CASE 2-1
Ali Zein Kazmi
February 1, 1999
THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY
-THINGS ARE BETTER NOW AT PARIS DISNEYLAND-
1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation?
Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion.
Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what
…show more content…
Culturally, Disney cannot force itself on another people, which in this case was the whole of the European continent. Disney promoted its product, the theme park, similar to that of Tokyo Disneyland believing Europe wanted their piece of “Americana”.
In the marketing sense, we speak of identifying the needs and wants of the consumer. The package presented by Disney to the customer met neither of these. Disney cannot control the environment! True success lies in adapting oneself to the surrounding culture, being marketing oriented is finding success in customer satisfaction. Disney fails on both counts. "Cultures are dynamic and change occurs when resistance slowly yields to acceptance so the basis for resistance becomes unimportant or forgotten"[2]. Which means that on the part of the European community we are certain to see compromise, but over a period of time. Disney too has to reconcile with the environment it has settled in. We read in the case that Disney does ultimately mend its ways. Making room for continuous change is the best way to go about ones business.
3. What role does ethnocentrism play in the story of EuroDisney's launch?
|Company's Basic|Type of |Strategy |Culture |Marketing Strategy |Profit |HR Management |
|Mission |Governance | | | |Strategy |Practices |
| | | | |Product
Managing the Disney brand has become an increasingly difficult task since Walt’s death. Times have changed and it is becoming more difficult as Disney grows to stick to the “timeless family values” it was founded on as times become more controversial and sensitive social
First and one of the most crucial factors were cultural issues. While the success of Tokyo Disneyland was a major factor behind the decision to create Euro Disney, the cultural challenges of France were very
The case “Euro Disney: First 100 days” talks about the issues faced by the Walt Disney Company when expanding to international borders. The case begins with the history of Disneyland and then describes the reasons behind its success and expansion to various states across the country. It then describes the success of Tokyo Disneyland, first Disney theme park outside America and the factors affecting it.
5. Tokyo’s overwhelming success encouraged Disney to conquer the European market. They felt that they were able to evoke international appeal of the Disney concept and it would not be a hard task to wet their feet in Europe.
Today, Disney is popular, it has become a global industry. And pop culture phenomenon to rise in the second half of the 20th century, Disneyland will post a huge attraction in the world. It has attracted many visitors from all over the world to the United States of the theme park. Vivid characters in the cartoon of those fantastic imagination, for example, Mickey and Minnie Mouse, in many cases, is represented, serves as a representative for the Disney culture. These characters, in order to visit the country of their dreams, you can bring a lot of fans of this popular culture. Disney 's culture also has become a successful American experience that passes from the West to the East. Everyone I knew that Disney is a theme park based on the American culture. The reason is, because of its globalization, it has adapted itself to combine the taste of many cultures.
Following on from the success of the DisneyLand theme park in Anaheim, plans to build a European version first started around 1975, nine years after Walt Disney died. Initially Britain, Italy, Spain and France were all considered as possible locations, though Britain and Italy were quickly dropped from the list of potential sites because they both lacked a suitably large expanse of flat land.
Disney is under pressure to be more inclusive of the cultures of the people in the country they are in(O. Ferrell, Hirt, & L. Ferrell, 2009). When Disney sought to expand into other countries they did not fully understand the culture of the French or the Hong Kong Chinese. They have yet to learn how to successfully incorporate the foods trends and events of the land into the theme park. Disney is struggling with culture in those parks because the Disney theme park is focused on an American icon and while other places know of Mickey Mouse they just do not find it appropriate to place so much focus on something that is part of the American culture (O. Ferrell, Hirt, & L. Ferrell, 2009). There seems to be “a lack of understanding of the purchasing
The main problem of the Euro Disney was that all calculations made by Walt Disney Company were based on parks in the USA and Japan considering Europe as a mass of people rather than many countries with different languages and cultures. Americans see theme parks as a destination where you can stay between 4 and 6 days. In Europe, Euro Disney was seen as a part of the experience when traveling to Paris. The cost was also a problem for the park. A night in a hotel inside the park costs as much as a high quality hotel in the French capital. So, given that the park was located 40 minutes by car from Paris, visitors preferred to spend a night in the romantic city of Paris.
In addition, the politicians’ negative publicity and the cultural leaders’ unfriendliness toward the Euro Disney theme park caused the company to close down one resort hotel and laid off 5000 employees. Taking this into account the Euro Disney marketers should have anticipated peoples’ resistance toward the Theme Park and should have changed their positioning in
Globalization is the worldwide movement toward economic, financial, trade, and communications integration. Globalization has impacted many different companies like Nike,Reebok,McDonalds, and Walmart. In order to have a successful globalization and spreading that brand across the world is something that Disneyland has mastered over the years. Opening in 1955 Disneyland was founded in California the company and brand took off over the years and has been globalizing across the world in many of different Countries. While many argue Globalizing a company brands is a bad route to take because it is taking away from the American made style and the company using other people to work for cheap at these other countries across seas. I believe that Disneyland is a good thing for the economy and boosting other countries economy, opening job opportunities’ for people in those countries, and bringing many cultures and people together.
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by
Due to the unwelcome vibe and immense failure that happened to the establishment of Disney in France, in 1992, its executives had to learn the hard way, that in order to be globally recognized, a company branching out to a different country, should know the importance of studying the cultural aspects of the different nations that they plan to do business with. Understanding other countries culture, ethics and language are invaluable in creating a successful business internationally. By taking into consideration the countries’ beliefs, cultural values and traditions, the company would be able to set out its plan to successfully tap into the consumers’ interest and values.
In 1992, Euro Disney was launched in Paris. This project unexpectedly received undesirable feedback from its target market since the company wrongly assumed that it would be easily accepted by the Western European market. Disney received criticisms and negative publicity as they were thought to have brought American imperialism into Europe and the French government acquired farmland just to create the theme park which resulted to protests from the French farmers. Cultural issues also arose as most of its employees did not accept well the management style and the dress code, the customers were not satisfied with the language used in the theme park, with the ban of alcohol consumption, the pricing of tickets and merchandise, etc.
Firstly, when Disney world opened in European country, then they were just opened the clone of American theme park in that country, from this they got a false sense of security for its overseas expansion, because they were not following the culture, tradition and values of host country.
The issues rose when Euro Disney launched in Paris in 1992. Due to cultural issue this Disneyland known as Paris Disneyland from the first day. In Paris Disney accused of ignoring French culture issues regarding language, alcohol consumption and pricing tickets and merchandised damage.