Preview

euro disney

Good Essays
Open Document
Open Document
1514 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
euro disney
Case 2: Euro Disney
1. The factors that contributed to Euro Disney’s poor performance during its first year of operation were their lack of knowledge of their target market and the fact that they didn’t take into consideration that the target market was not intended to just focus on one culture. Disney builds and promotes Euro Disney as a piece of America in Europe although Disney failed to adapt to the culture. In the European culture they perceived Euro Disney as being overpriced and the vacation time too short. In America, it is common for the Americans to go on short vacations and stay at the park for three days; However, on the other hand, Europeans like to take month long vacations and stay at the park for a max of one or two days. The major problem was ethnocentrism of the American leaders counterbalanced by French national insecurities. The powerful leadership style of Michael Eisner contributed to these problems. He assumed that people would come from all over Europe as part of the business plan but he failed to comprehend how diverse those consumers would be. At Hong Kong, Disney’s factors of poor performance included the ignorance of the culture again and the fact that they did not introduce the American characters to the Chinese. Disney also did not seem to put much work into Hong Kong Disney because they had only given them sixteen rides when Disneyland in Paris had fifty two rides.

2. Disney as a parent company was probably blind sighted by the success of the Japanese Disneyland. The mistakes made with Euro Disney were at least partly foreseeable and can be accounted on the management team that made the decision for the European park. The hotel pricing is probably the most controllable and foreseeable factor of all. The fact that it costs just as much to stay at a very good hotel in the center of Paris as well as staying in a decent regular hotel, should have been taken into account by the Euro Disney team. The Euro Disney vacation behavior is not

You May Also Find These Documents Helpful

  • Good Essays

    In order for Disneyland Paris to keep running successfully, it has to look at the main factors that can affect its business. The main factors should be analysed by the developing company to be more aware of how to manage their target market. Disneyland Paris has many target markets which the main one is “Disney family” so they need to think through what kind of products that they have to offer to this type of customers and how they’re going to market it. This type of customers “Disney family” is a really important because it’s such a large target market and so therefore the market team needs to be more aware of how they’re going to take advantage of this large market.…

    • 718 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Walt Disney paper

    • 1102 Words
    • 3 Pages

    Since opening in 1992, Euro Disney, or currently recognized as Disneyland Paris, has become one of the largest tourist attractions in all of Europe. Though touted as one, if not the happiest places on earth, financially it is not much but a mirage. Euro Disney has not turned a profit since 2008, and has already had to be bailed out on 3 other occasions over its 2 decade existence. To many investors, this does not surprise them that it is happening a fourth time. Euro Disney has followed the same cycle that all products go through. This is known as the International Product Life Cycle Theory. Much like the regular product life cycle, the international theory adds on three stages, new product, maturing product and standardized product. In 1992, Euro Disney would have been going through the new product stage of the cycle. A theme park of the magnitude that Disney has to offer would have been completely different than anything already existing. In this sense, it was innovative in what it had to offer. This allowed Disney to uniquely place their product within the European marketplace. Eventually over the next couple decades, demand for the Disney product slowly started to decline. This is the company entering into the mature product stage. There are many factors that can go into this transition,…

    • 1102 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Euso Disney Stakeholders

    • 859 Words
    • 4 Pages

    Euro Disney S.C.A is a French public company that owns the well-known Euro Disneyland Paris. I have chosen to study this company because it was the subject of many controversies .The French society considers that by encouraging the American brand ``Walt Disney`` will unfortunately lead to `cultural imperialism`. French media and labor unions mounted protests against ``Walt Disney`` because the American managers tried to enforce specific rules without taking into consideration cultural differences. A journalist in the French newspaper ``Le Figaro`` wrote, “I wish with all my heart that the rebels would set fire to Euro Disneyland."[i] It is not easy at all to import a brand especially when USA and France have different cultural and economical backgrounds, codes, regulations and laws. I find it challenging to understand how Euro Disney S.C.A succeeded to pursue its goal and what assurances they gave to its stakeholders as the environment becomes more and more volatile.…

    • 859 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Case 2.1: EuroDisney

    • 415 Words
    • 2 Pages

    1. There are many factors that contributed to EuroDisney's failure in its first year. One of the main issues was the hotel rooms surrounding the new park were outrageously expensive. Staying overnight was out of the question for most visitors. What really shocked the Disney Company was that the French stayed away. They were put off by 'American imperialism' and the fact that this new park would be alcohol free. This proved detrimental because the French are the world's biggest comsumers of wine. To them, a meal without wine was unthinkable. EuroDisney managers accidently pushed away important members of French society, including members of the government, the banks, and the ad agencies. The Disney Company also failed to foresee the looming European recession. The Gulf War in 1991 also played a factor in the failure of EuroDisney.…

