Disneyland Paris Failure Analysis

This assignment analyzes the reasons behind Disneyland Paris's initial struggles. It examines cultural misunderstandings, ineffective marketing strategies, and overspending as key factors contributing to the park's financial difficulties. The report emphasizes the importance of operational management strategies, staff training, and careful planning in avoiding similar pitfalls.

DISNEY CASE STUDY

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
1) Mistake of Disneyland Paris....................................................................................................3
2) Improvements..........................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
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INTRODUCTION
Disneyland Paris is the entertainment resort situated in Mar ne-La-vallee. It is world
famous theme park, records show that in the year 2006 revenues of the resort get raised to 13%.
It was due to new visitors and traveler were taking interest in this place. Sales strategies and
investment programs have give huge success to the Disneyland Paris Resort and supported the
park in attracting more visitors towards the place. Present report is completely based on the case
study of Disneyland Paris (Bohas, 2016). Assignment will discuss the mistakes of the Paris
resort in 1992 through to 2006. In addition to this, strategies will be illustrated for improving
sales and revenues of the resort.
MAIN BODY
1) Mistake of Disneyland Paris
Disneyland is earning good revenues but before some times it was failed to run its
business successfully. In the fourteen year history it is found that there have been many ups and
down in the resort in the year of 2005 the company was declared as bankrupt.
Wrong marketing strategies: As it is found that Disney decided to expand its business in
many more countries to get high success. It opened its venture in the Europe, it has used the
American management style there (Newell, 2013). It did not focus on the culture of the nation
and used predefined strategies as per its home nation. When it entered into the French then also
cited firm has used the same strategy. Disneyland Paris failed to realize that companies have to
adopt different strategy for different countries. It just photocopy its operations in different
locations. By this way it had to face many unforeseen issues and Disney was not prepared to
handle such circumstances. Wrong strategies was the main mistake of the Disneyland Paris and
due to this it failed to run its business in many nations. That has given the firm huge financial
loss and even reputation of the organization got down that time (Delaney, 2016).
Poor assumption was another mistake of Disneyland Paris. As project managers expected
to attract 11 million people in the theme park. As due to poor market research cited firm failed to
identify the main factor that is currency movement. Ignorance of this element was the major
mistake of the resort. Due to economy downturn people avoid to travel in Paris. Apart from this,
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authorities were assuming the French people will take interest in the theme park and they will
frequently visit the place (Bulatova and Ul'chickij, 2015). but this assumption was failed because
French had its resentment and they have their own love in the country.
Wrong advertisement is the another mistake of the Paris resort. As Disneyland Paris has
advertised its resort by em phasing on the size and glamour rather than rides and attractions. As
French people wanted dine with wine but Disney outlawed alcohol there (Skyrius and et.al,
2016). That is why the whole assumption was failed and it has created problems to the company
and due to lack of knowledge and research it failed to earn profit in that years.
Poor service delivery and American Icon was another mistake of the Disneyland Paris.
As it was focusing on the spreading the Euro culture in the entire world. So it was building and
designing the resort as the Euro culture. As Europeans do not take breakfast so it has made its
resort accordingly and there was no arrangement of breakfast. It was creating problem for the
visitors and their interest got down. They become negative towards the Paris resort that has given
huge financial loss to the company (Torc'h, 2015).
Ignorance to Budget is another mistake made by the Disneyland Paris due to this it has
faced huge loss between 1992 to 2006. Walt Disney company was assuming to build a high
class theme parks across the world and it has spent much amount in the construction without
assuming the return over its investments. Approx it has invested 300000 funds more than its
budget, that created problems later when it failed to earn profit over it (Chira, 2014). As it
bought 700000 square meter land for office space but due to real market inoculations cost of the
