Preview

Eurodisney Case Study

Better Essays
Open Document
Open Document
1620 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Eurodisney Case Study
Case Study
Monday, April 16, 2012
12:01 AM

Christopher John
International Marketing
April 15, 2012
Professor Pepe 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 EuroDisney was their misconception of what the French enjoy in a theme park. They took the same ideas, plans and layouts that worked for the US market and imported it to a different culture. Needless to say, the French people did not fancy the “Americanized” implantation in their culture and rejected the park. Many of the French Bankers did not like the idea or questioned the financial structure of the park. The hotels and general prices of the parks were not priced in consideration of the French economy and the French culture; they had stated that some rooms in the EuroDisney Resort were priced as high as luxury hotels in the cities of France. The Disney management style was another factor that contributed to the initial failure of the park; they had a “Kick-down-the-door” attitude, which isn’t the way the French culture conducts business. They had also put major emphasis on the size of the park, while the French were much more interested in the experience.
While there wasn’t as much negative aspects of introducing Disney World in Hong Kong, they still haven’t perfected entering a foreign market. On the corrective path, Disney tailored the new Hong Kong location to the locals and the Chinese culture, but still missed some important key factors, such as making the park too small and not introducing characters the Chinese culture was familiar with. They also overstepped their borders by dressing up their characters in the red suits to symbolize the year of the rat.
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,

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Dahl Make Up Quiz Disney

    • 581 Words
    • 3 Pages

    2. What was Disney’s corporate level strategy in 1984 (be clear and concise)? How were the various business segments related at that time? Unrelated? How did Disney create corporate level synergies?…

    • 581 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Activity Problems MPC

    • 367 Words
    • 2 Pages

    7. Do you think the financial performance of the Economy division was impacted by any poor design features in the BSC and strategy map? Why?…

    • 367 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    3. What are the key driver assumptions of the firm’s future financial performance? What are the managerial implications of those key drivers? That is, what aspects of the firm’s activities should Koh focus on especially?…

    • 1166 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    IB207 case2

    • 410 Words
    • 2 Pages

    First, Euro Disney’s poor performance due to the management lacked on understanding of the cultural difference between two nations. Disney goes (very deep) into the American consciousness, its themes were chosen to appeal to a wide variety of American interests and tastes, its parks were filled with images of American culture, and its cartoon characters had become staples of the American youth experience. In conclusion, Disney is too "Americanized." Although Euro Disney did some work to adapt, it is not good enough to convince consumers. After all, since Paris is the culture capital of Europe, French think their culture being deserved more respect.…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ad Ad Ad Blockbuster

    • 464 Words
    • 2 Pages

    3) What would have been the effect on earnings per share if Video Superstore purchases were not included in 1988 revenues?…

    • 464 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Krispy Kream

    • 2088 Words
    • 9 Pages

    2. What factors did the CIBC analysts examine to forecast sales growth for KKD in the years ended January 2003 and 2004? What assumptions did they implicitly make about number of new stores and weekly sales per store (for both company and franchise stores)? What are their implicit assumptions about revenue growth from franchise operations and KKM&D? Do you agree with these forecasts?…

    • 2088 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Walt Disney Strategy Case

    • 709 Words
    • 3 Pages

    3. What is your assessment of the competitive strength of Walt Disney Company’s different business units? See p. 237 in text.…

    • 709 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Eurodisney Business Case

    • 1332 Words
    • 6 Pages

    1) How could the company have erred so badly in its estimates of spending patterns of European customers?…

    • 1332 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case Study

    • 642 Words
    • 3 Pages

    1. Using information in the chapter, what kinds of decision-making errors and biases do you think may have led its managers to grow the size of the company so much and to add so many brands that the company became too complex to control?…

    • 642 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    That is what led to another issue in France at the Walt Disney park and it was the admission price to the park was high. When reconstructing, Disney wanted to come up with ways that made the people comfortable, and want to come back. The changes they initiated was they reduced the price, change the name, and they started to focus on the culture differences in…

    • 802 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    A performance Management

    • 489 Words
    • 2 Pages

    Q3. Do you think all the factors facilitating and hindering performance are taken into consideration while appraising the performance?…

    • 489 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

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

    • 1286 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Disney Theme Parks

    • 2251 Words
    • 10 Pages

    As the well-known multinational enterprise, Walt Disney company has achieved a great success in its oversea project. The company set up Disneyland in Japan, France and China successively. But it carried out different policies according to different areas. The report will analyze the motivations of setting up abroad. And define…

    • 2251 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Disney in Tokyo and Paris

    • 1231 Words
    • 5 Pages

    Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    The venture into Hong Kong by Walt Disney was a simple example of a large successful western company not doing its homework. The case presents a clear picture of the importance of understanding a foreign market thoroughly before doing business there. Several factors led to an unsuccessful first year of operations and a majority of these factors could have been avoided with a better cultural understanding in the planning stages. One of the culture differences that was obvious to Disney was the fact that the children are not familiar with the Disney characters. Disney has established its brand and is a marketing poster child in the United States, however this advantage goes out the window in a country such as china that has sheltered itself from the outside world until recently. Disney thought that making a meager attempt at introducing the characters before the launch of the park would help, however familiarity isn’t synonymous with brand attachment. As listed in Global Marketing Management by Kotable & Helson, “Cultural Distance” is one of the six external criteria for choosing a mode of entry into a foreign territory, which was not accounted for by Disney. Cultural distance also recognizes the fact that different cultures have different expectations. This was also the case with China. As stated in the case, “for the tourists of Mainland China, going to Hong Kong means a shopping experience, and so they choose the cheaper alternative to Hong Kong Disneyland…” The case goes on to allude to the fact that the culture in China is one about dollars and cents – when a Chinese person spends his/her money, they are more interested in what they are physically getting. This is very…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays