Estrañero, Jussel July 5, 2011

Guanzon, Robert James MKA 33

Nye, Lawrence Frederick

Case Study

“The Not-So-Wonderful World of EuroDisney-

Things Are Better Now at Paris Disneyland”

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?

The factors that contributed to Euro Disney’s poor performance during its

first year of operation were its high priced rates for an overnight stay in hotels.

Europeans were reluctant to spend $280 a day, what more for a $110 to $380 stay

in a hotel room? European recession at the end of the 1980’s, Gulf War in 1991

which put a heavy break on vacation travel, high interest rates, devaluation of

several currencies against franc, competition against World’s Fair in Seville and

1992 Olympics in Barcelona became a great factor to EuroDisney. Disneyland

was also established in Hong Kong. Though they have considered the “feng shui

magic”, there are also some factors that contributed to Hong Kong Disneyland’s

poor performance during its first year of operation. First, size matters.

Amusement parks in China are bigger and equipped with better attractions.

Chinese people lack knowledge about Disney characters. There was no

relationship between the characters and the Chinese because Disney was banned
 for 40 years. They didn’t even know that Mickey Mouse and Donald Duck

existed. The common factor that most contributed to EuroDisney and Hong Kong

Disney’s poor performance on its first year of performance is the company’s

being ethnocentric. They just thought that in any country, American culture will

be highly appreciated.

3. What role does ethnocentrism play in the story of EuroDisney’s launch?

Ethnocentrism played a big role in the story of EuroDisney’s launch. Walt

Disney Company depended on their success in Tokyo Disneyland. It had 14

million visitors with three-quarters being repeat visitors. They took the entire US

theme park and transplanted it in Japan. It worked because of the Japanese

attachment to Disney characters. Walt Disney Company became very confident

that it will also happen if they open their other branches in other countries without

considering other people’s culture. It’s like forcing a Muslim person to eat a piece

of pork in his/her own country.

4. How do you assess the cross-cultural marketing skills of Disney?

Being ethnocentric is not always the best application that a company

should use. The French President once said that American culture is an ecological

disaster. It is a lesson for the Walt Disney Company to apply polycentrism, to treat

every country as a unique entity and respect the culture that it has. They’ve learned

it that is why they are the number one tourist attraction in Paris, France today and

a successful theme park in Hong Kong.

5. Why did success in Tokyo predispose Disney management to be too optimistic

in their expectations of success in France? In China? Discuss.

Success in Tokyo predispose Disney management to be too optimistic in

their expectations of success in France because of the impressive data on regional

demographic in Paris. It was calculated that some 310 million people in Europe

live with in two hours air travel of EuroDisney and 17 million could reach the park

within two hours by car. They thought that this number of people will patronize

the theme park with its very Americanized features. In China, they consulted a

feng shui expert to bring luck to their park. The expert even scheduled the opening

of Disneyland to be on Sseptember 12, a lucky date for Chinese people for

opening a new business. Walt Disney Company thought that their brand through

its characters is very established like in Tokyo, Japan because of the enormous

number of target market in France and an expected Chinese luck in China.

7. Now that Hong Kong Disney is up and running, will the Shanghai

development benefit from the Hong Kong experience?

Walt Disney Company also used polycentrism in Hong Kong. They based

their marketing techniques and strategies based on Chinese culture. They had

already established a complete knowledge about the company and Disney itself.

Shanghai development will benefit from the Hong Kong experience.

8. Now the Disney has opened Hong Kong Disney and begun work on the

Shanghai location, where and when should it go next? Assume you are a
consultant hired to give Disney advice on the issue of where and when to go

next. Pick three locations and select the one you think will be the best new

location for “Disneyland X”. Discuss.

Walt Disney Company should open its branch in Dubai, Canada or

Philippines. Establishing a Disneyland in Dubai is a good idea. There are

insufficient tourist spots and it will be the first Disneyland in the Middle East. The

company should apply their multi-linguistic approach like what they’ve did in

France and China because different nationalities are present in Dubai.

Infrastructure will be fast because of its latest technologies. There are many

working people who needs entertainment during day-offs and holidays.

Disneyland in Canada is a good choice. Based on the research, Canada is the “land

of the happy people”. Addition to it, Disneyland will be a great place because “it is

the happiest place on earth”. Disneyland Philippines is a must. As a consultant, it

will be the greatest choice. Infrastructure and labor is very cheap. It is one of the

countries with most number of population. Tourists visit the Philippines because

of its cheap products but quality and it has indeed a beautiful tourist spots. When

you asked Filipino children, “why do you want to go to America?” you will get an

immediate answer, “because I want to go to Disneyland” or “I want to see Mickey

Mouse”. Filipinos are very family-oriented. It is a country which is full of holidays

so family can have their cherished moments at the park. The weather is somehow

friendly. Visitors can wear relaxing clothes because of the warm weather. Locating

it in Manila or provinces in NCR is reachable by car. The company will not

destroy any of the Filipino values, Mickey Mouse and other characters speaking in
Tagalog will just be an additional factor. We have cheap hotels and motels that are

much affordable compared to international hotels. Filipinos are always fond of

entertainment. Comparing Disneyland to Philippine’s theme parks, It will be the

number one theme park in the country. Walt Disney Company should decorate its

park according to Philippine holidays like what they’ve did in China, strategize

affordable promos and don’t forget the give aways or remembrance because for

Filipinos, it is a must.