European culture in general can be viewed as one of the several basic cultures nowadays. It has been forming for centuries and has acquired some unique, only to it inherent qualities and peculiarities which now form national culture and national identity of each European country. As for France, this country has been the one to dictate European fashion and tastes for the last several centuries. Consequently, before American entertainment industry entered the European market France was the first and the most successful in Europe to present its views, principles and ideology by means of a really efficient tools – sound and pictures.
Opposing America’s entering the European market France tries to preserve its position and prevent itself from so-called ‘Americanization’ or even inevitable globalization. The country tries to make its entertaining industry beneficial having at the same time preserved its language and cultural values for them not be much influenced by foreign competitors. On the other hand, what concerns film industry, French movies are different from the US ones for they are not as spectacular but in scripts and settings outline feelings, emotions, the inner world of a personality.
However, not all the French are against foreign influences in native art, but one more fact which is necessary to be considered is that in France the development of art and entertainment industry is greatly dependant on the government being ruling at some particular moment for, as we can conclude from the article, it has a complete right to appoint the people it heeds or only French to some administrative post in entertainment industries. Hence, some elements of nationality discrimination can be observed.
One issue to be considered when analyzing the situation has risen is that France is greatly subsidizing its movie production sphere while American cinema earns money for its further development on its own. Hence, coming out from this fact one can easily come to a conclusion that American cinema is more competitive than the European one. That is one more reason of why Europe in general and France in particular are against American movies coming to European market.
Besides that, it is obvious that American movies are more popular in Europe than European ones in America. And there are several reasons for – starting from the fact that Americans like films in English more and ending with that Europeans feel some lack of spectacularness in European movies unlike of those from the USA. One more thing is that American movies actually gain abroad higher profits than even in the US. American films are becoming more popular, more advanced and more sophisticated while the European ones are still more sensible, more psychedelic, more dramatic and deep.
Finally, globalization without westernization is not a bad thing, but still it’s possible to prevent mixing of all the world cultures for modern communication networks make all the possible to sell the products of domestic entertainment industry in as many countries and places as it is possible.
So, one of the most important problems that global society faces today is finding a consensus between such factors as industry development, national culture and identity, market trends, and a constant need for economic growth and development of the industry. The quarrels cannot go on forever and, definitely, in on way or another but the countries will have to accept some policy both of them would be pleased with.
Excellence in global corporate competition like the one we are examining now demands certain success-enabling organizational characteristics and attributes which, of course, are to be introduced and supported by governments and authorities.
The given case basically relates to international marketing and management, and international markets may be considered to be a good perspective and a key component of future growth for many domestic companies. At the same, any company which has a desire to operate abroad must have some cultural and moral principles to be promoted when working overseas. Some of them are brought by people working in the company; others are imposed in them by the will of the state, government, etc. in order to spread its views and policies over a wider range of auditory.
Speaking of the issue concerning American companies entering French or European market, in most of developing and developed countries the flows of foreign direct investments remain strong, growth of foreign trade is being constantly observed and markets of capital are generally becoming more and more global. Hence, it’s impossible to stop foreign country’s invasion into the national culture and industry development.
Of course, there are some advantages a company gains having entered foreign market. First of all, such an action may provide successful operation in several markets and allow different production stages take advantages of different markets as for the supply of materials or labor.
Although foreign licensing adds some problems, it gives an opportunity to sell the products being produced directly to the potential customer and, hence, achieve exploitation benefits and close control – a direct presence in the market.
But, at the same time entering foreign market is characterized by high capital and management costs. A great number of factors the company can’t control may affect it: currency and exchange risks, operation requirement risks, changing tax or licensing requirements. However, as we see in the given case, these issues don’t make a great impact on the industry because it doesn’t present any unique or new product, but constantly perfected and improved movies, music, TV programs and videos which have an immense success at both the domestic and home markets equally.
Besides that, in countries which are becoming a new area of multinationals’ operating, it is extremely important to consider political and economical situation. Instability or unclearness of some legislative regulations, laws and policies may cause great problems for a foreign company. In addition, having decided to have business abroad one should also consider the importance of national culture, specific tastes and demands of each nation, for marketing or managing strategies successful in one country may completely fail in another.
However, a domestic firm may also face such problems as state policy changes, increasing taxation, and change of customers’ demands. In such a situation the only way to solve problems is reorientation, transformation, adjusting to newly arisen market conditions. But at the same time a company which has additional markets abroad will lose less in the same situation. The reason for it is the fact that while the domestic office is working on the development of new profitable managing strategies, foreign subdivisions of the company are working and getting profits while a purely domestic company puts all its resources for solving the current problem and has no additional income.
And because multinational business is demonstrably beneficial to both investing and host countries and tends to strengthen the forces of world order, host governments try to even encourage its expansion.
And, of the most important things any company working in entertaining industry should consider, is that entering an international market requires any company to use certain specific and unique for each country strategies to gain an immense success.
In our case the American companies are blamed in imposing the American culture and way of life on European countries. There is something true about it for in general any company entering a foreign market is to consider the national culture, the tastes and demands of the citizens, major government’s trends and policies before presenting its product to the country’s market. However, most of the American entertainment industry companies present their products, which had already been issues and gained success in America, with no agreement with the government of the country a movie, for example, is being presented in.
Considering the fact that American companies’ entering foreign market is anyway beneficial and most likely successful, the way to solve problem with governments and their ideologies would be working in cooperation with them – this mean shooting, for example, movies in English, which have all the chances to be successful in America as well as in all the other countries worldwide, but having previously agreed it with the country this movie is going to be featured in. Such a tactic would allow the industry to rapidly develop in both domestic and foreign country and to eliminate all the problems which may arise when bringing a movie to another country.
As for France, this country should follow similar principles too. Coming from the fact that its movies are not as successful in the US as they are in the European Union, the country should consider a possibility of producing movies oriented on foreign public separately from those which are produced for inner presentations or some contests.
Having discussed and analyzed the case we are faced to, we can come to a conclusion that even if there is only one serious competitor in the country’s market, the company should never forget that it is a guest in the country and, hence, should, first of all study the country’s tastes and demands before offering any product or service. National culture – a concept which includes a great number of specific issues – is one of the first factors to be evaluated when doing business in a foreign country.
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