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Disneyland Paris: a case analysis demonstrating how glocalization works

Jonathan Matusitz*

Nicholson School of Communication, University of Central Florida at Seminole State College, Partnership Center, 100 Weldon Blvd, Sanford, FL 32773, USA

(Received 18 July 2009; final version received 28 September 2009)

This paper analyzes Disneyland Paris and how glocalization theory has been successfully applied to it. Glocalization means interaction of the global and the local. When the park was first opened, it was such a financial debacle that it has become the typical case study on how not to open a theme park. The mistake that Disney made was to use its traditional method to force-feed its US products to local cultures. The main premise of this paper is that even a giant like Disney has to show adaptation to local preferences in order to generate maximal profits and remain competitive.

Keywords: adaptation; culture; Disney; globalization; glocalization; marketing

Introduction

This paper analyzes the theoretical concept of glocalization and how it has successfully

been applied to Disneyland Paris. Glocalization refers to the interaction of the global and

the local, a cooptation of the global and the local, and the conflation of both universalizing

and particularizing tendencies. Disneyland Paris used to be called Euro Disney. When

Euro Disney was opened, it was such a financial disaster that it has become the typical case

study on how not to open a theme park. The mistake that Disney made was to use its

traditional method to force-feed its US products from its Burbank, CA headquarters to

local cultures (Marr & Fowler, 2007). Yet, it did not work in France. The main premise of

this paper is that even a transnational firm and a global behemoth like the Walt Disney

Company has to show understanding and adaptation to local preferences in order to

generate maximal profits and remain competitive in the global arena.

This paper begins with a detailed description of glocalization theory and how the

concept exemplifies today’s internationalization trends. The paper then proceeds to

describe the evolution of the park from Euro Disney, when the European Disney theme

park first opened in April 1992, to Disneyland Paris, when glocalization and management

changes were brought in. What follows is the heart of this analysis: the glocalization of

Disneyland Paris. This section explains, in detail, the four major glocalizing changes that

have made Disneyland Paris more successful: (1) cutting the price; (2) turning shows and

settings into French style; (3) change of food menus and eating habits; and (4) change of

employee customs and labor policies. The paper ends with a discussion that also includes

suggestions for future research.

ISSN 0965-254X print/ISSN 1466-4488 online

q 2010 Taylor & Francis

DOI: 10.1080/09652540903537014

http://www.informaworld.com

*Email: [email protected]

Journal of Strategic Marketing

Vol. 18, No. 3, June 2010, 223–237

Glocalization theory: a description

Glocalization is a theoretical concept developed by Robertson (1994). Glocalization is a

portmanteau of the words ‘globalization’ and ‘localization’ and refers to the interaction of

the global and the local (Andrews & Ritzer, 2007), a cooptation of the global and the local

(de Nuve, 2007; Swyngedouw, 1997), the dynamics of cultural homogenization and

heterogenization (Eric, 2007), and the conflation of both universalizing and particularizing

tendencies (Robertson, 1994). While globalization, in and of itself, emphasizes the

universality of corporate or cultural processes worldwide, glocalization emphasizes

particularism of a global theme, product, or service.

For example, glocalization occurs when McDonald’s replicates its corporate

philosophy and symbols worldwide, while simultaneously catering to local tastes and

preferences. To be more precise, although McDonald’s keeps its golden arches and red

color the same everywhere, it also makes cultural adjustments and shows to be location-

friendly. From this perspective, McDonald’s is flexible. McDonald’s restaurants in Brazil

have ‘happy hours’ with salsa bands. In New Zealand, they serve kiwiburgers. In Egypt,

they have what they call McFalafels (Ritzer, 2007). Falafels are meatballs with beans and

chickpeas inside. These examples demonstrate that glocalization constitutes a model that

is both global and local at the same time (Ingleby, 2006). These McDonald’s examples

also mean that glocalization is synonymous with relocalization, that is, the integration of

local elements into global themes, products, or services (Archer, 2008; Lee, 2003).

What glocalization stresses is that transplanting a theme, product, or service elsewhere

has a higher probability to succeed when it is catered to the local region in which it is

introduced (Appadurai, 1996; Robertson, 2001). The fundamental assumption behind

glocalization is that imposing our cultural values in other cultures does not always work. In

The world is flat, Friedman (2005) argues that if nations want to survive on this planet,

they must sacrifice some of their economic imperialism to global processes in order to

achieve economic success by western standards. Yet, at the same time, to remain ‘local’,

local cultures must maintain, to a certain extent, their local traditions while going through

globalizing processes. Friedman (2005) describes this as glocalization as well. Hence,

glocalization is a variety of globalization that is sensitive to and concerned about

differences within and between areas of the world (Robertson, 2001). The objective of

glocalization is to pursue local market input and break out from the ivory tower. This also

means that no single approach is right in all instances.

