Eurodisney Case Study

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1. What factors contributed to EuroDisney’s poor performance during its first year of operation? The plan was to make the most amazing Disneyland theme park they had ever built although during the year that it was opened 1992 the park lost money in excess of $900 million. The Company failed to adapt its theme in direct correlation to its consumer with regards to cultural adaption. Even though it is an American company Disney should have definitely done things the way residents of that area believed to be culturally acceptable. A perfect example of this would be, not wanting to sell alcohol throughout the theme park, when it was as stated unthinkable in their culture not to have a glass of wine with their noon meal. Another thing that would apply to its poor performance accurately attaining a statistic that reveals how long people stay at the park. They didn’t find out until afterword that they would only stay for a maximum of 2 days. While they assumed that a normal stay at one of the theme park hotels who be similar to Americans, three days or more. Europeans also didn’t willingly spend more than $280 per day needed to enjoy the theme park attractions. Lastly their was a consumer shortage do to other leading world events going on. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by either EuroDisney or the parent company, Disney? I believe that it most definitely is not a simple task to go about knowing what steps to take in developing such an immense theme park that has to appeal to millions of people to keep it profitable. Although I do however believe that, the tremendously successful Disneyland in Japan blinded Disney’s management team. Most of the Euro Disney mistakes where fo... ... middle of paper ... ...e relates to the Japanese fanatic desire to assimilate everything that Americans do. The there is the high demand for exportation of agricultural goods that is slowly but steadily increasing their monetary spending power. 9. Given your choice of locale X for the newest Disneyland, what are the operational implicational of the history of EuroDisney and Disney Hong Kong for the new park? I believe that Disney will expand in a more strategically way, having gained the experience with the opening of Euro Disney and Hong Kong. Their Corporation will expand taking into account all of their previous mistakes in the past. They also have to take in the importance of advertisement, such as the opening of new and improved rides. They also have to have a well-developed strategy to open its new parks with out the outrageous losses they suffered in the opening of EuroDisney.

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