Case 1 : EuroDisney
The Question
The Walt Disney Co. is ruler of the kingdom. Their goal is “ to bring happiness to the millions.” Because of this goal, Walt Disney Co. built Disneyland in Anaheim, California. Disneyworld in Orlando, Florida. And Tokyo Disneyland in Japan. The three lavish theme park not only bring happiness to the millions but also let dreams come true. At the same time, Disneyland and Disneyworld become “ money machine” in Walt Disney Co. And then Disney decide go forward European which name is EuroDisney. EuroDisney was the biggest and most lavish them park in the world. However it is not the successful one in the Disney. EuroDisney put dark on Disney logo. After losing so much money until today, what is the EuroDisney’s future? Should Disney continue the dream or go back to the real road?
The Facts
Before to answer the question, we should try to find why EuroDisney fail first? According to the article we can find some facts to effect the Eurodisney’s success.
1. Hotel rooms were so high priced – Because of the high prices the overnight customers become low.
2. Too short vacation trip in EuroDisney – It’s always 2 or 3 days but people want long vacation like a month in European.
3. Don not analyze the situation and timing – European recession and Gulf war.
4. Disney too conviction it’s reputation – Disney always sure it would work because they were Disney
5. Do not understand the European culture deeply especially to French – Because the French see EuroDisney as American imperialism. And different cartoon and style which like failed to :go wacky’ over Mickey and ban an alcohol in the park.
Also like the breakfast cases.
6. Make wrong decision in EuroDisney’s located – accept too many French government’s incentives. Disney give up Spain which year-long temperate and sunny however chose on a foggy February day in Paris the EuroDisney may close.
7. Ironically, Eurodisney must compare with Disneyworld in Orlando.
8. Borrow too much money from banks – the interest rate and currencies would remain stable led Disney to rely heavily on debt financing
.
The alternative Courses of Action
Eurodisney’s SWTO
It’s strengths is com from Walt Disney’s Co which is ruler of the kingdom and the empire’s media and movie system are all powerful in the world. EuroDisney’s weaknesses is that full of America style, weather, and the higher prices in the park.
It’s opportunities is global famous ,empire support and the only one in European however it treat is themselves.
1. Sell the Eurodisney to others investors.
2. Keep the situation and mask the fail.
3. Continue invest EuroDisney and fix the facts.
4. Find other stock holds to decrease the risk and lose.
5. Close the EuroDisney and end the lost.
Decision and Reasoning
In my opinion I will suggest to use No.3 course which is continue to invest Eurodisney and fix the effect facts. After anglicizing EuroDisney’s SWOT, we can find EuroDisney still have it’s chances in European if Disney really fix the bad facts. The other reasons are with operations ranging from theme parks and retail stores to movies and broadcasting, The Walt Disney Co. is looking to combine imaginative material with masterful marketing, as it delivers popular culture around the world. Because of this Eurodisney should still establish the Euro dream. It would be a new time in next century. The “imagineering” like
Walt Disney’s Theme park will be more and more popular.
Implementation of Decision
In fact, Disney owns about 39% of Euro Disney S.C.A., a French company that operates the Disneyland Paris theme park business. Also, starting in 1999, DIS is expected to pay an annual dividend to common stockholders, rather than the past practice of quarterly dividends. EuroDisney SCA, Europe's largest theme-park operator, plans to raise 230 million euros ($239 million) by selling shares to existing holders to help pay for a second venue that will be based on movie and television. At the same time the first park, Disneyland Paris, is France's biggest paid tourist attraction, beating the Eiffel Tower, with 12.5 million visitors last year.
Update information:
Oriental Land Co. plans to open a second theme park, called Tokyo DisneySea, in 2001. Disney also plan to build a new Desniworld in Hong Kong. And the EuroDisney will build Second Theme Park. Walt Disney still bring happiness to next century.
文章定位：
