EuroDisney: First 100 Days

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Many companies throughout the United States and beyond are resorting to developing their business abroad. The Walt Disney Company was one of those many American organizations to expand on foreign soil. Its first foreign venture proved to be so successful that the decision was made to further expand abroad. This next foreign expansion experience, named Euro Disneyland did not prove to be the successful venture that had been anticipated by its creators. In order to understand the issues involved in the Walt Disney Company's international expansion in Europe it is pertinent to review the background of Euro Disneyland. Walt Disney Company opened in Tokyo, Japan, their first theme park outside the United States. This theme park, Tokyo Disneyland became an instant hit. The Walt Disney Company executives believed since Tokyo Disneyland was located in a cold-weather climate and was so successful, they would be able to operate in similar weather conditions in Paris.

With more than 350 million Western Europeans, 17 million can reach the Euro Disneyland resort within two hours by car. With the scheduled opening (which took place May 1994) of direct rail links to Great Britain via the English Channel there were countless additional potential guests. Thus, due to its transportation availability, Paris offers Euro Disneyland a wealth of potential guests and employees. On April 12, 1992, despite a few protests, the Walt Disney Company's fourth theme park, Euro Disneyland, opened its doors to the public with essentially the same attractions as in the other Disney theme parks in California, Florida, and Japan.

According to Porter?s five forces model the stronger of each segment, the harder it is for an established company to raise prices and earn larger profits; and vice versa. Rivalry is low to moderate which shows that few competitors maintain the market...