When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007).
Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney
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Also, Disney was accustomed to American visitors having a three day vacation to a park; where as the French experience was two days at most. The executives at Disney also failed to take into consideration that Europeans have different vacationing practices. Disney assumed that it would influence the French to frequent the park in short mini-vacation style trips. The French however were not accustomed to such practices and held true to their customs of a month long vacation in August (Cateora & Graham, 2007).
Disney was nearly at its breaking point in 1994 when a Saudi investor gave them $500 million. He suggested that $100 million be used to build a convention center at the park, which has proved to be successful. Prior to the Saudi investment, Disney was in a rough spot because they had created such hostilities with the banks, government, and ad agencies. Disney was running out of options. In 1993, Disney named Fenchmen Phillipe Bourguigon as CEO in hope of regaining profitability (Cateora & Graham, 2007).
Bourguigon, changed Disney's marketing approach in Europe to target the specific nations and cultures. He was able to break marketing into six major nations and cut park process by twenty percent and run winter promotions. The name was even changed to Disneyland Paris in 1994. In