When the project (cultural Chernobyl) opened, there were some major assumptions of the model that unfortunately were revealed to be inaccurate, not only in terms of attendance of the park, but also mainly on the real estate side of the project. There were overoptimistic projections at that time, and it was a time in the early 1990s when the real estate market, especially in France and Europe, was booming and there were very optimistic projections about the speed, the size and the kind of price Disney would get form the land development. The downturn of Paris real estate market affected the sales of hotels. The attendance was below the expected rates (See Appendix I).

The second major issue was the whole tourist destination including the park was over invested form the beginning. Costs skyrocketed and Disney managers could not price the entrance to the park at the right level to pay for those costs and at the right level to be affordable by the Europeans during the recession (See Appendix II).

Disney had to define their branding decisions based on a thorough understanding of the idiosyncrasies of the customers they were targeting, as well as the general p

How could Disney have avoided some of the problems with the new theme park?

Disney has a growth strategy. The extensive asset base in Paris, which is the infrastructure, and the management team with the know how of how to operate leisure industry in Europe will be profitable. Disney is leveraging its existing assets by building the new Walt Disney Studios. Disney’s growth strategy is based on building more and more assets and extending the length of stay of European visitors by expanding leisure offer. Walt Disney Studios is a clear demonstration that Euro Disney is a success. This incremental investment will move up attendance from $12.5M to $17M. Disney is training cast members from all over Europe. Disney University provides structure training program that employees need to know about the culture, the fundamentals of service, shows and safety regulations. This approach is good for being a customer oriented service provider. Disney spent a lot of money in maintenance of the park to make the product perfect everyday. Disney also invests a lot money in terms of innovations: new online reservation system and management systems. The management is trying to convince investors about why there is more value in Euro Disney than what the market is aware of. Disney keeps track of changing trends and technology so that it will always be profitable. Disney has long-term sustainability because Disney has a licensee of a brand. The size of the project, the brand name and the leadership are the key factors of future profitability.

Some topics in this essay:
Euro Disney, Euro Disneyland, Americanizing French, Europe Disney, II Disney, France Europe, Disney University, Walt Disney, , Italians European, euro disney, walt disney, european visitors, theme park, real estate, euro disneyland, customer oriented service, local cultural, oriented service, appendix ii, customer oriented, real estate market, walt disney studios,