1) How could the company have erred so badly in its estimates of spending patterns of European customers?
* The idea was market Euro Disney as a complete holiday package and encouraging people to stay in the hotels and eat all meats in the complex. * While setting prices the Company was unable to estimate spending patterns of European consumers and competitors price alternatives. Due to the location advantage and incredible accomodation prices consumers prefer to stay in the city center.
* Travel time to Paris city center from Euro Disney is only 35 minutes and cost of accomodation in Disneyland is as much expensive as a best hotel in Paris. People prefer to stay overnight in the city center instead of staying in the park.
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* Tokyo Disneyland was a major success with a turnover of over 16 million in 1991 as compared to the low turnover in the Euro Disney. * An increasing trend in Japan towards leisure along with increasing appetite for the American food as opposed to the French who never valued the American foods contributed a lot to the success of Disney land in Tokyo. 5) Do you believe that Euro Disney might have done better if located elsewhere in Europe rather than just outside Paris? Why or why not?
* With change of location to be somewhere else in Europe other than Paris, Euro Disney could have not done any better. This is because people in the Europe follow relatively similar cultural norms. It was not only the French who had problems with them, but also others. In Spain where they thought of at first had no adequate space for the establishment of the facility. The master spirit on the sides of the Americans could also not allow them to work in any environment. Moreover a general wave of recession and economic downturn all over the Europe, did not allow such capital intensive project.
6) “Mickey Mouse and the Disney Park are an American cultural abonimination”. Evaluate this critical statement.
* Although European public acceptance of the theme park itself has not been a problem for Euro Disneyland there has been a different type of
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.
It does not matter we're it is, even in France or Japan people still love Disney theme parks. Even today when you are visiting a Walt Disney theme parks all of the cast members are in a great mode so they do not ruin a Walt Disney theme parks experience. Walt Disney theme parks make it easy to make your experience to your liking because Walt Disney theme parks have the best way to make it magical. Whenever you come back from one of the Walt Disney theme parks you will have a smile on your face. Walt Disney had the best dreams because Walt Disney theme parks are one of the best inventions. Whenever you go to any Disney theme park you will have “A Happily Ever
“Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.” – Walt Disney (Goodreads). The success of Walt Disney films, theme parks and company has built a legacy and attracted the attention of millions of people. Through the animated stories they enable to fill children’s imaginations with entertainment. Disney has embodied American culture with its catchy tunes and mass marketing. It has portrayed different repertories through movies and TV shows that shine light into different cultures, which is centered to be a controversial aspect. Not only has Disney become controversial, it has also become popular with its accomplishment in being able to create a wide spectrum of animated characters.
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
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
After Eisner invested tens of millions of dollars to update and expand attractions and park facilities, Disney recovered its investment with attendance-building strategies. By creating a range of complementary services and entertainment at the park, customers stayed longer and spent more money. A plan was also put in place to develop Disney’s unused acreage and further maximize the profitability of these assets. One result of the above measures was that attendance at Tokyo Disneyland increased by 50% from 10.2m in 1983 to 15.8m in 1991.
Disney’s target market consists mainly of family-oriented Asian tourists, primarily those from mainland China, Taiwan, and Southeast Asia. The mainland China accounted for large number of incoming visitors. At the time of Hong Kong Disneyland’s establishment, Hong Kong already enjoyed booming business and tourism sectors, but the government believed that the latter would be invigorated by the creation of a then absent “family tourist” niche. Below are the
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.
Even in the United States, Disneyworld (Florida) and Disneyland (California) vary in there social forces. Cast Members (Disney’s term for employees) in CA are trained to be friendly and greet every guest, while in FL they are trained to only greet guests who seek them out. The political, legal, and regulatory factors again, vary from theme park to theme park. The parks in the United States have more restrictions than say those of Hong Kong, China. In the U.S, minors (age 15-17) are only allowed to work 20 hours a week. In Hong Kong, young persons (ages 15-17) are allowed to work up to 48 hours a week. Regulatory factors such as this differ in each region. The Walt Disney Company Parks and Resorts has quite an extreme variety of natural environments. The weather in Florida for example can get in the 100’s regularly whereas in California it can get as cold as the low 50’s. These weather conditions actually are a big factor in guests determining which park they want to visit. Technology seems to stay consistent between most of the theme parks. In fact, many of the theme parks have some of the same rides at their parks. The global forces actually can create threats to the company. The addition of the newest theme park to the company, Shanghai Disney, took several years to become accepted. This has been common throughout the duration of The Walt Disney Company. Many people vote against a new theme park or resort because of the crowds that it
2. Location accessibility by the European population was another advantage for Disney to open its theme park in Paris.
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
However, the expectation of a successful first Disney theme park in Europe was just a dream. There were barely 50,000 visitors on the opening days while it was expected 500,000 visitors (Hill, 2000). Euro Disney
The main problem of the Euro Disney was that all calculations made by Walt Disney Company were based on parks in the USA and Japan considering Europe as a mass of people rather than many countries with different languages and cultures. Americans see theme parks as a destination where you can stay between 4 and 6 days. In Europe, Euro Disney was seen as a part of the experience when traveling to Paris. The cost was also a problem for the park. A night in a hotel inside the park costs as much as a high quality hotel in the French capital. So, given that the park was located 40 minutes by car from Paris, visitors preferred to spend a night in the romantic city of Paris.