Monday, October 8, 2012

DISNEY’S SWAN SONG SING-ALONG - Wk 04 S. Harris Application Academic Article


“Now it’s time to say goodbye to our [French] company.  M, I, C – See you American goons; K, E, Y – Why’d you take our culture hostage? M, O, U, S, E”


You have heard it before – I’m a huge Diznoid and a huge believer in Disney magic.  While conducting our review of Wal-mart and Bharti, and reading Kanter’s article on Collaborative Advantage, of course the Walt Disney Company kept coming to my mind.  They have nurtured many recognizable relationships, whose histories go back farther than we, the public, were even aware. Disney/Pixar comes to mind as the most recent and incredibly successful pairing. 
The company, thanks to Walt Disney’s creation of cultural icons in both his characters and theme parks created the ultimate fantasy-driven escape our every-day lives.  The original park, when seen through Walt’s eyes, was the overwhelming example of him carefully considering every single sense one uses with each step one takes through his parks. Walt surrounded himself with people sharing his rare vision and, even after his death, the company expanded through the years. While some Disney expectations seemed unconventional, his guest relations methods taught in a submersive Disney University, followed a successful formula so as to not distract from the “Show” – the Disney fantasy.
My opinion of Disney received a new gilding of gold as Kanter’s article alluded to cultural differences between Americans, Europeans, and Asians – all regions that Disney brought a little slice of American culture to. Then a cold chill crept up my back as I recalled one region, famous for its wine and cheese, who were afraid of the mouse that would come in and poke holes in their culture. I wanted to find out what had gone wrong at Disneyland Paris and what, if anything, was learned from this situation.

With Disney’s expansion into Paris, they went from the American icon to the American stereotype, “North American companies, more than others in the world, take a narrow, opportunistic view of relationships, evaluating them strictly in financial terms or seeing them as barely tolerable alternatives to outright acquisition. Preoccupied with the economics of the deal, North American companies frequently neglect the political, cultural, organizational, and human aspects of the partnership. (Kanter, 1994, p 5).” Knowing the vision that started the company, I had to believe they’d done a SWOT analysis before courting investors to help pay for Euro Disney so I’ll share key points surrounding the alliance here:

Strengths
Disney’s proven track record with theme park design and operations
Close to other Paris landmarks so vacationers will stay in area to spend more money in region
30 million people live within a day’s drive
Alliance creates 30,000 job openings
Improves the transportation system in that region
Disney’s investment would be largest investment to region
Weaknesses
France’s sagging economy
Opportunities
First theme park in the region
Europeans take longer vacations
Brings the popular American Disney destination closer to home to cheaper for Europeans
Chance to pay homage to the European heritage of many Disney stories
Threats
French are very proud of their culture, Disney perceived as a threat (Packman & Casmir, 1999, p 480)

Disney brought their blueprints, their proposal – which proved successful in other areas, and sealed the deal hoping for a happy ending.  Already there were signs that perhaps the two sides shared different ideas of what a “vacation destination” or “park” should be.
When it came time to set up housekeeping I believe Disney thought perhaps they could brush some cultural differences under the rug by simply submersing the employees in Disney University (of which I'm a graduate '91) and conforming them to the specific look and behavior – one that blends with the Show, yet offers the most generous assistance when needed.  The goal of parks was to allow people to step out of their world into the best world they could imagine. However, Parisians weren’t thrilled to have Disney spilling into their culture.  Comparing Mickey Mouse to the Mona Lisa seemed comical (Johnson, 1987). Perhaps, too, this was the first time that the question “Is this going to be a slice of America in Paris?” or “The ultimate in magical Parisian vacations?”  Out of respect, Disney set out to do both, but in doing so, things didn’t translate well. 

Disney clashed locally on many levels and spent a lot of money trying to make up for things. The pay rates didn’t fit the available lifestyles afforded nearby so Disney had to build affordable housing for employees to rent. Apparently the uniform “Disney Look” was against the law (Packman & Casmir, 1999, p 481). 1,000 employees left the park within the first 9-weeks after opening (Baldwin, Liu & Suzuki, 2005, p 5). With crowds 1 million under what they’d forecast, and spending down as well, Disney had to find a way to compromise in order to make people believe in them again (Packman & Casmir, 1999, p 476).
Starting with replacing their American head of the European park with a French local, Gilles Pellison, (who’d been educated in France and abroad in America) he bridged the culture gap comfortably (Packman & Casmir, 1999, p 482). They hired more people from all European countries, sharpened the park’s vision and balanced the entertainment and cultural education guests would receive.  Additionally they provide education to other businesses such as Amsterdam police force to improve public relations (Packman & Casmir, 1999, p 484).  They made exceptions to their usual rules such as better dining and allowing alcohol in the park – recognizing that Europeans celebrate meals, not just eat on their way to another ride.
As with every couple, Disney is settling into its relationship with Paris. The two work constantly to maintain their relationship building a Third Culture (Packman & Casmir, 1999, p 484) – one that is neither all Disney, nor all French. The Parisians, still sometimes surprised at the idea that they enjoy Disney, welcome the Disney experience and positive messages in their movies while Disney accepts the differences in culture without perceiving it solely as a challenge. 

