that Disney makes cultural
mistakes. As we can see, these cultural errors are completely predictable and controllable,
it is just because Disney did not do some research and try to understand the cultures in
Europe and France in the first place. They underestimated the impact of culture and they
had to pay a huge price in order to see the source of the problem.
3.2. Discussion Question 2:
Question 2: Applying Hofstede's Cultural Dimension Theory, point out the cultural
differences between France and America.
After generating all answers from 4 groups, we have the results of classifying 6
dimensions of the theory:
6 Dimensions Cultural differences between France and America
Power Distance US: Low score on Power Distance
France: High score on Power Distance
Individualism Vs Collectivism US: High in individualism
France: High in individualism
Masculinity Vs Feminine US: High score on Masculinity
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Uncertainty avoidance
Pragmatism (long-term
orientation)
Indulgence vs. Restraint
France: High score on Feminine
US: Low score on uncertainty avoidance
France: High score on uncertainty avoidance
US: Short-term (Americans are not so practical)
France: Long-term (French are very pragmatic)
US: a typically indulgent society
France: Restraint

Below is the group's response to compare with the whole class's ideas:
 Power distance:
 US: Low. In contrast to Eastern nations, the population here exhibits a
considerably greater sense of individualism. Moreover, The American premise of
“liberty and justice for all.”
 France: High. France scores fairly high on Power Distance. Children are raised to
be emotionally dependent, to a degree, on their parents. This dependency will be
transferred to teachers and later on to superiors. It is, therefore, a society in which
a fair degree of inequality is accepted. Power is not only centralized in companies
and government, but also geographically.
=> The Walt Disney Company is headquartered in the United States. Therefore, In the
US, the structure of the organization is more democratic rather than autocratic, and
employees are encouraged to pitch in their thoughts and ideas. There is less fear among
employees for their bosses, and a conducive environment is prevalent to enhance idea
generation and collaboration. (Explain the cultural values and working environment of
Disneyland).
=> In the US, parents encourage their children to actively experiment. This means that in
the theme park, children are encouraged to ride the attractions and explore the scenery.
Children, therefore, decide what to do, what to eat, and where to go (Explaining customer
behavior in Paris).
 Individualism Vs Collectivism:
 US: High in individualism. Cultural anthropologists have discovered that
American parents' primary objective is to help their children become independent
and self-reliant. They just think of their own family.
 France: High in individualism. Children also believe in the importance of family,
endorsing the desire to have children and giving more importance to their future
family than in other Western European countries (Alsaker & Flammer, 1999).

