Case Study 2 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?

Visitors to the park were reluctant to spend $280.00 a day to enjoy the park attractions. Its hotel rooms were much more expensive than top hotels in Paris. Airfares were cheaper to Disneyworld in Orlando, Florida compared to Paris. The weather was also much better in sunny Florida. French visitors stayed away, because of the historical animosity between the French andAmericans. Disney executives failed to see the approaching recession at the end of the 1980s and the halt on planned vacations after the Gulf war
There were high interest rates and some foreign currencies values decreased. There was outside competition, such as the World Fair and the World Olympics in Barcelona.Another problem was that they had banned alcohol in a wine loving culture. They should have foreseen that this decision would cause a problem. A major problem was that Disney did not invite investors to share in the project, assuming all responsibilities. Some decisions were made based on false information. For example, they downsized breakfast services because they were told Europeans don’t eat breakfast. Also, Europeans spent a shorter period of time at the amusement parks compared to Americans. in all profits and left the parent company with a meager share.
i.They downsized breakfast service because they were erroneously informed that Europeans don’t eat breakfast. 2,500 customers showed up in 350 seat hotels. j.Europeans spent only 1 or 2 days to visit the park compared to their American counterpart who spent at least 3 days.
k.They also failed to consider the vacation customs of the
Europeans. Europeans enjoyed month long vacations while
Americans preferred short but several vacations in a year.
l.Disney stressed the size and sheer magnitude of the park rather than the entertainment value it offered in its marketing campaigns. This reportedly “ruined the magic” Disney parks were known for.

2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney?

3. What role does ethnocentrism play in the story of EuroDisney’s launch? 4. How do you assess the cross-cultural marketing skills of Disney? 5. Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? In China? Discuss.