Disney

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

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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 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 08/22/09

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 08/22/09

SWOT Analysis David O’Quinn

08/22/09

Strengths & Weaknesses Strengths – Strong reputation and brand name – Ability to realize mistakes and to change – Financially sound – Phillippe Bourguignon

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Weaknesses – Cultural imperialism

Opportunities & Threats Opportunities – Learn more about local culture & customs – Integrate local culture into theme park – Customize employee standards to the reflect local culture 08/22/09

Threats – High prices – Increasing value of the Franc – Employee dissatisfaction

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

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

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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 EuroDisney. 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) (in millions)

38

40

40

(292)

(869)

 Avg # of employees

08/22/09

10,229 10,307 9,356 10,941 12,177

Euro Disney Financial Update

08/22/09

Financial Update Continued

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Thank You For Your Attention 08/22/09