Euro Disney Case Study

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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 “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 French culture * Vacation customs * French prefer month long vacations instead of several throughout the year like Americans prefer * Appearances * Strict rules on the appearances of the

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