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1. Introduction Disney is very successful with its three basic value: quality, imagination and guest service.

American Consciousness is the spirit of Disney core business. Within each Disney Park, themes were chosen to appeal to a wide variety of interests and tastes. Adventurous and roller coaster rides are symbols of American consciousness. Spectacular firms and shows of fantasy story stimulate the audience imagination. American's Past are culture heritage which is distinct competence of Disney in the Cartoon Movie and Theme Park design. Japan Disney is a remarkable success of Walt Disney in international market. The marketing opportunity in Europe is no doubt a great chance for Disney market development since its population size, per capita spending and vacation period are favorable than United States. Research from Paris citizen further supported the set up of Theme Park in Paris as over 85% of the population agreed the plan. The market plan of Disney, which is based on ADL Research in the area of operating assumption for revenue, per capita spending for pricing and distance penetration for individual target market, are financial feasible. French government support with tax incentive and new infrastructure built for easy access to the Complex made the Euro Disney a marvelous market plan . It is the cultural factor European preference overvalued by Walt Disney's management in the park design and service delivery that made the brand identity of American consciousness almost disappeared in the park design. On the other hand, the impact of poor staff relationship with the staff was underestimated that the guest service, which is core competence of Disney in exceeding customer expectation, was criticized by visitors. In fact, Disney's success is derived from it goes deep into the American consciousness by selling myth and fantasy. The success of Japan Disney is the real service extension of Disney home market with its quality, imagination and guest service. They are totally copying the America way with the successful service delivery system transferred to Japan. For Hong Kong Disneyland, top management of Disney are required to consider the cultural impact in the service delivery system to avoid the Euro Disney failure happened again.

2. Evaluation of Disney entry decision in Europe In examining the entry decision in Europe, we may use the Exhibit 1 as laid out in the Global Marketing Management Exhibit 9.1 to illustrate the steps how Disney decide his market plan and development in the global market. Market opportunity The market opportunity aboard for Disney land is no doubt a choice between the countries for its Complex extension. The Disney home market became mature since the Theme Park was first launched in 1955, it is a right decision to develop its market overseas. Disney movie is a symbol of American culture and it is accepted worldwide with its myths and fantasy idea. Peter Pan. Snow White and Cinderella are well known Cartoon characters to the children without country borderline. The potential of Europe market in terms of population size, per capita spending and leisure are similar with United States. The Disney company's optimistic of European market was the access to the site by the European population and which exceeded that of the United States by 150 million in roughly one-half of the land mass. Home market. The preliminary screening of the potential target country market by ADL Research for the population segmentation initial the right target market for Disney positioning strategy. The mode of entry is crucial for Disney Land in the long-term investment in the host country. The joint venture with the local government and the political stability grantee the return and the recoverability of the revenue. Preliminary screening - Target country market The STEP analysis of Europe and Japan may be a good insight of Euro Disney and the positioning strategy of Europe market. STEP analysis of Japan Disney strengthen Disney's Europe market decision: Appetite for American styled popular entertainment - Appeal for Disney's brand of entertainment even there is difference between the Disney approach and the Japanese way of life. The fact that popular of Disney approach in Japan persuade Disney management to launch Euro Disney where the cultural difference is apparent. Per capita spending is high in Japan as there was a trend in Japan towards leisure. In Europe, the leisure is a lifestyle and it is unique in the European vacation practice.

2. Evaluation of Disney entry decision in Europe Political stability of Japan and Europe is important for Disney as the Theme Park would be a long-term project with substantial investment. The risk of exchange impact would be higher in a unstable country when the mode of entry is joint venture with local investor and government. ECU a single Europe market in 1992 was a guarantee not only safeguarded the political risk but it also facilitated the free access within the Europe under the ECU agreement. Decision criteria for mode of entry In evaluating the decision to build the theme Park in Euro, the mode of entry is also important for Disney. The decision criteria will influence the choice of entry mode in terms of External criteria of market size and Growth, Risk, Government regulation, competitive environment and local infrastructure ; Internal criteria of company objective, need for control, internal resources, assets and capability and flexibility. The population of Europe is huge and greater than in United States. The vacation practice is one the external criteria for building theme park where the visitors could easy access around the Complex. French Government built a new railway for Disney land in transporting the tourists to the Park. Since the control of delivery service system is the key factor of Disney success in Europe, therefore the probability of the system successfully transferred is the primary concern. It is found that the failure of Euro Disney is the reason that the quality service could not be effectively delivered to the visitor by the cast members. The joint venture with European investor and agreement with French government has proven a good investment decision for the long term project as the participation of government and European guarantee the recoverability of the revenue. However, it is inflexible for the exit of Disney when the visitors is fall short of the forecast number.

