Eurodisney Business Research Design Assessment

EuroDisney Business Research Design Assessment

The research design to help Disney enter into the European market was poorly designed and virtually ignored as being significant by management. As a whole, a move by any company to any foreign market should not be made without an extensive, in-depth study based on exhaustive research into every applicable aspect of the economy, laws, culture, climate, interests, customs, life-style habits, geography, work habits. This integration of differing management practices is typical with any company doing business abroad. However, a great deal of time, patience, understanding, education, and willingness to accept and/or compromise are needed from all parties involved in order to make this integration successful.

Disney Company has been known for their strict construction and risk management requirements which they wished to impose upon the French workers. It was important to each side for them to join their philosophies and requirements into a system which would work for EuroDisney.

The sample design for research was not brood enough. Too little research had been obtained and utilized. EuroDisney was considered in the media as a symbol of American ethnocentrism and cultural imperialism. It was perceived as a threat, a cultural showdown of American supremacy in modern technology and its applications. At the same time, there was a fear of an American takeover of the leisure industry in France when the public was spending a large portion of its disposable income on it. This was overlooked by management, as well as many other cultural differences.

The success of Disney parks is premised on repeat business rather than on attracting new visitors. There is usually an enormous pay off in retaining existing customers rather than attempting to grow by attracting new ones. Lack of customer oriented service and the objections of European intellectuals convinced European visitors not to return. The park builders discounted all cultural aspects of their venture. They chose to ignore specific publics they were targeting. The management team in Euro Disney repeatedly assured French critics that they knew the business and refused many cultural pointers offered.

The validity and the reliability of the information obtained led to the nickname of this venture being called "The Cultural Chernobyl." Management chose to not complete the necessary research needed when entering a foreign market. This has caused an unhealthy beginning for EuroDisney. EuroDisney has continued to improve its relations with Europeans since the opening of EuroDisney. EuroDisney has also been renamed as Disneyland Paris to try to bridge the gap between the evil American empire known as Disney and the French and European population.

Vicki Castellani Yanaga

Thomas Paino

QNT 530

November 2, 2003

EuroDisney - Poor Business Decision and Lack of Research Spell Disaster

The business decision I have chosen to discuss is regarding several decision that were made when EuroDisney was created. Many factors should have been researched more thoroughly. The Walt Disney Company had experienced nothing short of success in the theme park business. Having successfully opened parks in California, Florida and Tokyo, it only seemed logical to open one in Europe. One city was chosen to host the new theme park and it was Paris, France. That was the first of many decisions that led to a very unsuccessful opening of EuroDisney.

Many factors contributed to EuroDisney's poor performance during its first few year of operation and many of these factors could have been alleviated if the proper research would have been done. The first problem with EuroDisney was that Paris was the town chosen to be this park's home. It was chosen because of demographics and subsidies and because the French government made Disney an offer it could not refuse. About 17 million people live less than a two hour drive from Paris and another 310 million can fly there in the same time or less. The French government offered the company more than $1 billion in various incentives, all in the expectations that the project would create 30,000 French jobs. (Jefferson, 74) In negotiations with France, lawyers were used excessively. This rigid legal approach was offensive to the French, who, like most Europeans consider depending on lawyers to reach a conclusion to be a last resort.

Many marketing and operational errors factored into the parks unsuccessful opening. EuroDisney's advertising had emphasized Disney's image as an alluring bit of Americana rather than an explaining to potential customers what they can actually do for the park. EuroDisney's image-marketing did not explain to Europeans what the theme park was or what attractions it had to offer the European consumer. Advertising was so focused on the size of the park and the glamour behind it, that this poor marketing strategy hurt overall business. No one in France cared that EuroDisney had costs over $4 billion and that its 4,800 acres include five separate recreation areas, six hotels with room for 5,200 people in all, an entertainment center, a 27 hole golf course and a wooded campground. (Gumbel, A12)

The marketing strategies of the United States were used in France and it backfired when the French visitors stayed away from the park. Operational errors that easily could have been avoided accounted for more troubles than were expected at EuroDisney. In regards to employees, alcohol, admission and hotel prices, hotel breakfasts, staffing problems, and regulations regarding pets, many problems were cause for EuroDisney's misfortunate first year. The employee dress code enforced on employees prohibited facial hair and limited the use of makeup and jewelry. Since this caused much discontent, Disney has relaxed on rules regarding personal grooming. The ban on alcohol caused astonishment in a country where a glass of wine with lunch was as French as a cheeseburger was American. How banning alcohol in this theme park could have ever been a consideration is unbelievable and since it was such a major issue this policy of not serving alcohol in the park as since been reversed.

Prices revolving around EuroDisney were also the cause of it not making a profit. Its high admission price-30% more than at Disney World in Orlando-makes visitors keen to take as many rides as possible, so they spend less time shopping for merchandise. (Gregersen) Prices at hotels were so high that staying overnight for