Disney in Lebanon

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Disney’s Dilemma Disney Consumer Products Europe and Middle East (DCPEME), a business unit of The Walt Disney Company, is hoping to maintain their position as the fastest growing division within the company by expanding into the Middle East. This region represents huge growth potential for Disney due to its favorable demographics and consumer spending patterns. These lucrative business opportunities in the Middle East resulted in DCPEME signing a 50/50 joint venture with a Saudi Arabian regional partner in 1993. The joint venture would begin their operations in Saudi Arabia, but was interested in expanding into neighboring countries, specifically Lebanon. DCPEME now faces the decision of determining whether entering Lebanon is the correct next step in their Middle Eastern expansion strategy. Additionally, if the company decides to enter Lebanon then they must evaluate the best product categories to launch as well as identify which distribution options will position the country for success. Should Lebanon be Next? Lebanon is considered a small and prosperous Middle Eastern nation. A devastating civil war in the 1970s and 1980s wreaked havoc on the country’s infrastructure, but their economy has since recovered and is now characterized by free market pricing and an unrestricted exchange and trade system. Currently, Disney products are already distributed in Lebanon via three channels: worldwide licensees (ex. Mattel), non-worldwide licensees that distribute in Lebanon without proper approval, and non-worldwide licensees whose wholesalers are illegally selling Disney products to Lebanese distributors. The following section details the advantages and disadvantages of DCPEME expanding into the Lebanese market. Advantages Lebanon’s highly literate population, especially when compared to neighboring Arab countries, makes it an ideal Middle Eastern country
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