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I.

I. BackgroundBackground11

EuroD

EuroDisney isney SCA SCA formaformallylly launched its theme park to launched its theme park to E

Euurrooppeeaanns s iin n ApAprriil l 11999922 ne

near ar rivriver er MaMarnrne, e, 20 20 mimileless E

Eaasst t oof f PPaaririss. . IIt t wwaas s tthhee b

biiggggeesst t aannd d mmoosst t llaavviisshh theme park that Walt Disney theme park that Walt Disney (D

(Disisneney) y) hahad d bubuililt t bibiggggerer than any of its Disney parks than any of its Disney parks around the world.

around the world.

  The location was chosen   The location was chosen ov

over er 20200 0 popotetentntiaial l sisitetes s inin Europe from Portugal through Spain, France, Italy and Greece. Spain Europe from Portugal through Spain, France, Italy and Greece. Spain was the strongest contender for the park location but its inadequate was the strongest contender for the park location but its inadequate acreage of land around Barcelona paved way for Paris to be the acreage of land around Barcelona paved way for Paris to be the chosen location, add to that the generous incentives and impressive chosen location, add to that the generous incentives and impressive regional demographics presented by the French

regional demographics presented by the French government.government.

Disney Management expected Europeans to receive the theme Disney Management expected Europeans to receive the theme par

park k in in the the samsame e behbehaviavior or thathat t thetheir ir JapJapaneanese se coucountenterparparts rts forfor Disneyland-Tokyo did for Mickey Mouse and other famous Disney Disneyland-Tokyo did for Mickey Mouse and other famous Disney characters but the projected operating of S100 million during the characters but the projected operating of S100 million during the first year of operation became a

first year of operation became a loss of $900 million by summer loss of $900 million by summer of 1994.

of 1994.

1

1Case 2-1 p.614, Cateora & Gram, International Marketing (13Case 2-1 p.614, Cateora & Gram, International Marketing (13ththEdition)Edition)

Page

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

EuroDisney failed to attract the expected number of European EuroDisney failed to attract the expected number of European visitors especially French visitors because the theme park was seen visitors especially French visitors because the theme park was seen as

as AmAmerericican an imimpeperirialalisism m whwhere ere AmAmeriericacan n fafairyiry-t-tale ale chcharaaractctersers com

competpeted ed and and loslost t oveover r lovloveabeable le FrenFrench ch cartcartoon oon chcharacaracterters s liklikee Astérix, the helmeted, pint- sized Gallic warrior who has a theme Astérix, the helmeted, pint- sized Gallic warrior who has a theme park beside EuroDisney.

park beside EuroDisney.

II.

II. Problem/sProblem/s

a.

a. EuroDisney has lost $900 million from EuroDisney has lost $900 million from 1992-1994;1992-1994; b.

b. EuroEuropeans fpeans failed to “gailed to “go goofo goofy” over Micky” over Mickey Mousey Mouse unlike te unlike theirheir  Japanese counterparts;

 Japanese counterparts; c.

c. French French cartocartoon theon themed pamed parks corks compete mpete with Ewith EuroDiuroDisney;sney; d

d.. CCoonnssttrruuccttiioon n cocosstts s bbaalllloooonneed d ffrroom m $$22..337 7 bbiilllliioon n tto o aann add

additiitionaonal l $34$340 0 milmilliolion n as as a a resresult ult of of thetheme-me-parpark k addadd-on-onss which failed to attract visitors( e.g. expensive facilities like which failed to attract visitors( e.g. expensive facilities like trams were built to ferry visitors inside the theme park when trams were built to ferry visitors inside the theme park when most visitors prefer walking);

most visitors prefer walking); e.

e. A “barnstA “barnstorminorming, kick-tg, kick-the-dohe-door-door-down attitwn attitude” of US decude” of US decisionision mak

makers ers alialienaenated ted manmany y EurEuroDioDisnesney y and and DisDisney ney manmanageagersrs fro

from m thetheir ir coucountenterparparts rts in in govgovernernmenment, t, banbanks, ks, ad ad ageagencincieses and other concerned organizations.

and other concerned organizations. f.

