Euro Disney Case Study

1353 Words Jul 31st, 2013 6 Pages
Both Disneyland in Anaheim, California and Disneyworld in Orlando, Florida were and still are to great success. Tokyo Disney followed with a slow start but quickly became a successful cash cow like the 2 parks in the United States. Disney next projected success was Euro Disney, today it goes by DIsney Paris. Disney was confident and quite optimistic that the 4th Disney theme park, located just over 30 minutes drive from one of the worlds biggest tourist attractions, Paris would be no different. Some would say a little too confident. However, Disney made some major planning mistakes in many different points of the overall business plan. This lead to a downward spiral into bottomless pit of failure, fast. From day 1, the theme park destined …show more content…
They should have researched and learned from their mistakes mainly in the area of advertisement since the 3 parks started out with great fanfare but soon failed. Disney did an overall poor job in various areas of the parks planning and lot of the issues of Euro Disney's business plan can relate to its location.

A serious economic recession was affecting Europe at the time of Euro Disney's opening. Maybe it was bad timing, or maybe Disney chose the wrong location to put a 20+ billion dollar theme park that required a lot of Europeans money just to stay afloat. Unfortunately, the chance of that happening was slim due to such a recession. The recession didn't terribly impact attendance, but it impacted visitors spending patterns and lengths of stay. Disney theme parks are a tourist trap to spend money and Euro Disney was no different. It had retail shops with jewelry, fancy multi course restaurants, and high prices hotels. Visitors were very price conscious when visiting the park. This suggested that visitors living within a 2-4 hour drive were far different from those who traveled overseas in spending ability and awareness. Those taking a trip to the U.S. were far more prepared to spend money at Disney parks and in more of a position to do so. Those traveling shorter distances to visit a similar park did so to visit the park, not go on shopping sprees. Disney did not see this

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