How could euro-Disney overcame its crisis?
In last class, we talked about the failure of Euro-Disney by case-study. Euro-disney adjusted their success model excessively to Europe, but because it didn’t work, they failed. Their financial position is still not good; even Saudi-Arabic prince fancied himself to pay their debt. However, it is still being operated. This year they would open 15th anniversary festival. What have made Euro-disney survived? We can know it by looking their marketing-innovations.
First, they discounted their admin fee over 20 percent, and also did hotel fee as one-third. In the beginning, their admin-fee-policy was simply same to one of US, but the reason of recession of Europe, that was too expensive to Europeans. In that meaning, their discounting was not just bargain-sale, but it was one of localization.
They performed the localization policy indeed. They opened marketing institute all over Europe. The name of themselves was changed first- from euro-disney to Disney land paris. I think it was their attempt to remove their view to Europe market as just the one whole-market without any characteristic, and then renew it to maximize the figure of paris – it seems to be attempt to both localization and distinguish.
They also renewed the relationship between employees. The executer had breakfast with employees at 2 times per week. The excessive restriction to them made the public opinion opposite to euro-disney, and they recognized it.
As a result, euro-disney, no, the Disney land paris has shown the clear improvement of output. The number of visiter rose above 10 million again, and the hotel-guesting rate also rose, and the cost for each visitor was reduced. Even though their deep-seated financial problem still remains, but their success is meaningful because of the fact that they overcame their failure and changed to sustainable company.
My opinion
In last class, we talked about the failure of Euro-Disney by case-study. Euro-disney adjusted their success model excessively to Europe, but because it didn’t work, they failed. Their financial position is still not good; even Saudi-Arabic prince fancied himself to pay their debt. However, it is still being operated. This year they would open 15th anniversary festival. What have made Euro-disney survived? We can know it by looking their marketing-innovations.
First, they discounted their admin fee over 20 percent, and also did hotel fee as one-third. In the beginning, their admin-fee-policy was simply same to one of US, but the reason of recession of Europe, that was too expensive to Europeans. In that meaning, their discounting was not just bargain-sale, but it was one of localization.
They performed the localization policy indeed. They opened marketing institute all over Europe. The name of themselves was changed first- from euro-disney to Disney land paris. I think it was their attempt to remove their view to Europe market as just the one whole-market without any characteristic, and then renew it to maximize the figure of paris – it seems to be attempt to both localization and distinguish.
They also renewed the relationship between employees. The executer had breakfast with employees at 2 times per week. The excessive restriction to them made the public opinion opposite to euro-disney, and they recognized it.
As a result, euro-disney, no, the Disney land paris has shown the clear improvement of output. The number of visiter rose above 10 million again, and the hotel-guesting rate also rose, and the cost for each visitor was reduced. Even though their deep-seated financial problem still remains, but their success is meaningful because of the fact that they overcame their failure and changed to sustainable company.
My opinion
Disneyland succeeded in japan because their cultural brand was exotic enough and it met the need of market. Disney tended to adjust it to Europe as it is, but paris already had its original brand and it broke to disney’s brand. In contrast, they were squeezed by the brand power of paris and fail to perform their attempt. This failed strategy prevented Disney from success, and they are still not able to succeed.
However, they need to solve their problems in order ‘not to bankrupt’. Not strategic problem but their managing problem. They solved it successfully; now they can survive on the market.
The failure and its recovery have taught me about S and W in SWOT. Maximizing S determines their gross and minimizing W reduces their risk to failure. When I got into the executer of a company, I need to determine which side I focus on either strategy or operating, for growth or safe.
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