What factors contributed to eurodisney poor performance

Alexandra Stark

1. It is difficult to say which is the best and which is the worst park. All three expansions have their own niche and are better and worse than others in their own ways. However, Tokyo has been very successful across all fronts. According to Sim, it has the highest number of attractions compared to all other Disney parks, is third in terms of attendance and sixth in acreage size when compared to all other locations (2014). It ranks higher than Paris and Hong Kong both on almost all three comparisons.

There were a number of factors that contributed to a rather poor first year at the Euro Disney location. The largest and most concerning were that the French did not want much to do with the new park. According to Amine, there was quite a large amount of hostility toward American Disney characters, as the French had their own fairytale characters they were already fond of (2015). The park was also projected to bring in much larger numbers, with guests spending far more than they actually did. After only two years of operation, they had lost more than 900 million dollars (Amine, 2015).

Hong Kong faced its own difficulties. Disney took into consideration the issues that the faced in Paris. They hired a Feng Shui expert to ensure that they encompassed all aspects of Chinese culture. There was also a large emphasis on “energy flow” within the park, due to the large importance that plays in the Chinese culture. However, Disney still had a bit of an issue trying to connect with its customers. Disney characters are nowhere near as popular in other cultures are they in America. This was the same issue faced in Paris but did take some measures to help prevent such a strong turn off in Hong Kong

2. Ethnocentrism played a large role in the Euro Disney Launch. When preparing for the launch, it was assumed that the Europeans would be in favor of all the aspects that made the Disney’s in America great. This was based on American entertainment, financing, and marketing. However, the Europeans did not react well to this strategy. They felt that the park was not set up to support their cultural norms which were incorrect in their eyes. Both Disney and the French experienced ethnocentrism, however, Disney should have been more prepared to enter a new culture and its existing ways.

3. The Tokyo location had a few changes that were made specifically for that park. This culture places a very high importance on the act of gift giving. As this is a very strong cultural act, Disney made their shops more user-friendly. They knew that the shops would be more frequently visited so they made more cash registers. This helped with ease and speed of check out. They also made more que lines to help accommodate the larger number of gift shop visitors. The Asian culture has a very strong desire to take photographs. With that being said, the Disney’s in Asia made very specific accommodations to the little details of their parks. This included paying more attention and putting finishing touches on everything, even handrailss and light poles. This was to help enhance the experience and photographic needs of those visiting the parks in Asia.

4. Disney has expanded to many areas of the world, but still has room to grow. If I had to choose three possible locations for the next Disneyland, I would first look at a few different aspects to support my decision. I would factor in the desire of entertainment locations in the region, the ease of access to that area, and the cultural norms. The three areas that I would look into would be Spain, Australia, and India. All of these locations have a large population, tourist appeal, and conformable cultures. My final decision would be to add a location in Sydney, Australia. The population is growing, and it would be a great location for the company to expand to.

References:

Amine, L. A. (2015, September 5). The Not-So-Wonderful World of EuroDisney*-Things Are Better Now At Disneyland Resort Paris.

Sim, N. (2104, April 1). By the Numbers: A Comparison of Disney's Theme Parks. Retrieved from https://www.themeparktourist.com/features/20140401/17257/numbers-comparison-disneys-theme-parks

Aaron Estelle

1. Each location/park offers a different experience but if we go solely based off of the numbers, the most successful would appear to be Tokyo. It originally opened in 1983 and is still thriving. Disneyland Tokyo has the most attractions out of all the disneylands (50 total), and is third on the list of most popular behind Magic Kingdom and Disneyland (Sim, 2014).

Euro Disney simply couldn’t keep guests in the park and resort. It was almost as if the French were uninterested in the amusement park and attractions. “By December 1993, less than two years after opening, Euro Disney ran out of cash and had to borrow 175million just to keep operating” (Spencer, 1995).

Hong Kong faced factors of difficulty that honestly stemmed from not enough market research. Hon Kong at one point in time didn’t allow Disney to be apart of the culture, so citizens felt a disconnect with the park and characters. Also the belief and practice of Feng Shui varied from western culture making it difficult to select key elements of society.

