In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on fi rm fi nancial ground. Many French bankers questioned the initial fi nancing, but the Disney response was that their views refl ected the cautious, Old World thinking of Europeans who did not understand U.S.-style free market fi nancing. After some acrimonious

dealings with French banks, a two-year fi nancial plan was negotiated. Disney management rapidly revised its marketing plan and introduced strategic and tactical changes in the hope of “doing it right” this time………

1. What factors contributed to EuroDisney’s poor performance during its fi rst year of operation? What factors contributed to Hong Kong Disney’s poor performance during its fi rst year?

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?

3. What role does ethnocentrism play in the story of EuroDisney’s launch?

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.

6. Why do you think the experience in France didn’t help Disney avoid some of the problems in Hong Kong?