Amusement Park and Euro Disney

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Case 2

1. What factors contributed to Euro Disney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year?

The factors that led to Euro Disney’s poor performance were the cultural differences between the American theme parks and the European theme parks. The prices of the hotels and entrances were different and much higher in Europe. Park attendance was low, especially from the French due to high prices. The staff was low and the park did not run effectively. The guest expectations wasn’t up to par, the customer service wasn’t as expected. Management was also an issue because foreign shareholders owned Euro Disney and they did not have a full understanding of the European culture. It failed in Hong Kong because its service standpoint was below standards. The cultural factors also added to the failure of the theme park they did not adapt to the Chinese culture. They have improved however culture isn’t everything the rides weren’t the quality that guests expected it to be.

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?

In terms of the foreseeable factors Euro Disney, Hong Kong Disney, and the parent company Disney should consider these factors very heavily because in order to improve the theme parks. They should take into consideration the environmental factors, demographics, and cultural factors. Controllable factors such as prices and management conflicts they should improve on this in order to improve the reputation of the company.

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

Ethnocentrism plays a huge role in Euro Disney’s launch because they still had an American mindset. Euro Disney needs to understand where they are conducting business as explained in the case, the failure of the theme park opening in France...
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