purchasing has increased to great extent and management did not give attention on this point.
Operational errors was another mistake of Disneyland Paris. It was assuming that
Monday will be light day and Friday will be heavy day and accordingly it has hired its staff
members in the resort. But actual was just opposite and due to this it failed to serve quality
services to the guests. Apart from this it has not hired skilled people in the organization and that
is why company was unable to perform better at that time (Massey, 2015). As it involved
computer stations in the resort but it was assuming that guests will not stay in the hotel for whole
day. But there were many guests that was spending whole day in the hotel. So it was unable to
meet their expectation at that time (Walt Disney Company's, Euro Disneyland Venture, 2006).
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2) Improvements
Disneyland Paris had made many mistakes between 1992 to 2006, but it was required to
make some improvement in the operational management strategies of the organization. That can
help the firm in enhancing its revenues and improving its brand image. The first improvements
should company make that it should make proper strategies of marketing. It needs yo first
concentrate on the cultural difference and according the cultural belief of particular place, it
should advertise its resort (Daniels, 2015). It can help in attract more visitors towards the brand.
In addition to this Disneyland Paris management should plan the activities first and needs
to do market research by this way currency situation, fluctuation will be foretasted and according
they have allotted budget. By this way there would not be any situation of over budget.
Controlling must be there, managers need to monitor the activities time to time so that immediate
changes can be made before facing huge loss (Harcourt, 2015).
Company starts giving training to its staff members so that they can deliver quality
service to the guests. By this, visitors will feel comfortable and will like the resort, they will give
positive feedback to others as well. It will help in increasing revenues of the organization, By
this way it will be able to minimize operational errors. Assumptions needs to be based on real
facts and figures. Hypothetical assumption always give negative results to the organization so
Disneyland Paris should focus on previous history, economy condition, preference of population
etc. By this way it would be able to get accurate results to the cited firm. If Disneyland Paris
focused at that time on such maters then it could be able to reduce its mistakes and it could be
able to earn more profit rather than bankrupt (Case Study: The Not-So-Wonderful World of
EuroDisney, 2017).
CONCLUSION
From the above report it can be concluded that ignorance of culture, poor marketing
strategies and over budget were the main mistakes of the Disneyland Paris. It was just due to
poor assumption so these issues can be resolved with the help of operational management
strategies. Training to staff and planning, controlling can help in improving its situation and in
gaining optimistic results to the company.
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REFERENCES
Books and Journals
Bohas, A., 2016. A Vulnerable Civilisation of Leisure. In The Political Economy of Disney (pp.
101-140). Palgrave Macmillan UK.
Bulatova, K. and Ul'chickij, O. A., 2015. THEORY AND HISTORY OF ARCHITECTURE,
RESTORATION AND RECONSTRUCTION OF HISTORICAL AND
ARCHITECTURAL HERITAGE. Scientific Herald of the Voronezh State University of
Architecture & Civil Engineering. 25(1).
Chira, R. G., 2014. About SF and Fantasy through Artificial Intelligence.Caietele Echinox. (26),
pp.345-359.
Daniels, G., 2015. XXI Olympiad: Montreal 1976, Lake Placid 1980 (Vol. 19). Warwick Press
Inc..
Delaney, L. J., 2016. Cross-Cultural Learning. In Exporting (pp. 451-461). Apress.
Harcourt, B. E., 2015. Exposed: desire and disobedience in the digital age. Harvard University
Press.
Massey, H., 2015. The Great British Recording Studios. Hal Leonard Corporation.
Newell, L. A., 2013. Mickey Goes to France: A Case Study of the Euro Disneyland Negotiations.
Skyrius, R. and et.al., 2016. Factors Driving Business Intelligence Culture. Issues in Informing
Science and Information Technology. 13.
Torc'h, L., 2015. Revenue Management and it impacts on its actors in the hospitality industry.
Online
Case Study: The Not-So-Wonderful World of EuroDisney, 2017. [Online] Available through: <
https://www.mbaknol.com/management-case-studies/case-study-the-not-so-wonderful-
world-of-eurodisney/>. [Accessed on 17th March 2017].
Walt Disney Company's, Euro Disneyland Venture, 2006. [Online] Available through:
<http://www.hiddenmickeys.org/Paris/English/LynEuroDisney.html>. [Accessed on 17th
March 2017].
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