Euro Disney: SWOT Analysis

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SWOT Analysis:

oThe name Disney that had been well know all over the world oFinancial strength from investors and profits in the other Disneylands oThe amount of capital that was very sufficient

oLack of research by the management
oPoor forecasting and calculations
oTendency to believe that the Chairman would make it perfetc

oTo compete against the famous Eiffel Tower and Louvre Art Museum oStrategic location in which the park was surrounded by hotels oThe $500 million investment from a member of the Saudi royal family

oThe Gulf War in 1991
oThe world’s Fair in Seville and the 1992 Olympics in Barcelona oCurrency movements that made it cheaper to go to Disney Orlando oCultural difference and historical conflict

·Environmental factors:
oThe incident that happened during 1991-1992 such as The Gulf War, The world’s Fair, and Olympics oThe ban on alcohol in the park that was not accepted by the French

·Management error of judgement:
oBuilding expensive trams while visitors preferred to walk
oBelief that French don’t eat breakfast which were not true oDisney emphasized on size instead of the entertainment value

·Element of consumer’s response:
oPeople would go to Orlando’s Disney rather than EuroDisney oThe French saw EuroDisney as American imperialism
oVisitors spent less than estimated $33 per head

Special event such as the world’s Fair and Olympics should’ve been predicted to attract the visitors. Thorough research and survey at the cultural difference, currency movements, and consumer’s taste should be done prior to opening the park. On the other hand, they might not be able to predict the Gulf War. They could’ve done better forecast than what they did because they missed many foreseeable factors.

Considering the vacation customs of European the management can adjust when to open the park and when they...
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