Eurodisney Case Study

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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, Disney? For all companies, both EuroDisney & Hong Kong Disney, these factors were both foreseeable and controllable. Although forin companies will experience retaliation form the entering country, it is their responsibility to research and understand, to the best of their ability, the cultural norms of the entering culture. For example, if simple research was conducted by EuroDisney, we would see a demographic that children are not pulled out of school during the year to take a mini vacation and in the French culture, events like theme parks are not as extended as they are in America. Although Disney did believe that bringing the existing park over would give the individual an American experience, most saw it as America trying to impose their culture on the French 3.        What role does Ethnocentrism play in the story of EuroDisney’s launch? Looking at the method Disney took to opening the park in France displays a high degree of Ethnocentrism. The Disney company had created their launch around the idea that they were spreading the American Dream that is Disney. They imported all American customs to the park, down to the food, the pricing plans as well as the projected vacation allowance. The company did not take into account the differences in the French culture, which is one of the main reasons why the launch was a failure. 4.        How do you assess the cross-cultural marketing skills of Disney? The cross-cultural marketing skills, while they were in their startup phase in EuroDisney had greatly reflected the American way due to their ethnocentrism. The company as a whole did not analyze the market they are going into or went into the market with a completely wrong marketing plan. Had research been done and cultures analyzed, the entry of this company might have been much more successful 5.        Why did Success in Tokyo predispose Disney management to be to optimistic in their expectations of success in France? In China? The success in Tokyo worked because...
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