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Disneyland Resort Paris, Case Study

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Case Study: Disneyland Resort Paris Student: Lorena Gamez Course: BA 522 Date: 04.04.2007 Schiller International University Introduction Insufficient knowledge of the European culture and buying behaviour of potential visitors of the Disneyland Resort theme park led to an overestimation of the number of visitors and their spending in the park. On top, operating costs turned out to be higher than expected. This case highlights that the Disney as a company did not take into account customer differences or the marketing environment into which Disney was moving This paper aims to first give an overview of the case study, followed by a thorough analysis of methods on how to overcome some of the major issues. Case Summary After the success in Tokyo, Disney's management was certain that an European park would work. Dissatisfied with the ownership provisions at the Tokyo park, the Euro Disney deal was structured much differently. Disney negotiated a much larger ownership stake in the park, adjacent hotels and restaurant facilities. Along with the bigger control and potential profits came a greater risk. In April 1992, Euro Disney opened its doors to European visitors. Located about 40 km. away from central Paris, Euro Disney it was planned to be the biggest and most lavish theme park that Walt Disney Company had built to date (bigger than Anaheim', Orlando's or Tokyo's parks).It was also projected to be a surefire money maker for its parent Disney. ...read more.


usually wish to "make the most" out of the limited holiday period, thus undertaking more expensive full time holiday packages. i.e. tours, staying in greater hotels and spending more money in entertainment, dinning and shopping. 3) How will changing geopolitical situations affect park attendance? * It could be said that the US' foreign policy, has generated controversy among many Europeans (such as French and Spanish). In some cases, this has further sharpen hostility against the United States and made many American companies un-popular. This has additionally catapulted French and other Europeans' anti-American feelings - seeing the United States and some of its companies as symbols of American cultural imperialism assaulting European culture. * Moreover, it can negatively affect the attendance of the huge European Islamic minorities- Moroccans, Tunisians and Algerians in France; Libyans in Italy or Turkish in Germany. What can be the repercussions of a US-led conflict in the Middle or Far East? Probably, this could result on further: * Decrease of attendance of European Muslims and other Europeans Nationals * Additional un-easy feelings on behave of some Europeans (like French) towards U.S firms, that can lead to "sabotaging" such companies by not buying their products/ services. In order to overcome this, Disneyland Resort in Paris could: * Give specials such as free tickets to overcome the resistance to visit the park; after all, the 34 Euro ticket is relatively little in comparison to the earnigs made by the selling of merchandise, food or even accommodation (where the profits actually come from). ...read more.


At this point it is clear how desperate Disneyland Resort Paris was to survive and improve its position in the European market. From a strategy viewpoint, I believe this was a wise move to attract visitors to the park, as it clearly differentiated Disneyland from other rival parks, offering the chance to experience what Disney is really about - the magic of movies. This is perhaps more interesting to the European visitors as it offers them the chance to get connected with what they truly perceive Disney to be. Furthermore, the addition of the Studios to the "Resort's pack" might make the visit more attractive (and even increase the length of the stay) to visitors from further away, such as Scandinavians, by adding further benefits Given the state of the economy, the need to continually spend on new attractions and the rapid rate of development for other competing theme parks in Europe, do you think this investment is justified on the long term? This was indeed a risky decision. Specially when taking into consideration the rather "shaky" financial position and performance of the Disneyland Resort in Paris. However, because so much is in stake, and Disney could not afford to leave the European market with the "tale between its legs," this decision had to be taken. Even though Disneyland Paris is in a tough financial position right now, it can still be supported by it very wealthy parent company (Disney) which recently (2006) declared a considerable net profit of $6.491 billion USD. ...read more.

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