Glocalization refers to both small changes in global products and more important

modifications to those products for a specific local market (Robertson, 2007). From this

vantage point, there are direct associations between the local and international levels

(Mooney & Evans, 2007). Local forces work to assuage the impact of global institutions

(Aliet, 2007). As explained in this paper in detail, one of these global institutions is the

economy of global scale set by a behemoth of internationalization: Walt Disney. For the

past two decades, one of the chief concerns the Walt Disney Company has faced regarding

globalization is assessing the fit of what it wishes to transfer abroad with the new host

environment (Bartlett & Ghoshal, 1989, 1997; Kogut, 1989; Kogut & Zander, 1992;

Prahalad & Doz, 1987). Since the parent Disney corporation in the USA is significantly

foreign from its subsidiaries on other continents, it is well cognizant that the transferred

Disney assets may not fit the receiving context in host countries (Hymer, 1976; Kostova,

1999; Kostova & Roth, 2002, 2003).

Glocalization is successful when adaptation to foreignness is successful. By and large,

foreignness means dissimilarity – or lack of fit – in operating contexts of a multinational

J. Matusitz224

corporation between home and host environments (Hymer, 1976; Kindleberger, 1969).

Adaptation requires flexibility and tolerance, even encouragement of differences. One of

the greatest hurdles to effectiveness for managers working outside their home country and

culture is a lack of tolerance from the ‘locals’ that they encounter. Nevertheless, simple

tolerance of differences is just the beginning. Authentic adaptation requires managers to

generate diversity in response to local conditions (Ulrich & Smallwood, 2006). We think

we might know a great deal about foreignness, strategic fit, and differences in host cultural

contexts, but there is something about the role of the country environment in the global

transfer of corporation assets that we are missing (Brannen, 2004). As this case study on

the glocalization of Disneyland Paris will demonstrate, glocalization theory helps fill this

gap. Disney experienced unanticipated success in Japan but an equally unanticipated lack

of success in France. This illustrates that, one way or another, in the transfer process, the

transferred firm assets – as well as the notion of foreignness itself – assume unexpected

meanings that directly affect globalization outcomes (Brannen, 2004).

From Euro Disney to Disneyland Paris

In the mid-1980s, with a well-penetrated American market (Finnerty, 2007) and the

phenomenal success of Tokyo Disneyland (Bryman, 2006), Disney’s further expansion

worldwide was deemed necessary in order to achieve optimal market growth. Disney

decided on a geographical location to build a fourth amusement park: Europe. In 1987,

after considering more than 200 possible sites in the area, Paris was chosen; to be more

precise, the Disney theme park would be in the French new town of Marne-La-Vallée

(d’Hauteserre, 1999), located just outside of Paris, at 32 kilometers (or 20 miles) from the

city (Finnerty, 2007). This location was selected not only for its beauty and history, but

also for its vital position in Europe and easy access by train, plane, and cars. While 17

million people lived within a two-hour drive, more than 500 million lived within a six-

hour drive – whereas in 2004 almost 600 million lived within that distance (United

Nations Population Division, 2004). The theme park was considered to be situated inside

the hub of a vast transportation network. As such, the park would be linked to Paris by the

RER (the French regional express metro) suburban railroad system. It would also be

linked to the other main regions of France and Europe by the A4 motorway and, as it was

planned for June 1994, by the train à grande vitesse (high-speed train) railroad network

(Finnerty, 2007).

In addition, although the northerly French climate, particularly damp and cool in the

winter, was less appealing than the alternative location in Spain, the decision to select

the Paris area was facilitated by the guarantee of financial incentives and developments

of transport systems (Palmer, Cockton, & Cooper, 2007). Regional and national

governments, especially from France, agreed to provide helpful financial incentives as

they were eager to see the project as urban regeneration (Clarke & Chen, 2007). Disney

planned to build the theme park on about 4800 acres of land (Capodagli & Jackson,

2006). Approximately half of the developable land (2115 acres) would be used for

entertainment and resort facilities. Another 1994 acres would be exploited for retail,

commercial, industrial, and residential uses. The remaining acreage (that is, 691 acres)

would be devoted to regional and primary infrastructure, like roads and railway tracks

(Finnerty, 2007).

After the partnership between Disney and the French authorities was officially

implemented, the Disney theme park was built (Clarke & Chen, 2007). Upon completion,

Euro Disney, as it was called then, was the biggest theme park and resort development in

Journal of Strategic Marketing 225

Europe. The workforce that was necessary to build Euro Disney created and attracted

many jobs. It also served as the mechanism for the wholesale regeneration of the area. In

total, almost 80,000 jobs had been created by 1990, 66.6% of which were in the tertiary

sector (Ministère de l’Equipement, 1996). Although such theme parks target middle-class

customers, Euro Disney generated many jobs for unskilled and low-skilled employees

(Lanquar, 1992).

