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
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