Euro Disney Case Study Essay example

1438 Words Nov 26th, 2014 6 Pages
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 of operation? a.) EuroDisney: * Families were reluctant to spend $280 a day to enjoy the attractions of the park * Staying overnight was out of the question because hotel rooms were so expensive * Old Work thinking of Europeans who did not understand US style free market financing lead to French Bankers hesitating to provide funding * By summer 1994, EuroDisney had lost more than 900 million dollars * Disneyworld in Orlando ended up being cheaper than a trip to Paris due to currency movements and transatlantic airfare wars * …show more content…
To what degree do you consider that these factors were foreseeable and controllable by EuroDisney, Hong Kong Disney or the parent company, Disney?
Most of the problems mentioned in the case (including both EuroDisney and Hong Kong Disney) were foreseeable and controllable since they were based on cultural adaptation. Disney did not look far enough into the cultural values, norms and standards of the foreign environment they were expanding into. If they had done more research, the company could have mitigated a lot of the risk that came with entering into foreign territory. Disney failed to adapt which is a crucial part of market expansion. The company should’ve created a business strategy that combined the traditional values of the company while emphasizing those of the European culture. There were some factors that were uncontrollable. Specifically, these were external factors that had to do with the Gulf War, recession and other political/ economical changes to the environment. 3. What role does ethnocentrism play in the story of EuroDisney’s launch? Ethnocentrism is the belief that your own ethnic or cultural group is

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