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Transcript of Bus 294
-Founded on October 16,1923 by Walt and Roy Disney
-Quickly established itself as a leader in the American animation industry the Walt Disney company -In 1954, Walt Disney unveiled “Disneyland” at Anaheim, California. It was an idea conceived out of a desire for a place where parents and children could have fun at the same time. It was open to the general public on July 18,1955.
-Disneyland grew and attracted visitors from all over the world. The Creation of Disneyland ~The Creation of more Walt Disney Theme Parks~ 1971: The Walt Disney World Resort opened in Lake Buena Vista, Florida
1983: Tokyo Disney Resort opened in Urayasu,Chiba, Japan
1992: Creation of Disneyland Paris or the Euro Disney Resort
2005: Hong Kong Disneyland Resort opened in Penny’s Bay, Lantau Island, Hong Kong, China
2016: Shanghai Disney Resort expected to open Shirley Liang
Jia Wei Cao
Edward Garcia Environment Beforehand The Good: -200 locations were examined for the Euro Disney. Barcelona was runner up, warmer, but worse transportation, and no space! Paris was a very central location in Europe, and was a clincher.
-Planned as a 5000-acre plot of land 20 miles from Paris. Distance From Paris -Paris expanded the subway line to reach the gates
of the Disney Park, a 35 min ride for about $2.50 Hotel Plans 6 hotels with 5200 rooms.
Planned on tripling the lodging options in the next few years.
Made early plans for shopping malls, apartments, golf courses, and vacation homes.
Predictions, which were considered very safe estimates, were for 11 million Europeans to visit the park in the first year. France was eager to win the project to help lower its jobless rate. Projected 30,000jobs and 1 billion dollars a year from foreign visitors.
The French government sold Disney land at prices similar to prices almost 20 years earlier.
France also forked out loans of 750 million at below market rates.
This bothered other people of France who really cherished the land and the home grown food on land in France. The Bad -Between 1987 and 1991,
three 150 million dollar amusement
parks had opened
in France and ended up falling
flat, with 2 going bankrupt. 22 billion French Francs vs. 700 million in funds to open the park were considered enough to overcome failure like the other parks. They thought better costumes and attention to details in shops and things as small as trash baskets would be enough.
Too successful? Parc Astérix went through a major renovation and expansion in anticipation of competition from Euro Disney. Hostility among the French people to the whole “Disney-idea” had surfaced early in the planning of the new project. Paris theater director Ariane Mnouchkine became famous for her description of Euro Disney as” a cultural Chernobyl.” Finally, many farmers took to the streets to protest against the preferential sales price of local land. Early advertising by Euro Disney seemed to aggravate local French sentiment by emphasizing glitz and size, rather than the variety of rides and attractions. (http://www.mbaknol.com/management-case-studies/case-study-the-not-so-wonderful-world-of-eurodisney/) -Mickey Mouse was created in 1928 and starred in several Disney produced films.
-Disney began producing films with various other characters.
-In 1934, production began on Disney’s first feature –length animated film, Snow White and the Seven Dwarfs
-In December 1950, Walt Disney Productions and The Coca Cola Company teamed up for Disney’s first venture into television with An Hour In Wonderland Disneyland Paris Originally known as Euro Disney Resort, and later Euro Disney, is located in the suburbs of Paris, France.
Now known as “Disneyland Paris,” it brought the magic of Disney to Europe! Comparisons Between Disneys Most popular and famous The biggest guest capacity among five disneys First Disneyland: Disneyland in Los Angeles (July 15th, 1955) Comparisons between Disneys Four theme parks and two water parks The biggest Disney among five Disneys Disney World: Walt Disney World in Orlando (October 1st, 1971) Host about 17.3 millions people every year Same attractions Four classic Disney lands and two mini lands Tokyo Disneyland: the First Disneyland in Asia (April 15th, 1983) Two theme parks Guest capacity ranks 4th Smaller than the Disney World Euro Disney: Disneyland in Paris (April 12th, 1992) Six theme areas in the park Chinese culture, customs and tradition The smallest Disneyland Hongkong Disneyland: The first Disneyland in China (September 12th, 2005) three times size of Hongkong Disneyland Shanghai Disneyland is scheduled to open in December 2015 Shanghai Disneyland: the second Disneyland in China Financing Government Help The large, principally farmland Marne-de-Vallee site was sold at the cut-rate price of $7,500 per acre
the French guarantee of some FFr 1.5 billion for new road construction, including access to the nearby autoroute
the extension of the RER train system to the theme park, as well as the building of a rail link and station for the TGV train line
an agreement to drop the value-added tax rate on ticket sales from 18.6 percent to just 7 percent
the French agreement to provide water, sewage, gas, electricity, and other services. Loans a loan package covering much of the projected Phase I cost raised among seven French banks.
