DISNEY EVENT IN EUROPE
In our case study: "EuroDisney" is a new product for the European society. At its launch, the company to be targeted for EuroEuroDisney lacks the concept of product category.
is extensive problem whose solution determines the success or failure of the company.
EuroDisney represents the world of fantasies, dreams and fun. It is a magical kingdom where most of us have enjoyed. In developed countries EuroDisney characters are known as the bread and butter. We all know what Disneyland's Magic Kingdom represents our fancy.
EuroDisney sell illusions, fantasies, dreams and desires of an imaginary perfect world. EuroDisney this used to be a success, although the park European Topic has been in recent years a reason to take an aspirin. With the construction and opening of scarce EuroEuroDisney
EuroDisney always thought they had a gold mine to develop its 4 th park on the outskirts of Paris, eventually they would realize that the reality was very different.
The 11 million visitors in the first year were not those that were planned. EuroEuroDisney obtained a loss of $ 905 million in fiscal year 1993 which ended September 30
With that there was a change to EuroEuroDisney dome, but there were problems with the change still exist. These problems included: the optimistic forecasts, recruitment and training of staff, cultural differences, interest rates, marketing, communication, etc ....
optimistic forecast
EuroDisney and made several strategic errors financial. Feasibility studies presaged a fall in inflation and interest rates and a good economic outlook growth of turnover would be very fast, which, together with the benefits of activity Real estate in the region would make the debt with the banks to stick with ease. The reality was very different, this was not true, and caused the debt is greater and the economic and financial problems the company grew.
Another of his errors was who thought they could change certain European habits.
budget Breaks
EuroDisney wanted to build a state of the art, the more likely closer to reality. On this basis, it was usual to build and hiciesen changes in the last minute, without taking into account construction costs. The Chief Executive Michael Eisner works, these changes made the last minute, later known as "Break budgets."
executives and their advisers did not see signs of economic recession looming in Europe. Between the glamor, pressure to open the park and the intensity of the project were no signs that economic recession.
When the recession began to develop, making shake the stock prices, thus destroying the hopes that Disneyland had to sell their shares and and receive new capital. Moreover, the recession caused in France and the rest of Europe that the purchasing power began to decline, it made families think twice to make an expensive trip to EuroDisney.
Moreover, Disneyland did not see the magnitude of the recession, even rejected several offers to reduce their risks by selling their hotels to hotel chains. Disneyland did not miss any opportunity once the recession.
operational errors
There are numerous errors such as the different
From the American experience was thought that Monday would be the day with less visitors and on Friday the largest, the opposite happened. The company actually had difficulty planning the number of workers for those days. Another problem was the acceptance of different employees working conditions. In Orlando the employees were used to not be needed at all times. Employees inflexible French are irritated by this approach to work.
Another example included the drivers of the coaches. Disneyland was built parking for coaches so narrow that it causes drivers were not too happy and had to go bad moments to park their buses in the parking allocated. Apart from allocating only a resting place for drivers with a capacity of 50 persons. There were days when drivers were up to 2000.
Another operational errors was the hotels' computers. EuroDisney was based on that customers spent several days in the park. The reality was very different, the clients came very early in the morning to spend the day in the park and get to your room at night to leave the next day. The queues were endless to pay because there was only one computer. They had to install several additional computers to reduce queues.
The cost of staff
Before opening, we estimated personnel costs by 13% of income, another mistake made by executives in their estimates. In 1992 the reality was that accounted for 24% of revenue and in 1993 was increased to 40%. This implies that the debt would increase
.
Recruitment and training of
Before opening EuroDisney Disney Company opened 2 offices in Marne-la-Vallée to recruit employees. In 12 months would have to be recruited, hired, trained 12000 people. A challenge for any company and even to Disneyland, in which its employees are like theater group members.
EuroDisney employees looking through the different job fairs. In two days, over 1000 requests arrived at their offices. EuroDisney requirements were so high that only 1 of every 10 applicants was hired . To further complicate the hiring process applicants are required knowledge of the official languages \u200b\u200bof the park as French and English. It gave preference to applicants trilingual because park visitors from all over Europe.
half of those hired were French and they sent EuroDisney a training to become members Disney Clan. Besides they were sent to a specific training for the job then they would perform.
One of the merits of the Disney parks is the customer-employee relationship. EuroDisney tried to implement its 12000 employees mentality "Have a nice day" and teach them to have the "Disney smile."
During training gave employees a 13-page code, where they communicated how they should be dressed or take the "Disney Look." The Europeans did not understand this "Disney Look." The "Disney Look" was a rigid code for employees which determined their dress, the way they wear their hair, even what should be the nail length. The be a U.S. Look for the Europeans is a serious difficulty, since they are not American and believe in individualism. Moreover, the French real service specialists, led to social cuts Disney code. Europeans demonstrating that the code violated French labor law. The code was replaced.
The newspaper Liberation called it "Mousewitz" making direct reference to concentration and extermination camp of Auschwitz in Poland where all the horrors gathered during the second world war. The camp will be led by Mickey. Devastating. He had just compare one, in principle, innocent amusement theme part of the Disney company with a Nazi death camp where they were executed prisoners of war by the thousands in gas chambers.
Cultural differences
itself acceptance by the European theme park was not his problem, but the cultural confrontation occurred between U.S. culture and different European cultures, especially French culture.
The majority of French people thought there was an imperialist attitude of EuroDisney.
were questioned in the media communication if the location of a park of this type a few miles from one of the most culturally rich sites, such as the Louvre Museum, the palace of Versailles,
Europeans could not stand the brash style and sometimes overloaded EuroDisney corporate image. Top executives from Disneyland provoked with their attitudes innumerable conflicts with people unknown to them had attitudes, but they needed to work with them. His response to questions or suggestions was always the same: "Do as we say, because what we do best."
cultural operational errors
Different errors in EuroDisney operations that have a particular impact on French culture. An example is one of the policies pursued by Disney to not serve any alcohol in their parks. This policy was extended to France and caused a great rebellion, as it is typical to eat with a glass of wine. After much consideration EuroDisney in 1993 changed its policy and allowed to serve wine and beer in the park.
Another example was that Disneyland did not understand the customs of breakfast in Europe, as they had been informed that Europeans do not sit down to breakfast. The result was that the restaurants were designed too small.
Managers at Disney made a big mistake in believing that European habits could change, imposing their customs, attitudes, habits ... ultimately Americanize the Europeans. This attitude of EuroDisney was faced with a massive rejection by the European society.
Moreover, the media criticized as counter the Anglo-Saxon puritanism use Mickey, Disney characters identified as someone who does not drink, do not smoke, work hard to succeed in life and cut the grass in his spare time. Only he knows a girlfriend, Minnie suit with ruffles and bow in her hair. This image provided by Disney that tried to reflect the ideology of American society is opposed to the liberal and open European society.
A final example of cultural errors is related to the holidays. Europeans are reluctant to remove their children from school to take a vacation, during labor. While this is typical American. Europeans prefer a long vacation before various courts.
Marketing
EuroDisney was introduced in the market as a place to spend a family holiday for a week. This marketing strategy was completely wrong because not had emotional aspects.
visitors stayed in the park 1 or 2 nights at most and not as previously stated, one week. If instead of focusing on the marketing of American-style park of "grandeur and extravagance" would have focused on an emotional level visitors, as it is, never forget this experience as a family.
Marketing used as emphasis taking the gloss and grandeur of the attractions was perceived by Europeans as a plastic American Imperialism, which was fatal for them and that apart showed great arrogance of EuroDisney.
