DisneyLand Paris Incorporating The Cultural Component in Corporate Branding

This article illustrates the importance of Marketing within Global Innovative and competitive companies. The main drivers of the change are identified, namely: the change of technology in the intertainment industry, the high level of competition in
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   1 DisneyLand Paris Incorporating The Cultural Component in Corporate Branding DisneyLand Paris is an international firm expansion of the Conglomerate Global Firm Walt Disney Company which is the world´s largest diversified mass media and entertainment company. The company is a market-oriented organization where innovative marketers contribute to maximizing shareholders value. The essence of the shareholder value approach is the long term sustainability of the organization through the creation of lasting value (Piercy, 2016). Maximising profitability is generally considered to be a short term approach whereas maximizing shareholders value requires long term thinking, the identification of changing opportunities and investment in the building of competitive advantages. Managers have now recognized that in order to achieve their commercial objectives they have to meet successfully the needs and expectations of their customers or to attend to the superior needs of the customers. The structure of this essay is as follows. 1. Historical Background to Walt Disney Company and its International Expansions 2. Establishing DisneyLand Paris 3. Analysis and Evaluation of Market-led Organisational Change (MLOC) 4. Justification of Key Drivers of Market-led Organisational Change 5.Leading and Managing Change in using models, tools and concepts such as the Market-driven Organisation 6.Recommendations and conclusions 7.Bibliography 8.Appendices 1 Historical Background to Walt Disney Company and its International Expansions Walt Disney Company faces some new challenges like other global companies facing changes to market segments and faster technological developments. Consumers are moving from   2 watching TV to streaming like content online via Youtube, Netfix, Hulu and other similar service. With the considerable loss of subscribers, ESPN (belonging to Walt Disney Company) lost 10.000 out of 100.000 subscribers in 2010. This fact has considerably reduced Disney´s operating income in its media networks segment, nearly half of the firm´s operating income in its media networks´segments. In addition to that, the company´s international expansion was in contrast with the increasing requirement to adapt content to local prevailing circumstances. For instance, in China politicians and business owners wanted to restrict Walt Disney´s westernizing influence. This resulted in the block placed on DisneyLife, Disney´s on demand content subscription end. Another challenge of concern is Investing in Creative Content through acquisitions of other novel media communications. Business Segments and Competition at Walt Disney World Company Business Segments There are four affairs segments at Walt Disney World Company. They are as follows: Media Networks, Park and Resorts, Studio Entertainment and Disney Consumer Products & Interactive Media. 1.1. Media Network It consists of cable network, broadcasting, radio business, srcinal programming, distribution and content management services. Revenues in this segment are from cable, satellite and telecommunications service providers and affiliate fees from other TV stations offering Disney programs. The cable network includes ESPN, the Disney Channels and Freeform. The majority of the firm revenues come from sales of advertisements and from affiliate fees. 1.2.Parks, Resorts, Experiencs and Products  The followings parks and resorts are integral parts of the Walt Disney World. They are: DisneyLand Resort, Walt DisneyWorld, Shanghai Disney Resort, DisneyLand Paris, Tokyo Disney Resort, Hong Kong DisneyLand, Disney Cruise Line, Disney Vacation Club, Adventures av Disney, Walt Disney Imagineering, AULANI Disney Resort & SPA and Disney Publishing Worldwide. This business segment is the Global Hub which brings Disney´s stories, characters and franchises to life through theme parks and resorts, cruise and vacation experiences and consumer products (This means everything from toys to apparels and from books to video games). It represents Disney´s second business segment with 31 % of the Company´s revenues in 2016. The company owns and operates Disneyland in California, Disney World in Florida, Aulani Disney Resort & Spa in Hawaii (Inandar et al., 2018). 1.3. Studios Entertainment     3 This affairs segment generated 9,441 million USD accounting for 17% of the revenues in 2016. It represents the oldest business segment in The Walt Disney Company. This segment produces and acquires live-action and animated movies. Musical recordings and Live Stage Plays are part of this category. The Disney Theatrical Group develops and licenses live entertainment events in Broadway and around the world. The activities which generate revenues are as follows: distribution of films to theatre, home entertainment, television markets, stage play tickets, distribution of music and intellectual property licensing. 1.4. Disney Consumer Products & Interactive Media This affairs´ segment deals with licensing Disney´s characters to third parties for use in consumer merchandises, public materials and in multi-platform games. This branch accounts for 10% of the revenues. The leadership of the Company has largely contributed to the successful development of Walt Disney Company. This Strategic Leadership carefully conceived by Walt Disney himself, Michael Eisner and Robert Iger represents the icon of the American Innovative Power. Walt Disney has continuously been adapting to changes in the media and entertainment industry to become one of the successful Global Company of its kind. Walt Disney started his first company in Kansas with the Kansas City Film. Afterwards, other expansions both in the United States and other continents took place (California, Orlando, Tokyo, China and Paris). This essay is particularly devoted to Walt Disney Company´s expansion in Europe, namely: DisneyLand Paris (Inandar et al., 2017). 2. Establishing DisneyLand Paris The object of this essay is about the assessment of the Corporate Strategic Plan, its content, its Innovative marketing and its creation of customers´ value. 2.1.Introduction , Creation of DisneyLand, Background and Historical Overview Following the success story of the DisneyLand Themes in the United States of America and Japan, DisneyLand Paris Company was created as Entertainment Company and Media Promotion Enterprise dealing mainly with advertisement through TV and Video Channels.   