The NotSoWonderfulWorld Of Disney Essay Research Paper

The Not-So-Wonderful-World Of Disney Essay, Research Paper

The Not-So-Wonderful-World of Disney

Until 1992, 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. When word of this go out, officials from many European countries offered Disney pleas and cash indictments to work the Disney magic in their hometown. In the end only one city was chosen 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 factors would have been looked at previously.

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 I 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.” The land came at rock-bottom prices, cheap loans were made available, and a dedicated high-speed TGV and suburban railway link was also offered by the French. France gave Disney an offer they could not refuse. “Overlooking the over-valued franc, bad weather, French people not being known for their hospitality and occasional anti-American demonstrations by angry farmers because French agricultural subsidies had been cut, Paris was still chosen to be home of EuroDisney.”

Foreign uncontrollables in Paris in regards to economic forces, legal forces, competition, and culture can be held accountable for EuroDisney’s misfortunes. In opening in the summer of 1992, Europe was entering into a very bad recession and this caused income from catering, merchandise, including souvenirs and foods, and hotels to be way below what was expected. High interest rates also caused many currencies to devaluate against the franc leading to more financial difficulties for EuroDisney. 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. The climate in Paris was also unsuitable and off-season attendance was way below expectations. Many landmark events were competition for EuroDisney’s opening year. “Spain held the World Fair in Seville and Barcelona was home to the 1992 Olympics which took tourists to areas other than Paris.” All in all, 1992 was not looking good for EuroDisney in terms of success.

Despite the foreign market uncontrollables hindering the park from the beginning, when EuroDisney opened in the summer of 1992 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 it’s 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.” 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. “The French didn’t think dress standards like these existed outside the West Point military academy.” 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 for lunch is a given and it is almost as necessary as a fork.” 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. “Consultants who have studied the park say that 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 Mickey Mouse ears and such.” Prices at hotels were so high that staying overnight for many visitors was out of the question. Plus, with inexpensive charter transatlantic flights and the lower prices prevailing in the United