Case Study – Euro Disney, the First 100 Days Essay Example
We will now present an introduction in the following text.
The Walt Disney Company has been consistently successful in the theme park industry since its establishment in 1955. However, Euro Disney, which opened in France in 1992 as the company's second international Disneyland, deviated from this pattern. Despite the previous success of their first international Disneyland in Tokyo, Japan, Euro Disney encountered challenges after its opening on April 12, 1992. The park was built within its budget of $4.4 billion and is situated in Marne-la-Vallee, France – an area that is one-fifth the size of Paris and only 20 miles to the west.
Euro Disney provided a range of amenities such as rides, hotels, restaurants, entertainment facilities, a campground, and even a championship golf course. Although the managers had high hopes due to their success with Disneyland and Tokyo Dis
...neyland, Euro Disney encountered numerous difficulties at first. Nevertheless, it wasn't until November 1995 that Euro Disney declared its initial annual operating profit ("The History", 2006).
2.0 Disney Theme Parks
The range of properties included in the Walt Disney Attractions is diverse, including theme parks, hotels, conference facilities, retail complexes, and recreational properties. The revenue from Disney theme parks is crucial to the overall earnings of Walt Disney Attractions. In 1991, Disney theme parks accounted for 71% of revenues, while hotels contributed 21%, and other sources made up 8%. Various factors contribute to the success of Disney theme parks. Firstly, Disney has expanded beyond being just a U.S. company and has become a cultural symbol of America.
Walt Disney had a strong inclination towards creative imagination, which influenced every
Disney park. Skilled "Imagineers" meticulously designed the rides and attractions in each park to fit perfectly with its theme. Additionally, the extensive assortment of beloved Disney cartoon characters played a vital role in shaping the essence of the Disney theme park franchise (Loveman et al., 1992).
The Disney cartoon characters have been crucial in creating cherished childhood memories for many Americans, with each character holding a special place in their hearts. In the theme parks, these beloved characters come to life, allowing visitors to fulfill their childhood dreams by taking photos with their favorite costumed characters. According to Loveman et al. (1992), visitors played a pivotal role in Disney's success as they were not mere spectators but actively involved in the theme parks. They were consistently encouraged to participate in play and interact frequently with staff members.
Tokyo Disneyland has a rating of 3.0.
Disney began expanding internationally when Tokyo Disneyland opened on April 15, 1983. Operated by the Oriental Land Company and designed by Disney, this park featured their characters in exchange for a share of the profits. Tokyo Disneyland was a huge success, drawing over 10 million visitors annually. This accomplishment can be credited to Japan's strong affinity for American entertainment and the impact of American popular culture on the country.
Despite the cultural differences between Japan and the U.S., Tokyo Disneyland closely resembles Anaheim Disneyland in many ways. The majority of its design elements remain true to the original American version. Furthermore, there is a growing interest in leisure activities within Japan, making Tokyo Disneyland a popular cultural destination for locals. The Japanese people have displayed a strong
fondness for Disney's entertainment brand. Highly anticipated and well-attended events at Tokyo Disneyland include the annual New Year's Day and Evening celebrations. Feedback from visitors about Tokyo Disneyland has been overwhelmingly positive, leading Disney managers to believe that what was successful in the U.S. would also be successful in Tokyo.
The name "Euro Disney" is presented in a left-aligned format.
With optimism, Disney launched Euro Disney on April 12, 1992 in France, following the success of two native Disneylands and Tokyo Disneyland. Unfortunately, Euro Disney did not achieve the same level of success in terms of admissions and revenues as the previous parks. Cultural issues played a significant role in Euro Disney's frustrations. While the decision to create Euro Disney was influenced by the success of Tokyo Disneyland, France presented different cultural challenges compared to Japan.
Tokyo Disneyland was constructed in a location where there was a great desire for American popular culture. In contrast, France had a different attitude, with French intellectuals historically being opposed to American popular culture. Although Disney promised that French would be the main language of the park, most signs and employees were actually bilingual. This was due to the strong nationalistic feelings in France, as the intellectual community saw English as a threat to French language and culture. Additionally, Disney deviated from French culture by not serving wine in the park, which affected its initial attendance negatively.
In contrast to Tokyo Disneyland, there were various issues at this theme park as well. Firstly, visitors faced long wait times for rides and food. Additionally, there were several managerial problems, such as the hiring process being controversial
due to its stringent requirements. Disney enforced a strict dress code and employee appearance, which led to criticism from applicants and labor leaders who believed the requirements were excessive. Another issue was the lack of adequate staff housing, causing thousands of Disney employees to face difficulties regarding accommodation.
The work environment at the park, characterized by long hours and a busy pace, led to overwhelmed cast members who were unable to provide good service quality. Disney tried to introduce the same successful teamwork model used in America and Japan, but encountered difficulties in France. In the first nine weeks after Euro Disney's opening, approximately 10 percent of the 1,000 employees quit. Moreover, Euro Disney faced a challenge with high ticket prices as it aimed to appeal to both local visitors and tourists worldwide.
Disney failed to consider the differing living standards between Europe and America when setting ticket prices. While Americans could afford a $30 daily ticket, Europeans may not have been able to afford the ˆ40 cost. Along with this financial issue, there were also environmental factors that posed challenges for Euro Disney. Despite thorough analysis in selecting the location, the cold weather proved to be a significant obstacle for the theme park's success. Additionally, it became evident after Euro Disney opened that Europeans did not spend as much time at the park as anticipated by Disney.
Conclusion: 5.0
The problems faced at the start of Euro Disney have various causes that Disney has tried to address with appropriate strategies. However, this case provides valuable lessons. It is crucial to avoid assuming a culture based solely on our own experiences
and acknowledge that there are always aspects we may not fully grasp. To achieve successful cross-cultural business ventures and minimize misunderstandings, thorough understanding of the country's culture is essential.
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