Disney's Four Theme Parks

All four parks are easily reached from highly populated

areas within high-income countries, The Japanese and

French locations are less suitable for year-long, outside

activities than are the locations in the United States.

The negotiations resulted in Disney's agreement to own at least f 6.7 percent, but not more than 49.9 percent, of Euro Disney, which in­cluded satellite investments around the park for hotels, shopping centers, campgrounds, and other facilities. The total investment by 1992 has been estimated at between 2.4 and 3.0 billion U.S. dollars. Disney opted for a 49 percent stake. Disney's confidence was due in part to the fact that 2.5 million Europeans visited the U.S. parks in 1990. Remaining shares were sold through an international syndicate of banks and securities dealers, with 50 percent going to investors in France, 25 percent in Britain, and the remainder elsewhere in Europe.

If Disney had opted for a Spanish location, the park would have been much more like the ones in the United States, where visitors are outside for almost all amusements. But Disney had learned from the Tokyo experience that colder weather does not necessarily impede attendance. Nevertheless, the colder climate in the Paris area requires more indoor shows, strategically located fireplaces, and a glass dome over the teacup ride, protected waiting lines, and more focus on technology and historical themes. Because of French individualism, Disney has had to relax some of its U.S. grooming codes and has admitted that it may have to alter its no-alcohol policy for this park.

In spite of the economic benefits that the park is expected to bring, many people in France have feared that the park is just one more step toward the replacement of the French culture with that of the United States. A best-selling book denounced the French governmental concessions. Critics have called Euro Disneyland "a cultural Chernobyl"; Disney's chairman was pelted by eggs in Paris; and one magazine, le Nouvel Observateur, showed a giant Mickey Mouse stepping on the rooftops of Parisian buildings. Yet, the late actor Yves Montand summed up the feelings of young French when he said, "T-shirts, jeans, hamburgers—nobody imposes these things on us. We like them." Walt Disney Productions sought to head off criticism by explaining in the French press that Disney was of French descent, with an original name of D'Isigny rather than Disney. Disney also agreed to make French the first language in the park, although relying heavily on visual symbols. Disney has built an attraction, Discovery land, based on the science fiction of France's Jules Verne, and a movie theater featuring European history. The park is also emphasizing that Pinocchio was Italian, Cinderella was French, and Peter Pan flew in London. But the "cultural invasion" is not entirely one way. In 1990 Disney announced plans for a large-scale shopping center adjacent to Walt Disney World to be anchored by Japa­nese and European department stores.

Disney's success in Japan and expansion into France has not gone unnoticed by competitors. By 1990 theme parks were either under way or in planning stages all over Japan and Europe. Japanese parks include Space World, Sesame Place, and Santa Land. Among the many European parks are Busch Gardens and Universal Studios. This competitive expansion has raised questions about the future success of Disney's foreign theme parks, especially the one in France. The head of MCA's recreational group, the parent of Universal Studios, said, "We're going to kick Disney's butt all over Europe."

Questions

1. What do you think motivated Disney to set up parks abroad, and what might be the pros and cons from the standpoint of the Walt Disney Corporation?

2. Why do you suppose Disney decided to take no ownership in the Japanese operation and then a maximum allowed ownership in France?

3. Other than the points mentioned in the case, what other operating adjustments might be necessary to ensure success of the foreign operations?

4. In response to a question about the possibility of opening a Disneyland in Russia, Roy E. Disney, vice chairman of the Walt Disney Corporation, indicated that the company was not in a position to create a park there in the near future. What might be the pros and cons of constructing a park in the former Soviet Union? Might Disney set up other parks abroad elsewhere? If so, where? What types of operating forms should Disney consider?

5. What might Disney do to face its competitive threats abroad?

New words

agreement - договор

average - средний

expenditure – расход, трата

attendance - посещение

success - успех

to provide - обеспечить

to narrow - сужать

break-even point – точка самоокупаемости

to extend - длиться

cheap price – дешевая цена

availability - пригодность

facilities - помещения

amusements - развлечения

competitive - конкурентный

expansion - расширение

Дата добавления: 2014-11-29