Walt Disney paper
Walt Disney World Company is an international media and entertainment conglomerate. Disney has integrated itself within global culture as a premiere theme park and resort service. Its high quality of standards, unsurpassed customer service, and originality make it like nowhere else in the world. The Walt Disney World Company manages 5 theme park and resorts around the world. Having two based in North America, and with the other 3 based in Europe and Asia. Having been ranked in the top 100 public companies in the world according (Forbes.com, 2014) Disney is seen as having anything but financial difficulty. That however is not the case for one of its prestigious theme parks.
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,
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,
References: Cateora, P. (2011). International marketing. 1st ed. [Whitby, ON]: McGraw-Hill Ryerson. Forbes.com, (2014). Walt Disney on the Forbes Global 2000 List. [online] Available at: http://www.forbes.com/companies/walt-disney/ [Accessed 6 Oct. 2014]. The Globe and Mail, (2014). Walt Disney rescues Euro Disney with $1.3-billion funding deal. [online] Available at: http://www.theglobeandmail.com/report-on-business/international-business/european-business/walt-disney-rescues-euro-disney-with-13-billion-funding-deal/article20940789/ [Accessed 6 Oct. 2014].