A Case Study On 'The Not-So-Wonderful world of EuroDisney

1. THE NOT-SO-WONDERFUL
WORLD OF EURODISNEY
A CASE STUDY ON
By,
Amrutha P S
Krithika Kesavan
Reshma R
Vipin Sekher T N
GROUP NO. : 4

2. CONTENTS
 Case Summary
 Factors that led to poor performance.
 SWOT Analysis
 Remedial Measures.
 Conclusion.

3. CASE SUMMARY
 EuroDisney - the biggest and most lavish theme park that was
built by Walt Disney Company.
 It was opened in April 1992.
 Located by the river Marne which was 20 miles east of Paris.
 EuroDisney was bigger than Disneyland in Anaheim, California (1955);
Disneyworld in Orlando, Florida (1971); and Tokyo Disneyland in Japan
(1983).
 EuroDisney first year of operation was faced with several factors in which
hindered their financial growth and success in the first year of operation.
 This is because, the management has done some mistakes on project plan.
They could not arrange a proper plan.
So here, we’ll discuss what are those factors that contributed to poor
performance and suggest some measures to overcome those problems.

4. FACTORS THAT LED TO POOR PERFORMANCE
 The major factor was the lack of market research and cultural awareness.
 American characters were used, instead of French cartoon characters.
 Disney banned alcohol in a culture that enjoys drinking wine.
 French people followed a culture where they have breakfast at morning, but
Disney had cut down their serving because they were mistakenly informed
that Europeans do not eat breakfast.
 Europeans do not vacation as long as Americans do.
 Pricing strategy was not accomplished correctly.
 The park opened during the Olympics in Barcelona, and the World’s Fair in
Seville.

5. STRENGTHS
1. The parent company is the world pioneer in
amusement parks and theme parks.
2. It is the most visited theme park in France as well
as Europe.
3. Excellent brand presence due to association with
Walt Disney.
4. Over 15 million visitors on an average visiting per
annum.
WEAKNESSES
1. The Disney culture does not fit with the culture
of all foreign countries.
2. Lack of market survey.
3. Irrelevant Assumptions.
4. Lack of Cultural, Lifestyle & Risk Analysis.
OPPORTUNITIES
1. Huge market.
2. No gigantic competitors in this sector.
3. Paris is an easily accessible location to a large
potential customers.
THREATS
1. Economic recession
2. Cultural difference among nations.
3. Unforeseeable events of Gulf war & Airfare War.
4. Influence of culture in french customers.
SWOT ANALYSIS

6. REMEDIAL MEASURES
1. Pay more attention to local famous characters from video, comics and
cartoons; use their images and statues in advertisement to create a more
French themed park.
2. Analyze the lifestyle and food habits of people and include them in the
menu which promotes a french culture.
3. Needs and wants of the customers must be given utmost priority.
4. The purchasing power and spending style of customers should be analyzed.
5. Avoid making optimistic assumptions.
6. A well panned activity helps to foresee future risks and thereby its impact
can be reduced.

7. CONCLUSION
The expansion plan of a company to establish itself in a foreign
market should not be made without an extensive, in-depth study into every
applicable aspect of the new country which includes the laws, culture,
climate, interests, life style, food habits etc. This would increase the chances
for its success. A careful and tactful planning keeping in mind the whole
cultural dimensions would enable an enterprise to perform effectively across
the globe. Culture was not the only aspect that led to the downfall of Euro
Disneyland. But it played a major role and alerts the management of Disney to
take control of this aspect in their future ventures.