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Euro Disneyland Case Study Analysis Template

SWOT Analysis of Disneyland Paris with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Disneyland Paris

Parent Company

Euro Disney CSA

Category

Amusement Park/Theme Park

Sector

Tourism and Hospitality

Tagline/ Slogan

Where Dreams Come True

USP

It is the only Disneyland Resort in Europe

STP

Segment

Children, families and tourists

Target Group

Young children, families living in France and tourists from abroad

Positioning

A park that provides a magical experience to the entire family

SWOT Analysis

Strengths

1. The parent company is the world pioneer in amusement parks and theme parks and has an unparalleled brand presence in the entire world.
2. It is the most visited theme park in France as well as Europe.
3. The Disney characters that feature in the park have a tremendous merchandising capacity and are a great source of income.
4. It is the second Disneyland to be opened outside USA and the first to be operated by the Walt Disney Company
5. Top-of-the-mind tourist destination in Europe with excellent brand presence due to association with Walt Disney
6. Over 15 million visitors on an average visiting per annum

Weaknesses

1.Disneyland, Paris is often questioned for being expensive
2. Incidents and accidents over the years have been problematic

Opportunities

1. The park can leverage on the strong brand presence of its parent brand and can attract more and more visitors from abroad
2. There are fewer amusement parks in France and Europe as compared to the USA; hence Disneyland, Paris has a lot of growth potential
3.The location of Disneyland, Paris is easily accessible to a large proportion of its potential customer base
4. Growing tourism and increasing spending power in the emerging economies

Threats

1.The park invites unfair comparison to the original Disneyland and appears pale in comparison
2.The tourists from outside Europe choose the American Disneyland over the French Disneyland
3.If the park does not keep on adding new attractions, it would lose its charm

Competition

Competitors

1.Parc Asterix
2. Futoroscope, France
3. Disneyland, USA

The table above concludes the Disneyland Paris SWOT analysis along with its marketing and brand parameters.

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EURO DISNEYLAND CASE ANALYSIS

2

INTRODUCTION

Euro Disney, nowadays Disneyland Paris, is a holiday and recreation resort located in Mane-la-Valle, a new town close to Paris (Euro Disney, 2009). When the International offer of shares for the Euro Disneyland was issued in October 1989 the strategies for this new enterprise of the Walt Disney group were very optimistic. The financial plans for the first year of operation estimated total revenues of FF 5,482 million and a net profit after tax of FF 204 million. For the subsequent years the development was projected to be even more impressive. Just within a short time after Euro Disney was unwrapped in April 1992, it was noticeable that reality would not encounter the plans. In November 1992, the financial reports for the year ended in 30 September 1992 were published which included the first 172 opening days of Disneyland Paris. There the management had to announce a loss of FF 188 million. The second year was even worse. Although Euro Disney nearly met plans for guest attendance, they confronted a loss of FF 5,337 million whereas total turnover was FF 5,725 million. Plans for the second year of operation (1 April 1993 to 31 March 1994) predicted a turnover of FF 6,801 million and a profit of FF 359 million. (Recklies, n.d.)

Euro Disney started to have problems early, on 1980’s problems with negotiation and construction, on the 1990’s with French figures started to voice

against the park, with phrases

like “Cultural Chernobyl”

 (Euro Disney, 2009) .Euro Disney also had problems in the beginning of its operations, since the first day, problems related to cultural issues and operational issues oc

curred massively, affecting directly Euro Disney’s performance and attendance.

Objective

The main objective of this report is to understand how Euro Disney had this initial failure. How it could had a better initial experience, and to provide recommendations to students and

business men don’t committee the same errors.

Hofstede's cultural dimensions theory

Hofstede's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It describes the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis. The theory has been widely used in several fields as a paradigm for research, particularly in cross-cultural psychology, international management, and cross-cultural communication. (Hofstede's cultural dimensions theory, n.d.)

Dimensions of national cultures

Power distance index

Individualism vs. collectivism

Uncertainty avoidance index

Masculinity vs. femininity

Long-term orientation vs. short term orientation

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