Have they learned from their mistakes? A Disney happy ending would say yes, they lived happily ever after and all future ventures came together as easy as waving a magic wand.  With the opening of Disney Hong Kong, they still experienced significant growing pains because they did not figure out the inner workings of the travel industry, lunar calendar holidays, nor the fact that many in China aren’t as familiar with the Disney characters as their Mickey-loving Tokyo neighbors. I feel like they are quicker to react, make exceptions and amends now however. Disney has learned they don’t have the magic mirror to predict every situation – some situations may not even be predictable.  Learning to listen and respond to real-time alliance or consumer issues may be the best way to restore the fantasy! 

CITATIONS.......
All Images/Photos (C) Disney

Baldwin, J. L., Liu, A. & Suzuki, H., under direction of O'Rourke, J. S. (2005). The Walt 
    Disney Company: The launch of a Hong Kong Theme Park. Eugene D. Fanning Center 
    for Communication Business. Retrieved from 
    http://business.nd.edu/uploadedfiles/Academic_Centers/Fanning_Center_for_Business_
  Communication/Cases/Do_Not_Copy/WaltDisneyCompanyHongKongThemeParkDNC.PDF 

Johnson, B., (1987, July 26). Can Mouse, Culture Mix? Euro Disneyland Rattles the 
    French, Puts Them on Defensive. The Orlando Sentinel, Special to The Sentinel, Retrieved 
    from http://infoweb.newsbank.com.libproxy.usc.edu/iw-search/we/InfoWeb?
    p_product=AWNB&p_theme=aggregated5&p_action=doc&p_docid=0EB4EBB5B66FB
    2CA&p_docnum=1&p_queryname=1 

Kanter, R. M., (1994). Collaborative Advantage: The Art of Alliances. Harvard Business 
    Review, 94405, 96-108.

Packman, H. M. & Casmir, F. L. (1999). Learning from the Euro Disney Experience.
    International Communication Gazette, 61, 6, 473-489. doi: 10.1177/0016549299061006002

4 comments:

  1. Sarah,

    I really loved your blog post! It seems like every international alliance we read about the companies forget to include culture in their strategy. Why do you think this is? Maybe the American companies do it because they really believe that nothing needs to be changed when moving to another country. When I think of France, I think of wine, museums, and culture. Disney does have a kind of odd place in the middle of all that. I'm glad that they adapted to the French culture and were able to stay in the country.

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  2. Hi Sarah,
    Very enlightening. I heart Disney too and only live 10 miles from Disneyland :-) I especially learned from your SWOT. It makes sense that Disney would partner with France, but I wonder why a company as progressive as Disney would be so unprepared. Why do you think they didn't know how dramatically the cultural difference would impact the business (the uniformed employees, alcohol in park, celebrating with meals)? It seems the culture piece would be an obvious challenge. like the idea of building a third culture, however it is a shame they had to learn the hard way. In the SWOT they identified Parisian pride as a threat. What does this mean? Why was pride in their culture considered a threat? Thanks for the great post! Au revoir ~Andrea

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  3. Love your work Sarah! You stuff is always fun and enlightening to read. After reading your post, I can't help but think that whenever America is negatively portrayed in the international press, Micky will suffer. While Micky gives Americans that nostalgic feeling of their happy time, other nations and cultures may perceive him as icon of corporate greed encroaching on their country. Micky has to fit in the host country's culture for him and the rest of the Disney gang to be embraced.

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  4. Melinda, some articles touched on the sentiment that Disney believed that they had the magic formula and surely their track record (in one sense) backed it up. Plus since it's a pretty limited industry as far as the number of competitors, perhaps they didn't give it as unbiased of a review as they should have. The articles pointed out that part of it was based too on false confidence, and for example in Tokyo - where the Japanese LOVE and devour Mickey Mouse, they truly only own like 10% of the park. It's more accurate to say that a Japanese company has opened the park and paid for the use of their name and themepark model. The Japanese company already knew the culture, so Disney didn't even really have to consider it before Paris.

    Andrea, I too am a total Diznerd - it took me a long time to realize that it's not as cool as I thought to wear Disney every day at other jobs. I have to say that the SWOT was me guessing what would have been in that (sorry if it wasn't clear). I am guessing that they had to sense that the Parisians were slightly concerned with what was coming in, and they (arrogantly/naively) thought that they could wave their magic wands (yes, I have one too) and sprinkle a little pixie dust and make them all love Disney too.

    Michael you hit the nail on the head that it's true, to many Mickey is a symbol of greedy capitalism and the French were not excited to pepper their culture with that.

    Thanks all for the comments! Helps me sharpen my efforts for the next week!

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