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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
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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
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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