Case Discussion and Internet Exploration Questions

Closing Case Disney in France

Website — http://www.disney.com

Case Discussion Questions

What assumptions did Disney make about the tastes and preferences of French consumers? Which of these assumptions were correct? Which were not?
How might Disney have had a more favorable initial experience in France? What steps might it have taken to reduce the mistakes associated with the launch of EuroDisney?
In retrospect, was France the best choice for the location of EuroDisney?

Internet Exploration Question

This case focuses on the miscues that characterized the opening of EuroDisney in France. Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. The parks in California, Florida, and Japan were busy and profitable. In the mid 1980s, Disney turned its attention to Europe, and specifically to France. When word got out that Disney wanted to build another international theme park, officials from over 200 locations around the world expressed interest. But Disney settled on Paris, largely because about 17 million Europeans live less than a two-hour drive from Paris. Another 310 million can fly there in the same time or less. In addition, the French government seemed like a willing host and offered Disney more than $1 billion in various incentives, all in the expectation the project would create 30,000 new jobs.

Unfortunately, from the beginning, the project was troublesome. Negotiations with the French government were difficult. Disney committed a string of cultural miscues. There was a backlash in France, particularly from Parisian intellectuals, who attacked the transportation of Disney's dream world as an assault on French culture. French farmers used the opening of the park as an occasion for staging a protest against the U.S. government for its insistence that French agricultural subsidies be cut. In addition, there were operational errors. For example, Disney thought that Monday would be a light day for visitors and Friday a heavy one and allocated staff accordingly, but the reality was the reverse. Disney also miscalculated the length of time that people would stay at the theme park and adjacent resort. As a result, its new hotels stood half empty most of the time.

Eventually, Disney changed its strategy and things are now going more smoothly. The company changed the name of the park from EuroDisney to Disneyland Paris in an attempt to strengthen the park's identity. The early operational miscues have been straightened out, and the park now accommodates European tastes and preferences. Attendance at the park was 11.7 million in 1996, up sharply from 8.8 million in 1994.

This case illustrates the difficulties that a firm as large and seemingly savvy as Disney has in effectively understanding a foreign market. It also illustrates the power of culture, and the extent of cultural differences that exist between countries. There are organizations that are dedicated to facilitating business between specific countries, and helping companies avoid the types of problems experienced by Disney. An example is the French-American Chamber of Commerce. Visit the French-American Chamber of Commerce's website at {http://www.faccparisfrance.com/} and answer the following questions. First, what is the purpose of the French-American Chamber of Commerce? Second, what are some of the benefits of membership? Third, how could membership in this organization help an American company that is doing business for the first time in France avoid some of the problems that Disney experienced?

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