Preview

Case Study: Euro Disney

Satisfactory Essays
Open Document
Open Document
729 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study: Euro Disney
Case Study: Euro Disney
Clint Frye
Professor Shore, Grace
Corporate Entrepreneurship (BUSI - 3008 - 2)
10/5/2014

Case Study: Euro Disney As I read the case study of Disney’s Euro Disney park in France, one of the first things that came to mind was how little research had been made on how Europeans act and think in general compared to the rest of the world. As stated on page 143, Disney had not correctly calculated the success rate of Tokyo Disneyland park, therefor, they did not take ownership in the park, nor did they make the park very big. The biggest mistake that Disney made, however, according to the reading, was that they took on too much debt in the development and opening of the park.
As I have lived in Europe for many years, and know how Europeans in general think, companies that want to open any type of activity here need to think as a European. They will do many things to save money such as bringing their own food and drink as stated on page 144. Europeans have a long history of frugality when it comes to times of recession, which was the case in Europe when they park was being planned and built. Disney did not plan on the fact that even though the attendance was high, the visitors did not spend as much money on things such as souvenirs, hotel stays, and restaurants also due to the high prices. Instead of playing it safe and adopting the “penetration strategy” which means lowering prices in order to assure people buying more goods, Disney used the “skimming strategy” by assuming that sales would not be affected by pricing (p. 145).
There were many external mistakes that may or may not have been preventable such as the real estate problem which prevented Disney from selling the hotels to outside investors, but one good thing that did help in the end was the construction of a high-speed train station close to the park entrance, and this allowed the hotels to gain in attendance, and more

You May Also Find These Documents Helpful

  • Good Essays

    In order for Disneyland Paris to keep running successfully, it has to look at the main factors that can affect its business. The main factors should be analysed by the developing company to be more aware of how to manage their target market. Disneyland Paris has many target markets which the main one is “Disney family” so they need to think through what kind of products that they have to offer to this type of customers and how they’re going to market it. This type of customers “Disney family” is a really important because it’s such a large target market and so therefore the market team needs to be more aware of how they’re going to take advantage of this large market.…

    • 718 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    IB207 case2

    • 410 Words
    • 2 Pages

    First, Euro Disney’s poor performance due to the management lacked on understanding of the cultural difference between two nations. Disney goes (very deep) into the American consciousness, its themes were chosen to appeal to a wide variety of American interests and tastes, its parks were filled with images of American culture, and its cartoon characters had become staples of the American youth experience. In conclusion, Disney is too "Americanized." Although Euro Disney did some work to adapt, it is not good enough to convince consumers. After all, since Paris is the culture capital of Europe, French think their culture being deserved more respect.…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The objective of this experiment was to observe evidence of a reaction and to determine the chemical equation, if there is a reaction. In order for a reaction to occur, a metal strip must have evidence of black or grey deposits on the surface of the metal once dipped into the solution. The reactivity of an element is related to its tendency to lose or gain electrons. Three metal strips that were used are copper, lead and zinc as well as the solutions of silver nitrate, copper(II) nitrate, lead(II) nitrate, magnesium sulfate and dilute(3M) sulfuric acid. The copper metal strip was placed in the silver nitrate and dilute(3M) sulfuric acid, the lead metal strip was placed in the copper(II) nitrate and the zinc metal strip was placed in the lead(II) nitrate, magnesium sulfate and dilute(3M) sulfuric acid. Overall, putting these different strips of metal into different solutions will help determine the reactivity of copper, lead, zinc, magnesium, silver and hydrogen.…

    • 542 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Disney Business Plan

    • 3698 Words
    • 15 Pages

    In our efforts to improve the overall Disneyland experience we decided to try and focus on solving the problems of high cost, long lines, and park employees and customer safety. As a group, we came up with several possible solutions to deal with these problems. We were successful in improving overall park safety; however, we could not come up with a solid solution to lower cost, and improve the wait time for the attractions.…

    • 3698 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    As we all know Walt Disney is an American icon, and has been since the 1930s (Ferrell, Hirt, & Ferrell). With the popularity of the company in American, that made the company want to expand to other countries. The two Walt Disney parks were started first in California and second in Florida (Ferrell, Hirt, & Ferrell). Walt Disney seen how well they were doing, and decided to spread the business to Paris and France 10 years later. There was also a Disney that opened in Hong Kong in 2005 (Ferrell, Hirt, & Ferrell).The Disney parks that were opened in the other countries were not performing well.…

