Disney Case Study

Week 3   MKC2610 Case Analysis      Student ID: 25963231      Student Name: Nicole Yip

Taking the case study, use cultural factors to explain why visitors from Germany make up only 8% of total Disneyland Resort Paris visitors. Do you think that Disney Studios will attract more Germans than the other park? What steps could management take in order to increase the German share of market? 

Germans make up a small percentage (8%) of Disneyland Resort Paris most probably due to the once rigid structure of EuroDisney’s management and the inexperience of operating a park in a multicultural environment. The loss of US$515 million during the first year of operation of EuroDisney was proof that there were problems in the operating structure of the park. As in the case, the company did not account for cultural differences between the US and Europe when it first opened. Although they later took steps to ‘Europeanise’ the park, this was not enough as many internal issues such as disputes with employees existed. In order for the park to attract more visitors from all around Europe and to be successful, it would have to adapt to both the tastes and trends of Europeans.

The case states that ‘many American managers in Paris were unaware of the many local and Asian adaptions made in Tokyo,’ which would explain the slow response of EuroDisney to finally try and adapt to European tastes. Given the nature of high and ‘premium’ prices of Disney, Germans and other Europeans may have considered this as a deterrence to visit the park since unlike the US, ‘continental Europeans with six weeks’ paid holidays per year are thriftier on holiday expenditures than Americans.’ This was a cultural difference that Disney should have taken into account when setting prices to ensure that they were appropriate for European visitors.  Germans would fall into this category and are more economical than Americans. As such, many would be unwilling to pay a premium for admission and may rather spend their money at a park as Parc Astérix or Planète Futuroscope, which could provide similar services at a lower price. Furthermore, mentions of a previous ban on alcoholic beverages and opening times for restaurants would have discouraged Germans from visiting again given their avid drinking culture and prominence of ‘early birds’ who enjoyed starting their meals early. Through word-of-mouth, this would keep the visitor rate relatively low and would not likely attract more German visitors.