DisneyLand Paris was established in the new town of Marne  – La-Vallée in France in the proximity of a market of 310 million potential visitors. For the French Government, the aim was to sustain the economic expansion of the Paris Region while creating more job opportunities, maximizing tax revenues and increasing currency reserves in the context of preserving the environment for sustainable development. Designing, Building and Establishing DisneyLand Paris is the particular mode of social regulation implemented in   4 France. The company had to settle in France and the French Government had to secure DisneyLand´s durable insertion in the French Environment (d´Hauteserre, 2001). The project was about the creation of a Disney resort which combines leisure with real estate development and seemed a worthwhile economic opportunity for France which needed a growth pole in the eastern part of the Paris Region where it had already established a framework to attract and receive new economic activities and residents. Research on DisneyLand Paris shows how a capitalist corporation dominated transactions with public authorities (Walker, 1995) and how the French Government bowed to Walt Disney Company´s every demand. DisneyLand Paris, just by its size, introduced major changes on an environment that was almost rural, even if it was expected to become urban in the long run. The French Government insisted on the idea that urban revitalization or expansion could only occur if it creates a quality environment that ensures sustainable development (d´Hauteserre, 2001). Critics against this plan argued that it is always easier to give the environment high priority where there is no specification of the environmental quality to be achieved or when no targets are set for environmental work. How is sustainable tourism defined with regard to the creation of DisneyLand Paris? Sustainable development is necessary because the individual commodity is located in natural surroundings from which it has been taken (transformation of raw materials and energy) and into which its remainder is discharged as waste; this means: “When aggregate economic growth becomes the sole criterion of success, it results in undesirable environmental effects, especially when there is a minimum of regulation interventions (d´Hautesserre, 2001). Tourism is considered here as an engine of growth (William et al., 1991). The French Government took a broad perspectives on tourism, focusing more on social and cultural aspects and less on economic issues (OCDE, 1992). For example, It offers financial help that enables the poor to take vacations. Tourism in France has been based more on culture, relaxation and entertainment. DisneyLand Paris experienced economic hardships and had to reschedule its economic crisis (Tickell et al., 1995). This failure of DisneyLand Paris Expansion was largely due to an unsuccessful management style. The reasons behind this unsuccessful result were the following: Loss in revenues, technological shift in the Industry from advertisement through TV to new digital channels, differences in conducting business (French Mode of social regulation versus The American Corporate Management Culture). This led to DisneyLand Paris´s downfall. In March 1994 the Company managed to force the banks´ participation in order to refinance and restructure the debts of the Firm. Could the reason for this downfall be associated with the Company´s location in Paris? This is an open issue!   5 Critics to the choice of location in Paris argue that the choice of Paris could be a bad one due to the difference between corporates´culture in France compared to the American Management Style. 2.2.Understanding the Superior Value of Services for Customers  Research findings state that while American Customers could spend more money in casinos and large amounts of budget could be allocated to entertainments, French customers do not act in that way. They spend modest amount of their budget to hobby. There were higher costs incurred by the Firm in order to offer the same standard of services. These costs were related to staff training, higher salaries till employees, etc… at the park (for example the public enthusiasm and kindness towards fellow visitors). It has been also confirmed that satisfaction with the total cost of the park visit is mostly predicted by perceptions of the admission price, value, general entertainment as well as customer expectations of the visit experience. For some less fortunate families such visits could be once in life experience. The second theme was linked to European historical values, namely: “ The Asterix Theme Park .” This was done in order to incorporate successfully the magic of Walt Disney World in Europe through reducing people´s resistance to the Power of the American characters. The main element in ASTERIX Theme Park consists of various attractions combining the Show, the Animals Village, the Travels of Astérix and Obélix to Spain, Caledonia, Germania, Egypt, Britania, Helvetia, Greece as well as the New World. The cultural ingredients of DisneyLand Paris are fundamental to an understanding of the business problem. Taking a consumer perspective and making comparisons with other major French leisure agencies, the analysis demonstrates the importance of societal and cultural issues within the context of International Business (Altman, 1995). It has been argued that DisneyLand adapts to the local markets by retaining and bridging to the force of DisneyLand´s Global Form in contrast with most transnational corporations which adapt local culture to accommodate local tastes in foreign markets. Eventually, while theme parks are commonly perceived as money-making entities providing entertainment to the masses, recent research confirms that heritage is an equally important dimension of a commercial theme park´s development, identity and profile. The interaction of global and local forces offers a conceptual insight helping into understanding how themed environments are created and marketed as tourism destinations welcoming to all and distinctive community and locality (Chang et al, 2017). 3. Analysis and Evaluation of Market-led Organizational Change The combination of technology, Globalization and deregulation is influencing customers, brand manufacturers and store-based retailers in a variety of ways responding to the change


Oct 16, 2019
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