1.How could the company have erred so badly in its estimates of spending patterns of European customers?
In my opinion, these are three main reasons attributing to Euro Disney fail. Firstly, the lack of prior market research and study for European lifestyle and cultural before European Disney built. Euro-Disney chose to spend excessive expenditures on the establishment,but Euro-Disney did not recognize the geographic and cultural differences between Europeans and Americans. For example,most of Europeans will not notice leather wallpaper when they had their lunch in Disney,and most Europeans are not used to stay overnight in the theme park, so the heavy investment in hotels will bring more risk for Euro-Disney. Secondly, higher price did
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The attitude of Disney management is confidently dismissive making them appear out of touch with the cultural differences.
2. Could a better reading of the impact of cultural differences on revenues have been achieved?
Culture difference will influence the number of tourists and the acceptance level of customers. Euro Disney followed the brand policies to the English instructions only, no wine providing in the theme park, high price of ticket, and standardized merchandise and food items,consequently wide spread dissatisfaction among the customers. When a new brand enters different cultures, it is inevitable for customers in new market to repel it or spend much time to accept it,so the new brand should be brought closer to local culture by providing a platform to interact with the brand in customer’s terms. Also culture different will bring different consumption patterns, Europeans are likely to spend reasonable price on entertainment, so the price of Euro-Disney will be too high to accept and decrease the number of tourists in Euro-Disney. Different culture has different drinking and eating habits,Euro-Disney forbad drinking wine in lunch time,but most French like to drink wine when they enjoy their meal. All of these elements deriving from culture difference will influence the revenue of Euro-Disney and even result in the failure of Euro-Disney.
3.What suggestions do you have for fostering a climate of sensitivity and
Similar problems occurred in Disneyland Tokyo, where management didn’t even think about the height difference of Asians and Americans, resulting in too high public phones for Japanese guests. Concluding it is clear that the American company originally tried to implement a standardization strategy, when launching theme parks in other countries, without taking the local culture into consideration. Country specific procedures and regulations, and different local customer preferences forced Disney to adapt features of the US theme park business model to the local markets.
The case “Euro Disney: First 100 days” talks about the issues faced by the Walt Disney Company when expanding to international borders. The case begins with the history of Disneyland and then describes the reasons behind its success and expansion to various states across the country. It then describes the success of Tokyo Disneyland, first Disney theme park outside America and the factors affecting it.
Euro Disney marketers have recognized a trend. People are going to theme parks during the weekends for adults as well as children entertainment. Indeed, there is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of.
Economic indicators refer to economic series statistical figures used to make future prediction economic activity in the organization or country. The economic indicators are useful in each organization since they measure specific economic parameters in the market and can be used to forecast the future market trends (Baumohl, 2016). For instance, the company like Disney uses these economic indicators to curb and minimizes the difficult economic situation that may arise. There are so many different types of the economic indicators used. In this case, the Disney Company will use the following economic indicators: consumer price index; productivity and cost; employment cost index; producer price index; consumer confidence
Disney believed in magic. Disney is a common household name. In fact, some toddlers can recite the name of their favorite characters from their favorite Disney movie. It is not uncommon to see adults watching a Disney movie, and I would venture out and say most Americans have been to Disney Land or Disney World once in their life. Needless to say, Disney is part of the American culture. However, translating the success that Disney has had in the United States to another country can present a lot of challenges. As we will see, in this case, Disney did not do their homework when it came to planning this project in Europe. Some of the challenges that the company had were their makings such as hubris management and a lack in understanding their customer’s cultural differences
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by
First and one of the most crucial factors were cultural issues. While the success of Tokyo Disneyland was a major factor behind the decision to create Euro Disney, the cultural challenges of France were very
Euro Disney could not modify the main theme of other Disney parks to create something unique for Europeans. Restaurants were not prepared according to the European eating habits and one of the biggest mistakes was not selling alcoholic beverages in the park which has very close connection with French culture. Customers had to leave the park to buy those from outside.
2. Location accessibility by the European population was another advantage for Disney to open its theme park in Paris.
A serious economic recession was affecting Europe at the time of Euro Disney 's opening. Maybe it was bad timing, or maybe Disney chose the wrong location to put a 20+ billion dollar theme park that required a lot of Europeans money just to stay afloat. Unfortunately, the chance of that happening was slim due to such a recession. The recession didn 't terribly impact attendance, but it impacted visitors spending patterns and lengths of stay. Disney theme parks are a tourist trap to spend money and Euro Disney was no different. It had retail shops with jewelry, fancy multi course restaurants, and high prices hotels. Visitors were very price conscious when visiting the park. This suggested that visitors living within a 2-4 hour drive were far different from those who traveled overseas in spending ability and awareness. Those taking a trip to the U.S. were far more prepared to spend money at Disney parks and in more of a position to do so. Those traveling shorter distances to visit a similar park did so to visit the park, not go on shopping sprees. Disney did not
Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what
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?
The cost of a vacation to EuroDisney Paris compared to Disney World in Orlando Florida was astonishing. I see this factor being foreseeable for this reason. Before a company goes abroad they must complete an extensive research project on the history, culture, and economics of the specific region in which they are going to operate. The people in charge of the economics of Europe obviously did not calculate the amount of money a family was going to need in order to visit EuroDisney. It is mind boggling that this mistake was not intercepted before the launch. This factor was also controllable for EuroDisney and the explanation following will explain how. This crucial mistake may have cost them millions of dollars in revenue and millions of visitors from all over the world. Instead of attracting people to the new start-up attraction, the people opted to travel to the United States and visit Disney World for a fraction of the price. They should have priced EuroDisney similar to Disney World in Florida, and the problem may have been alleviated somewhat. The prices should have been thought out more carefully and compared to other amusement parks in Europe. If that was done from the beginning, then EuroDisney may have been a success in its first year.
As a conclusion, all of these factors are foreseeable by Disney. Lack of knowledge of the local culture and the American ethnocentric tendency make the foreseeable things covered with the mist. Global recession, wrong pre-assumption, and Unknowledgeable of local culture are controllable things that can be managed well. For example, during the global recession, Disney can introduce affordable packages which may attract people on visiting Euro Disney. The wrong pre-assumption that affect the construction design can be overcome by building a fast and temporary facilities while waiting for the permanent building is being built. Hiring local French advisor is one of the solutions to the lack of local culture knowledge. Yet, The intense competition that came from the Olympics, world fair, and landmark’s event are foreseeable but it’s hard to be controlled as such Olympics is just happening once in 4years and other events might happens once a year. People are more interested to visit those events rather than Euro Disney that can be visited anytime.
The Walt Disney Company had experienced a big failure in the theme park business. Having successfully opened parks in the US and Asia, the idea to open one in Europe came natural. The city of Paris was chosen to host the new theme park. That was the first of many decisions that led to a very unsuccessful opening of EuroDisney.