Euro Disney finally opened on 12 April 1992 (Adekola & Sergi, 2007). At the time,

Euro Disney was employing 12,000 people and had predicted that there would be 11

million visitors in the first year. Euro Disney consisted of the park, six hotels, and an

entertainment and retail center (Plunkett, 2008). In spite of all the publicity, enthusiasm,

and anticipation, the first season that Euro Disney’s first chairman, Robert Fitzpatrick, had

forecast was unsuccessful. Although Fitzpatrick spoke French well, earned two awards

from the French government, and was married to a French woman, his management style

was still too American, with substandard results (Hartley, 2007). He did not see expected

levels in attendance (50,000 people visited the park instead of the projected 500,000), food

and souvenir sales were low, occupancy rates in the six hotels were low, and the Disney

corporation could not capitalize on its enormous land holdings. Within days, hundreds of

Euro Disney employees quit their jobs amid complaints of working conditions (Wiseman,

2005). Within the first four months, over 1000 employees left for the same reasons

(Adekola & Sergi, 2007).

Euro Disney’s situation was in a predicament. Its stock ownership declined to 39%

(Aupperle & Karimalis, 2001). Per person spending in the park was less than 50% of what

was spent, per person, at Tokyo Disneyland. Hotel occupancy rates were 37%, a sharp

contrast with the rest of Disney’s US properties, where occupancy rates were 92%. The

French government’s appropriation of farmland for Euro Disney was the subject of

protests from French farmers (Mobley & Weldon, 2006). The fact that Euro Disney was

built on a former sugar beet field in Marne-La-Vallée was severely criticized for being

culturally insensitive to its European guests (Holson, 2005). In the summer of 2004, Euro

Disney’s shares sank by 13% in a single day (‘Trouble in le Royaume Magique’, 2004). As

ticket sales declined, the amount of debt increased (Smith, 2004). Many in the

entertainment industry call the opening of Euro Disney an exemplary study on how not to

open a theme park (Holson, 2005).

In line with these contentions, critics in France referred to Euro Disney as a symbol of

cultural imperialism that was ‘plastic’ (Palmer et al., 2007), the new beachhead of

American imperialism (Adekola & Sergi, 2007), a transplant of American culture into one

of the intellectual centers of Europe (Palmer et al., 2007), the exemplification of all that is

wrong with American culture; size, money, and Hollywood (Adekola & Sergi, 2007),

cultural wasteland (Aupperle & Karimalis, 2001), cultural Chernobyl (Gitlin, 2007), and

‘not Europe’s cup of tea’ (Morris-Dixon, 1992). Furthermore, critic Jean Cau blatantly

described Euro Disney as a horrible constructive design built with cardboard, plastic, and

appalling colors, and a chewing-gum construction spiced with idiotic folklore taken

directly from comic books and targeted for obese Americans (Palmer et al., 2007). After

World War II, the French government (and particularly the intellectual elite) developed a

sentiment of anti-Americanism, which escalated during the Vietnam War (Fielding, 2008).

They were dismayed, irritated, and even outraged by the power of American culture and its

impact on France and the rest of the world. For the past 60 years or so, France’s main

consolation has been the conviction that their culture is better than anything Walt Disney

or Hollywood can offer (Riding, 2006).

J. Matusitz226

After heavy losses, Euro Disney was doing so poorly that it was believed it would shut

down. Although Tokyo Disneyland was making money, Euro Disney went nearly

bankrupt (‘Year of the mouse’, 2005). Robert Fitzpatrick resigned as Euro Disney’s first

chairman in April 1993, six years after he took the job (Bryman, 1995). Now, Euro

Disney’s new chairman was Philippe Bourguignon, a Disney insider who was French.

After careful reevaluation of its major problems, Disney management realized that the

company tried to impose a global strategy rather than a local strategy that could

accommodate the needs of Europeans (Rugman & Hodgetts, 2001). Disney committed the

mistake of concentrating its entry efforts on negotiating a more advantageous venture

contract, thereby leaving the typical Disney theme park design, management style, and

employee philosophy untouched (Brannen, 2004).

The Disney corporation was forced to change its approach. The transition from

Fitzpatrick to Bourguignon was a radical shift from American-style management to

European-style management (White, 2004). Bourguignon spun Euro Disney around

completely (Kotabe & Helsen, 2007). By appointing a French manager, top US-based

CEOs such as Michael Eisner now recognized the importance of European cultural

traditions. The company began making a series of essential modifications. First of all, it

renamed Euro Disney ‘Disneyland Paris’, after two other names had yielded unsuccessful

results; that is, ‘Euro Disneyland’ and ‘Euro Disneyland Paris’. The new name,

‘Disneyland Paris’, was selected as it would help locate the theme park with precision on

the map of Europe (Kaikati & Kaikati, 2003).

