Euro Disney (adnan Amir)

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“EURO DISNEY” THE WALT DISNEY COMPANY

STRATEGIC MANAGEMENT

ADNAN AMIR MBA 4 (B) 01-122072-005 01/06/09 EURO DISNEY

1

Type

Public (NYSE)

Founded

Los Angeles, California, U.S. (October 16, 1923)

Founder(s)

Walt Disney and Roy Disney

Headquarters The Walt Disney Studios Burbank, California, U.S. Industry

Media and Entertainment

Revenue

US$ 37.843 billion (2008)

Net Income

US$ 4.427 billion (2008)

Employees

150,000 (2008)

Divisions

Walt Disney Studio Entertainment, Disney-ABC Television Group, Disney Interactive Media Group, Walt Disney Consumer Products, Walt Disney Parks and Resorts EURO DISNEY

2

Walter Elias Disney (December 5, 1901–December 15, 1966) was a multiple Academy Award-winning American film producer, director, screenwriter, voice actor, animator, entrepreneur. Disney is famous for his influence in the field of entertainment during the twentieth century. As the co-founder (with his brother Roy O. Disney) of Walt Disney Productions, Disney became one of the best-known motion picture producers in the world.

EURO DISNEY

3

DIVISIONS:Walt Disney Studio Entertainment Walt Disney Motion Pictures Group       

Walt Disney Pictures Walt Disney Animation Studios Pixar Animation Studios Disneynature Touchstone Pictures Hollywood Pictures Miramax Films

Walt Disney Theatrical Disney-ABC Television Group      

ABC ABC News ABC Family ESPN Disney Channel Disney Family Movies

EURO DISNEY

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                 

Playhouse Disney Disney's One Saturday Morning ABC Kids Disney XD Radio Disney ESPN Inc ESPN ESPN2 ESPNEWS ESPN Classic ESPNU ESPN Deportes ESPN PPV ESPN Plus ESPN on ABC ESPN 360 ESPN Mobile ESPN Radio EURO DISNEY

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Disney Interactive Media Group    

disney.com ABC.com espn.com clubpenguin.com

Walt Disney Consumer Products       

Disney Consumer Products Disney Publishing Worldwide Baby Einstein Disney Store Jim Henson's Muppets Disney Interactive Studios World of Disney Stores EURO DISNEY

6

EURO DISNEY

7

Walt Disney Parks and Resorts The company's Walt Disney Parks and Resorts division owns and operates two resorts in the United States and another three internationally. These are: 



Disneyland Resort



Walt Disney World Resort



Tokyo Disney Resort, licensed to The Oriental Land Company



Disneyland Resort Paris, through joint venture Euro Disney S.C.A.



Hong Kong Disneyland Resort, through joint venture Hong Kong International Theme Parks



Disney Cruise Line

EURO DISNEY

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Disneyland Resort:

Disneyland · Disney's California Adventure · Downtown Disney (California)

Walt Disney World Resort:

Magic Kingdom · Epcot · Disney's Hollywood Studios ·Disney's Animal Kingdom · Disney's Typhoon Lagoon ·Disney's Blizzard Beach · Disney's Wide World of Sports Complex · Downtown Disney (Florida)

Tokyo Disney Resort:

Tokyo Disneyland · Tokyo DisneySea · Ikspiari

Disneyland Resort Paris:

Disneyland Park · Walt Disney Studios Park · Disney Village

Hong Kong Disneyland Resort

Hong Kong Disneyland · Inspiration Lake Recreation Centre

Disney Cruise Line:

Disney Magic · Disney Wonder · Disney Dream · Disney Fantasy · Castaway Cay

Other

Disney Regional Entertainment (ESPN Zone) · Disney Vacation Club · Adventures by Disney · World of Disney EURO DISNEY

9

1928 Mickey Mouse debuts in Plane Crazy 1929 Three companies, Walt Disney Enterprises, Disney Film Recording Company, and Liled Realty and Investment Company, were formed. 1940 Company goes public 1949 The studio begins production on its first all-live action feature, Treasure Island. EURO DISNEY

10

1952 WED Enterprises is formed to design what would become Disneyland. 1954 October 27: Beginning of the Disneyland TV program on ABC. 1955 Disneyland opens in Anaheim, California 1966 September: Walt Disney is diagnosed with lung cancer; he dies on December 15. EURO DISNEY

11

1971 Walt Disney World Resort opens in Orlando, Florida; 1983 Disney Channel begins, while the anthology series ends. & Tokyo Disneyland opens in Japan. 1984 Touchstone Films is created to produce films aimed towards more mature audiences and releases its first film Splash. EURO DISNEY

12

1986 February 6: The company's name is changed from Walt Disney Productions to The Walt Disney Company. 1987 First Disney Store opens in Glendale, California. Disney Legends (1987) 1992 Euro Disney Resort opens outside Paris. 1993 Disney acquires independent film distributor Miramax Films. EURO DISNEY

13

2001 Disney buys Fox Family Network for $3 billion in July, Disney changes Fox Family Network to ABC Family. Disney's California Adventure Park. 2005 Hong Kong Disneyland officially opens on September 12. Disneyland celebrates its 50th anniversary on July 17. 2006 Disney acquires Pixar Animation Studios. EURO DISNEY

14

2007 Acquires Club Penguin ABC Radio Networks along with 22 non-Radio Disney and ESPN Radio affiliates are sold to Citadel Broadcasting. 2009 Disney XD and DisneyXD.com are launched, replacing Toon Disney and Jetix. Disney announces the formation of D23, an official fan community. Launches the Disney twentythree magazine. EURO DISNEY

15

EURO DISNEY

16

1928

Mickey Mouse debuts in Plane Crazy.