    • 415 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Other theme parks in Paris lacked what Disney had to offer, this gap had to be filled, the large population that lived in and around Paris had to be targeted and offered a unique, fun filled and mystical theme park. A Disney park in Paris was poised to be a sure shot winner.…

    • 3081 Words
    • 13 Pages
    Good Essays
  • Better Essays

    In view of the management experience and success achieved of two native Disneylands and the Tokyo Disneyland, the Euro Disney was full of high hopes and expectations by the Disney managers. However, the Euro Disney has experienced numerous frustrations at the begining. It was not until November, 1995 when the Euro Disney for the first time announced its very first annual operating profit (“The History”, 2006).…

    • 1353 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Euro Disney

    • 2985 Words
    • 12 Pages

    No author, (n.d). Case study of euro Disney (MGMT322). Retrieved on April 25, 2008 from…

    • 2985 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Euro Disney - Case Study

    • 2130 Words
    • 9 Pages

    When the International Offer of Shares for the Euro Disneyland S.C.A. (in the following called Euro Disney) was published in October 1989 the plans for this new enterprise of the Walt Disney group were ambiguous. The financial plans for the first year of operation projected total revenues of FF 5,482 million and a net profit after taxation of FF 204 million. For the following years the development should be even more impressive. At that time the plans were seen as a consequent application of the concepts of the existing Disney-designed theme parks.[1]…

    • 2130 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    b. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that Euro Disney was charging. In addition, Europeans do not vacation as long as Americans do.…

    • 1286 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Hitler and Stalin

    • 2591 Words
    • 11 Pages

    Disney- undoubtedly a strong and dominant fantasy and magical brand from the West had successfully expanded this brand to Japan. However, we can trace back that it has had failure record in the opening of the Paris Disneyland. It is now ambitious to build one in Shanghai. Before that, it used Hong Kong as a platform or so-called stepping stone to try getting some ideas of how to negotiate and strike a balance between Disney culture and Chinese traditional culture.…

    • 2591 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    IB207 case2

    • 410 Words
    • 2 Pages

    First, Euro Disney’s poor performance due to the management lacked on understanding of the cultural difference between two nations. Disney goes (very deep) into the American consciousness, its themes were chosen to appeal to a wide variety of American interests and tastes, its parks were filled with images of American culture, and its cartoon characters had become staples of the American youth experience. In conclusion, Disney is too "Americanized." Although Euro Disney did some work to adapt, it is not good enough to convince consumers. After all, since Paris is the culture capital of Europe, French think their culture being deserved more respect.…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Since deciding to establish a theme park in Germany, Disney understands there are various challenges they may face. They are aware that values and norms vary across the globe and issues may arise surrounding cultural differences. Disney wishes to maintain the company’s corporate values while being able to adjust to customer and employee expectations in order to maintain satisfaction. It is imperative that Disney has the appropriate information to effectively execute a successful expansion into the country.…

    • 12121 Words
    • 49 Pages
    Good Essays
  • Powerful Essays

    Euro Disney2

    • 1384 Words
    • 10 Pages

    Euro Disney: Bungling a Successful Format - Varun Dalvi - Shemeem Saidu Muhammed INTRODUCTION • Euro Disney opened in Paris in 1992 • Disneylands in Florida, California and Japan had been huge successes • Europeans accounted for 2.7 million visits to the U.S. Disney parks. • Euro Disney was the second Largest construction project in Europe, second only to construction of the English Channel tunnel. • The opening results cast even the future continuance of Euro Disney into doubt. How could what seemed so right be so wrong?…

    • 1384 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Disney in Tokyo and Paris

    • 1231 Words
    • 5 Pages

    When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007).…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    The venture into Hong Kong by Walt Disney was a simple example of a large successful western company not doing its homework. The case presents a clear picture of the importance of understanding a foreign market thoroughly before doing business there. Several factors led to an unsuccessful first year of operations and a majority of these factors could have been avoided with a better cultural understanding in the planning stages. One of the culture differences that was obvious to Disney was the fact that the children are not familiar with the Disney characters. Disney has established its brand and is a marketing poster child in the United States, however this advantage goes out the window in a country such as china that has sheltered itself from the outside world until recently. Disney thought that making a meager attempt at introducing the characters before the launch of the park would help, however familiarity isn’t synonymous with brand attachment. As listed in Global Marketing Management by Kotable & Helson, “Cultural Distance” is one of the six external criteria for choosing a mode of entry into a foreign territory, which was not accounted for by Disney. Cultural distance also recognizes the fact that different cultures have different expectations. This was also the case with China. As stated in the case, “for the tourists of Mainland China, going to Hong Kong means a shopping experience, and so they choose the cheaper alternative to Hong Kong Disneyland…” The case goes on to allude to the fact that the culture in China is one about dollars and cents – when a Chinese person spends his/her money, they are more interested in what they are physically getting. This is very…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays