disneyland case study v2

Better Essays
CASE 2 – 1 THE NOT SO WONDERFUL WORLD OF DISNEY –HAS DISNEY LOOKED TO IT’S PAST TO SECURE IT’S FUTURE?

Introduction – With over 15 million visitors in 2014, Disneyland Paris is officially Europe’s most visited tourist destination. And in 2015, Disney will open its largest park ever in mainland China. But Disney resorts have had a difficult history and heavy debt across several of the theme parks continues to lead many to ask what is the future of Disneyland?
A Troubled History - In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney (Disney) had built to date-bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan.
Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night.
In 1994, financial losses were becoming so massive at EuroDisney that Michael Eisner had to step in personally in order to structure a rescue package. EuroDisney was put back on firm ground. A two -year window of financial peace was introduced, but not until after some acrimonious dealings with French banks had been settled and

You May Also Find These Documents Helpful

  • Powerful Essays

    Euro Disneyland Case Study

    • 2236 Words
    • 9 Pages

    Euro Disneyland Case Study 1. INTRODUCTION: The primary objective of this case analysis is to evaluate the proposed Euro Disneyland (EDL) project by applying Capital Budgeting techniques such as Net Present Value, analyze financial and economic risks, measure exposures of Euro Disneyland (EDL) such as economic exposure, transaction exposure and translation exposure, and develop strategies to mitigate these exposures. The case findings reveal that Disney should invest in Euro Disneyland taking…

    • 2236 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Why didn’t Disney managers anticipate better the cultural blunders they experienced when Disneyland Paris first opened? The management team of Disney did not better anticipate the cultural blunders of Disneyland Paris because they used their past theme park opening experience in California, Orlando and Tokyo as models to replicate. Unlike their past experience Euro Disneyland (now Disneyland Resort Paris) the first multicultural park. What Disney executives did not realize was that they need…

    • 421 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Case Study: Euro Disneyland 1. Using Hofstede’s four cultural dimensions as a point of reference, what are some of the main cultural differences between the United States and France? Some of the perceptions on how Americans see French people include: flamboyance, arrogance, being emotional and hierarchal. In the other hand, perceptions of how French people view Americans include: being aggressive, workaholic, unprincipled and naive. Power distance is the extent to which employees, or less powerful…

    • 692 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    with the host country France. Walt Disney reflects the American idealism of the ‘American Dream’. This is primarily focused on all things being perfect and without fault. This unique image Walt Disney portrayed and provided for the customers at Disneyland Resorts and parks have a highly controlled management systems and an ethnocentric style, to deliver the a high grade of service and product, which is part of their core competencies, for their competitive advantage. Disney’s entry strategy to France…

    • 793 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Introduction The purpose of this paper is to analyze the Walt Disney Company and their expansion into Hong Kong with the theme park Hong Kong Disneyland (HKD). The Walt Disney Company was founded in 1923 by Walt Disney. It was a company founded upon as an entertainment experience for people of all ages starting out with short films and then moving into full length motion pictures. Since its inception the Disney Company has grown into a worldwide organization and is made up of four major areas…

    • 2115 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Case Study Disneyland Resort Paris Case Study 6 - What are the Disney resorts and parks aiming for? 1) The Disney resorts and parks were aiming for a market that focused on creating images, experiences and products to customers that emphasized fun, imagination and service. It aimed to provide a place where customers could escape the cares of the real world through the "magic" of legendary fairytale and familiar Disney characters. The market targeted families and children and the company had…

    • 595 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Euro Disneyland Case

    • 1012 Words
    • 5 Pages

    the company suffered a big failure in the next overseas expansion venture which was named Euro Disneyland. The failure’s main reason was the lack of the emotional intelligence that should be present in effective leaders. In particular, the emotional intelligence components are: self-awareness, self-regulation, motivation, empathy, and social skill. The most important element that was missing in this case is empathy which represents the capability to comprehend the emotional temperament of other people…

    • 1012 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Case 3: Disneyland Resort Paris: Mickey Goes to Europe I believe that managers should adapt the resort to more local cultures for the 15th Anniversary in 2007. Even if Disney adapts to the local culture there is still going to be a sense of the American Disney World in the theme. Disney has expanded to countries all over the world yet they cannot change the fact that the characters are the same wherever they go. There is always going to be a Winnie the Pooh and Lion King and cultures…

    • 364 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    revenue Base mgt. fee of 3% for years 1-5; 6% from year 6 Variable mgt. fee: 1-50% or pre-tax cash flow above a pre-determined threshold Royalties from gross revenues on food, merchandise, etc. Admission: 10% Merchandise, Food: 5% Hong Kong Disneyland 2nd half of 1998 – preliminary discussions Decided on site near Penny’s bay, Northeast Lantau Feb. 1999 – Serious discussions Developed assumptions with Walt Disney taking into acct. Disney’s operating experience in international theme parks…

    • 1474 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    EXECUTIVE SUMMERY This paper will analyze Hong Kong Disneyland that was built y Disney in conjunction with the Hong Kong government. The local culture of the people of Hong Kong and how it is related to the operation of business especially the tourism industry, which Disneyland will fall under, will be closely examined. The author chose Hong Kong Disneyland, a theme park built and operated by a new-joint venture, between the Government of Hong Kong and the Walt Disney Company. In this…

    • 2059 Words
    • 9 Pages
    Powerful Essays