Case Discussion Questions
1-)What assumptions did Disney make about the tastes and preferences of French consumers? Which of these assumptions were correct? Which were not? Assumptions which are correct or not correct: * Disney thought that Monday would be a light day for visitors and Friday a heavy one. * One Disney executive thought that Europeans don’t take breakfast. * Disney thought that the Europeans want the typical French breakfast of croissants and coffee. * Disney reduces the prices of the hotel room and day tickets. * Disney opens own restaurants with providing French-style food service. * Euro-Disney changed its name.
Assumptions which are correct: * When Disney cut the prices for day tickets and hotel rooms by one-third. The result was an attendance of 11.7 million in 1996, up from a low of 8.8 million in 1994. * Euro-Disney changed its strategy and the company changed the name to Disneyland Paris in an attempt to strengthen the park’s identity.
Assumptions which are not correct: * They thought that Monday would be a light day for visitors and Friday a heavy one, but reality was reverse. * One Disney executive thought that Europeans don’t take breakfast, but everybody showed up for breakfast and the lines were horrendous. * Disney thought that the Europeans want the typical French breakfast of croissants and coffee, but instead they want bacon and eggs. * They open own restaurants with providing French-style food service, but customers want self-service like in the US parks.
2-) How might Disney have had a more favorable initial experience in France? What steps might it have taken to reduce the mistakes associated with the launch of Euro-Disney?
Disney might have studied more of the European culture first before setting up their project and Disney could also have studied about the spending nature of Europeans
Especially when They are on holiday.In addition,some Parisian intellectuals thought that Disney’s dream world which is an assault on French culture, then they boycott the opening.Before Disney launch their project, they have to solve this problem someways.Moreover,there were the operational errors that Disney’s policy of serving no alcohol in the park, but then it reversed and a glass of wine is given in lunch.Disney managers might do that initial of this project.One more thing is also a problem for Disneyland which is the major staffing problems.Disney tried to use the same teamwork model with its staff that had worked so well in America and Japan, but it ran into trouble in France.Major staff managers might have studied more French people working habits and teamwork systems.Another one of the biggest problem that Europeans didn’t stay at the park as long as Disney expected.Most customers stayed only a day or two days.A few stayed the four to five days that Disney had hoped for.It looks that Europeans regard that parks like a day excursions.Disney managers might have more stayable and more adjustable for European person culture.Then,Disneyland might be four to five day excursion park.
3-) In retrospect, was France the best choice for the location of Euro-Disney?
Not really,because the company had invested billions in building luxury hotels next to the park-hotels that the day-trippers didn’t need and that stood half empty most of the time.One thing that make matters worse,the French didn’t show up in the expected numbers. In 1994, only 40 percent of the park's visitors were French.
One puzzled executive noted that many visitors were Americans living in Europe or, stranger still, Japanese on a European vacation.
As a result,by the end of 1994 Euro-Disneyland had cumulative losses of $2 billion.On the other hand, Paris was chosen because of demographics and subsidies.Approximately 17 million Europeans live less than a two hour drive from Paris.Another 310 million can fly there in the same time or less. Also, the French government was so eager to attract Disney that it offered the company more than $1 billion in various incentives, all in the expectation that the project would create 30,000 French jobs.Moreover,Paris which is the capital of the France is also self-proclaimed capital of European high culture and style.In addition, Disney with Mickey Mouse was successful opening of Tokyo Disneyland. All that comparisons clearly say that the France is not a best choice for location of Euro Disney.
Cites:
"Case Study 2 (Disney)." Scribd. Web. 24 Jan. 2012. <http://www.scribd.com/doc/43082160/Case-Study-2-Disney>.
"Why Did Euro Disney Fail? | Answerbag." Answerbag.com | Ask Questions, Get Answers, Find Information. Web. 24 Jan. 2012. <http://www.answerbag.com/q_view/1961926>