Disney Case Study

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?

Some factors that hurt Disney were that the cultural differences as seen throughout Europe were must different then those parks placed in the United States and Japan. Many of the French people were not amused by the American themed park and also the prices for tickets, hotels, and food, were too much for the European people to take on for a family trip to the park. The managers had implemented a “kick down the door” attitude, which isn’t the way French cultural conducts business. The European people where not worried by the size of the park, rather they just wanted a fun experience.

The Hong Kong location failed because they did not fully tailor the park to the Chinese cultural, such as, introducing new characters that were familiar with the Chinese people, or that they under sized the park compared to the amount of people who live in China.

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?

The biggest factors that contributed to the poor performance during the first year of EuroDisney’s operations were that management had a poor understanding of the marketplace. They did no see any issues with the cultural differences between two nations and they had two differing approaches to business and life culture.

3. What role does ethnocentrism play in the story of EuroDisney’s launch?

Ethnocentrism played a huge role in EuroDisney because they were building a European Family style park with an American mindset. Next, The French people did not like the American cartoon style characters that were implemented to greet customers all over the park. Management just assumed that the European people would like the park theme because American people do. Finally, Disney and EuroDisney did not take into affect that the French people did not want a Disney theme park on their land.

4. How do you assess the cross-cultural marketing skills of Disney?
Euro Disney really failed when it came to marketing the business. The management failed to acknowledge simple details that could have made a huge impact on EuroDisney. First, Euro Disney banned the consumption of alcohol in their parks. If Disney had done any sort of demographic research that would have found that the consumption of alcohol plays a huge role in the European culture while they are consuming meals. Finally, the marketing was pertaining to the size and beauty of the park as oppose to the attractions that people can do with their families.

5. Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? in China? Discuss.

The main reason that Disney Tokyo was a success was because the Japanese people love Disney characters and American lifestyle. Just because a marketing technique works at one location doesn’t mean it will work at another. Due to the success in Japan, management thought they could just jump to the European market and start making money the “American Way” but the French did not like American style.

6. Why do you think the experience in France didn’t help Disney avoid some of the problems in Hong Kong?