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Case 2 1 The Not So Wonderful World Of

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Case 2 1 The Not So Wonderful World Of
Questions
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?
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?
3. What role does ethnocentrism play in the story of Euro Disney’s launch?
4. How do you assess the cross-cultural marketing skills of Disney?
5. Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? In China? Discuss.
6. Why do you think the experience in France didn’t help Disney avoid some of the problems in Hong Kong?
7. Now that Hong Kong Disney is up and running, will the Shanghai development benefit from the Hong Kong experience?
8. Now that Disney has opened Hong Kong Disney and begun work on the Shanghai location, where and when should it go next? Assume you are a consultant hired to give Disney advice on the issue of where and when to go next. Pick three locations and select the one you think will be the best new location for “Disneyland X.” Discuss.
9. Given your choice of locale X for the newest Disneyland, what are the operational implications of the history of Euro Disney and Disney Hong Kong for the new park?
Answers
1- The major factors that contributed to Euro Disney’s poor performance:
a. Lack of cultural awareness, American characters were used, instead of French cartoon characters. Disney banned alcohol while French are the world’s biggest consumers of wine. Disney executives had been erroneously informed that Europeans don’t eat breakfast. Restaurant breakfast service was downsized accordingly, but everybody showed up for breakfast.
b. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that Euro Disney was charging. In addition, Europeans do not vacation as long as Americans do.
c. In

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