Free Essays on Euro Disney

Question 1: What issues are at the heart of euro Disney’s problems? Why? When the project (cultural Chernobyl) opened, there were some major assumptions of the model that unfortunately were revealed to be inaccurate, not only in terms of attendance of the park, but also mainly on the real estate side of the project. There were overoptimistic projections at that time, and it was a time in the early 1990s when the real estate market, especially in France and Europe, was booming and there were very optimistic projections about the speed, the size and the kind of price Disney would get form the land development. The downturn of Paris real estate market affected the sales of hotels. The attendance was below the expected rates (See Appendix I). The second major issue was the whole tourist destination including the park was over invested form the beginning. Costs skyrocketed and Disney managers could not price the entrance to the park at the right level to pay for those costs and at the right level to be affordable by the Europeans during the recession (See Appendix II). Disney had to define their branding decisions based on a thorough understanding of the idiosyncrasies of the customers they were targeting, as well as the general political and cultural environment they were located in, rather than just on the specific characteristics of their destinations or the attributes specific to their product. Disney had made little provision for local management participatory contribution or community cooperation when it constructed its park in France. It relied entirely on command and control enforcement techniques and on what it considered was its infallible experience. Disney ignored social cultural environment sensitivity, dietary preferences and communication skills that discouraged large number of potential visitors. Although the Walt Disney company is an icon of successful commodification of culture and its brand stewards have done most th... Free Essays on Euro Disney Free Essays on Euro Disney Strengths and Weaknesses Euro Disney’s major strength is its well-known and established tradition and brand name. Euro Disney is a conglomerate company comprised of many businesses. The existence of their own television program is in fact strength, therefore it transformed into an opportunity to advertise its products and parks. Euro Disney did not used effectively its strength in the European market and has over looked to transform its strengths into opportunities. Therefore, one weakness that can be concluded from the case study is that Euro Disney has an ineffective marketing team when entering the European market. In fact, you can not be successful if your marketing team makes threatening environmental signals and predicting stuff before entering the market. PRODUCT The products are the Theme Park experience and entertainment and the various Disney products sold inside. People from Europe view differently the product. They have deep consideration towards their traditions, in particular in France toward the agriculture. Therefore, acquiring agricultural land to build the Theme Park would not be proper decision. Probably a better decision could have been to buy land that is not for cultivating agriculture. Indeed, acquiring other non-agriculture land such as land in the center of Paris or in an urban area could have been more attention grabbing. Even though the price for urbanized land is higher, however, increase number customer attracted could have compromised it because they would have not been offended and there could have been less negative publicity. Yet, the American spirit of the Theme Park and the products affected the French people perceptions. Due to their appreciation for the culture Euro Disney could have places French names on their offerings. However, since their target has been whole Europe putting French names would not be suitable for the different customers. Thus, the company could either tar... Free Essays on Euro Disney Euro Disney’ marketer’s before entering a market as in this case has been the European market should have scanned the environment. By scanning the environment they should analyze the mega-environment as well as the task environment for possible opportunities and threats . Yet, a close attention could have been paid to their strength and weaknesses inside the company. Indeed, the consideration about any trends should have been incorporated in their environment analysis. In this case there has been a recognition of a trend, which is the trend of people going to theme parks during the weekends for entertainment of them as well as their children. Also here is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of. However, their failure to pick up signals from the macro environment and microenvironment as well as to position their product accordingly, had negative effects on their operations. A further analysis of their macro and micro environment highlights their malfunction. MACRO ENVIRONMENT (P.E.S.T) The components of the macro environment are the political-legal environment, the economic environment, the socio-cultural environment, and the technological environment in which Euro Disney operates. Political-legal environment: Euro Disney’s decision to open its Theme Park near Paris has caused a negative publicity in the sight of many French politicians. In fact, they have objected the existence of Theme Parks in the center of their French culture since the park has been viewed as a visible symbol of the U.S. culture. Although Euro Disney marketers probably choose this location, in particularly France, due to the fact that is the center of Europe and could most probably be the most convenient place for people to arrive and settle in their hotel to be entertained. For instance, people from all over Europe could travel quickl... Free Essays on Euro Disney Question 1: What issues are at the heart of euro Disney’s problems? Why? When the project (cultural Chernobyl) opened, there were some major assumptions of the model that unfortunately were revealed to be inaccurate, not only in terms of attendance of the park, but also mainly on the real estate side of the project. There were overoptimistic projections at that time, and it was a time in the early 1990s when the real estate market, especially in France and Europe, was booming and there were very optimistic projections about the speed, the size and the kind of price Disney would get form the land development. The downturn of Paris real estate market affected the sales of hotels. The attendance was below the expected rates (See Appendix I). The second major issue was the whole tourist destination including the park was over invested form the beginning. Costs skyrocketed and Disney managers could not price the entrance to the park at the right level to pay for those costs and at the right level to be affordable by the Europeans during the recession (See Appendix II). Disney had to define their branding decisions based on a thorough understanding of the idiosyncrasies of the customers they were targeting, as well as the general political and cultural environment they were located in, rather than just on the specific characteristics of their destinations or the attributes specific to their product. Disney had made little provision for local management participatory contribution or community cooperation when it constructed its park in France. It relied entirely on command and control enforcement techniques and on what it considered was its infallible experience. Disney ignored social cultural environment sensitivity, dietary preferences and communication skills that discouraged large number of potential visitors. Although the Walt Disney company is an icon of successful commodification of culture and its brand stewards have done most th...