Premium Essay

The Not-so-Wonderful World of Eurodisney: a Cultural Lesson

In: Business and Management

Submitted By emiliogg
Words 2020
Pages 9
The Not-So-Wonderful World of EuroDisney: a cultural lesson by Emilio González
Introduction
This paper introduces some thoughts about the Disney strategy choosing the place for its European park and about the beginnings of its operations; in some way related to cultural factors. It constitutes a personal answer to a case study placed in the book "International Marketing" 13/e by Philip C. Cateora and John Graham, McGraw-Hill 2007.
Factors that contributed to Euro Disney's poor performance during its first year of operation.
There are several different in nature factors that joined together and contributed to a disastrous beginning of operations. Most of them were management mistakes and others, although external factors, if considered, could have result in different management decisions leading to a better start. In my view these are the most important ones:
The timing. EuroDisney opened in 1992, just when two other international events had place: the Olympics games in Barcelona and the World's Fair in Seville; both in Europe and relatively close to Paris. It's obvious that been unrepeatable events, available only for a certain limited amount of time they were a strong competition. A huge amount of people choose attend to these events instead visiting EuroDisney. Suffice it to say that more than 40 million people visited the Seville Expo during the 6 months it was open (versus 9 million EuroDisney visitors accounted for 1992 all year around).
To add insult to injury, an economic recession was starting in Europe and Disney management failed to see the signs of it. Some people reduced expenses. In several countries due to airfares and currency valuations, a visit to the original Orlando Parks in the US was even more advisable just only considering price.
Lack of research to understand the local market and culture and Wrong Marketing Decisions
The...

Similar Documents

Premium Essay

Eurodisney Case Study

...October 1, 2014 MKT 608 Case Study 2-1 The Not-So-Wonderful World of EuroDisney Things Are Better Now at Disneyland Resort Paris 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? There were two major factors that contributed to EuroDisney’s poor performance during its first year of operation. The two factors include: market research and cultural competency. Within those two factors there were specific details that demonstrate where and why they failed poorly. There are listed below: * Instead of using French cartoon characters, American characters were used. * Europeans are known to enjoy drinking wine, but the park banned alcohol completely. * A misunderstanding regarding breakfast availability cause issues with the guest. * Disney was informed Europeans did not eat breakfast, which was not correct. * Pricing was an issue * Many Europeans believed the prices were too high and would not pay. * Other big events were occurring at the same time the parked open, which cause lots of issues as well At Hong Kong Disney, they had experienced the opposite of what EuroDisney experienced. Hong Kong tried to hard to make it fit. They conducted research and tried to make it work, but guest were disappointed. The park did not differ from other amusement parks in China and therefore......

Words: 1204 - Pages: 5

Premium Essay

Case Study

...Randi Foreman International Marketing Professor Gray June 28, 2015 Case 2-1 The Not-So-Wonderful World of EuroDisney With Walt Disney and the Disney parks being so popular, you would think that the one built in Europe would have been a hit. During its first year of operation, EuroDisney didn’t succeed at all. Disney didn’t do their research and lacked cultural awareness which was their major downfall and the reason for their performance. EuroDisney was built just like the American Disney parks and failed to accommodate to Europe and their culture. For example, the pricing was all wrong, they banned alcohol in a place that likes to drink wine, and they thought that Europeans didn’t enjoy breakfast so they cut back on their serving. Being more culturally aware of the Europeans likings could have easily made this park a success. The exact opposite thing happened in Hong Kong though. Disney did their research and was culturally aware but everyone was just disappointed because Disney failed to make their park stand out from all the other amusement parks in China. Many things could have been foreseeable and controlled by just simply being culturally aware. Disney would have found that Europeans love their wine and breakfast, that they already have their own cartoon characters, and that Europeans don’t tend to vacation as long as Americans do. All of those things could have been easily controlled and made their park a success. The only thing that couldn’t have been......

Words: 854 - Pages: 4

Premium Essay

The Not-so-Wonderful World of Eurodisney

...------------------------------------------------- THE NOT-SO-WONDERFUL WORLD OF EURODISNEY Things Are Better Now at Disneyland Resort Paris February 16, 2014 mktg 417 WIU February 16, 2014 mktg 417 WIU JULIA BIDDENSTADT & TAYLOR SMITH JULIA BIDDENSTADT & TAYLOR SMITH 1. The major factors that contributed to EuroDisney’s poor performance was the lack of market research and cultural awareness. EuroDisney was built just like American Disney parks, without giving though to cultural differences. American characters were used, instead of French cartoon characters. Disney banned alcohol in a culture that enjoys drinking wine. Everyone showed up for breakfast in the mornings, when Disney had cut down their serving because they were erroneously informed that Europeans do not eat breakfast. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that EuroDisney was charging. In addition, Europeans do not vacation as long as Americans do. Other factors were the transatlantic airfare war and currency movement. This made it cheaper to go to Disneyland Orlando than EuroDisney. In addition, the park opened during the Olympics in Barcelona, and the World’s Fair in Seville. Hong Kong Disney had the exact opposite problems. Disney did its research and tried to make the park fit in with its surroundings, and guests were disappointed. The park was very small, and visitors thought it was just like all the other amusement......

Words: 1546 - Pages: 7

Premium Essay

Not so Wonderful

...CASE 21 The Not-So-Wonderful World of BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing, but the Disney response was that their views......

Words: 5355 - Pages: 22

Premium Essay

Marketiong Student

...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial......

Words: 5405 - Pages: 22

Premium Essay

The Not-so-Wonderful World of Eurodisney * —Things Are Better Now at Disneyland Resort Paris

...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers......

Words: 5417 - Pages: 22

Premium Essay

Case Study

...INSTRUCTOR’S NOTES ON TEXT CASES CASE GUIDE CHAPTER CASE | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 1–1 Starbucks – Going Global Fast | X | X | | X | X | | | | | | X | X | | | | | | | | 1–2 Nestlé – The Infant Formula Incident | | X | X | X | X | | | X | | | X | X | | | | | | | | 1–3 Coke and Pepsi Learn to Compete in India | | | | X | X | X | | | | | X | X | | | | | | | | 1-4 Marketing Microwave Ovens to a New Market Segment | | | | X | X | | | | | | X | X | | | | | | X | | 2–1 The Not-So-Wonderful World of EuroDisney | | | | X | | X | X | X | | | X | | | | | | | X | | 2-2 Cultural Norms, Fair and Lovely, and Advertising | | | | X | X | | | X | | | X | X | | | | | | | | 2–3 Starnes-Brenner Machine Tool Company – To Bribe or Not to Bribe | | | | | X | | X | | | | | | | | | | X | | | 2-4 Ethics and Airbus* | | | | X | X | X | X | | | | | | X | | | | | | | 2–5 Coping with Corruption in Trading with China | | | | | X | X | X | | | | | | | | | | | | | 2–6 When International Buyers and Sellers Disagree | | | | | | | X | | | | | | | | X | | | | | 2-7 McDonald’s and Obesity | | | |......

Words: 50890 - Pages: 204

Free Essay

Easy French

...Easy French STEP-BY-STEP Master High-Frequency Grammar for French Proficiency—FAST! Myrna Bell Rochester New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-164221-7 MHID: 0-07-164221-8 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-145387-5, MHID: 0-07-145387-3. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use......

Words: 95898 - Pages: 384