Euro Disney and Other Stumbles

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Presentation of the case study during Marketing Management class at WSB-NLU
By Audrey Savabien
and Aleksey Narko
2012

Published in: Education, Art & Photos, Business
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Euro Disney and Other Stumbles

  1. 1. Disney-Euro Disney and Other Stumbles By Audrey Savabien and Aleksey Narko
  2. 2. Optimism 4,4 billion  20 miles 5000 acres X6 =5200 rooms
  3. 3. Attendance/Population ratios “My biggest fear is that we will be too successful”
  4. 4. Location Decision
  5. 5. Financin g $
  6. 6. Major miscalculations RESULTS Revenue projections not being met
  7. 7. Attempts to recover •20 months to smooth the wrinkles •More affordable prices •Efficiency vs Economy •Heavy interest
  8. 8. What went Wrong ?
  9. 9. External factors • Economic recession in Europe -> Affect the attendance -> Affect the almond spent in Disney’s good • Difference of culture -> European are more Prices Conscientious -> Not the same mobility
  10. 10. Internal Factors • Using a model which was proof in US and Japan but doesn’t work in France -> Breakfast, Wine, restroom for bus drivers • Management Mistake -> French mindset v.s US management • Insensitivity of economics conditions -> Too much depts. -> Breakeven points to much high
  11. 11. The worst thing is not to look ahead!!!
  12. 12. • European Bank funding For 500 millions $ Conditions : Disney should -> Invest 750 millions $ to bail out its affiliate -> eliminate for 5 years lucrative management fees and royalties • A member of Saudi royal family For 500 million $
  13. 13. Growth of earnings from 1995 to 1997 • 3rd quarter of 1995 : benefit of 35 millions $ • 1996 : 11,7 million visitors (up from 8,8 million 3 year before) • November 1997 : name changing and new situation updated in Forbes magazine
  14. 14. Later problems of Walt Disney Company • In 1999 : 41% drop of earning • Cause of previous earnings, investment in new enterprises but with low generations of profits • Growth of ratings with ABC networks, bus Disney sell itself fo 1 billion $ a year to the national football League
  15. 15. •Legal problems, Disney is accused of underreporting earning and exagering expenses.
  16. 16. Resume : what can be learned • Beware of the arrogant mindset especially with new situations and new cultures • Great success can be Ephemeral • High Leveraged situations are dangerous • Beware with Prices Strategy

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