Question 1: Assess the pros and cons of Disneys decision to build a theme park in

Europe. Do you think it was a wise decision to invest in constructing a new park
near Paris?

Pros

1. The advantage of opening a theme park in Europe is the number of tourists visiting
Europe each year, Paris being an extremely attractive tourist destination had approximately
50 million tourists visiting France annually and spending roughly $21 billion.

2. Location accessibility by the European population was another advantage for Disney to
open its theme park in Paris.

3. Lack of theme parks and the large population that lived in and around Paris had to be
targeted and offered a unique, fun filled and mystical theme park. A Disney park in Paris
was poised to be a sure shot winner.

4. Polling results in France clearly revealed that there was a huge demand for Disney theme
parks in Europe and that people were open to the idea of Euro Disney.

5. Tokyos overwhelming success encouraged Disney to conquer the European market. They
felt that they were able to evoke international appeal of the Disney concept and it would not
be a hard task to wet their feet in Europe.

6. Employment opportunities for more than 30,000 jobs for Paris, was yet another
invaluable advantage for Disney to commence its operations in Paris.

7. Not only was the theme park centrally located but also it was almost 4 hours by car from
England after the opening of the Euro tunnel in 1994.

8. Contractual concession made by the French government was very lucrative too. France
agreed to develop an infrastructure specifically to reach Disney from different parts of Paris.
They offered concession loans, agricultural land and several tax benefits. These tax benefits

Cons

There were several disadvantages for Disney to build a theme park in Europe.

1. The weather conditions in France acted as a deterrent in attracting visitors in the winter
months. Winter temperature could drop to 23 degrees Fahrenheit and most people would
not visit parks and rides during the cold winter season.

2. French were afraid of losing their fine culture and heritage to Disney values. They were
highly concerned about Cultural Imperialism. They considered the Disney experience way
too Americanized and werent willing to encourage the American brand of consumerism.

3. Europeans are not the most patient people in the world. They would not wait in lines for
their rides. There was a dire need by the French for easy accessibility as well as flexibility in
the Disney experience for them.

4. European culture is poles apart from American culture. Their concept of entertainment
includes a huge emphasis on food and beverage, an area that Disney does not specialize in.

5. Europeans eating habits were totally different. Consumption of fast food at off hours
was not a part of their eating routine, serving food to the Europeans would be a task in itself
for Disney.

6. Wine, was prohibited inside the Disney parks in Paris. This was not well taken by the
French because wine is very closely connected to their culture and cuisine.

7. The target market for Euro Disney were Europeans. Disney failed to realize that even
though the nations within Europe are considered as a single market for a number of
consumer products, the same cannot be said about each nations way of life and
preference for entertainment. Japan resisted U.S. products, it has a huge affinity for the
American ways of living. The same could not be said about Europe where each nation has a
strong nationalist and individualistic character, and take immense pride in their cultures and
traditions. They do not have the same affinity and respect for the American culture as the
Japanese people do.

8. There was difficult resistance in hiring employees. Disney had very strict norms and
grooming requirements in comparison to the requirements of other employers.

9. Disneys biggest competitor was Disney itself. Euro Disney had to live up to the high
expectations and quality standards that they have set in other countries.

10. The theme park was built on the outskirts of Paris, housing problems for the staff
became a major concern. It was too expensive for the staff members to afford a house in
Paris and unfortunately Disney did not have enough housing facilities for its employees.

11. The first language of Disneys visitors was not English. Visitors were from different parts
of Europe, this caused a language problem for employees whilst providing customer service.
They were not sure in which language they will be questioned or spoken to.

12. The Disney experience is way too American for the French to accept or become a part of
it.

13. There was a lack of local management and autonomy. Euro Disney had a significant
amount of foreign ownership. The Walt Disney company owned a 49% share and 51%
owned by a separate company called Euro Disney S.C.A., this caused management by

remote control. Decisions were made by people who really did not have an understanding of
the culture and market as well they were far removed from daily operations of the theme
park. It became difficult to accurately understand the European Disney market.

I think dont think it was a wise decision to build a theme park in Europe because the
idea of having fun in Paris is very different from rest of the world. Europeans are more
intellectual and artsy. They are more likely to appreciate museums, art sculptures and the
works than going to a crowded a place and shell out approx $60 for the Disney experience.
Also, tourists in Paris would much rather visit its cultural and historical sites than a Disney
theme park. Most of them would not go to Paris to enjoy the mystical land of fun and
adventure, but to enjoy the culture and heritage of Paris. It would really take time and
heaps of effort to make the Disney idea of fun for the Europeans.