Second, another major change implemented by the Disney corporation was to change

management: the new chairman was Gilles Pelisson, who replaced Philippe Bourguignon

in 1997 (Smith, 2006), and later, André Lacroix, a French citizen appointed as the new

boss in 2003, who introduced new shows (‘Trouble in le Royaume Magique’, 2004). Both

managers boosted marketing. A third major change, facilitated by the new managers, was

to abandon Disney’s global approach and substitute one that appealed to local tastes

(Rugman & Hodgetts, 2001). In other words, the implementation of glocalization has been

the key to success of Disneyland Paris. The next section is the heart of the paper; it

demonstrates how glocalization works by focusing on the Disneyland Paris operation, a

model of glocalization that had to claim its own independence Bastille-style. Indeed,

Parisian independence was the best possibility (Aupperle & Karimalis, 2001).

The glocalization of Disneyland Paris

Glocalization is an example of what changes should be made after a company

unsuccessfully tries to impose its entire culture in other countries (Martin, 2007).

Following a disappointing beginning, Disneyland Paris was forced to glocalize its

corporate philosophy, practices, services, attractions, and products to adapt the park to

European tastes (Lainsbury, 2000). The first manager of Euro Disney had low knowledge

of French culture (Adekola & Sergi, 2007). For this reason, some tailoring to link into

European culture (Palmer et al., 2007) and to understand the fundamentals of French

culture (Aupperle & Karimalis, 2001) was implemented.

As O’Brien (1992) remarked, Olivier de Borsedon, president of Parc Astérix, nurtured

the idea that Disneyland Paris needed to have a true combination of a French/American

park. For Borsedon, this had to be achieved through a better analysis, interpretation,

evaluation, and implementation of the French culture’s components (Aupperle &

Karimalis, 2001). It was only after Disneyland Paris quit turning its staff into American

clones and started catering to local tastes that the Paris operation worked passionately and

Journal of Strategic Marketing 227

keenly to distance itself from US Disney interference in an attempt to be more closely

rooted to its European/French clientele (Aupperle & Karimalis, 2001). Eventually, the

major changes bore fruit: Disneyland Paris became the number-one paid attraction in

Europe (Martin, 2007).

This section explains, in detail, the four major glocalizing changes that have made

Disneyland Paris more successful: (1) cutting the price; (2) turning shows and settings into

French style; (3) change of food menus and eating habits; and (4) change of employee

customs and labor policies.

Cutting the price

When Euro Disney opened in April 1992, Europe was still amidst an economic

recession (Palmer et al., 2007). So, the high admission prices were, literally, a turn-off to

European visitors. The situation was made worse by the high prices on merchandise and

menus inside the park, which was reflected through low spending on Euro Disney

products and other items. Before the April 1992 opening, a market research survey

revealed that the French were unwilling to spend over 200ff (French francs) for a single

adult to enter the park. Disney fired the chief executive at that time (an American) and

hired a French chief executive who lowered admission prices. Before that, prices were

high. There were not only high by European standards; there were also higher than

Disney’s two American parks (Adekola & Sergi, 2007). So, in 1995, a year after it

became ‘Disneyland Paris’, the admission price for a single adult was cut. As a result,

the number of visitors increased by about 23% in 1995. During that year, the park

operated at a profit for the first time (Monroe & Cox, 2001). During the 1996 season, the

number of visitors increased by 33%. Of equal relevance is the fact that, by the year

1996, 40% of the visitors were from France, half of whom were from the Paris area

(Monroe & Cox, 2001).

In addition, when Euro Disney opened in 1992, the American-style hotels built around

the park cost $300 a night, which was not practical for the typical French family taking, on

average, a three- to six-week vacation (Jandt, 2007). By the time the park changed its name

to Disneyland Paris, it reduced its hotel prices. Disney also misunderstood how Europeans

arrange vacations. Unlike Americans, who like to book their trips directly with Disney,

Europeans like to go through travel agents. In 1992, Disney did not think about training

travel agents, leading to fewer bookings (Holson, 2005). By the same token, Europeans

were unlikely to spend the whole of their holiday period at a theme park, preferring to dip

in and out for just a day or two to experience the rides or attractions (Palmer et al., 2007).

Changes were also made in that regard.

Turning shows and settings into French style

Despite the anti-Americanism sentiment started by the French intellectual elite after

World War II, the average French citizen is a passionate consumer of Disney products,

particularly comic books (Dobbs, 1986). When the park was opened, France was very

familiar with the series of Disney characters (i.e. Mickey Mouse, Donald Duck, Goofy,

and others). In addition to Disney characters, shows, settings, and other Disney

paraphernalia had been widely experienced by the French when growing up, even long

before the entry of the Disney theme park. In other words, there was plenty of pre-existing

context for Disney in France (Brannen, 2004). Yet, such Disney experience in the host

country did not help.

