Case Analysis # 1 EuroDisney- Disney Land Paris 1. What factors lead to EuroDisney's poor performance during its first year of operation? EuroDisney had a disastrous first year in Paris, France. There were many reasons that contributed to the horrible start. I am going to discuss six reasons why I think EuroDisney had such a hard time adjusting in Europe. 1. It was cheaper for European families to travel to Disney World in Orlando, FL. Not only was the trip to Orlando going to be cheaper, but it was almost guaranteed that the weather was going to be spectacular. People go on vacation to have a good time, but more importantly to enjoy the weather. People in Europe and around the world are not going to vacation at a spot where the …show more content…
The cost of a vacation to EuroDisney Paris compared to Disney World in Orlando Florida was astonishing. I see this factor being foreseeable for this reason. Before a company goes abroad they must complete an extensive research project on the history, culture, and economics of the specific region in which they are going to operate. The people in charge of the economics of Europe obviously did not calculate the amount of money a family was going to need in order to visit EuroDisney. It is mind boggling that this mistake was not intercepted before the launch. This factor was also controllable for EuroDisney and the explanation following will explain how. This crucial mistake may have cost them millions of dollars in revenue and millions of visitors from all over the world. Instead of attracting people to the new start-up attraction, the people opted to travel to the United States and visit Disney World for a fraction of the price. They should have priced EuroDisney similar to Disney World in Florida, and the problem may have been alleviated somewhat. The prices should have been thought out more carefully and compared to other amusement parks in Europe. If that was done from the beginning, then EuroDisney may have been a success in its first year. The problem that arose in which the French culture did not like American fairy-tale characters was foreseeable and controllable. The
It is very much clear from the case that the chief reason for Euro Disney’s failure was a lack of understanding of European culture.
Euro Disney marketers have recognized a trend. People are going to theme parks during the weekends for adults as well as children entertainment. Indeed, there is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of.
My first trip to Disney World, now that, that was a memorable trip. That trip was one of the most magical and happiest memories of my life. It was back in 2008, I had just turned 6 years old a few months before we left to go there. It was summertime, and the weather was perfect. I remember being so bored on the way there because I am an only child so I didn’t have anyone to entertain me besides myself. My mom’s side of the family went on this trip with us, and at the time I was the only grandkid, and the only kid at all. So once we finally were almost there I remember passing the big ‘Welcome to Disney World” sign and being so excited I peed my pants--my mom was pretty mad, but my dad thought it was kinda funny so I didn’t get in too much trouble.
Walt Disney is extremely known for being a film producer and popular showman. He was very recognizing for being an innovator in animation and theme park design. Disney was a visionary in terms of cartoons. Disney views and visions came from his persistence for the future. Walt Disney strives upon building Disney’s to have core strengths in three areas of entertainment and recreation, motion pictures and videos. Walt created his first animated character, Mickey Mouse.
1. What is Walt Disney Company’s corporate generic strategy? Explain the reason for your answer.
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by
Welcome to the happiest place on earth, otherwise known as hell. Imagine entering a place where the air smells like fresh homemade cookies, the lush green trees are shaped like animated characters, and the sidewalks are always squeaky clean. The employees or “cast members” appear to be clean-cut, happy, wholesome, all-American people. This is the image Walt Disney World provides for its guests. But what goes on behind the scenes at Disney? Until a person has worked for the “big mouse” she won’t be able to understand the torture that can go on for employees. I’ve been in that Disney “cult,” part of the “wonderful world of Disney.”
Walt Disney Company for eighty years has captured the attentions of millions of people around the world, offering family entertainment at theme parks, resorts, recreations, movies, TV shows, radio programming, and memorabilia (David, 2009). Today, Walt Disney possesses four main business segments: Disney Consumer products, Studio Entertainment, Parks and Resorts, and Media Networks. Each of Disney's business units increased profits apart from its interactive division, which was recently restructured (Garrahan, 2011). By combining Disney's long history with the commitment to quality, Disney Consumer Products has had a large and steady presence in the toy marketplace (Anonymous, 2010). Studio entertainment has been somewhat of
Disney parks are known for their clean and well designed atmosphere. However, they felt short in providing the same experiences to Euro Disney customers. Euro Disney failed to deliver the high level of customer service standard to Disney theme parks are known for their, as well as failing to provide the service needs that were unique to the European market.
1. The advantage of opening a theme park in Europe is the number of tourists visiting Europe each year, Paris being an extremely attractive tourist destination had approximately 50 million tourists visiting France annually and spending roughly $21 billion.
Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion.
Secondary things such as leisure and traveling would not be in the list of the people’s spending. Beside, during its first year operation, Euro Disney could not compete with its competitors such as Parc Asterix which had undergone a major renovation, the Olympics in Barcelona, and the world’s fair in Seville.
The main problem of the Euro Disney was that all calculations made by Walt Disney Company were based on parks in the USA and Japan considering Europe as a mass of people rather than many countries with different languages and cultures. Americans see theme parks as a destination where you can stay between 4 and 6 days. In Europe, Euro Disney was seen as a part of the experience when traveling to Paris. The cost was also a problem for the park. A night in a hotel inside the park costs as much as a high quality hotel in the French capital. So, given that the park was located 40 minutes by car from Paris, visitors preferred to spend a night in the romantic city of Paris.
The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. During the late twentieth century, Michael Eisner founded and gave a rebirth to Walt Disney Company. Eisner revitalize TV and movies, Themes Park and new businesses. Eisner's takeover for fifteen years had climbed the revenues and net earnings of the company. It also successfully uses synergy to create value across its many business units. After its founder Walter Disney's death, the company started to lose its ground and performance declined. Michael Eisner became CEO
Here Disney had strategic plan in terms of consumer focused initiative. A consumer initiative often includes steps for a company to increase sales by differentiating products in the marketplace, marketing goods or services to new demographics or creating a new customer service function to handle customer requests.