3. Segmentation, targeting market and positioning The socioeconomic factors are the bases for Disney in determine the market segmentation. The vacation practice of European is five week for every year and Paris are the popular destination of the tourists as 50 million visitors came to Pairs and spent $21 billion per annum. Consumption patterns for many goods and service is largely driven by the consumer wealth or the country's level of economic development in general. The effective market segmentation has to be sizable and large enough to be worth going. Europe is an alternative market of United States as many products coming from United States are part of the international marketing strategy of US company. Market segmentation According to the ADL Research, European enjoyed their vacation and the period of vacation per annum in Europe was five weeks. It was greater than the three weeks vacation in United States. European selected Paris as vacation destination and spending an estimated $21 billion from the 50 million tourists therefore they were used as the basis of the market segmentation and the distance from the site in Paris were subdivided into different group in assessing the individual target market. Target Market and Disney's Positioning strategy As the Research Disney conducted on European travel to the United States showed that the three things tourists were most interested in seeing were New York, Disneyland, and the Western United States, the Complex that Disney built in France was the most "Western American" of all of Disney's Parks. However, the initial idea of Disney is not based on the "American Consciousness". Rather, the design was to accommodate the preferences of European guests and certain French cultural requirements. The target market of Disney in Europe was past visitors of United States Disneyland from Europe and the design of theme park was focus into attracting these visitors to come back again and "experience" the Disney again. Market research was used to set the tone of the resort. The service adaptation of Disney Park design for cultural requirement, involving park design, grooming standards for employees, and eating habits, were expressed by vocal French intellectuals, French government officials and local press. Subsequent to concerns raised by the French government, Disney assured that French would be the first language of the park while most signs would be bilingual as would be the park's employees.

4. Development and organization of the park - American hardware design and European preference combination The implication of this target market has reflected in the design of the park where Disney attempted to imbue the park with a European flavor. The combination of American design with European preference destroyed the American Spirit of the theme Park. In Fantasyland, it was stressed that Disney characters had their roots in European mythology. The Peter Pan attraction featured Edwardian-style architecture, snow White had her home in a Bavarian Village. Adventure land would invoke the imagination of famous European adventure tales such as Sinbad the Sailor, Arabian Nights and the Thief of Baghdad. Disney concerned the toleration of French visitors of long waiting lines and planned films and other entertainment diversions for guests in line for a ride. The other issue was the eating habits between American and European. In anticipation of concerns about food, Euro Disney featured foods from around the world at its many theme restaurants and snack bars. This was in contrast to the strictly American flavor of Tokyo Disneyland. The human size of the Park is the core competence of Disney and the organization of the Park is built with the guest service and quality of the service stemmed from the service system delivered to the customer by cast members. The biggest challenge for Disney was preparing operationally to provide Disney's standard of customer service transferable of service system to Europe. The indoctrination of all employees in the Disney service philosophy is the critical factor for Disney to deliver the service system effectively to the visitor i.e. guest service and quality of service. The comment from visitors that the park did not meet the U.S. Standard, suffering from poor service and operational glitches had proved the European preference and service adaptation is a wrong decision.