    • 802 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Walt Disney paper

    • 1102 Words
    • 3 Pages

    Since opening in 1992, Euro Disney, or currently recognized as Disneyland Paris, has become one of the largest tourist attractions in all of Europe. Though touted as one, if not the happiest places on earth, financially it is not much but a mirage. Euro Disney has not turned a profit since 2008, and has already had to be bailed out on 3 other occasions over its 2 decade existence. To many investors, this does not surprise them that it is happening a fourth time. Euro Disney has followed the same cycle that all products go through. This is known as the International Product Life Cycle Theory. Much like the regular product life cycle, the international theory adds on three stages, new product, maturing product and standardized product. In 1992, Euro Disney would have been going through the new product stage of the cycle. A theme park of the magnitude that Disney has to offer would have been completely different than anything already existing. In this sense, it was innovative in what it had to offer. This allowed Disney to uniquely place their product within the European marketplace. Eventually over the next couple decades, demand for the Disney product slowly started to decline. This is the company entering into the mature product stage. There are many factors that can go into this transition,…

    • 1102 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    p32+ {draw:rect} Few people would equate "Disney theme park" with "environmental threat." Most support Disney's wholesome brand of family entertainment because it offers people a respite from the stress of daily life. But Disney's friendly image has been under fire lately due to the financial woes of its Euro Disney park in France and over its current plans to build "Disney's America," an American history theme park, in rural Virginia. A careful look at Euro Disney and Disney's America reveals that…

    • 2015 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Disney World’s biggest weakness comes from it’s expense. At almost one hundred dollars for a ticket per park per day, it’s not something that a lot of people can afford to go to. For those who can afford to pay to see all of the parks, it is simply too big. Covering 40 square miles of park is exhausting. Along with the expensive park tickets, while in the park, attendees are forced to buy the overpriced food and souvenirs. The expenses of visiting Disney World are only worsened by the fact that it is over-crowded. Long lines and constantly dodging other patrons are not what most people want to do on vacation.…

    • 892 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Disney Audit

    • 545 Words
    • 3 Pages

    Walt Disney is part of few different industries. In other words its competitors are other TV channels, theme parks, and hotels. The theme park and resorts industry has growth of 1.1 percent a year. The growth of the industry as a whole had lost much revenue and profits during the recession. Weather conditions can also be a significant factor within this industry, such as when it’s cold or raining people would not attend on those days. There are many economic factors that affect this…

    • 545 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Disney Case Study

    • 498 Words
    • 2 Pages

    I have attached a Word document so that, along with the Case Study document that you sent and the listed references, you can expand on the post. I hope that I have given you enough information; I stuck more with my research so you might want to insert some of the points from the actual case study.…

    • 498 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    b. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that Euro Disney was charging. In addition, Europeans do not vacation as long as Americans do.…

    • 1286 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Not really, because of the Europeans didn 't stay at the park as long as Disney expected. While the Disney succeeded in getting close to 9 million visitors a year through the park gates, in the line with its plans, most stayed only a day or two. Few stayed the four to five days that the Disney had hoped for. It seems that most Europeans regard theme parks only as places for day excursions. A theme park is just not seen as a destination for an extended vacation. Which is also meaning the French people did not spend much in the Disney hotel. This was a big shock for the Disney, because the company had invested billions in building luxury hotels next to the park-hotels that the day-trippers didn 't need and that stood half empty in the hotel in the most of the time. To make the matters worse, the French didn 't show up in the expected numbers. In the 1994, only 40 per-cents of the park 's visitors were French. One puzzled executive noted that many visitors were Americans living in Europe or, stranger still, What is more surprising was that most of the visitors were the Japanese traveling to Europe. In the result by the end of the 1994, the Euro-Disneyland had cumulative losses of $2billion.…

    • 283 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Disney in Tokyo and Paris

    • 1231 Words
    • 5 Pages

    Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    1. What led to the eventual woes experienced by Hong Kong Disneyland in its first year of operation? How should Hong Kong Disneyland rectify its market situation?…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Amul Final Paper

    • 1280 Words
    • 6 Pages

    Apart from these two new launches, some of these competitors outlets also ordered few other products from Amul icecream!…

    • 1280 Words
    • 6 Pages
    Good Essays