Disney Case Study

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Case Study 2.1 Disney 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? a. EuroDisney poor performance factors: location, price, American imperialism, marketing, management, competition, events, and culture. EuroDisney choosing a location near Paris was supposed to have the best demographics of any Disney site, but resulted in bad weather, competition with Paris, and price came into play when it became cheaper to travel to Florida for the real DisneyWorld. Many French saw EuroDisney as American imperialism because they did not have the same love for Disney characters and they were trying to impose their own Disney ways. Disney advertised glitz and size rather then rides and variety. Management alienated many counterparts in government, the banks, ad-agencies, and other concerned organizations with their kick down the door attitude. EuroDisney faced competition and events including the Gulf war, the World Fair, and the Olympics. Restaurant breakfast service was downsized based on management assumptions, and everyone wanted breakfast. Management didn’t take into fact the vacation customs of Europeans who take month long vacations in August. b. Hong Kong poor performance factors: the people were not familiar with the characters since Disney was banned for 40 years in China and had little to offer those not familiar with the characters. The park was small. It had fewer rides then other parks. Many of the other parks in China were similar. 2) To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney? a. I believe almost all factors for Disney were foreseeable and controllable with the exception for a few. EuroDisney’s locations may not

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