The Dream Becomes a Nightmare - E U R O D Is N E Y Essay

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THE DREAM BECOMES A NIGHTMARE - E U R O D IS N E Y In that question we were asked about the different entry method strategies that Disney has followed when opening theme parks in the different markets – the original one, the US, Tokyo and Europe. Before analysing the relationship between Euro Disney, in Paris, and Disney we are going to explore the case of US and Tokyo in order to make more clear the different entry strategies they have followed in each market. In the US, Disney fully owns the parks and it has exclusive ownership and management over all operations in the park and resorts. On the contrary, Disney does own nothing of the Tokyo theme park. When the Oriental Land Company Limited (OLCL) proposed Disney to open a park in Japan, the top management perceived the project as a risky venture mainly because of the cultural differences and climate conditions. The most secure option for entering the Japanese market was that OLCL bears all the risk therefore, the Japanese company, currently, owns the park and operates it. In exchange, Disney receives royalties of 10% for licensing trademark and intellectual property, technological assistance and engineering services. Moreover, Disney receives 5% on benefits from food, beverage and souvenirs. The risky Japanese market resulted in a success as it was build due to the acclaim of Japanese population and small adaptations have been done because Japanese prefer a ‘replica’ of the US original park and so the park has been almost ‘’localized’’. This has triggered the question of whether Disney would have higher profits if it owned the Tokyo Disney park. After having analysed the different entry methods that Disney uses in the US and Japanese market we are going to focus on the European entry strategy, which lies on complex relationships between Disney and Euro Disney and differs from the two

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