This paper will look into the benefits of international market research for a global company like The Walt Disney Company when expanding to foreign markets on the example of the financial disaster of Disneyland Paris.
After an introduction to international market research and the Walt Disney Company, secondary market data of Disneyland California and Paris will be compared. From the data a conclusion will be drawn, if a global company like the Walt Disney Company can operate with only one market concept or if international market research and a small adaptation of the concept to the foreign market has any significant benefits in terms of market success.
Nowadays, the Walt Disney Company is known all over the world. It has set up different businesses in over 40 countries, including six Disneyland resorts. When Walter Elias Disney created the plan for the first Disneyland , the Disneyland Resort in California, he had a vision of a constantly growing and changing amusement park full of imagination.
After Walter Elias' death and the financial success of the first Disneyland in California, the Walt Disney Company tried to continue to fulfill his vision. They created new Disneyland’s in Florida, Tokyo, France, Hongkong and Shanghai. All of the amusement parks generated huge profits for the Walt Disney Company except Disneyland Paris, which makes losses of nearly €2 billion. As the Disneyland concept worked in California, Florida and Tokyo, the Walt Disney Company did not consider it as necessary to do profound market research before opening Disneyland Paris.
Table of Contents
1. Introduction
2. Introduction to International Market Research
3. Background Information on Disneyland
3.1. The Walt Disney Company
3.2. Disneyland Concept for Resorts World-Wide
3.3. Development of Disneyland Pairs
3.4. Challenges of Disneyland Paris
4. Secondary Data Market Research
3.1. Disneyland California
3.2. Disneyland Paris
5. Conclusion
6. Literature
6.1 Figures
6.2 Online
6.3 Print
Objectives & Research Topics
The paper examines the critical importance of international market research for global companies expanding into foreign markets, using the financial performance of Disneyland Paris as a primary case study. It aims to determine whether a standardized global business concept is sufficient or if market-specific adaptations based on local research are essential for ensuring commercial success and avoiding failure.
- The theoretical foundations and definition of international market research.
- A comparative analysis of Disneyland California and Disneyland Paris.
- Identification of internal and external factors contributing to the financial challenges in Paris.
- The impact of cultural differences, consumer preferences, and local labor regulations on business outcomes.
Excerpt from the Book
3.4. Challenges of Disneyland Paris
Throughout the years Disneyland Paris had to and still must deal with several internal and external challenges.
External challenges include strikes and protests, air France strike, gas shortage, the weather conditions for example the floods in Paris, (terror) attacks and the resulting state of emergency for several years. Due to this uncertainty’s visitor numbers declined.
Internal factors include the name Disneyland Euro, the American team model, the strict dress policy violated the French labour law, missing the consumers taste and the miscalculated length of stay, as well as the spending per day.
Whereas the external problems can hardly be influenced, the internal can. They will be analysed in more detail later in the paper.
As a result of the internal and external challenges, Disneyland Paris faced huge financial problems. The decrease in visitors over the years, the sales collapse through rising investments and a decrease in revenue increased the debts to €1.9 billion by 2012.
Summary of Chapters
1. Introduction: Presents the background of the Walt Disney Company and outlines the research objective regarding the necessity of market research for global expansion.
2. Introduction to International Market Research: Defines the core concepts of market research and highlights its strategic importance in minimizing risks and improving decision-making for international ventures.
3. Background Information on Disneyland: Provides a historical overview of the company, its expansion philosophy, and specific contextual details regarding the European market entry.
4. Secondary Data Market Research: Compares the successful development of Disneyland California with the struggling operations in Paris, focusing on demographic, cultural, and operational variables.
5. Conclusion: Synthesizes the findings, emphasizing that profound market research and concept adaptation are crucial for mitigating financial risks in international business.
6. Literature: Lists the figures, online resources, and print sources utilized for the analysis.
Keywords
International Market Research, The Walt Disney Company, Disneyland Paris, Disneyland California, Global Expansion, Market Strategy, Cultural Differences, Consumer Taste, Financial Performance, Risk Mitigation, Business Success, Theme Parks, Secondary Data, Economic Analysis, Market Adaptation
Frequently Asked Questions
What is the core focus of this publication?
The paper focuses on the vital role of international market research when global companies expand into new foreign territories, illustrated by the specific case of Disneyland Paris.
What are the primary themes discussed?
The main themes include organizational history, international expansion strategies, comparative market analysis, and the identification of barriers such as cultural nuances and labor laws.
What is the main objective of this study?
The primary goal is to evaluate if a one-size-fits-all business model is effective or if tailored market research and local adaptation are required to prevent significant financial losses.
Which research methodology does the author use?
The author employs a comparative analysis using secondary data, contrasting successful metrics from Disneyland California against the challenges faced by Disneyland Paris.
What topics are covered in the main body?
The body covers the definition of market research, the corporate background of Disney, a detailed comparison of Disneyland parks, and an analysis of external and internal challenges impacting profitability.
Which keywords best characterize this work?
Key terms include International Market Research, Global Expansion, Market Adaptation, Risk Mitigation, and Corporate Strategy.
Why did Disneyland Paris initially face such high financial debts?
The park faced debts due to a combination of external factors like natural events and internal failures, such as misjudging consumer tastes, cultural conflicts, and neglecting local preferences for food and pricing.
How does the weather in France impact the business model compared to California?
The research notes that France's colder seasonal temperatures were not adequately considered during the planning phase, leading to unexpected fluctuations in visitor numbers compared to the stable year-round climate of California.
- Arbeit zitieren
- Anonym (Autor:in), 2019, The Benefits of International Market Research. Introducing Disneyland to New Markets., München, GRIN Verlag, https://www.grin.com/document/1023054
