The Not-So-Wonderful World of Euro Disney
A Case Study By:
Feb. 11, 2014
This case study is about the early process of planning and construction of management in a new Disney theme park in Paris, France, known as Euro Disney. Details are described about its background and the project expectation of success. Problems were encountered requiring extensive adaptation of both strategy and tactics by their management. Eventually Walt Disney company had to step in to organized financial statements to bring back profitability. The reasons for the poor presentation of Euro Disney are described in this case, along with other implication for the future of the ambitions of Euro Disney.
Euro Disney SCA was formally launched its theme park to the French and Europeans in April 1992 located in Marne-la-Vallée, some 32 kilometers (20 miles east of Paris). “It was the biggest and most lavishing theme park; Walt Disney had built and is bigger than any of its Disney parks worldwide” (Maanen, 1992). The location was chosen over 200 potential cities in Europe and Spain was the strongest contender for the park location but its acreage of land around Barcelona. Paris was chosen not only because of the generous incentives and impressive regional demographics presented by the French government. Disney management had employed 12,000 people and predicted the new theme park would attract 11 million visitors and generate over $100 million in operating earnings during the first year of operation. Euro Disney consisted of the park, six hotels, and an entertainment and retail center. “By summer, Euro Disney operations than lost almost $1 billion” (Spencer, 1995). Euro Disney failed to attract the expected number of Europeans visitors’ especially French visitors because the theme park was seen as American imperialism.
Early hopes for a similar success soured soon...