Equity based entry mode

Equity based entry mode (Joint-venture), meaning servicing the foreign market (Sweden) with assistance of a partner would be most suitable for Disney land entering Sweden. Through Jointly owned by the Government of Sweden and Disney. Noticing of Large differences between the American culture and the Swedish culture, joint venture with the Swedish Government would help different voices to be heard and avoid any business failure, since there would be high psychic distance between both countries and the lack of applicable experience abroad and local knowledge. Disneyland Sweden needs a local partner that can adapt Disney’s resources and capabilities to the local environment and to both effectively and efficiently transfer benefit generating resources without wasting value. Cultural miss perceptions that Disney Sweden may experience could be analyzed using Hofstede’s Four Dimensions of Culture. Mentioning the risk associated with Joint venture, where a partner stealing other party’s capabilities to perform on its own. Since Disney is partnering with the Swedish Government, this risk possibility is almost does not exist, since Disney’s capabilities and resources are very unique and cannot be imitated.

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