The Not-so-Wonderful World of Eurodisney-Things Are Better Now at Paris Disneyland
The Not-So-Wonderful World of EuroDisney
Summary1
EuroDisney SCA opened in April 1992 its doors to the European public which was located 20 miles from Paris. This specific location was selected over 200 potential sites in Europe (Greece, Italy, Spain, Portugal, and France). Spain was threw out the selection period the most likely place to be chosen but due to the insufficient acreage of the land around Barcelona area as opposed to France government was generous with incentives and showed impressive regional demographics which ultimately France was chosen to be the new location for which would be the biggest and most lavishing theme park that Disney had built around the world.
Disney Management thought that because they had successfully opened Disneyland-Tokyo and surpassed their expectations, the European market was expected to succeed with the same business model and projected to generate over $100 million during the first year of operation which became a loss of $900 million by the summer of 1994. EuroDisney failed to attract the expected number of European visitors’ especially French visitors because they saw it as an American imperialism. Disney executives failed to understand that the European population differs from Japanese population and may simply resent the ads directed at foreign cartoon characters seeing it as a threat to their national identity. If there had been a better market research they would have found out that vacation pattern, pricing of hotel rooms and European meal habits differs much more than they American market or Japanese market. They were confident that whatever project the Disney CEO and President took on would be an instant success because they were credited to having turned the Disney Corporation in to a multibillion dollar company.
Different problems were encountered requiring extensive adaptation of both strategy and tactics by EuroDisney’s management. Eventually the parent company, The Walt Disney Company had to step in to
Summary1
EuroDisney SCA opened in April 1992 its doors to the European public which was located 20 miles from Paris. This specific location was selected over 200 potential sites in Europe (Greece, Italy, Spain, Portugal, and France). Spain was threw out the selection period the most likely place to be chosen but due to the insufficient acreage of the land around Barcelona area as opposed to France government was generous with incentives and showed impressive regional demographics which ultimately France was chosen to be the new location for which would be the biggest and most lavishing theme park that Disney had built around the world.
Disney Management thought that because they had successfully opened Disneyland-Tokyo and surpassed their expectations, the European market was expected to succeed with the same business model and projected to generate over $100 million during the first year of operation which became a loss of $900 million by the summer of 1994. EuroDisney failed to attract the expected number of European visitors’ especially French visitors because they saw it as an American imperialism. Disney executives failed to understand that the European population differs from Japanese population and may simply resent the ads directed at foreign cartoon characters seeing it as a threat to their national identity. If there had been a better market research they would have found out that vacation pattern, pricing of hotel rooms and European meal habits differs much more than they American market or Japanese market. They were confident that whatever project the Disney CEO and President took on would be an instant success because they were credited to having turned the Disney Corporation in to a multibillion dollar company.
Different problems were encountered requiring extensive adaptation of both strategy and tactics by EuroDisney’s management. Eventually the parent company, The Walt Disney Company had to step in to
References: 1 International Marketing – Philip Cateora & John Graham (13th Edition) Case 2-1 p.614. 2 International Marketing – Philip Cateora & John Graham (13th Edition) Case 2-1 p.615. 3 http://www.fundinguniverse.com/company-histories/euro-disney-s-c-a-history/ 4 http://www.citymayors.com/features/cost_survey.html#Anchor-The-49575 5 http://www.destinationnsw.com.au/__data/assets/pdf_file/0003/161238/Sydney-YE-Sep-12.pdf