¡§They were always sure it would work because they were Disney¡¨
The Not-So-Wonderful World of Euro Disney -
Things are Better Now at Paris Disneyland
The Problem
The problem Disneyland Paris is facing is the issue of expanding its parks into other countries and making sure it does not repeat the same mistakes it encountered in Paris when it first opened there as Euro Disney.
More difficult than it might seem at first glance, there are several issues facing Disney.
Background
ƒç Euro Disney, as it was originally named, opened to the European public in 1992. After many trials and tribulations it seems to have overcome them to come out on top, in typical Disney style, with some important changes. ƒç Disney¡¦s projections for its park¡¦s success, whether through hotels, merchandise, and number of visitors were all miscalculated. ƒç Disney emphasized the park¡¦s size instead of the entertainment value of the park. ƒç The park admission prices were more expensive than in the United States. ƒç Disney failed to see the signs of the coming European recession. ƒç Managers at Disney and Euro Disney upset many organizations. ƒç The ¡§kick-the-door-down¡¨ (International Marketing, page 623) attitude of the US managers did not work well with the already hostile French.
So at a certain point, it was questionable whether Euro Disney would even continue to exist or close its doors.
Some changes that transformed Euro Disney¡¦s failure into a success were:
ƒç Disney agreed to fund Euro Disney. ƒç From the beginning Euro Disney¡¦s convention business exceeded expectations. ƒç Banks agreed to defer payments for a period of three years. ƒç In June of 1994 a Saudi prince invested up to $500 million for a 24% stake in the park. ƒç In 1993 a French man by the name Philippe Bourguignon took ...
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... the European style and flair, and make it a truly international experience. And I would suggest the same in other countries. Keeping the local style and culture and combining it with the great style of Disney could be a magical experience. Just as when entering Disneyland or Disney World one can forget the hassles of everyday life and enter this magical dream world created by Disney, one can have the same experience in other countries, along with the local flavor.
So a combination approach is recommended, and can appeal to all international tourists.
I think utilizing all these suggestions and learning from its first mistakes, and realizing that combining the good local values of each country along with the good American values can be successful for all concerned.
By being a more international company, one that is not trying to rule the park scene but enhance it and share its magic, one that is easy to work with, one that understands the value of a customer¡¦s money, one that respects the local culture, and appeals to several target markets, Disney can be successful wherever it expands to.
problems. In a study done on the role of the Walt Disney Company, Vincent Faherty explains
The idealistic childhood memory every child thinks back to is their first trip to Disney World, “The Happiest Place on Earth, “according to Walt Disney. The ideal place where everything is magical and fairytales do exist. Disney World has become America’s most popular attraction since 1923. Whether it’s through one of Disney’s theme park, 227 radio stations, six motion studio pictures, three cruise lines, or its theatrical production companies, Disney Corporations culture monopoly has gone unnoticed by Americans. Americans are indulged by Disney’s childhood fantasies with the image every princess has a prince, and will live happily ever after in a magic kingdom. Although it all seems innocent Disney’s Corporation has America indulged with its theme parks, merchandise, films, and cruise lines.
The Walt Disney Company and Pixar Animation Studios Inc. were two of the largest movie and entertainment studios. Disney owned and operated an unparalleled portfolio of theme parks classic movies and characters. Pixar was the leading creative and technological computer generated imagery (CGI) studio but lacked extensive product offerings and distribution channels. At the time of the merger agreement, Disney’s traditional hand-drawn animation films were declining in popularity with the introduction of CGI films. Meanwhile, Pixar possessed the creative and technical resources that Disney lacked, but was unable to profit from characters and films after movie ticket and DVD sales, which were typically one-time purchases. Additionally, the production and distribution contract between Pixar and Disney was rapidly approaching its expiration. Instead of renewing the contract, the two companies decided to merge with the intention of capitalizing on ...
