Disney Case Study Answer

Topics: Walt Disney Parks and Resorts, Magic Kingdom, Amusement park Pages: 6 (1507 words) Published: July 2, 2015
1. The major factors that contributed to EuroDisney’s poor performance was the lack of market research and cultural awareness. EuroDisney was built just like American Disney parks, without giving though to cultural differences. American characters were used, instead of French cartoon characters. Disney banned alcohol in a culture that enjoys drinking wine. Everyone showed up for breakfast in the mornings, when Disney had cut down their serving because they were erroneously informed that Europeans do not eat breakfast. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that EuroDisney was charging. In addition, Europeans do not vacation as long as Americans do. Other factors were the transatlantic airfare war and currency movement. This made it cheaper to go to Disneyland Orlando than EuroDisney. In addition, the park opened during the Olympics in Barcelona, and the World’s Fair in Seville. Hong Kong Disney had the exact opposite problems. Disney did its research and tried to make the park fit in with its surroundings, and guests were disappointed. The park was very small, and visitors thought it was just like all the other amusement parks in China. The park was undifferentiated. People did not know the traditional Disney characters, and did not appeal to them. 2. Many factors could have been foreseen and controlled by the mere study of history and culture of Europe. This study would have found that Europe has their own famous cartoon characters, and how long they usually tend to vacation. The research would have shown that wine and breakfast are important to the Europeans. With the World Fair and The Olympic Games going on at the same time, EuroDisney should have delayed its opening so more people would have wanted to attend. The only unforeseeable event would have been the Airfare war, which could not have been controlled at the time. 3. When EuroDisney launched, it was introduced with an American theme to an extreme extent. What wasn’t expected was how most people in Europe would react to this. Many European’s believed their culture and cartoon characters, such as Asterix and the Gallic Warrior, were better than Americas’ characters, so this had a very negative effect on business. EuroDisney opened in hopes that the Europeans would react to the park in the same way that the people in Tokyo did, but that was not the case at all. In addition, Europeans believed in taking shorter vacations and did not need to spend more than two days at the park, which was not anticipated. Europeans weren’t afraid to cut their spending money and often didn’t stay at the night at the park because they thought the prices were outrageous. Overall, the culture of Europeans was/is much different from that of America and Japan’s culture, so there wasn’t much to base their marketing decisions on when building the park in Paris. 4. Disney pretty well nailed the marketing aspect of both America’s, and Japan’s Disney theme parks, and they went in with almost the exact same mind set when building/marketing the EuroDisney park in Paris. They did not take into consideration the little and big cultural differences and were not sensitive to what the park would need to succeed. When EuroDisney opened, it was advertised as being big and glamorous, but that isn’t what the Europeans necessarily cared about; they care about quality over quantity. Disney had quality as well as quantity but didn’t advertise in such a fashion. Executives were informed that Europeans generally didn’t eat breakfast, so the parks dining areas were built with that in mind. It turns out they over compensated when downsizing the restaurant areas because “everyone” showed up for breakfast and the lines were disastrous, trying to feed breakfast to thousands of people when the restaurants only held 350 people. Disney marketers simply didn’t understand the lifestyle and culture of Europeans at the time of introducing...
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