Question 2: What is the Euro Disneys target market, and what are the implications for the
development and organization of the park?

Answer 2: Euro Disneys target market covers young adults and children mainly around
France, Spain, England and Germany; customers that have been entertained for generations
through their cartoon characters, movies and television shows, and have a liking for
Disneys imaginative characters; European vacationers, who are prone to spend upwards of
five weeks a year vacationing and are willing to pay upwards of $60 per person per day on
their visit at the parks alone. Euro Disney wants adults who are working and have the free
time to spend an entire day at the park, if not the weekend.

It will be way too ambitious to target the whole of Europe at the early stages of Euro
Disney. Also, we must bear in mind that there is a large number of tourists to take care of.
One of the biggest problems in targeting the entire European market is that there are so
many countries in Europe and mostly all of them have different languages and cultures and

people. Targeting all of them would be futile because it is very hard to please and meet the
needs of everybody across varied cultures and habits.

Tokyos success for Disney is the influence of American culture on the young generation and
their strong hunger for American means of entertainment and an increasing trend in Japan
towards leisure. However in Europe, people were deeply attached to their culture and values
and would not tolerate any outside indulgence or interference when it comes to
entertainment. They are not so open and accepting as the Japanese and would never
compromise their heritage for sake of entertainment. The idea of infusing American culture
in Europe will be too vague and extremely difficult to accomplish. Tourists who visited Euro
Disney were not satisfied with the fusion of American, French and European culture. They
were confused about what Disney wants them to feel about the park.

Question 3: What aspect of the traditional Disney theme park formula, in terms of park
design and service design (the basic product), might prove to be transferable to Euro
Disney, and which might prove to be specific to the United States and or Japan? In general,
what issues should a company think through before extending a successful service concept
across cultural boundaries?

Answer 3: In my opinion, the traditional theme park formula in terms of park design and
service design which can be transferable to Euro Disney will be mainly rides, amusement
parks and resorts. Disneys success is defined by its easy characterization. Disneys talent to
construct theme centered amusement parks is marvelous. They can transfer this talent to
built Europe specific amusement parks and resorts.

One of the core competencies of Disney is its ability to present more than simple decorative
devices for visitors and enveloping them in their theme and dreams. Their rich heritage of

cartoon characters is famous all over the world and the way they all actively participate in
theme parks in variety of ways is amazing.

Another element of Disneys service design that is very important in its success in other
Disney parks is that once visitors are in the parks they are not only spectators but they
actively participate in the Disneys plays and themes. This makes Disney different from all
other amusement parks around the world. They can certainly transfer these services to Euro
Disney.

Disneys approach towards customer service and satisfaction is the most important aspect of
Disneys success. Its attitude to deliver more than customers expect, its flawless
performances, its standards of service, park designs, operating detail and human resource
policies and practices are some of specifics of Disney which should go with it where ever
Disney go.

Before extending service concept across cultural boundaries there are few issues Disney
should think through. Firstly, Issues like what is the acceptance level of American culture in
the country that they are going. Because American culture is very different from the
cultures in the rest of the world. Some cultures accept it easily and some show resistance in
accepting them. Secondly, Disney should look after how is the tourism industry doing in
specific country. Because tourist love to visit theme parks so that they can learn more about
the culture and country. Thirdly, they should decide whether they want the theme in
Americanized way or they want to show culture and history of that country.

Question 4: Assess the implementation of Euro Disneys service delivery system. What could
company have done differently?

Answer 4:

Customer Service: Those who visited other Disney parks were used to the clean and wellorchestrated atmosphere of other Disney theme parks. However, those visitors were often
disappointed with their Euro Disney experiences. In many respects, Euro Disney failed ling
to deliver the high level of customer service standard to Disney theme parks, as well as
failing to provide the service needs that were unique to the European market.

Many employees failed to conform to the high standards of customer service that were
expected in Disney theme parks. One employee described the high standards and rigorous
training required by Disney management as brain washing. Visitors complained of
apathetic employees who looked and acted more like real people instead of
Disney people. The strong work ethic that was commonplace among American
and Japanese workers was harder to find among Europeans, making it difficult for Disney to
find and retain employees who shared Disneys corporate philosophies regarding excellent
customer service.