2. Disney ultimately had the idea that what it sells in the U.S and Japan would also make sense in Europe, with that in mind, when Disney opened EuroDisney the park defaulted to a symbol of American culture. This is a classic example of the domestic market extension concept.

3. When dealing with France, Disneyland had run into the issue of what type of cuisine would be appreciated by the culture. With France being the culinary capital of the world, imagineers assumed that the home cuisine would be the most ideal option, but after research it was found that the French also wanted to experience some of the American culture as well, or at least have the option to. I believe Tom Morris referred to the American cuisine as grazing food, food you can travel with around the theme park.

4. As the happiest place on Earth, I’d be looking to make an impact in areas growing in population. Disney expansion over the years have achieved such but there are still areas for market capitalization. My top 3 choices for the next Disneyland would be Brazil, South Africa, or India. All very population dense and growing, but I would select South Africa simply because it is already a big tourist spot, and Disney could incorporate the natural elements and excursions that the region offers into the park. Things such as shark diving or aquariums that lead to the ocean so that wildlife isn’t sheltered up. Similar to the aquariums in Curacao, dolphins are free to go and come as they please, not stuck in a glass tank.

References

Sim, N. (2014). By the Numbers: A Comparison of Disney's Theme Parks. Retrieved from https://www.themeparktourist.com/features/20140401/17257/numbers-comparison-disneys-theme-parks

Spencer, E. (1995). Euro Disney: What Happened? What Next? Journal of International Marketing, 3(3), 103-114. Retrieved fromhttp://www.jstor.org/stable/25048611

Erica Gilmore

Discuss Hong Kong Disneyland, Tokyo Disneyland, and Paris Disneyland – which site is the most successful of all of these three expansions and why? What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance? Research will be required as this is not covered in the video. Tokyo Disneyland is the third more visited theme park in the world after the two Disney parks in the US (Tang, 2012). It is likely more successful than Hong Kong and Paris Disney for a few reasons. EuroDisney was over populated with hotels which was a waste since the park itself was easily visitable within 1 day. Also, French locals felt that their culture was going to be damaged by the park, therefore attendance was made up of 70% tourists and 30% natives, making attendance more than half of what Disney expected to see. Also, in 1992, the dollar was quite cheap, therefore many people would forego Europe altogether and take a vacation in Florida at Disney World (Meyer, 2008).

Hong Kong Disney has blamed their poor performance on the mainland’s economic downturn, unfavorable currency conditions, cold and wet weather, and stiff regional competition. Again, attendance from locals has dropped which is a main contributing factor for Hong Kong being in the red. What Tokyo did so well is to hire local talent to ensure that what people of that region was to experience is actually being implemented. Yes, it’s important to offer some regional food and language experiences, but that’s not to say that there should be no American influence. Afterall, Disney is an American company, and people expect to get a little taste of that when they visit a Disney park. Japan is very American-friendly, and therefore likely the locals have a different taste in their mouth when they consider going to an American attraction.

What role does ethnocentrism play in the story of EuroDisney’s launch? The French were not welcoming to the Disney park denouncing it as a “cultural Chernobyl” that would foster a rise in commercialism in France. To start, the name “EuroDisney” gave the impression of an EU department, therefore in 1995, the park was officially renamed Disneyland Paris (Hampton, 2017). In short, the company had a “if we build it, they will come” mentality, but their low opening attendance and subsequential low attendance almost every year following proves that cultural acceptance is necessary for long term success.

Based on the cultures of these three countries (Hong Kong (China), Japan, and France) what specific changes were made for these locations (choose ONE only to discuss)? When building Tomorrowland in Japan, the engineers and architects were especially challenged because the country is known for its technological advancements and essentially living in America’s tomorrowland. Therefore, Disney needed to take the story of Tomorrowland and move it to another planet to expand the futuristic possibilities.

Now that Disney has opened Hong Kong and begun work on 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.” When considering where to place the next Disney theme park, my top three location choices would be in Thailand, Australia or India. If I were to only pick one, I would pick India. This is for 3 main reasons. One, India and the US have a great relationship, therefore working on a trade deal would be less difficult than a country that we have political conflict with. Two, India has a population of 1.3 billion people, which would make a great attendance base for local visitors. And three, geographically, there is no Disney park in that region of the world, which was a main reason why Disney chose to put a park in France even though there was cultural conflict. So, if there no cultural conflict, and geographically it makes sense, India could be a perfect spot for a new park.