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera g.

g. Disney planners also failed to study the European culture andDisney planners also failed to study the European culture and be

behahavivior or ((e.e.g. g. wiwine ne drdrininkiking ng amamonong g FrFrenench ch wiwith th memealals,s, preference for redder than red nail polish among women);

preference for redder than red nail polish among women);

h.

h. EuroDisney was on the verge of EuroDisney was on the verge of bankruptcy in 2005.bankruptcy in 2005.

III.Discussion Questions III.Discussion Questions

1.

1. What facWhat factors contrtors contributeibuted to d to EuroEuro-Disne-Disney’s poor performy’s poor performanceance during its first year of

during its first year of operation?operation? a.

a. ViVisisitotors to rs to ththe e papark were relrk were relucuctatant to nt to spspenend d $2$28080.0.00 0 a a daday y toto en

enjojoy y ththe e papark rk atattrtracactitionons. s. ItIts s hohotetel l roroomoms s wewere re mumuch ch momorere expensive than top hotels in Paris.

expensive than top hotels in Paris. b

b.. AAiirfrfararees s wweerre e cchheeaapper er tto o DDiissnneeyywwoorrlld d iin n OOrrllaannddo o FlFloorriiddaa compared to Paris. The weather was also much better in sunny compared to Paris. The weather was also much better in sunny Florida.

Florida. c.

c. FrenFrench visitch visitors stayors stayed away becaued away because of se of the histthe historiorical animcal animosiosityty between the French and Americans.

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera e.

e. ThTherere e wewere re hihigh gh inintetererest st raratetes s anand d ththe e dedevavaluluatatioion n of of seseveverarall currencies against the franc.

currencies against the franc. f.

f. ThThey comey compepeteted d agagaiainsnst t ththe e WoWorlrld d FaFair in ir in SeSevivilllle e anand the 199d the 19922 Barcelona Olympics.

Barcelona Olympics. g.

g. They bThey banned anned alcohalcohol in a ol in a wine lowine loving cuving culturelture.. h.

h. DisDisney execney executiutives alsves also did o did not invnot invite inveite investostors to rs to a share in thea share in the project. They wanted to design and build themselves with a view project. They wanted to design and build themselves with a view to selling at a profit. They were influenced by their experience in to selling at a profit. They were influenced by their experience in   Tokyo Disneyland when they licensed its name and image to   Tokyo Disneyland when they licensed its name and image to another company who raked in all profits and left the parent another company who raked in all profits and left the parent company with a meager share.

company with a meager share. i.

i. They They downdownsized sized breakbreakfast fast serviservice becce because ause they they were were erronerroneousleouslyy informed that Europeans don’t eat breakfast. 2,500 customers informed that Europeans don’t eat breakfast. 2,500 customers showed up in 350 seat

showed up in 350 seat hotels.hotels.  j

 j.. EuEuroropepeanans spens spent onlt only 1 y 1 or 2 or 2 dadays to visys to visit the pait the park comrk compaparered tod to their American counterpart who spent at least 3 days.

their American counterpart who spent at least 3 days. k

k.. TThheey y aallsso o ffaaiilleed d tto o ccoonnssiiddeer r tthhe e vvaaccaattioion n ccuussttoomms s oof f tthhee Eu

Euroropepeanans. s. EuEuroropepeanans s enenjojoyeyed d momontnth h lolong ng vavacacatitionons s whwhililee Americans preferred short but several vacations in a year.

Americans preferred short but several vacations in a year. l.

l. DisDisney stney stresressed thsed the size ane size and sheed sheer magnr magnituitude of thde of the park rae park rathetherr th

than an ththe e enentetertrtaiainnmement nt vvalalue ue it it ofoffeferered d in in itits s mmararkeketitinngg cam

campaipaignsgns. . ThiThis s repreportortedledly y “ru“ruineined d the the magmagic” ic” DisDisney ney parparksks were known for.