A failure to modify Disneys standard theme park program to better fit the unique needs of
European customers was a problem. Restaurants were not prepared for the eating habits
and times of European customers. By not selling alcoholic beverages in the park, Euro
Disney forced customers to leave the park to purchase them, and insulted the deeply-held
tradition of French wine-making. In many respects, there were clear disconnects between
Disney management and their customers.

Assessing the implementation of Euro Disneys service, I came to a conclusion that there
were some flaws in the service which led to dissatisfaction of the visitors who had already
been to Disneys other theme parks and also to the first time visitors.

1. Disney decided to hire 45% French employees, 30% European employees and 15%
outside Europe. Flaw in this approach is that on what basis they decided that the visitors will

be divided into these percentages. And even if they were able to predict that how will they
allocate a particular staff member to particular guest.

2. Even after knowing about the European attitude concerning long waiting line. They did
not take enough steps to deal with this problem.

3. They were not able to decide whether its an American park, a French park or an
European park.

4. Their servicing was not up to the standards that they set themselves. They were playing
a different ball game compared to other Disneys.

5. The entry fee should have been low as compared to other amusement parks in France.

To claim customer satisfaction, company could have done a research to evaluate customer
expectations. What kind of park they were expecting from Disney and what was the price
they were willing to pay?

Question 5: Should Euro Disney proceed with the next step of development?

Answer 5: Euro Disney should not proceed with Phase II so soon. There are several issues
which need to be tackled before they plunge themselves into the next step of development.
Issues such as failed revenues, operational loss, failure of the service concept, matching
costs to the standards of other theme parks, staffing and training of employees need to be
tackled before they plunge themselves into the second phase. Moreover the controversies
that have surrounded Euro Disney ever since it began its operations every action taken by
the management will be subject to intense scrutiny by the media. In the wake of all these
problems, proceeding with the development Phase II of Euro Disney will not only undermine
the issues mentioned, but also place a $3 billion investment under high risk.

The major problems in Phase 1 relates to employees and service delivery concept. The
customers have already combined concerns about the dissatisfaction with service and the
high cost of going to the park. And there will not be much that development of Phase II can
change about that. In fact, it could prove catastrophic to the success of the second theme
park for which Disney is planning to charge a separate admission fee. It seems highly
unrealistic when the first park itself is having problems attracting customers.

And to put in resources in to a new project instead of addressing the existing problems will
only put those problems to the backend until they make a complete disaster of the complete
project. The park definitely requires financial resources to elevate its image, refurbish its
facilities and acquire a fresh pool of cast members. The development of the second phase
can certainly wait till the first phase is back on its feet and operating profitably. If at all,
Disney may think about continuing with the development of corporate offices and retail
space which will assist in attracting more people to the destination. But Euro Disneys first
priority should definitely focus around uplifting the image of the existing model,
incorporating more elements of the local culture within the themes of the park, and making
the service delivery standards match those of its other theme parks.

Question 6: What lessons Euro Disney learned which could be applied to the development of
the second theme? Should the park be adapted for the local market like the United States
model, and if so, in what ways? What recommendations would you make regarding staffing,
training and general management?

Answer 6: The main lesson learned from this experience is that an entertainment company
that wants to expand cross culturally should always think in detail about the cultural
differences between companys parent country and the country they are going to sell its
products and services in. And in what ways a particular company should or should not
change itself to the demands of the culture. I think there is also a whole lot of difference in

the way we target out our customers when we expand across other countries. There we
have to decide whether we are targeting local consumer or international consumer and
tourists. When developing second theme Disney should certainly consider doing a research
whether customer are looking for theme completely based on France , America or Europe.
By past experience they should also get an idea of their target customer ethnicity and
background, and the ways to lure them into the park.

I strongly feel that the park should be adapted for the local market because they are their
priority customers. People of France should be able to portrait themselves in the theme.
Right now they are confused and are not able to decide whether it is established for them or
for tourists. Once they see the benefits of having Disney in their own country they will be
able to take pride in it. Its just a matter of marketing the right image to the right kind
of customer. In this way only they will be able to expand their customer base outside and all
around Europe.

My recommendations for staffing, training and general management will be as follows:

1. Staff should be trained to deal in a better way with the customers. They should be taught
an extra foreign language of their choice to be more efficient in handling problems.

2. Staff should be selected mainly from France.

3. Disney should find out ways to reduce waiting time in line.

4. Disney should be more consistent with the theme.

5. Disney should target French customers and market their new and improved facility.

6. Disney should be more competitive in terms of price and should find out ways to reduce
their cost.