Euro Disney the Failure Essay -- International Marketing Europe Theme

Walt Disney is the world leader in family entertainment and one of the most valuable brands in the world. Recently, Walt Disney has decided to open up a Disney Theme Park in Hong Kong China, which will be the first theme park in China. Since the opening of Euro Disney, the Walt Disney Company has learned to take into consideration important determinants so that their investment will not be a huge financial loss. Unfortunately, Since Disney did not research as much as they should of when deciding to open Euro Disney, this lead to one of the biggest failures for the Disney Company and is today used as an example of international marketing failures. Disney had high expectations about opening up a Disney Theme Park in France. They projected 500,000 visitors to be in the park on opening day and the result was only 20,000 visitors. According to the textbook, international corporations should research and analyze their profitability level and the market size. Many international companies need to expense their research and development because it will only lead to big financial losses. Walt Disney Company should of used a transnational approach to achieve a consistent and controlled marketing strategy. Transnational approach has three types of variables such as demographic, psychographic and behavioral. A big problem that Disney overlooked was the lack of marketing to the French people, there were more visitors from outside of France then there was in France. After realizing their turnover they starting promoting special package prices for French residents. Several fundamental points that affected the failure of Euro Disney's first 2 years were location, staffing, dining, prices and the opening of to many hotel rooms at ... ... for American companies to realize that "their way" isn't always going to work, especially in a different country with such a different culture. Their Hong Kong project seems like they are taking precaution to prevent any huge financial losses. In spite of their mistakes, Disney is still one of the most important brands in the world and is widely recognized as a successful corporation. Bibliography "Euro Disney: An American in Paris" http://www.business.bham.ac.uk/business/images/cme_resources/Users/Szmigin/euro%20isney.doc Businessweek.com. " Building a Mouse House in Hong Kong". April 11, 2002 http://www.businessweek.com/bwdaily/dnflash/apr2002/nf20020411_4498.htm Doole, Isobel and Lowe, Robin. "International Marketing Strategy". Third Edition, Copyright, 2001. Recklies, Dagmar. " Managing Resources-Accounting Assignment". Themanager.org