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera fo

foresreseeaeeable ble and and concontrotrollallable ble by by eiteither her EurEuro o DisDisney ney of of ththee  parent company, Disney?

 parent company, Disney?

Most of the mentioned factors were mostly foreseeable and Most of the mentioned factors were mostly foreseeable and controllable. It was a matter of looking more deeply into the cultural controllable. It was a matter of looking more deeply into the cultural aspects of the business. They should have hired a mix of European aspects of the business. They should have hired a mix of European executives that knew the culture. If they were involved from the executives that knew the culture. If they were involved from the initial conception and had a large hand in managing the park, it initial conception and had a large hand in managing the park, it could have mitigated the risk factors that caused their harrowing could have mitigated the risk factors that caused their harrowing experiences. They only realized in the end that “

experiences. They only realized in the end that “Guests need to beGuests need to be we

welclcomomed ed on on ththe e babasisis s of of ththeieir r owown n cucultlturure e anand d trtravavel el hahabibitsts.” .”  Di

Disnsney ey fafaililed ed to to adadapapt t to to ththe e enenviviroronmnmenentatal l didiffffererenenceces s of of ononee market to another. Adaptation is a conscious effort to anticipate the market to another. Adaptation is a conscious effort to anticipate the influ

influences of ences of both foreign and both foreign and domesdomestic uncontrotic uncontrollable factors on llable factors on aa marketing mix and then to adjust the marketing mix and minimize marketing mix and then to adjust the marketing mix and minimize the effects

the effects of cultural diversity.of cultural diversity.

3

3.. WWhhaat t rroolle e ddooees s eetthhnnoocceennttrriissm m ppllaay y iin n tthhe e ssttoorry y oof f  EuroDisney’s launch?

EuroDisney’s launch? Ethn

Ethnocentocentrism is rism is the tendency to believe the tendency to believe that one's ethnic orthat one's ethnic or cultural group is centrally important, and that all other groups are cultural group is centrally important, and that all other groups are measured in relation to one's own. The ethnocentric individual will measured in relation to one's own. The ethnocentric individual will  judge other groups relative to his or her own particular ethnic group  judge other groups relative to his or her own particular ethnic group

or culture, especially with concern to

or culture, especially with concern to languagelanguage, behavior, customs,, behavior, customs, and

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera As

As a a foformrmer er DiDisnsney ey exexececututivivee cited “Disney Chairman Michael Eisner cited “Disney Chairman Michael Eisner and President Franck Wells had never and President Franck Wells had never m

maadde e a a ssiinngglle e mmiisssstteepp, , nneevveer r aa mistake, never a failure. There was a mistake, never a failure. There was a

tendency to believe that everything they touched

tendency to believe that everything they touched would be perfect.”would be perfect.”  The roots of Disney’s problem in EuroDisney may be traced to their  The roots of Disney’s problem in EuroDisney may be traced to their tremendous success in Tokyo Disneyland. The park was a success tremendous success in Tokyo Disneyland. The park was a success from the first day and has been visited by millions of Japanese who from the first day and has been visited by millions of Japanese who w

waanntteed d tto o ccaappttuurre e aas s tthheey y ppeercrceeiivvees s aas s tthhe e uullttiimmaatte e UU..SS.. entertainment experience.

entertainment experience.