J. Matusitz228

To begin, most French children’s experience with Disney characters comes from

reading Le Journal Mickey – a comic book series where characters like Mickey are

portrayed more cunningly and with a bit more brains than the American Mickey (DeRoo,

2006). So, the perception of Mickey Mouse in France is different. The traditional US

virtuous and puritan version of Mickey is considered uninteresting among the French.

What this means is that there is a negative semantic fit at a conceptual level. Therefore,

Mickey is perceived as bland at Disneyland Paris (Brannen, 2004). Mickey is just an

example of many. In general, during the ‘Euro Disney’ time, French visitors thought

that the theme park had an overwhelming American orientation. For instance, it was

‘too American’ for the French to celebrate Halloween. After realizing this, the new

management placed more emphasis on events familiar to Europeans (Adekola & Sergi,

2007). Besides, adult visitors at Euro Disney thought that their children were running the

risk of eroding both their culture and their imagination (Champin, 1992). The French did

not have a similar context of gift giving to fit into; so Euro Disney souvenirs were much

less popular. In fact, still to this day, Disneyland Paris has the lowest sales of souvenirs

among all Disney’s theme parks. Among the interviewed parents who visit Disneyland

Paris with their children, they say that Disney souvenirs are viewed as tacky and a waste of

money (Brannen, 2004).

This statement about the ‘tackiness’ of Disney products brings an interesting point:

according to Aupperle and Karimalis (2001), since the French and Europeans are quite

content with their own culture overall, they tend to desire more local content in their

parks. To the Europeans, it is better to have something that is authentic than something

reconstructed from fiberglass. From this vantage point, detail and craftsmanship are more

appealing than heart-stopping rides. A setting does not have to be sparkling and

impressive or look like it is new. Rather, it should be authentic, that is, made of wood

(Jefferson, 1993). Euro Disney was perceived to be too American, too cowboy, and too

simplistic. In places like northern France, a theme park needs to be exceptionally

cosmopolitan, something that reflects a ‘Tapestry of Nations’ like the theme of global

nations at Disney’s Epcot.

As a result, glocalization in Disneyland Paris became the key. Proper modifications

were made. Today, settings are different from what they were at Euro Disney. The theme

park looks less glittering, more authentic. US products have been downplayed; souvenir

stores carry sweatshirts with small, underemphasized Disney logos (Jandt, 2007). Since

the Walt Disney Company proved capable of incorporating memorable Disney characters,

designs, and movies within an environment that progressively became European-Parisian,

it turned out to be that American culture was less rejected (Aupperle & Karimalis, 2001).

Before, most exhibits and rides did not have a local theme and did not appeal to

Europeans (Rugman & Hodgetts, 2001). Now, shows, attractions, and exhibits are more

Europeanized. For instance, managers at Disneyland Paris got inspired by Jules Verne’s

novels and came up with a unique version of the Tomorrowland (Yee, 2006), where the

future can be as distant as Mars (Telotte, 2008). The park created other European-specific

attractions also based on Jules Verne’s stories, that is, history movie shows and a science

fiction tour (Rugman & Hodgetts, 2001). Minnie, Mickey’s lover, was transformed into a

French star, reminiscent of Josephine Baker and other chanteuses of the Moulin Rouge,

supplied with flashy dresses and garters (Brannen, 2004).

More importantly, buildings were less painted with US Disney-type colors. As it is the

case for all elements of visual identity, it is the local environment within which colors and

logos are used that will determine their relevancy (Neal & Neal, 2007). When Euro Disney

was launched, Disney faced problems with graphics and colors. Disney’s signs used great

Journal of Strategic Marketing 229

amounts of purple – a color widely seen on signs in Disney’s US sites. Yet, visitors found

purple morbid; in Catholic Europe, purple is considered a symbol of death and crucifixion.

Glocalization had to take this religious difference (or even superstition) into account

(Hammond, 2008). In a similar vein, the French had issues with an employee who painted

a Disneyland Hotel in pink, even before Disney management approved the color. The

painter thought pink was the right color and had started painting (Lymbersky, 2008). Pink

in Europe does not always have positive connotations. Among many other things, the

Nazis ordered homosexuals to wear a pink insignia before killing them in gas chambers

(Plant, 1988).

