Time Frame

EuroDisney opened in 1992 and was considered/designed to be the biggest

and most lavish theme park the company had built.
Europeans did not visit the park as much as the Japanese did in Tokyo
Disneyland.
People were reluctant to stay overnight in the parks hotels due to its high
price
EuroDisney experienced financial losses which pressured them to revise their
marketing plan.
Frenchman took over EuroDisney as CEO.
By 1994, EuroDisney had lost more than $900 million since opening. The
number of visitors and their purchases are much less than their projections.
Saudi royal family agreed to invest $500 million
Changes in marketing (name change)
In 1996, Disneyland Paries became Frances most visited tourist attraction
Embarked on an ambitious growth plan
Walt Disney Studio in 2001 which incorporated French films
The park caters to the multiple indigenous cultures throughout Europe
In 2005, Disneyland Paris was on the verge of bankruptcy
French government came to the aid of Disneyland Paris ($500 million)
New CEO introduced changes
o Make Disneyland Paris a cheaper destination vacation
o First original character for European audience
o One-day pass access to both parks
o New rides and attractions
By 2008, the turnaround appeared to be working

References to Tokyo Disneyland (check culture of Japanese in terms of accepting

western values)
Dismal winter weather in France was countered with references to the
success of Tokyo Disneyland.
The well-known sentimental Japanese attachment to Disney characters
contrasted starkly with the unexpected and widespread French scorn for
American fairy-tale characters.

Barcelona vs Paris
Cut rates at two hotels by 25% in 1992.
French see EuroDisney as American imperialism (read on French culture)
Hostility among the French had already surfaced in the early planning of the new
project.

Emphasis of Disney advertisements on glitz and size rather than variety of rides and
attractions aggravated French sentiment (baka nayayabangan)
Expensive trams were built along a lake to take guests from the hotels to the
park but people preferred walking.
They had a formidable image and convinced everyone that if we let them do
it their way, we would all have a marvelous adventure. (Myopia)
Disney managements conviction that it knew best was demonstrated by its muchtrumpeted ban on alcohol in the park.
Proved insensitive to the local culture (part of the French meal is wine)
Taboo on mens facial hair (Search)
Chairman and President (There was a tendency to believe that everything they
touched would be perfect) -> came from their continuous success before
EuroDisney.
Mistaken assumptions by the Disney management team affected construction
design, marketing and pricing policies, park management, and financing.
Vacation customs of Europeans were not taken into consideration
The expected French parents to take their children to Disney in mid-session
but it did not happen
Changes in marketing
Pan-European approach was dumped (research)
New localization took into account the differing tourists habits around the
continent.

US Culture
EUROPE Culture
HK/CHINA

Criteria
Attitude
Beliefs
Values
Aesthetics
SRC
Dietary Preference
Culture Context
Power Distance
Individualism/Collectivis

US

Europe

HK/China

m
Masculinity
Uncertainty Avoidance
Long-term Orientation
IO/RO
Authority and decision
making
Management objectives
and aspirations
Communication styles
Formality and tempo
P-time vs M-time
Negotiation emphasis
Marketing Orientation

1. What factors contributed to EuroDisneys poor performance during its first

year of operation? What factors contributed to Hong Kong Disneys poor
performance during its first year?
a. Economic
i. Airfare wars and currency movement
ii. Approaching European recession
b. Technological
i.
c. Environmental
i. Winter
d. Political
i. Gulf war affecting security of Europeans
e. Socio-Cultural
i. Breakfast
ii. Cultural awareness
iii. Ban of alcohol
f. Legal
i.
g. Internal
i. Ethnocentrism
ii. Lack of research
HONG KONG DISNEY
Focused too much on feng shui (mindset that this will be enough for the
Chinese)
Economic
o No problems according
Technological
o Park size, compared to
Environmental
Political
Socio-Cultural

Lack of knowledge of Chinese with Disney characters and Disney

culture
No awareness regarding

o
Legal
Internal
o Too small (16 attractions only and 1 thrill ride) (demographics
was not considered)
Competition
o Not much different with theme parks in China
o

2. To what degree do you consider these factors were (a) foreseeable and (b)
controllable by EuroDisney, Hong Kong Disney, or the parent company,
Disney?
3. What role does ethnocentrism play in the story of EuroDisneys launch?
a. It controlled the management and caused the downfall of the theme
park
4. How do you assess the cross-cultural marketing skills of Disney?
5. Why did success in Tokyo predispose Disney management to be too optimistic
in their expectations of success in France? In China? Discuss.
a. Growth
b. President
6. Why do you think the experience in France didnt help Disney avoid some of
the problems in Hong Kong?
a. Wasnt able to advertise/market Disney characters (Chineses lack of
knowledge about Disney characters). They expected them to
understand Disney.
b. Too small (16 attractions only with one thrill ride)
c. Not unique for Chinese
d. Focused too much on culture that they werent able to take into
account the expectations of customers (what they wanted to see)
e. Wrong advertising (Legal one child policy)
7. Now that Hong Kong Disney is up and running, will the Shanghai development
benefit from the Hong Kong experience?
a. Yes since they have the same culture? Also HK Disney will be a door
for mainland China to know or be familiarized with Disney characters
and stories. However challenges will arise. Hong Kong people are more
open compared to mainland Chinese. The government who controls
the law may pressure some unnecessary
8. Now that Disney 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.
a. Brazil, India, Australia (External Environment) (Acceptance to American
culture) (Adaption to new culture)
b. India
i. Climate

ii. Economy
iii. Demography
iv. Purchasing Power
v. Rich-Poor Ratio
9. Given your choice of locale X for the newest Disneyland, what are the
operational implications of the history of EuroDisney and Disney Hong Kong
for the new park?