France is undoubtedly the first response that comes to mind France is undoubtedly the first response that comes to mind whe

when n askasked ed whiwhich ch coucountrntry y in in EurEurope ope is is the the mosmost t antanti-Ai-Amermericaican.n. Even before the days of

Even before the days of De Gaulle and Chirac, it De Gaulle and Chirac, it seems that Franceseems that France ha

has s alalwaways ys bebeen en at at ththe e foforerefrofront nt of of anantiti-Am-Amerericican an ananimimosositity.y. However, polling data in the early 2000s reveal that France is not However, polling data in the early 2000s reveal that France is not dra

drastisticalcally ly mormore e antanti-Ai-Amermerican ican ththan an othother er EurEuropeopean an coucountrntries ies –– even less so on a variety of dimensions.

even less so on a variety of dimensions.

  4.

  4. HoHow w do do yoyou u asassesess ss ththe e crcrososs-cs-culultuturaral l mamarkrketetining g skskilills ls of of  Disney?

Disney?

In the early stage of EuroDisney, POOR would be the most In the early stage of EuroDisney, POOR would be the most app

appropropriariate te assassessessmenment t for for the the crocross-ss-culculturtural al marmarketketing ing skiskills lls of of  Di

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

park management and initial financing of the park. park management and initial financing of the park.

Disney has always prided itself on quality of service that its Disney has always prided itself on quality of service that its visitors will experience but it fell short of being sensitive to the visitors will experience but it fell short of being sensitive to the cultural differences between Americans and French people such as: cultural differences between Americans and French people such as:

• Eating habits of Europeans.Eating habits of Europeans. Unlike Americans who wereUnlike Americans who were used to snacking many times in a day, French people have used to snacking many times in a day, French people have a

a mormore e fixfixed ed schscheduedule le whewherein rein leileisursurely ely lunlunch ch stastarts rts atat 1

122::330 0 iin n tthhe e aafftteerrnnoooon n reressuullttiinng g iin n lloonng g qquueeuuees s iinn restaurants due to the inadequate seating and staffing to restaurants due to the inadequate seating and staffing to accommodate the influx if diners.

accommodate the influx if diners.22 French people are alsoFrench people are also

know

knows s to enjoy their meals to enjoy their meals with wine while Disney bannedwith wine while Disney banned alcohol consumption inside the premises.

alcohol consumption inside the premises. •

• Personal Grooming.Personal Grooming. French women liked to wear redderFrench women liked to wear redder nail polish in the United States so the Disney rules on nail nail polish in the United States so the Disney rules on nail polish for women employees was relaxed a little but the polish for women employees was relaxed a little but the grooming for the park’s male employees facial hair to have grooming for the park’s male employees facial hair to have a clean-shaven, neat and tidy

a clean-shaven, neat and tidy look was maintained.look was maintained. •

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

changes in their marketing strategy to adjust to the needs of the changes in their marketing strategy to adjust to the needs of the location:

location: •

• BBlleennd d oof f EEuurrooppeeaan n iinnfflluueenncce e iin n DDiissnneey  y   entertainment.

entertainment.  The new-movie themed park in Paris The new-movie themed park in Paris designed to be a tribute to moviemaking “blends Disney designed to be a tribute to moviemaking “blends Disney En

Entetertrtaiainmnmenent t anand d atattrtracactition on wiwith th ththe e hihiststorory y anandd culture of European film”.

culture of European film”. •

• ReRevavamp mp of of DiDisnsney ey ChChararacacteters rs anand d PrPropops.s.  The The characters in the new theme park speaks 6 different characters in the new theme park speaks 6 different lan

languaguageges s and and utiutilizlizes es babackdckdroprops s insinspirpired ed by by FrenFrenchch towns.

towns. •

• FFooood d VVaarriieettyy.. WhenWhen vis

visitoitors rs comcomplaplaineined d of of thethe lack of choices for sausages lack of choices for sausages in

in EuEuroroDiDissneney, y, tthe he ppararkk revamped its menu to cater revamped its menu to cater to

to the the mulmultiptiple le indindigeigenounouss tastes of various European tastes of various European cultures.