Change of food menus and eating habits

Until glocalization was brought to Disneyland Paris, Disney theme parks around the world

were notorious for not serving alcohol, especially in public areas of the parks. This

decision was motivated by the belief that alcohol and a safe, fun experience for the family

were not a good match. Not surprisingly, during Euro Disney times, alcohol was not

available on any site (Palmer et al., 2007). Although many visitors were habituated to

having an alcoholic beverage with lunch or dinner, liquor was not sold (Rugman &

Hodgetts, 2001). Unfortunately, guests at the European theme park complained about the

rule (Ulrich & Smallwood, 2006). American puritanical family values jarred with

European – especially French – traditions of having wine with their meals (Aupperle &

Karimalis, 2001). Not offering wine was more than a culinary faux pas among the French;

it was an insult (Holson, 2005).

Additionally, the American habit of eating a little while walking around – a practice

called ‘grazing’ (Wilkins & Wyche, 2008) – conflicted with the French habit of sitting

down to eat a massive meal with a glass or two of wine (Palmer et al., 2007). Since in

Disneyland Paris everyone arrives at 9:30 a.m. and leaves at 5:30 p.m., they like to have

lunch at 12:30 p.m. This resulted in producing huge crowds of brusque and bad-tempered

patrons at the park’s restaurants between 12 p.m. and 1 p.m. According to Jefferson

(1993), Disney’s employees had to engage in some behavior modification in order to cater

to the guests’ requests during lunchtime. More recently, it appears that the Walt Disney

Company has learned its lesson; the appointment of André Lacroix, a French citizen, to

run Disneyland Paris and the serving of liquor in the park have eased tensions somewhat

(Jandt, 2007).

After alcohol was introduced, Disney hoped to appease visitors by offering more

French food (Holson, 2005) and a more international menu in the restaurants (Palmer et al.,

2007). The subject of gastronomic universalism, such as US hamburgers, imposed in

places like Disneyland Paris is significant in demonstrating the success played by the

glocalization of local foods and dishes within the meal-structure system. Indeed, the

business model for the production of hamburgers, exported to other theme parks

worldwide, to replicate exactly what people eat in Disneyland in California and

Disneyworld in Florida did not work in the European theme park (Montanari, 2006).

The reason is simple: Disneyland parkgoers like hamburgers sufficiently well, but only

at mealtimes, whereas Americans eat them at any time, from morning to evening. Such a

scheduling situation posed serious problems to Disney as there were too many people

hired to flip and serve hamburgers all day long (very few personnel were needed

for morning and afternoon requirements). Yet, at the same time, there were not

enough employees at noon, when visitors waiting for lunch formed long queues

(Montanari, 2006).

J. Matusitz230

Likewise, rather than only fast-food outlets, Disneyland Paris also offered table-

service restaurants (Jandt, 2007). Waiters had to change their attitude toward patrons as

well. While in the United States, the ‘customer is always right’, in France, where waiters

like to advise (and take pride in doing so) patrons if their choice of dishes is not a good one,

the idea that the ‘customer is always right’ does not hold water (Brannen, 2004). So,

Disneyland Paris management had to consider these things when training waiters. As

Holson (2005) argues, although Disney used to be exported on its own terms, for the past

10 years or so US cultural imperialism has been tested. Now Disney had to become more

French and European.

Change of employee customs and labor policies

Glocalization implies that strategy and change are inherently linked. When the Walt

Disney Company attempted to impose US customs on French workers and management,

it was a debacle. Disney lost a great amount of revenue and employee morale was

exceptionally low. Strategy and change management go together (Liebowitz, 2006). Labor

policies were clashing with worker expectations, which led 3000 employees to leave over

pay and working conditions within a month of the opening day (Rugman & Hodgetts,

2001). As Champin (1992) pointed out, Euro Disney was seen as a gigantic shopping

center with too few worn-out and underpaid employees.

Besides, Euro Disney was the subject of lawsuits in France because there was a lack of

fit between US-imposed personnel policies and French workers charged to enact them

(Brannen, 2004; Brannen & Wilson, 1996; Van Maanen, 1991, 1992; Van Maanen &

Laurent, 1992). For instance, although French was the first official language, local staff

were required to be bilingual (Palmer et al., 2007). Management made it clear that English

would be the first language at the theme park (Adekola & Sergi, 2007). Workers were

required to speak English at meetings, even if most of them were French (Rugman &

Hodgetts, 2001). Later, after new managers came in, French and other European languages

were allowed to be used as employees’ first language. Competent interpreters were hired.

Some attractions were named in French while others kept their original American name.

Signs were both in English and in French (Adekola & Sergi, 2007).

In line with these contentions, when Euro Disney opened, it was using the same ‘Look

Book’ (a handbook on how to dress and behave) as the one used in the two Disney theme

parks in the United States. This caused a stir because the French do not have the same

perceptions of beauty as Americans do. More importantly, they were shocked at what they

saw as an invasiveness of Disney’s employee grooming policies which specified the length

of earrings and colors of mascara (Segalla, 2001). The ‘Look Book’ also stated that female

employees must wear clear nail polish and very little, if any, make-up (Adekola & Sergi,

2007). Fingernails could not be longer than fingertips and hair had to be naturally colored

(Neal & Neal, 2007). Female employees needed to wear appropriate undergarments

(Green, 2007) – specifically, such items as stockings having the typical color of a person’s

skin (Adekola & Sergi, 2007), transparent pantyhose (no colors or designs), and skirts at

four centimeters above the knee.

