Final answer:
Misjudging the elasticity of demand, failing to account for close substitutes, and misjudging customers' preferences and tastes were missteps made by Netflix management that contributed to EuroDisney's poor performance during its first year of operation.
Step-by-step explanation:
The missteps made by Netflix management that contributed to EuroDisney's poor performance during its first year of operation include misjudging the elasticity of demand, failing to account for close substitutes, and misjudging customers' preferences and tastes.
Misjudging the elasticity of demand means that Netflix management underestimated how sensitive consumers would be to changes in price or availability of alternatives. This could have resulted in pricing strategies that were not aligned with market demand or expectations.
Failing to account for close substitutes means that Netflix management did not consider the competition it would face from other platforms or services that offered similar entertainment options. This lack of awareness and response to competition could have led to a loss of customers to alternative options.
Misjudging customers' preferences and tastes means that Netflix management may have misunderstood what customers wanted and valued in a streaming service. This could have resulted in a product offering that did not meet customer expectations or failed to differentiate itself from competitors.