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

States was Tokyo Disneyland in Japan. Between 1990 and 1992, 14 States was Tokyo Disneyland in Japan. Between 1990 and 1992, 14 million people had visited Tokyo Disneyland, three-fourths of who million people had visited Tokyo Disneyland, three-fourths of who returned to visit. An ordinary family of four would also send $600 a returned to visit. An ordinary family of four would also send $600 a night to stay in a Disney hotel.

night to stay in a Disney hotel.

  This international and instant success for a theme park had   This international and instant success for a theme park had rendered management to be very optimistic of their expectation in rendered management to be very optimistic of their expectation in success in France. In the company history of EuroDisney SCA found success in France. In the company history of EuroDisney SCA found at

at http://www.fundinguniverse.com/company-histories/Euro-Disney- http://www.fundinguniverse.com/company-histories/Euro-Disney-SCA-Company-History.html

SCA-Company-History.html, the article mentioned that Walt Disney, the article mentioned that Walt Disney company intends to capitalize on

company intends to capitalize on the exp

the experieriencenced gaineed gained from its interd from its internatnationional exposal exposure ure inin  Tokyo and saw that Europe was the next logical choice due to its  Tokyo and saw that Europe was the next logical choice due to its long established acceptance of Disney products and films, the latter long established acceptance of Disney products and films, the latter having wider audience in Europe than in America. Its population of  having wider audience in Europe than in America. Its population of  320 million with airplane distances of less than 3 hours also made 320 million with airplane distances of less than 3 hours also made the option very lucrative.

the option very lucrative.

Disney also intended to correct the business opportunities it Disney also intended to correct the business opportunities it lo

lost st by by fafaililining g to to foforeresesee e popotetentntiaial l momoneney-y-mamakekersrs. . In In OrOrlalandndo,o, Fl

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera investment. investment. 6.

6. Do you think the new theme park would have encountered Do you think the new theme park would have encountered  the same problems if a location in Spain had been selected? the same problems if a location in Spain had been selected? Discuss.

Discuss.

  Y

  Yeses. . ThThe e ththememe e papark wourk would have encld have encouountntereered d ththe e sasameme pr

proboblelems if ms if a a lolocacatition in on in SpSpaiain n hahad d bebeen selen selececteted. d. SpSpaiain n isis geographically seated

geographically seated next to next to France. France. As such, As such, both are both are inclined toinclined to have similarities in many respects, in terms of origins and culture, have similarities in many respects, in terms of origins and culture, climate, experiences

climate, experiences in econin economy, and omy, and history. history. Being coBeing common withmmon with Fra

France nce in in thethese se aspaspectects s shoshould uld pospose e simsimilailar r proprobleblems ms had had EurEuro- o-Disne

Disney broken groy broken ground in Spainund in Spain. . BeloBelow are some traitw are some traits inherens inherent tot to both France and Spain:

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

More importantly, history will show that Spain’s relation with More importantly, history will show that Spain’s relation with the United States of America is not quite welcoming.

the United States of America is not quite welcoming. B

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera A

Afftteer r tthhe e wwarar, , SSppaiainn’’s s rreellatatiioonnsshhip ip wwiitth h tthhe e UU..SS. . wwaass predominantly for

predominantly for the country’s the country’s economy and economy and national defensnational defense. e. TheThe increased commercial trade operations in Spain as a result of trade increased commercial trade operations in Spain as a result of trade agreements with the U.S., has improved Spain’s domestic economy. agreements with the U.S., has improved Spain’s domestic economy. “Th

“The e 1951953 3 PacPact t of of MadMadrid rid betbetweeween n SpSpain ain and the and the UniUnited ted StStateatess provided for mutual defense as well as for United

provided for mutual defense as well as for United States military aid,States military aid, and

and it it brobroughught t to to an an end end SpaSpain'in's s pospost-wt-war ar isoisolatlationion.. It did notIt did not h

hoowweevveerr, , eennd d aannttii--AAmmeerriiccaanniissm m iin n SSppaaiinn.”.” ( 

