Euro Disney Case Study - 1430 Words

1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year of operation? a.) EuroDisney: * Families were reluctant to spend $280 a day to enjoy the attractions of the park * Staying overnight was out of the question because hotel rooms were so expensive * Old Work thinking of Europeans who did not understand US style free market financing lead to French Bankers hesitating to provide funding * By summer 1994, EuroDisney had lost more than 900 million dollars * Disneyworld in Orlando ended up being cheaper than a trip to Paris due to currency movements and transatlantic airfare wars *†¦show more content†¦Since the American managers in Disney did not do enough research on Europe before building EuroDisney, there could be an argument for ethnocentrism. The company might have believed that their ways, culture and beliefs were superior to those of the foreign country, so why change or adapt them? Since most of the factors that lead to poor performance during the first year of operation were as a result of cultural inconsistencies, it could be said that mindless ethnocentrism was part of the problem. 4. How do you assess the cross-cultural marketing skills of Disney? In the early stages of EuroDisney, specifically, Disney’s cross-cultural marketing skills were poor and detrimental to the success of the new park. There was not enough research done in terms of the new environment, which led to bad decisions on Disney’s part. In particular: * Advertising/ promotion * Focus on emphasizing glitz and size instead of the attractions * Didn’t stress entertainment value of visit to the theme park in their promotions which â€Å"ruined the magic† * Food/ beverage * French people have a rigid meal schedule compared to snacking * No alcohol is allowed in the park which is a huge part of the F rench culture * Vacation customs * French prefer month long vacations instead of several throughout the year like Americans prefer * Appearances * Strict rules on the appearances of theShow MoreRelatedEuro Disney - Case Study2145 Words   |  9 Pages1 Introduction Ââ€" Euro Disney s Plans and Reality 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 theRead MoreEuro Disney Case Study12599 Words   |  51 Pagescase fourteen Euro Disney: From Dream to Nightmare, 1987–94 Robert M. Grant At the press conference announcing Euro Disneyland SCA’s financial results for the year ended September 30, 1994, CEO Philippe Bourguignon summed up the year in succinct terms: â€Å"The best thing about 1994 is that it’s over.† In fact, the results for the year were better than many of Euro Disneyland’s long-suffering shareholders had predicted. Although revenues were down 15 percent – the result of falling visitor numbersRead MoreEuro Disney Case Study1353 Words   |  6 Pagesstill are to great success. Tokyo Disney followed with a slow start but quickly became a successful cash cow like the 2 parks in the United States. Disney next projected success was Euro Disney, today it goes by DIsney Paris. Disney was confident and quite optimistic that the 4th Disney theme park, located just over 30 minutes drive from one of the worlds biggest tourist attractions, Paris would be no different. Some would say a little too confident. However, Disney made so me major planning mistakesRead MoreCase Study of Euro Disney (Mgmt 322)2256 Words   |  10 PagesCase Study of Euro Disney (Mgmt 322) To this day, EuroDisney struggles to keep its doors open, while the American and European theme parks continue to thrive. My paper for my International Business course deals with the many problems that marked the opening of EuroDisney ... ________________________________________ For years, the Disney theme park empire was built upon three crown jewels located in California, Florida, and Japan. Combining the familiar, family-friendly characters and imagesRead MoreA Case Study on Euro Disney (for IntL Mkgt)1867 Words   |  8 PagesDIRECTLY UNDER THIS DISCLAIMER! http://hickeymouse.blogspot.com/2011/02/case-study-on-euro-disney-for-intl-mkgt.html Disney theme parks are enormously successful in the United States. Families flock there at all times of the year. Disney’s best customers are repeat customers.[1] When Tokyo Disneyland opened in 1983, it was more popular than Disney ever imagined.[2] With one foot in to the international area, Disney decided to conquer Europe. They scouted out possible locations andRead MoreCase Study – Euro Disney, the First 100 Days1353 Words   |  6 PagesCase Study #1 – Euro Disney, The First 100 Days 1.0 Introduction Ever since the first Disneyland was founded in 1955 in Anaheim, California, the Walt Disney Company had experienced nothing but success in the theme park business until its second oversea Disneyland – Euro Disney was opened in France in 1992. Following the success of the company’s first oversea Disneyland in Tokyo, Japan, on April 12, 1992, within its $4.4 billion budget, Euro Disney was opened in Marne-la-Vallee, France on a siteRead More Euro Disney - Analysis of the External and Internal Environment1393 Words   |  6 PagesEuro Disney’ marketer’s before entering a market as in this case has been the European market should have scanned the environment. By scanning the environment they should analyze the mega-environment as well as the task environment for possible opportunities and threats. Yet, a close attention could have been paid to their strength and weaknesses inside the company. Indeed, the consideration about any trends should have been incorporated in their environment analysis. In this case there has beenRead MoreEuro Disneys Analysis of the External and Internal Environment1415 Words   |  6 PagesEuro Disney marketers before entering a market as in this case has been the European market should have scanned the environment. By scanning the environment they should analyze the mega-environment as well as the task environment for possible opportunities and threats . Yet, a close attention could have been paid to their strength and weaknesses inside the company. Indeed, the consideration about any trends should have been incorporated in their environment analysis. In this case there has beenRead MoreThe Almost Catastrophic Business that Was Euro Disney981 Words   |  4 Pages1992, Euro-Disney opened a new location twenty miles east of Paris. Due to many different conditions, which nearly lead to failure, Michael Eisner personally structured a package to reorganize the park in 1994. Although Disney is a label known around the world, Euro-Disney was nearly a enormous catastrophe. How something like this could happen is fascinating. There are many explanations for Disney’s near terminal presentation, both predictable and unexpected. Regrettably, Euro-Disney didRead MoreCase2 the Not-so-Wonderful World of Eurodisney1743 Words   |  7 PagesCase Analysis MKTG 650-6T1 Global Marketing Management Professor: Prof. Nicholas Name: Tim Date: 2/25/13 Case study: The Not-So-Wonderful World of EuroDisney Summary Euro Disney SCA formally launched its theme park to Europeans in April 1992 near river Marne, 20 miles East of Paris. It was the biggest and most lavish theme park that Walt Disney had built bigger than any of its Disney parks around the world. The location was chosen over 200 potential sites in Europe from Portugal through Spain,