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=> Disneland’s American culture teaches employees to consider themselves to be more
independent and self-reliant. (Explain the cultural values and working environment of
Disneyland).
=> Walt Disney was thus an Individualist. He believed that the park’s visitors should be
treated equally and he taught his employees to be customer-friendly at any time.
(Explaining customer behavior in Paris)
 Masculinity Vs Feminine
 US: Masculinity. A 2017 Pew Research Center survey found that about half of
Americans (53%) say most people in our society these days look up to men who
are manly or masculine, with women more likely than men (62% vs. 43%). About
two-thirds of men who say society looks up to masculine men (68%) say this is a
good thing; a narrower majority of women (56%) say the same.
 France: Feminine This may be implied by its well-known social security system
(securité sociale), 35-hour workweek, five weeks of annual vacation, and emphasis
on quality of life. However, French culture as a model has another distinctive
quality. The working-class scores are masculine, whereas the upper-class scores
are feminine.
=> In the US, people usually do impulsive shopping such as having many short breaks.
=> Since France has a somewhat feminine culture. Their lifestyle is very modest and
simple, which can be seen in the way they spend their vacation as well as the way they
spend money on entertainment needs. Because of their simple lifestyle, they usually don't
spend much and will often spend long holiday vacations rather than impulsive shopping
or having many short breaks like Americans. This explains why the French don’t stay at
Disneyland hotels or they don't use overnight packages.
 Uncertainty avoidance
 US: a low-to-moderate uncertainty avoidance culture. As a result, the people have
a more Universalist approach to rules and laws, not feeling that there is so much
unknown territory to account for with legislation (Hofstede Center, n.d.b, p.1).
Citizens tend to accept change easily and are typically welcoming of new ideas
and innovative products
 France: high on Uncertainty Avoidance. Surprises don't appeal to the French.
Planning and structure are necessary. They prefer to get all relevant information
before meetings and negotiations. As a result, the French are skilled in creating
complicated systems and technology in stable environments, as seen in the
development of nuclear power plants, fast trains, and the aviation sector.
=> In the US, they are more likely to come up with innovative ideas and new processes
for business operations.
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=> This means that the U.S. is curious about the unknown. Those things that are different
spark a sense of curiosity. As Walt Disney said: “When you’re curious you find lots of
things to do”. This also means that people accept Disney’s imagination more easily.
However, Cultures that are Uncertainty-Avoiding believe that time is expensive; “time is
money”.
 Long-term orientation
 US: Short-term. Most Americans are not pragmatic because of their culture,
although this should not be confused with the fact that Americans are exceedingly
practical, as evidenced by the aforementioned "can do" attitude.
 France: long-term. In societies with a pragmatic orientation, people believe that
truth depends very much on the situation, context, and time. They show an ability
to adapt traditions easily to changed conditions, a strong propensity to save and
invest, thriftiness, and perseverance in achieving results.
=> In the US, they are aware that the external environment may evolve quickly; hence
they should be agile enough to deal with the changes to achieve a competitive advantage.
=> In France, traditions are respected and that old-age is seen as an unhappy time.
Moreover, leisure time is important and there is a tendency to spend money.
 Indulgence vs. Restraint
 US: The United States is known to be an indulgent society, as displayed by its
scores for this dimension. The nation is known for its “work hard and play hard”
approach. Individuals living in this society believe in going after their goals in an
aggressive manner, but also spend time relaxing and indulging in leisure activities
 France: France scores somewhat in the middle (48) when it concerns Indulgence
versus Restraint. This, in combination with a high score on Uncertainty
Avoidance, implies that the French are less relaxed and enjoy life less often than is
commonly assumed. Indeed, France scores not all that high on the happiness
indices.
=> Therefore, in the US, people might tend to go to the amusement park more than the
French. Disneyland enhances this feeling; “My business is making people, especially
children, happy”.
=> In France, The French do not attach too much importance to the need for
entertainment. Like the Pragmatism index above, the French are very practical, so they
will value more practical needs such as eating, living, and dressing. So they will often
spend more on food products or services, fashion, furniture, or serving their work.
Comment on the groups’ answer: All four groups gave the same answers as we
suggested. This is a question that emphasizes theory and is not critical, so the answers of
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the groups are the same and there is no difference. For the purposes of the question, we
need everyone to learn about the cultural differences between the US and France so that
everyone can understand where the problems that EuroDisney faced come from and why
there are cultural conflicts. The 6 dimensions in the theory also fully show the differences
in behavior, spending trends as well as the psychology of American and French
consumers. From here, everyone was able to shape the reasons for Disney's mistakes and
suggest suitable strategies for the last discussion question.
3.3. Discussion Question 3
Question 3: Why did success in Tokyo predispose Disney management to be too
optimistic in their expectations of success in France and In China?
Based on the answers of the groups, the general reason is that the Japanese people had a
predefined love for Disney Characters and were thrilled to have the American experience
brought into their territory. After this highly positive response, Disney made a broad
assumption that these responses would translate to societies across the world. However,
they failed to consider possible factors that could arise.
Some groups give the more specific reason that Japan has the weather and nature of the
city of Tokyo (the location of Disneyland Japan) more closely resemble Paris and the
culture of Europe is more open, welcoming, and accepting than Asian culture so this
makes Disney subjective is reasonable. To better explain the answers of the groups, we
see that Japan is a country with a deep-root and diverse culture, but they are also
considered a demanding market in Asia, plus Japan used to have many wars with the US.
Combining all this together, Japan is an extremely challenging market, but the success of
Disneyland Tokyo is like a miracle, exceeding expectations, the Japanese are very fond
of cartoon characters and even enthusiastically embraced American culture. A
challenging market like Japan was still successful, so Disney immediately applied that
model directly without any adaptation in Paris, without spending money and effort to
study the culture, and tastes of the French consumers or making some adaptation
strategies. It is obvious here, that cultures are very sensitive to external influences and the
way in which one goes about business needs to be done both intelligently and
strategically to ensure the best result. This result in unnecessary mistakes.
About the case in Hong Kong, every group also gave the same reason that the
characteristics of Chinese culture are very similar to those of Japan because these two
countries traded a lot in the past and also fought and dominated each other so the culture
between the two countries influence each other and have similarities. To be more
specific, Disneyland's mistake in Paris gave Disney lessons about the impact of culture.
So this time Disney in Hong Kong do research and studied Chinese culture and made
strategic adaptations. Although they brought local norms into this location in an attempt

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to please the Chinese, they failed to look into the details and continue on with relevant
marketing concepts. What they failed to realize is that all cultures are diverse and respond
to things in a different manner due to the environments they live in. That is why they still
made mistakes in Disneyland Hong Kong.

