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.…
Two years after Walt Disney Co. opened its new part in France, Euro Disney was losing $1 million per day, despite over a million visitors per month. What had gone wrong?…
The Walt Disney Company had to push through some obstacles along the way that were hindering its success. After investing millions of dollars into their Paris location, Disney ran into numerous problems. Many believed that the park would “contribute to the destruction of French Culture.” These early problems almost sent Disney into bankruptcy. After renegotiating and changing some of the parks policies, such as changing prices, eliminating the alcohol policy, and promoting Disneyland Paris, the park is now successful and making some profit.…
The French culture did not like the American Fairy-tale characters. The French had their own fairy-tale characters; one even has a park located near EuroDisney. Starting up a company internationally is an extremely hard task. Researching the culture of the country in which the company is going to be located is extremely important. When the plans to bring EuroDisney to Paris were finalized, they should have begun extensive research on the culture and history of France. By not doing that Disney may have insulted the French, but more so they hurt their chances of making money.…
They just copied their business model from America and placed it in Europe. But little did they know that European people are used and lived to different standards. And because of that the park failed in the beginning years. Conclusion It was only after the executives of Disney realized that they had to change their business model in order to turn the park profitable.…
The Walt Disney Company had experienced a big failure in the theme park business. Having successfully opened parks in the US and Asia, the idea to open one in Europe came natural. The city of Paris was chosen to host the new theme park. That was the first of many decisions that led to a very unsuccessful opening of EuroDisney.…
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).…
However, when Euro Disney opened in Paris in 1992, the standard model of Disney theme parks ran into trouble. Tackling the many problems faced by Euro Disney operations has posed many new challenges to Disney, forcing them to reconsider their standard model for success. Disney must find ways to adapt their theme park model in a manner which preserves the best of Disney.…
Disney Management thought that because they had successfully opened Disneyland-Tokyo and surpassed their expectations, the European market was expected to succeed with the same business model and projected to generate over $100 million during the first year of operation which became a loss of $900 million by the summer of 1994. EuroDisney failed to attract the expected number of European visitors’ especially French visitors because they saw it as an American imperialism. Disney executives failed to understand that the European population differs from Japanese population and may simply resent the ads directed at foreign cartoon characters seeing it as a threat to their national identity. If there had been a better market research they would have found out that vacation pattern, pricing of hotel rooms and European meal habits differs much more than they American market or Japanese market. They were confident that whatever project the Disney CEO and President took on would be an instant success because they were credited to having turned the Disney Corporation in to a multibillion dollar company.…
EuroDisney, currently named Disneyland Paris, opened for business in April of 1992. Much to Disney's surprise this theme park did not attract the expected number of visitors necessary to allow for profits. By 1993, after announcing their fourth-quarter results, losses were reported to be $517 million. In 1994, Prince Al-Walid agreed to invest up to $500 million for a 24 percent stake in the park. This cash infusion along with a change in local management led Disney back to the road of recovery. By 1996, Disneyland Paris became France's most visited tourist attraction.…
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.…
Walt Disney’s theme park model reflected the American culture and norms within society. However when the decision was made to move into Europe, some adaptation were done to make the theme park much more culturally integrated with the host country France.…
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.…
Euro Disney’s first few months in operation has already shown signs of mediocre profits and not living up to the success of its parks counterparts in the U.S. and Tokyo. There are a number of items Disney must attend to in order to make Euro Disney a success. For one, Disney must deal with the conflicting cultural aspects of its park attractions and service. Another is getting local residents as repeat guests, and how to attract attendance during the cold winter months. Lastly, is whether Disney should invest in their planned Phase II of the park.…
The reason behind Disney's motivation to set up theme parks abroad were mostly because of business opportunities. Based on how successful the Disney Theme Park is in the United States and the attraction they are gaining from foreigners, the management probably realized that it is time to consider entering the global market. By doing this, it would mean an increase of sales for the company. This is somehow a form of advertisement for people to buy their products and even to attract more and more consumers. Opening another theme park in a different country would also contribute to the survival of the company should their theme park in the United States lower in sales.…