Euro Disney The First 100 Days

Euro Disney: The First 100 Days

Case Report Submitted by: Pavni

Question 1: Assess the pros and cons of Disney's decision to build a theme park in Europe. Do you think it was a wise decision to invest in constructing a new park near Paris?

Answer 1: There are several pros and cons in Disney's decision to build a theme park in Europe.

Pros

1. According to me, the biggest advantage of opening a theme park in Europe is the number of tourists visiting Europe each year, Paris being an extremely attractive tourist destination had approximately 50million tourists visiting France annually and spending roughly $21billion.

2. Also, location accessibility by the European population was another advantage for Disney to open its theme park in Paris.

3. Other theme parks in Paris lacked what Disney had to offer, this gap had to be filled, the large population that lived in and around Paris had to be targeted and offered a unique, fun filled and mystical theme park. A Disney park in Paris was poised to be a sure shot winner.

4. Polling results in France clearly revealed that there was a huge demand for Disney theme parks in Europe and that people were open to the idea of Euro Disney.

5. Tokyo's overwhelming success encouraged Disney to conquer the European market. They felt that they were able to evoke international appeal of the Disney concept and it would not be a hard task to wet their feet in Europe.

6. Employment opportunities for more than 30,000 jobs for Paris, was yet another invaluable advantage for Disney to commence its operations in Paris.

7. Not only was the theme park centrally located but also it was almost 4 hours by car from England after the opening of the Euro tunnel in 1994.

8. Contractual concession made by the French government was very lucrative too. France agreed to develop an infrastructure specifically to reach Disney from different parts of Paris. They offered concession loans, agricultural land and several tax benefits. These tax benefits

Cons

There were several disadvantages for Disney to build a theme park in Europe.

1. The weather conditions in France acted as a deterrent in attracting visitors in the winter months. Winter temperature could drop to 23 degrees Fahrenheit and most people would not visit parks and rides during the cold winter season.

2. French were afraid of losing their fine culture and heritage to Disney values. They were highly concerned about Cultural Imperialism. They considered the Disney experience way too Americanized and weren't willing to encourage the American brand of consumerism.

3. Europeans are not the most patient people in the world. They would not wait in lines for their rides. There was a dire need by the French for easy accessibility as well as flexibility in the Disney experience for them.

4. European culture is poles apart from American culture. Their concept of entertainment includes a huge emphasis on food and beverage, an area that Disney does not specialize in.

5. European's eating habits were totally different. Consumption of fast food at off hours was not a part of their eating routine, serving food to the Europeans would be a task in itself for Disney.

6. Wine, was prohibited inside the Disney parks in Paris. This was not well taken by the French because wine is very closely connected to their culture and cuisine.

7. The target market for Euro Disney were Europeans. Disney failed to realize that even though the nations within Europe are considered as a single market for a number of consumer products, the same cannot be said about each nation's way of life and preference for entertainment. Japan resisted U.S. products, it has a huge affinity for the American ways of living. The same could not be said about Europe where each nation has a strong nationalist and individualistic character, and take immense pride in their cultures and traditions. They do not have the same affinity and respect for the American culture as the Japanese people do.

8. There was difficult resistance in hiring employees. Disney had very strict norms and grooming requirements in comparison to the requirements of other employers.

9. Disney's biggest competitor was Disney itself. Euro Disney had to live up to the high expectations and quality standards that they have set in other countries.

10. The theme park was built on the outskirts of Paris, housing problems for the staff became a major concern. It was too expensive for the staff members to afford a house in Paris and unfortunately Disney did not have enough housing facilities for its employees.

11. The first language of Disney's visitors was not English. Visitors were from different parts of Europe, this caused a language problem for employees whilst providing customer service. They were not sure in which language they will be questioned or spoken to.

12. The Disney experience is way too American for the French to accept or become a part of it.

13. There was a lack of local management and autonomy. Euro Disney had a significant amount of foreign ownership. The Walt Disney company owned a 49% share and 51% owned by a separate company called Euro Disney S.C.A., this caused management by remote control. Decisions were made by people who really did not have an understanding of the culture and market as well they were far removed from daily operations of the theme park. It became difficult to accurately understand the European Disney market.

I think don't think it was a wise decision to build a theme park in Europe because the idea of having fun in Paris is very different from rest of the world. Europeans are more intellectual and artsy. They are more likely to appreciate museums, art sculptures and the works than going to a crowded a place and shell out approx $60 for the Disney experience. Also, tourists in Paris would much rather visit its cultural and historical sites than a Disney theme park. Most of them would not go to Paris to enjoy the mystical land of fun and adventure, but to enjoy the culture and heritage of Paris. It would really take time and heaps of effort to make the Disney idea of fun for the Europeans.

Question 2: What is the Euro Disney's target market, and what are the implications for the development and organization of the park?

Answer 2: Euro Disney's target market covers young adults and children mainly around France,