5. US and Japan Disney formula transferable to Europe It is the three basic Disney value of quality, imagination and guest service which are the element of traditional Disney theme park success formula. An extensive orientation program was the first step for both individual cast members and the company's quality assurance efforts. The Disney University provided the training and modeled the attitudes required to re-create the desired level of service in the Park. At Disney theme parks, standard of service, park design and operating details, and human resource policies and practices were integrated to ensure that the Disney "play" would be flawlessly performed day in and day out at each location. To exceed its customer expectation every day is the Disney's stated goal and we could find it in U.S. and Japan Disney. Visitors complained of the workers were simply not aiming to please and cast members were acting like real people instead of 'Disney' people. Consistent with Disney's entertainment concept, employees were called "cast members". They wore "costumes," not uniforms, and were "cast in a role". These entertainment concepts, however, was not appeared in Euro Disney. The Disney service, in fact, could be transferred to Europe as it did in Japan Disney even there is a cultural difference. Following the success elements of Japanese culture in obeying their bosses and being part of a team, Euro Disney could recruit staff from those European countries where the collectivism is high or carry out character test for new recruitment.. Therefore, the efficiency and politeness of staff members in Japan Disney could be transferred to Euro Disney. The "American Consciousness" is the core success of Disney theme Park. It is proven that the American way was the primary reason of Japan Disney so success even there was a completely different between the Japan's lifestyle with the Disney culture. In Euro Disney, American visitor complaint the Park was a kind of strange feel whether it is going to be an American park, a French park or a European park. The difficulties in accommodating the cultural diversity of the complex were also noted by the press - the issue "Can an American theme park in Europe please all ages and nationalities?" The fact that the cultural difference is the selling point of Disney service as it did successfully in Japan and United States where different countries people visited the Park again. The transfer of American entertainment culture is a key success factor for Euro Disney to consider its development path in the phase II of the theme park.

6. Disney's service delivery system We could use Enterprise Resources Planing (ERP) model to analysis Disney management. The Customer Relationship Management (CRM) for top priority of customer concern is explicitly stated in Disney's stated goal to exceed the customer expectations. The standards of service, park design and operating details, and human resource policies and practices were integrated to ensure that the Disney "play" would be continually performed in each location are the Supply Chain Management (SCM) concept and the service delivery system is the infrastructure of this model. The focal point of the service delivery system was "Disney University", the company's in-house personnel development organization with units specific to each site. It is similar to the total quality control system of Japan. Quality of service and its delivery to the customers are their primary concern and teamwork is the spirit of Disney service. In Euro Disney, the teamwork and total quality control system could not be implemented due to the cultural factor of individualism. Disney University modeled the "attitudes" required to re-create the desired level of service in the Park. To achieve the desired level of service, an extensive orientation program for both individual playing different roles and cast members and the company's quality assurance efforts is the first step to indoctrinate the Disney's service philosophy to the staff. Aiming to exceed customer expectation, happiness and customer perceptions are the "attitude" training target while employees had wide latitude to "act as a company" are the means of Disney service to achieve the target of customer concern. However, the "Attitude" training was not success in France because French is tended to enjoy entertainment which was more intellectual in nature and the cast member's attitude of entertainment concept could not be easily changed in the servicing of guest - they are aiming to please. The integration of the service delivery and the attitude of the cast members is the key factors for Disney's service delivery system. However, the attitude of the cast member of Euro Disney could not integrated with the service delivery to the visitors. The staff relationship was poor due to the management did not fulfill the Disney's Service philosophy to cater for their employees like their guest.

6. Disney's service delivery system The housing shortage was a shortfall of the Disney as there are 670,000 sq. meters office space (Exhibit 5 of the assignment) from the agricultural Marne-La-Vallee. The extra charge of adding rooms for the staff was opposite to Disney's philosophy of entertainment concepts - the fixing customer problems was given top priority. Disney's management could dissolve the accommodation problem by building sufficient apartments to the staff without charging rent. It would be very useful step to persuade the cast member in changing the attitude of grooming requirements in the guest service. Moreover, the creation of friendly climate for the communication and concerning the staff social need are the basic element of a customer relationship management e.g. social gathering function in European culture. In fact, Disney's management could understand and know more about the culture for its long term planning of the theme park design from the staff experience. It is advantage for the Enterprise Resource Planning and strengthens its customer relationship management that is acquiring new customer in Europe, enhancing the profitability of existing customers to come back Euro Disney again or previous visitors to US Disneyland, and retaining profitable customers for life.