ISSUES
French see EuroDisney as American imperialism (read on French culture)
Hostility among the French had already surfaced in the early planning of the
new project.
Emphasis of Disney advertisements on glitz and size rather than variety of
rides and attractions aggravated French sentiment (baka nayayabangan)
Disney managements conviction that it knew best was demonstrated by its
much-trumpeted ban on alcohol in the park.
Chairman and President (There was a tendency to believe that everything
they touched would be perfect) -> came from their continuous success before
EuroDisney.
Mistaken assumptions by the Disney management team affected construction
design, marketing and pricing policies, park management, and financing.
Vacation customs of Europeans were not taken into consideration

INDIA
As part of BRIC/BRICS or countries referred to as the fastest growing emerging
markets, India shows potential as Disneys next magical location. According to
Goldman Sachs, the company who coined the acronym BRICS, these countries are
predicted to become larger forces in the world economy by 2050 and may even
surpass the GDP in US dollars of the G6 as a whole. Indias potential to be one of the
top economic powerhouses can provide Disney an opportunity to ride/be a part of
the countrys increasing development. However, other factors must be considered
in order to determine Disneys viability in the country.
Indias economy is said to be the fastest growing among major economies and
emerging markets in the world. The countrys GDP is among the top 10 highest and
its growth rate averages 6%-8%. Figure 1 shows the projected GDP of India
surpassing France and UK starting 2020.

Table 1. Top 10 countries with highest Nominal GDP (2016-2021).

(Reference)
According to Fitch Ratings Agency, this growth is driven by the governments
economic reforms that led to higher disposable income, better infrastructures, and
improved economic activities. Aside from Indias economy, the country also has a
strong demographics. India is considered the 7 th largest country in terms of
geographical area and the 2nd most populous country in the world. With currently
1.3 billion people which is expected to exceed Chinas population by 2025 and
coupled with a fast growing economy, India is certainly attractive for international
businesses. This does not only account the number of possible customers but also
the cost of labor. Cheap labor will draw foreign direct investments for both the
manufacturing and service sector of the country. More than half of the population is
comprised of men and women of working age allowing further growth. Figure 1
shows the young population of India. Around 29% of the population are kids who
would most likely influence their parents to visit the park.
Figure 1. Age Distribution

Another factor is the view of the country regarding America. This view affects the
acceptance of American culture particularly Disney culture in India. According to
Pew Research Center, India generally likes America and views them as the worlds
leading economic power. The country has already been influenced by Disney since
1993 with the formation of Walt Disney India. The company has already ingrained
Disney films to children since 2001 with the introduction of Disney channel. Figure 2
shows Indians favorability towards the US. A majority (56%) including those with
college education and high-income Indians thinks positively of America. This may
indicate that Disney will be easily accepted by India.
Figure 2.

http://www.pewglobal.org/2014/03/31/chapter-2-indians-view-the-world/
Even though these growth indicators may look promising for a Disneyland theme
park, other factors may provide challenges for Disney. Although the country has 1.3
billion people with a rapidly growing economy, more than 50% of the countrys
population is still below the poverty line of living on less than $3.10 a day according
to the WorldBank. (http://povertydata.worldbank.org/poverty/country/IND)
This greatly reduces the market for an amusement park. Disney charges a premium
price for its one-day ticket/pass which costs US$70 in HK and US$89 in the US. The
same pricing policies will probably be used in the next location. Disney may
introduce an adaptive pricing policy but most of Indias population may not be
willing to pay a premium for this kind of entertainment.
http://nbr.org/research/activity.aspx?id=195
Environmental factors can also be a hindrance for a possible Disney theme park.
India can be classified as a hot tropical country. Summer in India which begins in
April till October is very hot with temperatures reaching 45 degrees Celsius. This
may affect peoples willingness to go to theme parks during a hot weather which is
most of the time feels dry, dusty, and unpleasant.

Disneyland Shanghai will not only benefit from the Hong Kong experience but
from every mistake the company has learned from their international
expansion so far. Resolved issues and continuous improvements encountered
in both Paris and Hong Kong can be taken into account when developing
Disney Shanghai. The highest benefit Hong Kong Disneyland provides is it
being a door for mainland Chinese to know and be familiarized with the
Disney culture. This will allow local visitors to have a connection and idea on
what to expect with Disneyland Shanghais attractions and rides. Feedback
from visitors of Hong Kong Disneyland can be used to determine preferences
of the Chinese in terms of food, park size, attractions, rides, and price.
Even if these benefits and factors have been considered, Disney
management should not be complacent. Challenges will definitely arise due
to the differences between Hong Kong and China especially in politics, and
peoples lifestyle and perception.
Politico-Legal Factor (Chinese and Hong Kong government have different political views)
Hong Kong follows the
Conflict
However challenges will arise. Hong Kong people are more open compared to
mainland Chinese. The government who controls the law may pressure some
unnecessary

Socio-Cultural
Politico-Legal
These factors are as equally important as to
Perhaps the most significant difference between mainland China and Hong Kong is that the
mainland is communist while Hong Kong has a limited democracy. Both share the President
of China as their chief of state. However, each has its own head of government: the Premier
is the head of mainland China while the Chief Executive is the head of the Hong Kong
Special Administrative Region.