A Case Study : Eurodisney's S Poor Performance During Its First Year Of Operations

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EuroDisney Case Study 1. 1. What factors contributed to EuroDisney’s poor performance during its first year of operations? After a tremendous success in Japan’s Disneyland, Walt Disney stepped into Europe and it was designed to be the biggest and most lavish theme park in Paris on April of 1992. But the fiscal year 1992 to 1993 brought EuroDisney a loss of more than $900 million. The first year for EuroDisney was disastrous due to several bad decisions taken by the management as well as some external factors. The primary reason for the failure was its high cost. Hotel rooms at the park were charging rates comparable to luxurious hotels. People found it cheaper to fly to Disney World Florida and get an additional benefit of enjoying the weather. The decision makers made several mistakes for instance they banned the consumption of wine and the number of seats available for breakfast were insufficient. The French, for some reason, did not like the American culture while Disney tried to enforce this culture. This, along with several other factors contributed to its failure in the beginning. Hong Kong Disneyland faced different issues. Firstly, people were not familiar with the characters since Disney was banned for 40 years in China. The park was small, with just a few rides compared to other Disneyland 's, therefore customers were not interested. Despite these issues, it fared better since it incorporated a lot of Chinese culture. 2. To what degree do you consider that these

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