The requirements were no less rigorous for men, who were required to have short

haircuts, could not wear earrings (Neal & Neal, 2007), and had to shave their beards in

keeping with Disney’s image. French workers who handed out or received tickets and

operated the rides were told to shave off any facial hair and use deodorant. Everything was

done the US Disney way. The French considered this requirement as inconsiderate to their

cultural norms (Martin, 2007). The Walt Disney Company defended this wholesome

Journal of Strategic Marketing 231

American look as an essential role that employees must play in order to stage the ‘Happiest

Place on Earth’ (Brannen, 2004). Not only did staffing and staff retention prove

problematic, but, also, the stringent Disney dress code violated French labor laws (Palmer

et al., 2007). In January 1995, the theme park was charged with violating French labor

laws (Brannen, 2004). Accordingly, the ‘Look Book’ was changed to cater to employee

customs and labor policies in France. Employees were now allowed to wear colorful nail

polish and different colored stockings. At last, they could be themselves and so staff

turnover went down (Adekola & Sergi, 2007).

Of equal relevance is the fact that the ‘smile factory’ so dear to Disney was

unsuccessfully transplanted in its European theme park; cast members there could just not

smile to the level of Disney University standard (Doz, Santos, & Williamson, 2001). The

simple reason is that French workers dislike providing the smiles and friendly greetings so

anticipated at any amusement park (Cheney, Christensen, Zorn, & Ganesh, 2004). In fact,

they were required to smile at customers in less than 60 seconds of their entering the theme

park. This was a real problem because the French are not notorious for their hospitality

(Adekola & Sergi, 2007). Faking a smile or overly smiling falls under an overarching

concept called ‘emotional labor’. Emotional labor has been a major site for resistance

(Bryman, 2006). Emotional labor refers to a type of emotional regulation whereby

employees display the emotions that they are required to display as part of their job. This is

mostly surface acting, because employees suppress their real feelings and, instead, present

emotions on the ‘surface’; that is, emotions that they do not actually feel (Geist-Martin,

Ray, & Sharf, 2003). Surface acting also means that there is an emotional dissonance

between inner feelings and outer expression (Guy, Newman, & Mastracci, 2008).

All the difficulties that the Walt Disney Company experienced in its attempt to transfer

its US corporate philosophy to France contributed to making Euro Disney a less friendly

and less orderly place. It also contributed to a less clean environment. For instance, it was

not unusual to see untidy bathrooms, bathrooms with broken stall doors, grounds that were

littered, an insufficient number of sidewalk sweepers in sight (a notable feature at other

Disney parks), and, in one instance, a quarrel between a food server and a guest over a bill

payment (Brannen & Wilson, 1996; Van Maanen, 1992; Van Maanen & Laurent, 1992).

So, Disney rules and regulations with respect to employee behavior were radically

altered (Rugman & Hodgetts, 2001). What mostly happened was a shift from ethnocentric

staffing to polycentric staffing. Ethnocentric staffing involves sending one of the organiz-

ation’s ‘own members’ (i.e. of the same background and culture) abroad to manage. As we

have seen, American management at Disney had low knowledge of French culture.

Because of this, the company lost almost $1 million in 1992 and 1993. The following

season, Disney changed to polycentric staffing (Adekola & Sergi, 2007). Polycentric

staffing is a situation in which local managers from within the culture are hired to fill

management positions (Scullion, 2006). New managers, for instance, relaxed Disney’s

traditional top–down managerial style and promoted more individual initiatives.

Eventually, managerial staff was cut by 1000 (Mobley & Weldon, 2006).

The success of glocalization

The glocalizing changes have proved successful. Today, Disneyland Paris has generated a

lot of profits. Over 12 million visitors a year queue up to get into the theme park (Kapferer,

2008). Disneyland Paris has had so much success that it has contributed to reducing

demands for visits to UK theme parks (Davies, 2006). With the new extension of

Disneyland Paris, called Walt Disney Studios, and with two theme parks, seven themed

J. Matusitz232

hotels, and a 28-hole golf course, Disneyland Paris has become Europe’s premier resort

and tourist destination (Clarke & Chen, 2007). The Walt Disney Company continues to

draw yearly royalties for the acknowledgement and franchise of its brands and trademarks

(all of Disney characters) to Disneyland Paris (Kapferer, 2008). Witnessing significant

improvement in sales at Disneyland Paris, the French government recently helped the

theme park even more by offering loan concessions and investments (Holson, 2005). Local

anti-Disney hostility has faded away. Thus, glocalization was necessary: what works well

in the United States cannot be directly transplanted overseas, as is visible through its new

regionally focused strategies (Rugman & Hodgetts, 2001).

