April 12 1992, was the day Disney sought to capture the European market by opening its doors to a major theme park called EuroDisney. This sounds enticing as the name "Disney" is known worldwide, however the following situational analysis will thoroughly examine the factors which saw EuroDisney not live up to its expectations in the years after its initial opening and list strategies which could have helped avoid such disappointing results.
The situational analysis will include a market analysis, product analysis, competitive analysis and finally a SWOT analysis.
Analysis of the firm's external environment (market analysis)
The market in which EuroDisney wanted to establish itself in was quite a difficult one. Various external market factors have been identified as being critical to the overall success of EuroDisney in Paris. Such factors included:
1. European Real disposable income per capita government taxes of approximately 50% of gross wages, are always on the rise as debt as a percentage of GDP for come European countries is in the range of 50- 115% this leaving the government with no choice but to raise taxes, thus having a negative impact on disposable income. High levels of unemployment also play an important role.
2. Vacation habits and customs Europeans generally like to spend their holidays at sunny locations at other European countries and also the south of France. Families do however visit EuroDisney but their stay is relatively short, usually a stop over on their way to their final destinations.
3. Since vacations are long, their leisure budget is usually low. For example a two day visit to the park would cost an estimated $200 per person, which represents 30% of the leisure budget for the Belgians and 25% for the French. This is too expensive and does hinder attendance.
4. High oil prices causes petrol prices to increase thus affecting families when they travel to and from... [continues]
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