Disney Case Study Answer

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 parks in China. The park was undifferentiated. People did not know the traditional Disney characters, and did not appeal to them.
2. Many factors could have been foreseen and controlled by the mere study of history and culture of Europe. This study would have found that Europe has their own famous cartoon characters, and how long they usually tend to vacation. The research would have shown that wine and breakfast are important to the Europeans. With the World Fair and The Olympic Games going on at the same time, EuroDisney should have delayed its opening so more people would have wanted to attend. The only unforeseeable event would have been the Airfare war, which could not have been controlled at the time.
3. When EuroDisney launched, it was introduced with an American theme