Discussion and future directions

What this paper has demonstrated is that even the Walt Disney Company, the epitome of

a transnational firm and a global behemoth par excellence, has to show understanding

and adaptation to local preferences in order to generate maximal profits and remain

competitive in the global arena. As have seen, during Euro Disney times, the Walt Disney

Company failed to understand not only the French’s food preferences, but also their eating

habits and meal times, their conception of how much should be spent (or not spent) on

Disney souvenirs or admission tickets, their view of Mickey Mouse and what settings and

backgrounds should look like, what colors should be used on signs and hotels, employee

customs and labor policies, and their version of dress code and even emotional labor.

Truly, this analysis of Disneyland Paris demonstrates that glocalization works: Disney

had to be flexible by factoring in French culture and minimizing American culture, as it

was considered cultural imperialism. As corporations become global, managers have to

balance the efficiency opportunities of global scale with the effectiveness requirements of

location adaptation (Ulrich & Smallwood, 2006). With glocalization, scholars may

reconsider the concept of globalization and concede that it cannot always be a successful

process if it operates entirely at a global scale. Instead, globalization has to be localized

through a range of strategies, depending on which region the corporation is located

(Rugman & Hodgetts, 2000). Just as managers decide and establish what is core and, thus,

common across the corporation’s global operations, they must also determine what is

noncore and, thus, be open to local adaptation. Planet earth is too gigantic and too diverse

to even contemplate the idea that every corporate philosophy, culture, policy, and practice

(let alone product, service, or process) can be the same everywhere. Disney demonstrates

that it simply does not work (Ulrich & Smallwood, 2006).

The glocalization of Disney also exemplifies that the world is not being transformed

into a single homogenized sphere because, across the globe, there are sites of resistance,

regardless of the momentum of this revered representative of popular culture (Bryman,

2006). What this means is that we must give due consideration that we cannot subscribe to

a monolithic or one-dimensional view of globalization or Americanization, a thesis that

portrays icons of American culture spreading by design worldwide and riding roughshod

over local conditions and practices. Scholars who have conducted studies on Disney have

suggested that it is erroneous to think of globalization as a simple process of subsuming

foreign cultures (Bryman, 2006; Zaheer, 2002). Not only has the Walt Disney Company

accommodated to Europe’s local preferences and dietary requirements, but it has also

applied the glocalization model to different cultures, such as the one in Hong Kong after

the Hong Kong Disneyland was opened in 2005 (Zhang, 2007).

Understanding glocalization theory is a particularly pressing concern, because

Disney’s experience is one of the many instances that indicate the current upward trend in

Journal of Strategic Marketing 233

the glocalization of firms that increasingly transfer complex assets abroad. Now, more

than ever, corporations are not just adapting ideas, themes, products, and services, but

also entire organizations, including corporate philosophies and strategies, operational

procedures, models for supervisor–employee relations, and so forth. These have to be ever

more closely linked to the contexts and the sociocultural environments in which they are

enacted (Kostova & Roth, 2003).

For future research, it might prove interesting to further analyze the concept of

glocalization not as a substitute for globalization, but as a process giving globalization a

new shape, a fresh angle. Does glocalization mean the end of global strategy, when it was

believed that firms could totally impose the global on the local and, therefore, be ultra

penetrative to local cultures, to such a point that they would erode those cultures? In other

words, is the global getting out while the glocal is getting in? Likewise, does glocalization

mean that a company like Disney, or even Wal-Mart, is now required to give more power

to local managers in order to successfully tailor its strategies for the local markets?

Disneyland Paris demonstrated this when the company replaced Stephen Burke – the new

American manager who had generated improvements and profits already – with local

French managers like Philippe Bourguignon (Adekola & Sergi, 2007) and André Lacroix

(‘Trouble in le Royaume Magique’, 2004).

Finally, in the case of the Disney expansion worldwide, what would be better for

optimal glocalization success: to build equally big or even bigger theme parks on other

continents, or to sketch out a string of niche resorts and attractions in other countries? Put

it another way, does glocalization work best in small portions worldwide, by catering

meticulously to local towns and regions, or in large sections, by catering to larger

populations? No matter what, it was long thought that the Walt Disney Company could

reach a high profile likely to accelerate the global spread of its underlying principles

(Bryman, 2006). Nevertheless, the reality is that Disney’s conventional approach to force-

feed its US products from its Burbank, CA headquarters to local cultures has somewhat

been mollified and mitigated (Marr & Fowler, 2007).

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