Reasons for Disney's failure in Europe

The operation of Disneyland is very successful. But Disney failed in Europe. Then, let me tell you why Disney failed in Europe!

Why Disney failed in Europe. cultural difference

Enterprises operating internationally in different geographical and cultural backgrounds will inevitably face frictions and impacts from different cultures due to their different ways of thinking and behavior. The objective existence of cultural differences greatly affects the management strategies of multinational enterprises.

The French reject American culture. Although Disney is determined to build a European Disney, it ignores the tendency of the French to reject American culture. Historically, China people have a strong sense of national pride, lofty personality, strong self-esteem and low acceptance of American products. They think Euro Disney is a kind of cultural imperialism. They are afraid that culture will have a great impact or even replace their culture, and they will be psychologically excluded, so that when the park is open, French left-wing demonstrators use eggs, ketchup and words? Mickey Mouse's slogan "Go home" has returned to Americans from afar. Some intellectuals even regard the newly born Mickey Mouse and Mickey Mouse Company as the pollution of European culture, and they call the park an abominable American culture. The mainstream media also oppose parks, and they gloat over every failure of Disney.

(2) Choice of working language At the beginning, the working language of the park was English, but the French always thought that French was the most beautiful language in the world, the language of the upper class, and English was the language of the lower class. Therefore, it is required to use English in the park, which not only leads to difficulties in communication between employees and tourists, but also causes dissatisfaction between employees and tourists. French was added later.

(3) The establishment of catering facilities The income of European Disney in catering is much lower than that of other Disney parks, which is mainly due to the mistaken belief that Europeans generally do not pay attention to breakfast; In addition, alcohol and alcoholic beverages are not provided in the park. In fact, most Europeans pursue a reasonable and rich breakfast, and the lack of restaurants and expensive fast food in parks limit the market demand in this part. French people have the habit of drinking and eating, which is considered a necessity in daily life in Europe. The rule that alcohol is not allowed in the park has caused dissatisfaction among Europeans.

Other European Disney tourists are affected by seasonality. Summer is the peak of children's holiday, and no holiday is the low peak. They like long holidays and don't want to take their children out all the time. In addition, because there is only one parking lot in Euro Disney, the lack of parking spaces makes European tourists' tour time arranged in a hurry, which is not enough to cope with group tours.

Disney kept its distance from France when it was ready to buy 4,400 acres of farmland from the French government. Farmers who have lived in that farmland for generations are reluctant to leave their homes, while Disney thinks that buying land is as simple and easy as the United States, ignoring the French attachment to land. Through a large number of media reports, Disney appeared in front of the French as an aggressor. In the negotiation of establishing Disneyland, the French negotiation style was ignored. The United States appointed lawyers to participate in the negotiations instead of managers. In French culture, lawyers are the last resort in business activities. If lawyers are in charge of negotiations, it means that they don't trust each other, which will naturally make the French have a bad impression on Disney.

Disney has another demand that has not been considered, and that is the demand of tour bus drivers. The lounge built for drivers can only accommodate 50 drivers, but 2000 drivers need to rest during the peak hours every day. No wonder some people say sarcastically that Disneyland has stepped on the toes of Europeans, from impatient drivers to complaining bankers.

From the early failure of Euro Disney, it can be clearly seen that cultural factors play a huge role in the process of overseas expansion of enterprises, lack of cross-cultural awareness will affect the success or failure of enterprise management, and cultural differences have an inestimable impact on the success or failure of multinational companies.

Reasons for Disney's failure in Europe II. Economically.

(1) The opening of the park soon coincided with the severe economic recession in Europe, which led to a change in the consumption concept of Europeans. Make conservative Europeans more frugal. The economic depression has affected the number of tourists and people's consumption behavior to a considerable extent.

(2) Implementing high-priced pricing strategy Disney initially priced park tickets and hotels in order to achieve revenue targets, and assumed that any price was acceptable, because there was no second Disney in Europe, and the monopoly position of parks was conducive to the implementation of high-priced strategy. Adult admission to the park is $42.25! ! ! It is higher than the park entrance fee of $30 in the United States. The Disney Hotel at the gate of the park costs $340, which is equivalent to the price of the most upscale hotel in Paris. Smart European tourists are unwilling to spend more time and money on Disney's expensive goods and services. In the end, a large number of thrifty European tourists failed to meet Disney's revenue and profit targets, and failed to make up for their ever-expanding management expenses. From this point of view, when customers are unable or unwilling to pay higher prices, but can consume the same goods and services at lower prices, this strategy is a failure.

Why Disney failed in Europe. Legal factors

Disney Company ignores the relevant labor laws and regulations in France, which is the main reason why the labor cost of European Disney is much higher than that of American Disney. French and American labor laws are different. In the United States, due to the seasonality of Disney Park, managers adopt weekly working system and annual working system to arrange employees, which makes the allocation and management of personnel highly flexible, meets the needs of tourists during peak hours and conforms to economic principles. However, the French labor law does not allow employers to have this flexibility. Disney thinks Monday is easier and Friday is busier, so it arranges employees accordingly, but the situation is just the opposite. They also found that tourists have peak periods and low periods, and the number of people in peak periods is ten times that in low periods. Reducing employee demand during the low peak period violates the French regulations on inflexible working hours.

Disney Company requires employees to keep the style of European Disneyland, stipulating that men's hair must be trimmed above the collar and ears, no beards and tattoos, and women must keep their hair? Natural color! ! ! No coloring, no dyeing, moderate makeup, nails no longer than fingertips, translucent pantyhose, and black fancy. This led the French government labor inspector to formally protest to Disney, saying that French law prohibits employers from restricting individual and collective freedom.

Why Disney failed in Europe. Competitive factors

(1) Competition from American Disney Due to the strength of the franc and the weakness of the US dollar, European tourists think that the cost of traveling to the United States is not very expensive; In addition, Orlando's pleasant climate and pure American Disney are more attractive to European tourists. Therefore, American Disneyland has become a competitor of European Disneyland.