04/08/23

Euro Disney

Todd Pula, Laura Ruszczyk, Brenda Trodler, David O’Quinn, Raymond Walker

04/08/23

Company Overview

Todd Pula

04/08/23

Disney’s Claim to Fame

Innovator in the animated motion picture industry

Leader in theme park entertainmentVertically integrated companyGlobal competitor

– Operations in California, Orlando, Tokyo, and Paris

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Disney’s Cycle of Success

Produce New Movie

Market New Products &

Services

Customers Continue to Buy Products & Services

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Euro Disney’s Competitors

Tourist Attractions– Louvre– Eiffel Tower

Theme Parks– Euro Disney does not have any direct

theme park competitors in Europe

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Strategic Problem

&

Strategic Direction Analysis

Laura Ruszczyk &

Brenda Trodler

04/08/23

Strategic Problem Analysis

Disney failed to effectively analyze the external environment in which it attempted to compete– Disney did not recognize that

economic and cultural differences existed between the U.S. and Europe

• Disney simply copied its operations from the U.S. and Tokyo to Europe

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External Environment Analysis

DemographicEconomicPolitical/legalSocioculturalTechnologyGlobal

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Euro Disney’s Problems

Visitor Spending - European visitors did not spend as much as American visitors– Result of exorbitantly high product, service,

admission, and accommodation prices• Visitors would spend most of their time riding the

rides• Cheaper to eat/stay in Paris than within the park

French Economy - The value of the French Franc increased– Cheaper for non-French visitors to travel to

Orlando

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Euro Disney’s Problems Cont’d.

Cultural Imperialism - Disney failed to recognize the existence of cultural differences in Europe– Made financial projections based on

American vacationing habits– Served American foods rather than local

foods– Refused to sell cigarettes/alcohol– Required employees to act in ways that

conflicted with their social customs

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SWOT Analysis

David O’Quinn

04/08/23

Strengths & Weaknesses

Strengths– Strong reputation

and brand name– Ability to realize

mistakes and to change

– Financially sound – Phillippe

Bourguignon

Weaknesses– Cultural

imperialism

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Opportunities & Threats

Opportunities– Learn more about

local culture & customs

– Integrate local culture into theme park

– Customize employee standards to the reflect local culture

Threats– High prices– Increasing value of

the Franc– Employee

dissatisfaction

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Solving Euro Disney’s Problems

Frenchman Philippe Bourguignon becomes President and Chairman– Customizes the theme park to match

the local culture

04/08/23

Euro Disney Update

Raymond Walker

04/08/23

Seven Additional screens added to Gaumont cinema.

Highlight new seasonal events and focus on affordability of a visit.

Strengthen the emphasis on the sale of transport inclusive packages

Outlook

04/08/23

New Entertainment programs and special festivals.

Opening of the Newport Bay Club.Commercial real estate development

of land around Euro-Disney.A new suburban rail station.

What’s New At Euro Disney

04/08/23

1997 1996 1995 1994 1993

Sales (in millions) $838 $772 $735 $709 $954

Net Income (loss) 38 40 40 (292) (869) (in millions)

Avg # of employees 10,229 10,307 9,356 10,941 12,177

Five Year Financial Review

04/08/23

Euro Disney Financial Update

04/08/23

Financial Update Continued

04/08/23Thank You For Your Attention