Euro Disneyland, in order to cover construction cost overruns was forced to arrange additional capitalization of $144 million and added loans of $522 million, raised from a collection of what eventually became more than 60 banks. Public Offering The French government required that at least 51 percent of the company would be owned by Europeans
When the Euro Disney had its initial public offering, Disney limited itself to only 49% of the stakes
Raised $1,408,000,000 Results and Problems Europe was going through a very serious economic recession that made Europeans very financially conscious. In the first 20 months of operation, Euro Disney was ultimately a failure, falling way short of its initial expectations, resulting in many questions being asked as to whether Euro Disney’s existence should be allowed to continue or not. Low attendance numbers at Euro Disney.
Frugality of few park visitors.
Made it difficult for Disney to attract investors into buying hotels built on loans from European banks.
The hotels failed to bring in any profit, resulting in heavy interest payments. As a result…. Euro Disney failed to properly research the spending patterns of its potential customers. They assumed that the European customers would not differ from their American counterpart much.
Euro Disney was mainly built with the yearly demographics of European visitors to U.S. Disney parks in mind. Disney assumed many European visitors visited the U.S. solely to visit Disney parks.
Attendance predictions were made using statistics from the U.S. and Japan parks.
Treated Europe as an entire mass as opposed to individual countries.
Bought out all surrounding lands, losing any local support and ended up isolating Euro Disney. Overconfidence Disney isolated Euro Disney with the hopes to market the park as a complete holiday.
Paris was only 35 minutes away via car, and the hotel prices at Euro Disney matched nearly the best hotels in Paris.
Proximity to Paris made Disney a direct competitor with the city’s tourism industry. Location Disney had not taken into account aspects of French culture, such as daily breakfasts and wine at meals.
Disney worried too much about maintaining the “sophisticated” European tastes, while Europeans who visited Disney parks were expecting to indulge in American culture.
Lack of bathrooms and rest areas for tour guides and bus drivers. Neglect of Details Europe was treated as one country
Advertising campaigns were typically American.
Advertisements were aimed at children, rather than adults who would bring their children there.
Pricing on food and merchandise in the parks reflected Disney’s expectation for demand.
Did not use media to promote park, relied on investment numbers to sell the park. Poor Marketing Disney’s reputation for success lead to almost an unanimous belief, among the management board, that the European market would just as friendly.
Protestors against Euro Disney were dismissed by Disney, despite many mainstream media sources calling Disney “a cultural abomination”.
As a result, Disney was seen by Europeans as an obnoxious and dismissive company, with little compassion for cultural differences. Public Image
Most of the employee trainers were American, creating language barriers.
French worker mindset was different from American workers.
Worker schedules were scattered and unorganized. Worker Morale Robert Fitzpatrick, an American who was said to know Europe well was appointed as the first CEO of Euro Disney.
Fitzpatrick managed the park during initial construction and the first year that the park opened.
Fitzpatrick was replaced in 1993 by Phillipe Bourguignon. CEOs Took over as CEO during the worst of the recession.
Emphasized worker’s opinions and took them into account.
Officially changed the name of the park to Disneyland Paris.
Lowered season pass and hotel prices.
Removed the no-alcohol policy. Under Bourguignon Euro Disney was Disney’s first serious failure initially.
The attempt to sell an American product while modifying it to suit the tastes of a wide variety of culture was too much.
Overconfidence, neglect, poor marketing yielded poor attendance and poor public image for the Disney company. Summary - Disney’s first miss? Recovery New Training program for employees Reduce prices, Disney merchandise, and food items Attempts to recover High speed rail
50th Anniversary of Normandy invasion
Ending of a recession in Europe
Opening a Disney Store in Champs Elysees A favorable Prognosis Mistaken Assumptions
Making it affordable
Keep visitors to stay longer Telling and Selling Fairy Tales Prince Al-Walid bin Talal bin Abdulaziz Al-Saud “Royal” Help EuroDisney----- DisneyLand Paris Philippe Bourguignon Management and Name Changes 20th Anniversary in 2012 Disneyland Paris Today