International Business Management
Disney Company is one of the leading company’s whose primary aim is to entertain its audience through stories, creative minds, and innovative technology. Walt Disney founded the company in 1923. At the time of its formation, the company’s vision was to offer classical entertainment in the form of 2D cartoons (Boguszewicz-Kreft et al., 23). During its years of operation, the company has expanded and has different offices globally. Despite its growth, Disney has faced various issues, especially concerning maintaining a high-status level in the international markets (Boguszewicz-Kreft et al.,23). This essay will expound on Disney’s international strategy, cultural differences between France, Japan, and the U.S, and the recommendations for the strategic predisposition that Disney should use in its new operations in China.
Disney’s International Strategy: How it started and how it is going.
Disney mainly focuses on providing its services to emerging markets through its direct involvement in exporting, licensing, and foreign direct investments. By concentrating on exportation, Disney gets an avenue of focusing on production while its distributors mainly focus on selling its products (Boguszewicz-Kreft et al., 25). Lastly, foreign direct investments enable the company to sell directly to its customers hence helping them get maximum satisfaction. Disney uses a strategy that mainly focuses on improving its products’ brand loyalty, awareness, and identity (Boguszewicz-Kreft et al., 26). Subsequently, the company uses a transnational strategy to compete favorably in the international markets by ensuring close cooperation between its headquarters and its international subsidiaries.
Analysis of the differences between the national culture of France, Japan, and the U.S
The Hofstede model offers an ideal framework for comparing the differences in the national culture between France, Japan, and the U.S.
National Cultural Differences between Japan and the U.S
Power distance relates to the notion that every people in society are not equal. Japan has a higher power distance compared to the U.S. This is because the Japanese are always conscious of their hierarchical position in any society. The second aspect relates to the degree of interdependence a society maintains (individualism). Japan has lower scores of individualism compared to the U.S. The third aspect relates to masculinity. Japan has a higher masculinity score than the U.S, indicating that society is driven by competition, achievement, and success. When analyzing uncertainty avoidance, Japan tends to avoid uncertainties than in the U.S. Japan also has higher scores of long-term orientation and has developed some links to the past. Lastly, in matters of indulgence, Japan has lower scores indicating that it is surrounded by pessimism and cynicism.
Cultural differences between France and the U.S
In the first aspect relating to power distance, Japan has higher scores, suggesting that people in society are equal. Secondly, France has lower scores of individualism when compared to the U.S. When analyzing masculinity, France has lower scores when compared to the U.S, indicating that the society is not driven by competition and success. France also tends to avoid uncertainties compared to the U.S. France has a higher long-term orientation than the U.S, indicating that it links itself with the past, especially when dealing with its present and future challenges. Lastly, in indulgence, France maintains lower scores than the U.S. This means that people in France are relaxed and enjoy life less often.
Recommendation to Solve the Issue.
Disney used different strategic predispositions while working in Japan and France. When opening its operational networks in Japan, Disney was successful because the Japanese had grown fond of Disney characters (Grayson & Sheikholeslami, n.p). Using this success, they decided to use the same strategy to France without knowing that the strategy would fail. Using this example, it is evident that Disney used the ethnocentric predisposition since it involved transferring anything they did in Japan to other cultures, including in France and Japan.
Did Disney change the predisposition after starting operations there?
When Disney was opening a park in France, they did not change anything because they believed that what worked in Japan would also work in France (Grayson & Sheikholeslami, n.p). The management did not consider the fact that there would be cultural clashes. When the management was setting the pack, it did not consider the French habits and traditions. Such aspects contributed to its failure.
Setting up a park in China.
Every country has its unique cultures that they follow when working. As a result, when setting up operations in an international market, considering the cultural elements is an important aspect (Grayson & Sheikholeslami, n.p). The U.S has distinct cultural elements when compared to China. Some of their differences relate to communication, entertainment, deference to leaders, among others. To avoid making similar mistakes like in Japan, the managers should be conducting a feasibility study in China and see what they should include when setting up the park.
Table Indicating the Scores between France, Japan, and the U.S.
| Dimension/Country (%) | Japan | France | U.S |
| Power Distance | 54 | 68 | 40 |
| Individualism | 46 | 71 | 91 |
| Masculinity | 43 | 43 | 62 |
| Uncertainty Avoidance | 86 | 86 | 46 |
| Long term Orientation | 63 | 63 | 26 |
| Indulgence | 48 | 48 | 68 |
Works Cited
Boguszewicz-Kreft, Monika, Jan Kreft, and Piotr Żurek. “Myth and Storytelling: The Case of the Walt Disney Company.” Myth in Modern Media Management and Marketing. IGI Global, 2019. 22-49.
Grayson, Leslie E., and Golnar Sheikholeslami. “Euro Disney or Euro Disaster?.” Darden Business Publishing Cases (2017).
