Case 2-1: The Not-So-Wonderful World of EuroDisney’--- Things Are Better Now at Disneyland Resort Paris 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 lack of understanding of the French culture, mistaken assumptions, and ethnocentrism by the American management. Since the prices of the hotels and entrances were different and much higher in Europe, the park attendance was low. It was actually cheaper for European families to travel to Disney World in Orlando, FL than to EuroDisney. Eisner was a little arrogant when he assumed people from all over Europe would come to Paris, when there are many different cultures in Europe, each one expecting adaptation. It isn’t like the U.S. where the culture is much the same throughout. Each country has its own culture. The guest expectations weren’t up to par, and the customer service wasn’t as expected. There was a ban on alcohol when the French are the biggest wine drinking country and the poor and underestimated arrangement of breakfast didn’t settle well with the French. 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 two factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney? In terms of the foreseeable factors, they should have taken into consideration cross cultural differences, the Gulf War of 1991, 1980’s European recession, high interest rates and devaluation of several currencies, World Fair in Seville and the Olympics in Barcelona, and the ban on alcohol...
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