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Submitted by right on May 1, 2005
Category: Business
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Case Analysis # 1
EuroDisney- Disney Land Paris
1. What factors lead to EuroDisney’s poor performance during its first year of operation?
EuroDisney had a disastrous first year in Paris, France. There were many reasons that contributed to the horrible start. I am going to discuss six reasons why I think EuroDisney had such a hard time adjusting in Europe.
1. It was cheaper for European families to travel to Disney World in Orlando, FL. Not only was the trip to Orlando going to be cheaper, but it was almost guaranteed that the weather was going to be spectacular. People go on vacation to have a good time, but more importantly to enjoy the weather. People in Europe and around the world are not going to vacation at a spot where the weather is going to be unpredictable. France get cold in the winter, therefore going to Disney World in Orlando would be more logical. It will be cheaper and the weather is going to be decent for whenever you choose to go.
2. The French culture did not like the American Fairy-tale characters. The French had their own fairy-tale characters; one even has a park located near EuroDisney. Starting up a company internationally is an extremely hard task. Researching the culture of the country in which the company is going to be located is extremely important. When the plans to bring EuroDisney to Paris were finalized, they should have begun extensive research on the culture and history of France. By not doing that Disney may have insulted the French, but more so they hurt their chances of making money.
3. The whole Disney idea was not sitting well with the French people. For example, during a trip to France in 1989 Michael Eisner was hit with eggs by a French columnist. When a culture shows somebody this much disrespect, take it as a hint and get out. The French people were extremely upset at the thought of having an American tourist attraction arrive onto their...
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