7. Recommendation of proceeding the second theme park According to the model of Disney entry decision process from Exhibit 1, we find the Disney market plan seems not appropriate with resources and objectives. The service delivery system could not train cast members to provide the guest service and achieve the quality standard that is the objective of Disney's management. The overall performance was much below the expectation with the lower profit derived is the main reason why we recommend not proceeding the second theme park at this moment unless a new marketing plan for correcting the current management issue could be found. The management issue of Disney's management before proceeding the Phase II project are namely: How to get the service system up to the standards and cost levels of the other Disney Parks. Such issue as waiting lines, consistent cast member courtesy and employee turnover; What is the marketing plan of the park to achieve winter attendance targets in the light of the visibility of Disney's critics in France. Whether the adaptation of the Disney entertainment concept could apply to Phase II and improve its chances for success. The customer relationship management system of Euro Disney is the critical factor for the operation of Phase I in Winter season and the Phase II theme park. The waiting line impact would be lessened when there is few visitors in Winter. The courtesy and turnover of employee could be corrected by inter-exchange of cast members between United Stated and Europe so that the local cast member has a chance to remodel their attitude. The build up of accommodation for local employee could solve the long term problem of the housing shortage and the cancellation of additional charge for rent would dissolve the bad feeling of the cast members. It may be an opportunity instead of a threat for Euro Disney to open a new park for the attract new customer as Northern part of Europe will have the vacation in the southern European countries like Italy, Spain and France. These visitors would be the target market for Disney to positioning with the advertising media. "Euro Disney" - A place for your Winter vacation with American venture. The American consciousness is the core competence and selling point to the European visitors.

7. Recommendation of proceeding the second theme park The adaptation of Park Design for European preference and culture had been not welcome by the visitors since the Fantasy and myths are symbols of American consciousness. The American movie is so popular in Europe and international market because of its unique American spirit, adventure and innovation. When European visitors come to Euro Disney only find the mixture of America and Europe design, they would create a bad image of Disney and comment every service of Euro Disney even there is only a operation glitches. Therefore, the traditional American style design of theme park, ride and attraction are what Euro Disney need to aware and basic service to exceed the customer expectation.


8. Conclusion and recommendation for Hong Kong Disney park The failure of Euro Disney in the first 100 days could be summarized as the poor marketing plan without a real consideration of the culture factors of the visitors and the cast members. They are the core persons in the customer relationship management of Disney 's service system. The overvaluation of the European preference with the culture in Park design was contradict with the customer relationship management concept of maintain the profit with existing customer while the park could not attract new customer. The effective delivery of service is relied on the cast members and the design of the guest service for the European. The resource spending, cost and timing are the relevant items in the Supply Chain Management. The flow is stemmed from the information feedback from the customer and Disney's management arranges and plans the resources and commits Disney's service philosophy of exceeding the customer expectation by taking customer concern to the top priority. The target market of Hong Kong Disney park is Greater China and people from Mainland China. The American way movies are very popular in Hong Kong and China as well. The innovation of the park design provide unexpected imagination to the visitors would be a distinct advantage of Hong Kong Disney Park as it did in United States and Japan. The cultural factor is the barrier of the service effectively deliver to the Chinese customer as language barrier but it may be a competitive advantage since the American consciousness and culture are what Chinese visitors want to compare. The entertainment climate likes crowded and happiness are the favor of the Chinese visitors of the Hong Kong Disney Park as it is part of the China culture. The lesson of staff relationship management from Euro Disney is valuable because the service delivery system is the key of the Disney basic value: quality, guest service and imagination. The housing for the employee and the training program would be the primary concern since the rent is high in Hong Kong and that the attitude to service of Hong Kong people is doubtful in compare with Japan. Good beginning is a 50% success of any plan in China wisdom, the high turnover rate of employee in Europe had a direct impact of the quality and guest service in the first 100 days. The supply chain management of service delivery to visitors is required to focus into the contingency plan of unexpected large number of visitors for the first few months as it always be the case in China and Hong Kong. The poor service the visitors received at the beginning of the Disney Park would be a disaster of Disney similar to Euro Disney case.


8. Conclusion and recommendation for Hong Kong Disney park The long waiting line and cleaning problem would be another issue of Hong Kong Disney park because Chinese visitors may not tolerate the long waiting line outside the park and it creates the cleaning problem if there is snack provided in the waiting queue. The eating habit of Hong Kong is various and people accept the fast food eating habit for long but the throwing of waste food habit would produce the bad image to the visitor and cleaning problem. The segmentation of European visitors according to the distance from the Park for individual target market would be a good method for planning the hotel accommodation and traffic facilities and infrastructure of the Disney Park. Visitor takes the plane from Mainland China usually five to six hours from Peking and Shanghai while East Asia countries would take four to five hours. These visitors will use the hotel facilities while the one day trip from southern part of China may be arranged for the noon time entrance. The final issue would be the training of the guest service as Hong Kong people are not willing to please the visitors from Mainland China. However, Hong Kong is a international city with good presentation in English communication. The "attitude" required to ecreate the desired level of service in the Park may be the difficult problem that Hong Kong Disney park has to handle carefully.