EuroDisney's Success and External Demands: A Transnational Analysis

This case study analyzes the EuroDisney SCA park, comparing its strategies and performance with Disneyland. The paper identifies the success factors, including effective multinational and international strategies, and also examines external demands such as political-legal and economic factors that impacted the park's early performance. A key element of the analysis is the proposal of a new location for Disneyland in Karnataka, India, supported by justifications based on transnational management principles, highlighting India's favorable cost of capital, labor force, and business-friendly laws. The paper emphasizes the importance of adapting to both internal and external forces to ensure the success of any new business venture.

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Transnational Management
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Introduction
This paper explores the transnational management case study which concerns the
EuroDisney SCA park which was designed to attract more European visitors. The EuroDisney
Park is compared and contrasted from the Disneyland which did not have good customer
attraction. From the case study, EuroDisney had significant strategies which contributed to is
successes. On the other hand, there were external demands which caused poor performance of
the same park, especially during the first years (Xu, 2017 pp.10). Disneyland began working
towards a new location to raise its current situation and attract many visitors like its competitor.
Therefore, as an international business strategist, I have proposed the location which would be
viable for the park’s success and justifications based on the transnational management context.
Success Factors and External Demands
To analyze the critical success factors for the EuroDisney, it is clear that the park
managed the multinational strategies effectively, It implies that EuroDisney established
resourceful and strong subsidiaries nationally, which meets the basic domestic market needs
hence attracts many visitors. In simple words, the subsidiaries create opportunities of the park to
manage the business effectively (Narula, 2014 pp.11). EuroDisney develops and adapts products
and strategies which attracts and maintains the visitors. For instance, the prices were low, and the
visitors would enjoy the attractions of the park such as the milkshakes and hamburgers compared
to the Disney. The park had room to expand the business, and six new hotels were opened in
Europe (Karadjova-Stoev and Mujtaba, 2016 pp.79). The second success factor is that
EuroDisney applies the international strategies effectively. It means that the organization exploits
the technological advances to create new products as well as the processes. The company

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responded well to the market changes and tried to expand its efforts to other nations such as
Europe. The company had could adjust the costs and allow the customers spend many hours at
low prices. Significantly, EuroDisney‘s location was strategic which attracted many visitors. The
park was big, and there were many rooms to accommodate the customers in a single night. On
the other hand, there were two external demands which caused the poor performance during its
first years of operation. The first external demand was the political and the legal factors. It is
clear that the decision to expand the park near Paris attracted negative implications from the
public especially the politicians in French (Ariëns, 2017, pp. 32). The French visitors did not
show up as they were expected since they viewed the park as a symbol of the United States
culture (Delaplace, Pagliara and Pietra, 2016 pp.3). The politicians were ignorant and hence
caused the French people not to turn up in large numbers. The other external demand is that
EuroDisney had a challenge coping up with the economic changes. The company operated in
consideration of the customers; hence the price levels were likely to impact the revenues. The
park contributed to the economic conditions, especially on the European economies. The
fluctuations in the economy in the United States minimized the spending and the purchase of the
advertising prices. The organization was expected to cope with the fluctuations in the exchanges
rates to maintain the international demands such as the quality of its attractions, the costs, and
labor. In addition, EuroDisney would cope with the competition demands by adopting new
advances in technology and innovation of creating new products.
New location for Disney
A new location that would propel Disneyland to success is Karnataka in India. The
government of Karnataka plays the crucial role of ensuring that Karnataka is one of the must-
visit destinations in India. Recently, the government has formulated several policies that aim at

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developing the infrastructure of the region, development of skills required in the tourism
industry, Last mile connectivity and Mega Circuit Development (Kocsis, 2014, pp. 71). Also, the
Karnataka government has formulated some policies that are purposed to provide fiscal
incentives such as offering subsidies and so on. The campaign “Incredible India” articulates
some of the best services that India has to offer regarding tourism. Disneyland, therefore, would
do well at this new location.
To achieve a global competitive advantage, Disneyland has to consider and exploit there
crucial factors which will determine the success of the business. The three factors include
national differences, scale economies, and scope economies. The national differences are evident
in India. First, India differs with other nations regarding cost of capital and wages. India has for
long been considered as a lucrative location for starting businesses and the high foreign
investment confirms the argument. The future of the Indian economy is great, and for this reason,
Disneyland should consider the new location. The labor force in India currently stands at
approximately 530 million, and this means that the wages are favorable especially for the new
businesses. The cost of capital in India is also friendly due to the low cost of internet,
transportation, labor and so on. In fact, the costs are much lower compared to other nations such
as the United States and the United Kingdom.
It is also important for Disneyland to put into consideration the economies of scale by
expanding and exploiting the available scale economies in every activity. Also, balancing scale
with operational and strategic flexibility is important for the business. After some time,
Disneyland will be in a position to benefit from the experience and enjoy the reduced costs of
operating in India and also come up with innovations which will enable the business to enjoy a
competitive advantage (Skyrius, Katin, Kazimianec, Nemitko, Rumšas, and Žilinskas, R.,

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2016, pp. 171). India boasts of a good startup ecosystem including e-commerce, financial
services, and technology. The Indian market is friendly and always open to new ideas. Therefore,
Disneyland would enjoy easier operations in India.
The laws in India are business friendly. This is one of the reasons why major businesses
from developed nations are considering venturing in India where they will not have to be
oppressed by stringent policies (Abdin, Fajardo, and Prudencio, 2016, pp. 31). Recently, some
bills have been passed in the Indian parliament, and most of them would favor Disneyland. Some
of the bills include the Direct Taxes Code Bill and the Goods and Services Tax Bill. The main
purpose of the bills is to introduce a sense of uniformity and transparency in the Indian business
sector (Aliouche, and Schlentrich, 2011, pp. 350). The friendly business laws, and especially the
Land Acquisition Bill, promotes industrial development and social justice. The promotion of
social justice ensures that the tourists who come to Disneyland will encourage extended stays
and eventually the company will enjoy improved profits.
Conclusion
In conclusion, the multinational and transnational strategies of a business determine its
success. The EuroDisney is obliged to manage the multinational and the transnational strategies
to attract more customers and maintain them. External demands which include the political-legal
factors, economic, and competition should be considered in every business as seen in the analysis
of EuroDisney (Dalby, Lueg, Nielsen, Pedersen and Tomoni, 2014 pp.464). Responding
positively to competition helps the business to manage the interactions of the goals in different
situations. Therefore, India is the best location suggested for the Disneyland parkas outlined in
this paper. This paper provides relevant justifications concerning the suggested location based on

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the transnational management context. For this treason, Disney needs to adapt to the external and
internal forces effectively, to manage the new business venture.

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