Euro Disney

Todd Pula, Laura Ruszczyk,

Brenda Trodler, David O’Quinn,
Raymond Walker
08/22/09
 Company Overview

Todd Pula

08/22/09
 Disney’s Claim to Fame
Innovator in the animated motion
picture industry
Leader in theme park entertainment
Vertically integrated company
Global competitor
– Operations in California, Orlando,
Tokyo, and Paris

08/22/09
 Disney’s Cycle of Success

Produce Market New

New Movie 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

08/22/09
 Strategic Problem
&
Strategic Direction Analysis

Laura Ruszczyk &

Brenda Trodler
08/22/09
 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
Demographic
Economic
Political/legal
Sociocultural
Technology
Global

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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

08/22/09
 Strengths & Weaknesses
Strengths Weaknesses
– Strong reputation – Cultural
and brand name imperialism
– Ability to realize
mistakes and to
change
– Financially sound
– Phillippe
Bourguignon

08/22/09
 Opportunities & Threats
Opportunities Threats
– Learn more about – High prices
local culture & – Increasing value of
customs the Franc
– Integrate local – Employee
culture into theme dissatisfaction
park
– Customize
employee standards
to the reflect local
culture

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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

08/22/09
 Euro Disney Update

Raymond Walker

08/22/09
 Outlook
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

08/22/09
 What’s New At Euro Disney
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.

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 Five Year Financial Review
 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

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 Euro Disney Financial Update

08/22/09
 Financial Update Continued

08/22/09
 Thank You For Your Attention
08/22/09