3.4. Discussion question 4:

Question 4: From the time the Covid-19 epidemic took place to the present time,
more or less, every aspect of people's lives around the world has been affected,
including their entertainment needs. Understanding this situation, suppose the Walt
Disney Company wants to open the 7th Disneyland. Which location will you choose
(which city, in which country), who are the target customers, the strategy to increase
the occupancy rate of the hotels, and how to adapt to that local culture,... All the
strategies you can think of to make the new Disneyland work at its best.
Đây là câu hỏi nhấn mạnh sự thảo luận và mang tính chất phản biện nên cả 4 nhóm đều
cho ý kiến khác nhau.
Group 1: Đà Nẵng city in Việt Nam.
Reasons for choosing: Đà Nẵng is one of the most attractive tourist destinations in
Vietnam, not only has a modern commercial center but Da Nang is also surrounded by
many beautiful natural landscapes, with many clean and attractive beaches. The number
of tourists from Asian countries to Da Nang is increasing sharply. Especially Korean and
Thai tourists.
Strategies for Disneyland VietNam: Build parks, especially hotel areas near beautiful
beaches, safe waves for bathing, and provide free bus routes in and out of the city center.
The park has characters and staff decorated and dressed in Vietnamese tradition, the main
colors are red and yellow.
Comments on Group 1's answer: The group's reason for choosing Da Nang is quite
reasonable, the number of tourists in Da Nang is increasingly dominant and most of them
are Asian. This is a benefit because Vietnam's culture has many similarities with many
Asian countries, so it will be quite appropriate. Da Nang is also one of the developing
commercial centers and has many beautiful landscapes. As a city born to serve the
entertainment, choosing a location in Da Nang is reasonable.
Group 2: Bangkok Capital in Thai Lan
Target Audience: Children, Teenagers (3-24 years old)

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Reasons for choosing: The capital, Bangkok, is the most visited tourist destination in
Thailand, and it is also home to a tighter security system than any other city in Thailand
because Thailand is a country prone to riots. With the bustle of shopping centers,
attractions, and tight security, this is the right location for Disneyland.
This group hadn’t planned the strategy.
Comments on Group 2's answer: Bangkok is also a good choice, but according to
research, Thailand has a high rate of corruption. And although Bangkok is the best
security place as mentioned by the group, operational safety is paramount in theme parks.
The average Somchai doesn't get the importance of this.
Group 3: Phu Quoc island – Viet Nam
Reasons for choosing: Due to the fact that it has an international airport, it would be easy
for customers to travel there. And Vietnamese people have a tendency to use foreign
products and services.
Strategies for Disneyland Da Nang: Disney should open a midnight parade. Additionally,
Disney could connect with the current hotels and resorts in Phu Quoc.
Comments on Group 3's answer: Phu Quoc is also an equally good choice compared to
Da Nang thanks to its beautiful beaches and plenty of available areas. But if built in Phu
Quoc, Disneyland needs to compete with Vinwonders, a theme park that is equally
attractive. And Disneyland in Phu Quoc will only receive guests on holidays or
depending on weather conditions, seasonality, but cannot be filled all year round because
the financial conditions of people living on the island will not be suitable for tickets.
Enter Disney's Gate.
Group 4: Korea
Reasons for choosing: Korea is a country with many resources, great potential for
exploitation, and is a famous tourist destination in Asia.
Strategies for Disneyland Korea: Hire a Kpop idol as a representative to promote the
image of the park, and build a separate area to hold a music concert.
Comments on Group 4's answer: Korea is a developed and attractive country in all
aspects thanks to the Hallyu wave. Koreans love amusement parks very much. At all
ages, people consider amusement parks as an indispensable part of their lives. They often
spend short vacations with friends and family. The theme parks at Disneyland are easy to
welcome guests because in Korea there are many public holidays and people usually go
out on these days. However, there are still challenges in this market, typically because
Koreans love amusement parks so much, the number of parks in Korea is like the number

22
of weeds that sprang up over a rainy night. The most famous and biggest of all is The
Lotte world located in Seoul, this theme park is a strong competitor for Disneyland.
 Based on the reasons given by the groups for choosing Disney locations, our team
will propose some strategies to help their Disneyland run well:
- Look into the GDP and the overall desire for entertainment mediums within
varying regions around the world and try to pinpoint areas that match the overall
mission and intentions of Disney.
- Compare the local attractions of each of these locations and see the methods and
trends that they have implemented within their model in order to maintain success
in their particular culture.
- Look into the ease of access, transportation mediums, weather conditions, laws
and regulations, war conditions, etc. in order to eliminate major barriers.
- Paying special attention to cultural norms, methods of transportation, desires, pre-
knowledge of the Disney brand, languages, religions, response to marketing,
weather conditions, etc. is extremely important.
- Paying attention to overall culture, local heroes, competition already present
within the area, and laws and government regulations are also a few other
examples of details to be aware of in order to ensure the success of their expansion
in this particular region.

CONCLUSION
Based on the groups' responses, it was found that most of the groups understood the
important lesson from the Disneyland case study in Paris and Hong Kong. Those are the
serious mistakes to be faced when underestimating the influence of culture on business
practices. From those lessons and experiences, every group was able to apply the theory
as well as come up with appropriate solutions to the problem discussed.

APPENDIX
Groups’ answers for question 1:
https://padlet.com/kimtran31201020435/399d5adqbcg6h5t0
Groups’ answers for question 2:
https://padlet.com/kimtran31201020435/hhf8s2mopkfidcpd
Groups’ answers for question 3:

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https://padlet.com/kimtran31201020435/54vw4vj5kgtngqx6
Groups’ answers for question 4:
https://padlet.com/kimtran31201020435/qb183shaee1vmjsi

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