Eurodisney and Ethnocentrism in Disney Company

International Marketing

What factors contributed to EuroDisney's poor performance during its first year of operation? What factors contributed to Hong King Disney's poor performance during its fiscal year?

There are a wide variety of factors that contributed to EuroDisney's poor performance during its first year of operation, spanning the spectrum of social, political and economic. One of the most significant was the backlash over the overt American ethnocentrism of the parks' attractions, market messaging, characters and approach to marketing the location across Europe (Curwen, 1995). Compounding this was the lack of cultural empathy that Disney showed in how they created, staffed and managed the park once opened as well (Yue, 2009). Hong Kong Disneyland had poor performance due to the value it delivered to customers relative to the price. In addition, like Euro Disney, Disney planners failed to realize just how many Chinese had no idea who the main characters are much of the mark is based on (Yue, 2009). Like Euro Disney, Hong Kong Disneyland experienced a significant backlash based on a lack of cultural empathy and overt ethnocentrism, all leading to leading intellectuals in these regions denouncing the parks as just another aspect of American imperialism (Curwen, 1995).

To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong King Disney, or the parent company, Disney?

In hindsight the factors were entirely foreseeable if had not been for the ethnocentric approach the Disney planners had taken to defining, implementing and managing the parks. The foreseeable factors of cultural sensitivity to the specific needs and values of each region could have been anticipated with more of a polycentric approach to selection and planning of each resort (Yue, 2009). Seeing these factors and being able to manage them are two different challenges however. Disney was not able to manage them as they were in large part cultural and deeply embedded in their potential customer base (Curwen, 1995). In retrospect Disney could have taken a more focused approach on each of the aspect of cultural incongruity with the planned parks and created unique, innovative strategies for engraining more o the cultural elements of each country. EuroDisney was only saved after the senior management teams at Disney began to explore new avenues for connecting with prospects while respecting their unique cultural backgrounds (Curwen, 1995).

What roles does ethnocentrism play in the story of EuroDisney's launch?

The launch of Euro Disney has become a cautionary tale of how to not launch a business in a new country (Curwen, 1995).

How do you assess the cross-cultural marketing skills of Disney?

Very poor during the initial launch of Euro Disney, over time the location planners became more adept at managing cultural differences and becoming more polycentric in their approach (Yue, 2009).

Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? China? Discuss.