Tdmt 1104 - Eurodisney

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TDMT 1104 |

Case 1 |

(got 78%) |

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Strengths | Weaknesses |

* Strong brand name reputation and recognition * Financial stability and well-being * Experienced great success with previous international endeavour * Revised advertising campaign and marketing strategy proved successful * Saudi Royal families investment and decision to add a convention center * Change of name to Disneyland Paris | * Vacation customs of Europeans were not considered * Assumed that transplanting a Disney park (without adapting) in Europe would be as successful as it was in Japan * Arrogance of Chairman and President of Disney * Marketing strategy not relevant to Europe * Failure to see signs of approaching European recession * Lack of knowledge of European culture * Original pricing strategy had to be revised * Decision to ban alcohol on park premises proved insensible to European culture * Strict rules for workers which were not meant for European culture |

Opportunities | Threats |

* Location – 20 miles from Paris, 310 million people are situated within 2 hours of air travel, 17 million within 2 hours by car * Paris is known to be Europe’s most popular city destination among tourists of all nationalities * Impressive data on regional demographics – better than any other Disney site * Support of local investors * Generous incentives offered by the French government * Lack of “grand” theme park in region * Available land to build massive park on | * Increasing value of the Franc * Trans-Atlantic airfare wars raised vacation costs * “Poor” weather for a large portion of the year * Gulf war halted vacation travel in 1991 * High interest rates * Barcelona Summer Olympics and World’s Fair in Seville were popular attractions in 1992 * American Imperialism |

1) There were many factors in the case which were foreseeable. The approaching European recession...