References:

Hampton, M. (2017, April 11). Disneyland Paris turns 25 – so how did Mickey's magic win over the aloof French? Retrieved from https://www.telegraph.co.uk/travel/destinations/europe/france/paris/articles/disneyland-paris-turns-25/

Meyer, J. (2008). Globalization and Cultural Imperialism: Corporate Control versus Responsiveness. [online] ResearchGate. Available at: https://www.researchgate.net/publication/259559149_Globalization_and_Cultural_Imperialism_Corporate_Control_versus_Responsiveness [Accessed 17 Jul. 2018].

Tang, P. (2012, December 18). Travel - Different Disneylands around the world. Retrieved from http://www.bbc.com/travel/story/20121213-different-disneylands-around-the-world

Chelsea Hughes

1. While everyone has their own opinions on what Disney park is the best, based on attendance records, falling into third place is Tokyo Disney located in Japan (Dillinger, 2017) The first two being Disney theme parks located in the USA, Tokyo Disney is the most successful of the expansions in Europe and Asia . A few factors that helped contribute to EuroDisney's poor first year was the amount of debt they surrounded them selves in. After spending billions of dollars to open its doors in 1992, with a recession causing trouble EuroDisney verged on bankruptcy after its first year. Another key factor was the French protesting the opening of the park trying to avoid American commercializing, all while the price of employing the French being more than expected, turned into bad profits for the company (Sylt,2010). After one year EuroDisney had to be rescued by a Saudi prince saving the major company from bankruptcy.(Sylt, 2010) Hong Kong Disney's poor performance was because of the economic downturn the mainland is facing, weather being wet and cold and currency conditions faced in China according to the new managing director of Hong Kong Disney (Sun,2017).

2. The French were against the opening of EuroDisney at the time. Disney was very americanized and very popular in the hearts of children and adults in the states. Things that are loved and idolized in the states are different from what was loved and idolized in France at the time. What is seen in the Frenchs eyes as cultural norm was not what the builders of EuroDisney had in mind.

3. The Tokyo location had a hard time duplicating the ride Splash Mountain in their theme park compared to the one in the States. Splash mountain in Disneyland (California) has the riders sitting sitting one behind the other, in Japan it is not apart of their culture to sit that close to each other like that. So the builders had to redesign the ride so it would fit riders side to side to accommodate the Japanese culture which in turn lead to the tunnels being bigger, and the turns being wider. Another change that was made for the Tokyo location was one of the rides in the park the Tower of Terror. Here in the states that ride is based on the Twilight Zone a show popular in the 1960's, but residents in Japan weren't familiar with it so they adapted it to a new story line. But just as much details went into the building of the buildings and streets just like in the States because of the very big picture taking culture in Asia.

4. Three locations that I think would be good for a new Disney, would be Australia, South America or India. Out of those three places I think South America would be a great place. Many people from the countries in that continent travel to the United States each year to visit Disney. It would boost more travelers to South America and it would help the economy.

Dillinger, J. (2015, October 17). Most Popular Theme Parks By Attendance. Retrieved from https://www.worldatlas.com/articles/most-popular-theme-parks-in-the-world.html

Sun, N. (2017, February 20). Disneyland records loss for second year in a row. Retrieved from https://www.scmp.com/news/hong-kong/economy/article/2072326/hong-kong-disneyland-records-loss-second-year-row-mainland

Sylt, C. (2011, October 23). Losing the magic: How Euro Disney became a nightmare. Retrieved from https://www.independent.co.uk/news/business/analysis-and-features/losing-the-magic-how-euro-disney-became-a-nightmare-2132892.html

Sylt, C. (2015, November 19). The Secrets Behind The International Expansion Of Disneyland. Retrieved from https://www.forbes.com/sites/csylt/2015/11/19/the-secrets-behind-the-international-expansion-of-disneyland/#2913cd0e5f18