(1) Michel G. Rukstad, David Collis; The Walt Disney Company: The Entertainment King; Harvard Business School; 9-701-035; Rev. January 5, 2009
Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).
significant requirements for the financing portion of the remaining needed amount. Disney was looking to
It is being predicted that Disneyland will see a dip due Harry Potter. However, Disneyland too is in the process of adding more attractions. There is a 14 acre expansion plan which would resemble Star Wars. The spokesperson of Disneyland, Suzi Brown has said that, Disney would continue to raise the bars of theme parks and strive to provide an unique experience to tourists. This arms race, however, would do a lot of good for the industry and people as
One of the key factors of the successful diversification is the very strong branding of the name Disney. That the name was famous after the success in the early years made it among other things possible to go into the theme park industry. Evaluated isolated, the theme parks was a success. But when also accounting for the synergies created, the decision to go into this industry was a huge success. It has created a spiral of synergies, where the characters in the movies get more popular due to the parks, as well as the fact that when people are visiting the parks they get stimulated to buy the merchandise. This is just one example of the synergies that exist in Disney. When Michael Eisner took over control in Disney, he kept focusing on same corporate values as earlier, which are quality, creativity, entrepreneurialism and teamwork. These values have been preserved despite of the size of Disney, and are an important factor in sustaining and building the Disney brand.
...were the major reasons for the lower sales. They overlooked the opportunity to profit on the established costumers need for Theme Park entertainment because they did not realized who in fact were their customers.
The Walt Disney Company is known throughout the world as a leader in entertainment. The strategies that the Walt Disney Company have used include competitive advantage, a growth strategy, and a renewal strategy. When a person mentions a theme park, Disney is the first park that comes to mind. They were not the first theme park, but they have mastered the art of creating memories for adults and children alike. As a former employee of Disney I can vouch for the amount of effort that goes into creating memories for families. Disney is a leader when it comes to the theme park business, and other parks look at Disney as a leader. An example of this is that other parks will not raise admission prices, until Disney first raises their prices. WESH.com said "It remains to be seen if Disney's move will trigger a round of similar increases at other Orlando theme parks. Historically, when Disney raises its prices, the other parks follow" (2011, p.1). There is not a company in the world that can provide the "magic" that the Walt Disney World company can provide (Disney.com, 2011).
Sparked Walt Disney World in Florida in 1971, Tokyo Disney Resort in Japan in 1983, Euro Disney in Paris in 1992, Hong Kong Disneyland Resort in 2005 and finally Shanghai Disneyland Resort, which is opening in June 2016 (Dehrer). Walt Disney hosted the opening of Disneyland in June 17, 1955 even with all the chaos he managed to give one last sliver of hope to those yet to experience the magic of it all “ To all who come to this happy place: Welcome. Disneyland is your land. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America, with the hope that it will be a source of joy and inspiration to all the world.” (Bryman
The Walt Disney plans to expand its presence in other countries too mainly the emerging market like China that offers great opportunity. Due to its highly advanced infrastructure and higher population, the Disney already made a biggest investment till date on a development and construction of Disneyland theme park in Shanghai, China. The success of Disneyland Hong Kong and the presence of 330 million people that resides within the 3 hour commute to Shanghai allows the Disney to invest $5.5 billion on this theme park. The Disney CEO states that the park will be open for the visitors in the early The company know its various revenue generating streams very well.
Community policing allows officers to be actively involved on the streets alongside the community. Their focus is not only to solve crimes but to interact with the people in their neighborhood, establish a rapport with them. This initiative has gained popularity within recent years as the police and leaders of the community pursue more significant ways to promote public safety and to enrich the quality of life of their community members. The police and the citizens often come in contact with each other for a multitude of reasons other than criminal purposes. Police officers often engage in community service by providing an abundance of information for those in need, and they offer educational services at schools and outreach
Disney has a rich history and an even brighter future due to the smart decision making of the managing body. Throughout its history Disney has been heavily involved in acquisitions, keeping up with the industry trends and even starting new ones through its parks and resorts segments.
Most successful firms spend millions on building a strong brand image. Disney must continue to expand the brand at every opportunity and keep the focus on its image. The creative energy of Walt Disney himself must exist throughout the organization. Disney can’t afford to lose its “magic” as the stakes are too high. So far, Disney is a textbook example of marketing genius. The mantra “Think local, act global” is a winning strategy for Disney since their product has a market all over the world. Everyone loves being entertained and escaping to a fantasy world every now and then.