Esther Lee IB 207
Case 1: Euro Disney: The First 100 Days
1. What were the reasons for Euro Disney’s problems in Europe?
- There were multiple reasons for Euro Disney problems, starting from their mostly European employees who has different approach about work ethics and culture. This is a big issue because Disney is mainly known for their exceptional customer experience and is well known for creating a magical experience for their customers. Though training process has been similar to that of U.S., the results came out different. Due to the fact that more than 70% of the employees were French, their attitude towards creating a magical experience was obviously not their priority, looking at the result of the comments made by the customers. The “hectic” working style and enforcement of strict dress codes was not familiar to European workers and there was a high turnover rate due to that. Another issue was lack of housing accommodations for workers which can drive up the cost to the Disney company to renting all these rooms in Paris. Language barriers of accommodating all the people that will be visiting Disney has also had staff being more anxious rather than enthusiastic and friendly. Due to these this issues and high worker turnover rate, poor customer service has resulted which have damaged their usual exceptional reputation. Another issue was that Europe was going through a recession during the period that park has opened and the fact that they priced their hotel accommodations at a competitive rate was not a good move. In terms of dining, following their strict alcohol banning policy that has been applied to U.S. and Japan might offend the European people. It’s almost like opening a meat restaurant in India where most of the people are vegetarian. Wine is core of European culture and to eliminate it might have caused lot of fall out of customers. The long wait in line has not been looked favorable for Europeans which resulted in more dissatisfied customers. Also, the French style of being private, individualistic and intellectual nature might not have made a Disney an appealing place to vacation in.
2. Could Euro Disney have foreseen any of those problems?
-The Euro Disney was overly confident about their projections due to their success in America and as well in Japan. Though it makes sense that transportation wise, Europe is very easily accessible and have forecasted high customer visits. Also, the fact that Europeans have 5 weeks of vacations which can attract more visitors during those weeks, all these external factors that hasn’t been properly though...