( http://countrystudies.us/spain/89.htmhttp://countrystudies.us/spain/89.htm ) )   This   This antianti-Americ-Americanismanism attit

attitude has drude has dragged on to tagged on to the early 199he early 1990’s. 0’s. It was duIt was during thering thesese times that the Partido Socialista Obrero Español (Spanish Socialists times that the Partido Socialista Obrero Español (Spanish Socialists

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Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

Given all these similarities between the cultures of France and Given all these similarities between the cultures of France and Spain, the recession in Europe during the early 1990’s, and taking Spain, the recession in Europe during the early 1990’s, and taking ex

extrtra a coconsnsididereratatioion n ththe e cocold ld rerelalatitiononshship ip bebetwtweeeen n SpSpaiain n anandd America that dates back to the 19

America that dates back to the 19thth century, we believe that Spain’scentury, we believe that Spain’s

wel

welcomcoming ing comcommitmittee tee for for a a supsupposposedledly y EurEuro-Do-Disnisney ey SpaSpain in is is nono more hospitable than France.

more hospitable than France. It is also interesting to

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera 7.

7. In In lilighght t of of ththe e nenearar-b-banankrkrupuptctcy y in in 20200505, , evevalaluauate te ththee  proposed plans to strengthen Disney’s appeal to the French  proposed plans to strengthen Disney’s appeal to the French

market. market.

  The case cited several action plans by Disney for the year   The case cited several action plans by Disney for the year 2005, as follows:

2005, as follows:

a.

a. Make Euro Disney a cheaper vacation destinationMake Euro Disney a cheaper vacation destination..

Following the European recession in the early 2000’s, most of the Following the European recession in the early 2000’s, most of the European Union (EU) members, including France, suffered from European Union (EU) members, including France, suffered from high unemployment rates in 2005

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera “whol

“wholesale” moesale” more expensre expensive tourive tour. . The plan to loThe plan to lobby for the usbby for the usee of the Charles de Gaulle airport for low-cost airlines would bring of the Charles de Gaulle airport for low-cost airlines would bring the park closer to a larger number of Europeans.

the park closer to a larger number of Europeans.

b.

b. Introduce a new Disney character tailored for the EuropeanIntroduce a new Disney character tailored for the European audience

audience..

Th

The e dedebubut t oof f ththe e PuPumpmpkikin n MaMan n inin Disneyland Paris is a simple but very  Disneyland Paris is a simple but very  ef

effefectctivive e waway y of of cacaptptururining g FrFrenenchch enthusiasm to enter the park, mainly  enthusiasm to enter the park, mainly  b

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera Eur

Europopeaneans. s. As staAs stated in the casted in the case, the probe, the problem is the “laclem is the “lack of k of  att

attracractiotions” to justns” to justify the entrify the entrancance e feefee. . Not the lack of rideNot the lack of rides.s. Perhaps an option may be the remodelling of certain rides that Perhaps an option may be the remodelling of certain rides that are not attractive and are not contributing enough to net income. are not attractive and are not contributing enough to net income. For

For example example the the Armageddon—Special Armageddon—Special effects: effects: Since Since it it was was tootoo American, it flopped

American, it flopped. . Disney may tDisney may transform that pransform that part of the art of the WaltWalt Disney Studio into a French attraction such as “The City of Lost Disney Studio into a French attraction such as “The City of Lost Children”, based on the 1995 fantasy/adventure French movie Children”, based on the 1995 fantasy/adventure French movie “La Cité des Enfants Perdus” about a mad scientist who steals “La Cité des Enfants Perdus” about a mad scientist who steals chi

childrldren’en’s dreams dreams. s. ThThis wouis would definld definiteitely be a ly be a hit to Eurohit to Europe’pe’ss ch

chilildrdren en anand d ththe e rorollller er cocoasasteter r chchasase e cocoululd d be be mamade de hehearartt po

pounundiding for adulng for adults as ts as wewellll. . ThThe e PuPumpmpkikin n MaMan n cocoululd d be thebe the perfect host for this city.

perfect host for this city. We

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

be challenging but the results would be rewarding in terms of  be challenging but the results would be rewarding in terms of  be

betttter er seservrvicice e to to ththe e vivisisitotorsrs, , lilivevelilier er peperfrforormamancnceses, , momorere en

enththususiaiaststic ic hohoststs, s, anand d bebeining g abable le to to dedelilivever r a a trtrululy y mamagigicacall experience.

experience.

