Euro Disney Case Study

12599 Words Sep 28th, 2010 51 Pages
case fourteen

Euro Disney: From Dream to Nightmare, 1987–94
Robert M. Grant
At the press conference announcing Euro Disneyland SCA’s financial results for the year ended September 30, 1994, CEO Philippe Bourguignon summed up the year in succinct terms: “The best thing about 1994 is that it’s over.” In fact, the results for the year were better than many of Euro Disneyland’s long-suffering shareholders had predicted. Although revenues were down 15 percent – the result of falling visitor numbers caused by widespread expectations that the park would be closed down – costs had been cut by 12 percent, resulting in a similar operating profit to that of the previous year. The bottom line still showed a substantial loss (net after-tax loss
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These include Main Street, Frontierland, Tomorrowland, Fantasyland, and Adventureland. The objective is to immerse the guest in the atmosphere of the particular land. The theme of each land is reflected in the types of rides and attractions, the costumes of employees, the architectural style of the buildings, and even the food and souvenirs sold within the boundaries of the particular land. Rather than presenting a random collection of roller coasters, merry-go-rounds, and other rides, the Disney parks create an all-embracing experience which envelops the guest in carefully designed, tightly managed fantasy experience such as space flight, a Caribbean pirate attack, a flying ride with Peter Pan, or a race down the Matterhorn in a bob-sleigh. Disney theme parks benefit from the talent and expertise of the Walt Disney “family” of businesses. Parks are designed by the engineers and architects of a wholly-owned subsidiary – WED Enterprises. The themes for the attractions and characters that are featured in them often have their origins in cartoons and live action movies produced by Disney’s studios. The parks also benefit from management and merchandising techniques developed over many years at Disney. These techniques have led to tremendous successes. In merchandising, Disney retail stores achieved some of the highest sales per square foot in the United States. Disney’s success can be traced to the control of the environment

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