After the success of Tokyo Disneyland, Disney decided to place a theme park in Europe. Two locations became targets, Barcelona and Paris. After much deliberation and governmental cooperation, Paris was chosen. However, Disney was bounded by the Republic of French to make sure Euro Disneyland was a French corporation and that it’s developed into a major international theme park that can create 30,000 jobs. The reasons for Disney choosing, as far as finance and market share opportunities, seemed to only be able to prove successful. However, little things that were simply over-looked caused collateral damages. What sort of things did Disney ignore in order to create a loss of over 1.7 billion French Francs? Will restructuring the park ever prove successful? Companies are increasingly becoming globalized and inherently internationalized in order to cut costs with cheaper resources and materials. This would normally allow for them to increase their revenues, avoid expensive tax and labor laws, while gaining market share. However, Disney has proven unsuccessful thus far because they did not conduct necessary research. They were determined to implement the same philosophies that were used in the American theme parks to Euro Disney. By disregarding the importance of research, the Walt Disney Company overlooked important factors such as the reality of the physical, financial, and cultural environment of their planned site. The Walt Disney Company chose Europe as the place to develop its fourth park because the Disney movies themselves have actually shown to be more popular there then in America. More specifically they chose Paris over Spain, despite Spain’s year-round warm weather, because of France’s warm weather and easy accessibility via transport networks. They developed in a large suburban area outside of France, in which they were given the land a highly discounted price. This upset local farmers to the extent that they protested until the company successfully worked over this problem with those farmers. A lot of internal conflicts were brought up with the company due to the ignorance of French laws, requirements and wants. This put a big blunder on Euro Disney’s profitability. Euro Disney was able to meet their target guest range of 11 million people in their first year; however their revenues were not as sufficient as expected. Some Human Resource mistakes were the fact that Disney’s requirements for their employees were exceptionally high, so much that only one out of every ten candidates was hired. There were language requirements and an expressed need for an “Americanized” look, which limited the individuality that the French enjoy. Many French people expressed their concern for the cultural imperialism that was becoming increasingly evident with the Euro Disney establishment. At first, Euro Disney did not allow alcohol inside of their parks, which they do at all of their locations. However, after much turmoil from customers they decided to allow it. The Walt Disney Company also over emphasized the fact that the French don’t necessarily sit and enjoy the kind of breakfasts that Americans do, so they only offered self-service croissants and coffee. They also reacted quickly to that demand from the French. A lot of the marketing efforts with Euro Disney also seemed to have offended the French, because the marketing was eliminated the emotional aspects for consumers and just expressed the largeness of the park. The French perspective was completely ignored when coming up with the marketing plan. Most of the planning in this case came from a very ethnocentric place. The Walt Disney Company also had a hard time communicating, with both investors and the media.
In more of the financial spectrum, there were also a lot of miscalculations made by the executive, especially with regards to the per-capital spending that the guests would indulge in at the park. Unlike the U.S and Tokyo, the
Paper 5- Euro Disney Abstract Disneyland is the park for children who want to make their dream come true. In Paris, Disney also have a park to serve people here. This is the venturing project of Disneyland in France. For a course of time, Euro Disneyland experience a huge net loss. In this paper, we are going to discuss the difference of cultures between two countries as a major problem, and discover what makes Disney be not successful in this country.…
and audience reach, the action of the Disney Company extends well beyond the boundaries of their theme parks. However, once a foreign expansion experience, named Euro Disneyland did not prove to be the successful venture that had been anticipated by its creators. Just a short time after the opening of the park in April 1992 reality proved to be not so magic. Euro Disney was much criticized, slipped into heavy losses and nearly went bankrupt. The case of Euro Disneyland is widely analyzed and discussed…
Friday, March 4, 2011 EuroDisney Case Study Case One: EuroDisney 1. What factors contributed to EuroDisney’s poor performance during its first year of operations? Even though Disney has a theme song that says “It’s a small world after all”, the world remains quite diverse. The biggest factors that contributed to the poor performance during the first year of EuroDisney’s operations were: a poor understanding of the marketplace, the issues and the cultural differences between two nations and two…
Street Brooklyn, New York 11224 March 25, 2015 Mr. Tom Walber CEO Euro Disney Resort S.C.A Marne-la-Vallée Paris, France 77777 Dear Mr. Walber: I am writing to propose ideas for Euro Disney Resort to increase occupancy rate and revenue. According to my studies, Euro Disney has been in a struggle to maintain competitive advantage. During this period, I identified some key issues that I’m positive you’ll take interest in. Disney entered the European economy during a period of recession. With this…
contributed to Euro-Disney’s poor performance during its first year of operation? 1) The expensive cost for each park attractions and also the hotels around Disney need charge more cost than other hotel in Paris. 2) Weather is not good in Paris. 3) The historic problem between American and French let Disney not attract customers. 4) Disney executives failed to plan the future like recession at the end of the 1980s and the halt on planned vacations after the Gulf War in 1991. 5) Disney executives also…
Euro Disney Case 1. What factors contributed to Euro Disney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? The factors that contributed to Euro Disney’s poor performance were the wide cultural differences between the countries, two varying ways of doing business, as well as the lack of knowledge and understanding of the marketplace. As we learned in class ethnocentrism can be harmful when doing business…
the issues affecting corporate and national cultures. Explores the tensions that the corporate culture of Walt Disney Corporation imposes on its French subsidiary, Euro Disney SCA, to determine if the resultant conflict has contributed to its poorer-than-expected performance. Using the three-level construct of culture proposed by Schein an examination of the corporate culture of Disney will be made with particular reference to its programme of internationalization and the ultimate "clash" of…
Disney Case Analysis Disney’s success can be attributed to its unique resources and capabilities that have led them to flourish for over 70 years. Those resources and capabilities include: Culture: Disney’s constant emphasis on maintaining their culture is a resource within itself. By maintaining their family-friendly culture, they have been able to replicate their success throughout numerous generations, essentially winning a large part of the market in each generation. This can be attributed…
R K E T S BACKGROUND Disney, one of the world’s most recognised brands, launched its most recent theme park in Hong Kong in 2005. Hong Kong Disneyland, the fifth theme park globally, was created to service the Hong Kong market, but more strategically to reach the rapidly growing Chinese market. Hong Kong Disneyland is located…
and isn’t clear to use. Economic factors Cyprus currently uses the euro as there currency, this is good as a lot of countries use the euro, and this is good for certain tourists as they don’t need to change their money. However a negative with using the euro is that the euro is very weak compared to other currencies such as the pound. With Cyprus using the euro make it a benefit for the tourists as they get more out of there euro, however it is a negative for the locals in Cyprus. Another economic…