1934

The Wise Little Hen (which features the premiere of Donald

Duck). 1950

Cinderella Treasure Island (Disney's first all-live action film)

1953

Peter Pan

1955

Lady and the Tramp

1959

Sleeping Beauty

EURO DISNEY

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1964

Mary Poppins (the first Disney film to receive a Best

Picture Academy Award nomination) 1966

Winnie the Pooh and the Honey Tree

1967

The Jungle Book

1970

The Aristocats

1973

Robin Hood

1977

Pete's Dragon The Many Adventures of Winnie the Pooh

1986 The Great Mouse Detective EURO DISNEY

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1991

Beauty and the Beast, first and only animated film nominated

for the Academy Award for Best Picture

1992 Aladdin 1994 The Lion King 1995 Toy Story 1997 Hercules 1998 A Bug's Life 1999 Tarzan Toy Story 2 2001 Monsters, Inc.

EURO DISNEY

19

2003 Pirates of the Caribbean: The Curse of the Black Pearl 2004 National Treasure The Incredibles 2005 The Chronicles of Narnia: The Lion, the Witch and the Wardrobe 2006 Cars Pirates of the Caribbean: Dead Man's Chest High School Musical 2007 Meet the Robinsons Pirates of the Caribbean: At World's End Ratatouille Enchanted National Treasure: Book of Secrets High School Musical 2 EURO DISNEY

20

2008 The Chronicles of Narnia: Prince Caspian WALL-E High School Musical 3: Senior Year Bolt Camp Rock

2009 Hannah Montana: The Movie Race to Witch Mountain

EURO DISNEY

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EURO DISNEY

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Innovator in the animated motion picture industry Is heralded as the world’s largest entertainment company. Leader in theme park entertainment Vertically integrated company Huge investment in R&D EURO DISNEY

23

Employees are aware of their prime objectives Have freedom to think beyond limit and come up with new innovative ideas Company have adopted the phrase “Dream as a team” Disney president Frank Wells believes that “If a good idea is there. You know it, you feel it, you do it, no matter where it comes from”

EURO DISNEY

24

Produce New Idea, Movie

Market New Products & Services

Customers Continue to Buy Products & Services

EURO DISNEY

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Disneyland Resort Paris is a holiday and recreation resort in Marne-la-Vallée, a new town in the eastern suburbs of Paris, France. The complex is located 32 kilometers (20 mi) from the centre of Paris. Disneyland Resort Paris comprises two theme parks, a retail, dining and entertainment district, and seven Disney-owned hotels. With 15.3 million visitors in the fiscal year of 2008, it is one of Europe's leading tourist destinations.

EURO DISNEY

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EURO DISNEY

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Investments: 21 billion Francs. Site Size: 1/5th of the city of Paris. Projected : 12000 Employees. Forecast: 11 million visitors in first year. Hotels: Complete ownership of total of 7 hotels. Occupancy: 70% annually for hotels. Other Features: 18 hole championship Golf Course. Design: Same as other Disney parks but made adapted for Northern European Weather conditions

EURO DISNEY

28

Tourist Attractions 

Louvre (The Musée du Louvre or officially the Grand Louvre — in English, the Louvre Museum or Great Louvre, or more simply theLouvre — is a historic monument in Paris and the national museum of France)



Eiffel Tower

Theme Parks 

Euro Disney does not have any direct theme park competitors in Europe EURO DISNEY

29

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

EURO DISNEY

30

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 EURO DISNEY

31

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 EURO DISNEY

32

EURO DISNEY

33

Strengths

Weaknesses



Strong reputation and brand name



Ability to realize mistakes and to change



Financially sound



Target Customer: Children



Creative Process EURO DISNEY



Cultural imperialism

34

Opportunities 







Threats

Learn more about local culture & customs Integrate local culture into theme park Customize employee standards to reflect local culture



High prices



Increasing value of the Franc



Employee dissatisfaction



Security Threats (Terrorist)

Cheaper alternatives to soft toys EURO DISNEY

35

Mr. Frenchman Philippe Bourguignon becomes President and Chairman 

Customizes the theme park to match the local culture

EURO DISNEY

36

EURO DISNEY

37

Seven Additional screens added to Gaumont cinema. Highlight new seasonal affordability of a visit.

events

and

focus

on

Opening of the Newport Bay Club.

EURO DISNEY

38

New Entertainment programs and special festivals. Commercial real estate development of land around Euro-Disney. A new suburban rail station.

EURO DISNEY

39

Area for Improvements Better culture adaptation: 

Proper Marketing Research



“our Disneyland” instead of America’s Disneyland.



Deliver what the people want. For example, if people prefer fast food over fine dining,

Decision making should be more decentralized, away from the U.S. parent company. New development

EURO DISNEY

40

Thank You EURO DISNEY

41

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