8. Now that Disney has opened Hong Kong Disney and begun 8. Now that Disney has opened Hong Kong Disney and begun work on the Shanghai location, where and when should it go work on the Shanghai location, where and when should it go

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera H

Hoowweevveerr, , ffoor r tthhe e lloonng g tteerrm m ssuucch h aas s iin n 5 5 yyeeararss, , iit t iiss recommended that Disneyland select from three possible locations: recommended that Disneyland select from three possible locations: Syd

Sydney ney (Au(Austrstralialia), a), SeoSeoul ul (Ko(Koreanrean), ), anand d eveeven n DubaDubai i (Th(The e UniUnitedted Arab Emirates).

Arab Emirates).

Seoul : Seoul :

Location

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CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera Culture

Culture: Opening and multi-culture.: Opening and multi-culture. Tourism:Tourism: In the year ending MarchIn the year ending March 2008, Sydney received 2.7 million international visitors.

2008, Sydney received 2.7 million international visitors. TransportationTransportation::

Bus, LRT and Sydney Airport

Bus, LRT and Sydney Airport is Sydney's main airport.is Sydney's main airport.

Dubai: Dubai:

It is

It is locatedlocated south of thesouth of the PersiPersian an Gulf Gulf on theon the ArabianArabian Peninsula

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Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

world location (capacity to attract tourists). Seoul in Korea has a very world location (capacity to attract tourists). Seoul in Korea has a very small land area compared to the other two locations and in Asia alone, small land area compared to the other two locations and in Asia alone, there are already 3 Disney parks: Disney Tokyo, Disney Hongkong and there are already 3 Disney parks: Disney Tokyo, Disney Hongkong and Disney Shanghai. If Disney will settle in Korea, it will no longer have any Disney Shanghai. If Disney will settle in Korea, it will no longer have any competitive advantage.

competitive advantage.

Sydney located in Australia is multi-cultural and attracts a large Sydney located in Australia is multi-cultural and attracts a large numb

number of er of tourtourists there is ists there is no Disney park in no Disney park in OceaniOceania. Locating Disney ina. Locating Disney in Sydney may be at a disadvantage because Sydney is a famous tourist city Sydney may be at a disadvantage because Sydney is a famous tourist city

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Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Globma, 21 May 2011 Group 2  Group 2  Group 2  Group 2  Quincey Huang Quincey Huang Quincey Huang Quincey Huang Jojo Javier  Jojo Javier  Jojo Javier  Jojo Javier  January Mamauag January Mamauag January Mamauag January Mamauag Agnes Villarivera Agnes Villarivera Agnes Villarivera Agnes Villarivera

9. Given your choice of locale X for the newest Disneyland, 9. Given your choice of locale X for the newest Disneyland,

wha

what t are are the the opeoperatrationional al impimpliclicatiationaonal l implimplicaicatiotions ns of of thethe history of EuroDisney and Disney Hong Kong for the new history of EuroDisney and Disney Hong Kong for the new  park?

 park?

Bef

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C C C

CASEASEASEASEPPPPAPERAPERAPERAPER#1 (T#1 (T#1 (T#1 (THEHEHEHENNNNOTOTOTOT----SOSOSOSO-W-W-W-WONDERFULONDERFULONDERFULONDERFULWWWWORLDORLDORLD OFORLDOFOFOFEEEEUROUROUROURODDDDISNEYISNEYISNEYISNEY))))

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