Disney in France

 Case Facts
 Name of the organization: Disneyland
 Origin: Anaheim, California
 Year of establishment:1955
 Number of parks opened (until French commence): 3
 Establishment in France: 1992
 Expected job creation: 30,000
 Total cost of park in France: $5 billion
 Team head: Joe Shapiro
 Cumulative losses in 1994: $2 billion
 Background of case study
 Disneyland is one of the most successful theme parks in America, that led to a start in the land of the
rising sun. As the success continues, the target towards European countries enables them to carry on
the operations in France too. This was the hardest time of all that Disney faces from its start in the
land of French. Instead of people turning into the theme park, tractors moved into Disney, due to the
demand of the US government to cut the agricultural subsidies for their benefit. Furthermore, Disney
satisfied themselves but was unable to cover the people where they had landed. Huge cultural
conflicts ruined the park that made French people disappointed for quite a while until they have
realized it. However, the story focused on the world's attention over the loveless marriage of Disney
and the French capital. Moreover, an operational error was also a headache due to their awful
assumptions over different aspects. Employee turnover was too high in the first nine weeks of Euro-
Disneyland’s operation. The main shock was the high attendance of foreigners than the home people,
which resulted in cumulative losses of $2 billion. Overall, change in its strategy had improved its
performance than before, resulting in an increase of attendance from 8.8 million to 11.7 million in
1996.
 Problems:
1. A rise in the number of operational errors. Due to lack of research and knowledge had led to
so many issues like less focus on breakfast, stubborn teamwork model.
 Challenges:
1. Rise in the employee turnover due to the teamwork model that doesn’t suit to the staffs of
French.
2. Better competitor might arise due to the lack effectiveness towards bringing real world
experience.
 Solutions:
 Problem 1: Disney must invest hugely on the research and development so that they could
get to know better the country to avoid any operational error.
 Challenge 1: Ensure that they are always adaptive in all means as in the case of the
teamwork model, so the staffs remain satisfied with their job and furthermore reducing the
labor turnover rate.
 Challenge 2: Invest hugely in the rides to make sure the consumer experiences real world
effects before any competitor turns in to bring them.