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Case Study Example

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The theme park idea was initiated by Walt Disney in order to give the people a unique experience of entertainment by combining adventure with fantasy; and at the same time enriching the spectators with learning and history. This theme park was created not just in California and…
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Download file to see previous pages In the theme the differentiation exists in terms of rides and attractions being offered, the façade and architecture; and the employees and food being served. Thus, this uniqueness and control of environment makes Disney an enthralling experience. (Project 2006)
Hence, when Disney decided to expand its business, it came up with two options for opening the theme park: Barcelona and Paris. However, due to the benefits in form of subsidies and tax incentives being offered by the French government; Paris was the final choice. Another major reason for opting for Paris was the market potential that the city offered. Within a 160 km radius of the proposed site for Euro Disney a population of sixteen million lived. Not just this, the presence of an efficient transportation network made Paris an ideal location.
Even if Euro Disney would have had a lower penetration in the market as compared to its sister parks in California and Florida; the market size was huge giving a higher utilization of the capacity. Another attractive feature for opening a theme park in Europe was that the Europeans had a different pattern of spending their vacations. Not only is the time period of the holidays which Europeans enjoy longer than the American citizens. But the Europeans also take frequent smaller breaks throughout the year. Disney also kept in few the family size and the disposable incomes which the target audience was composing of. And thus, kept keeping these trends in mind Disney started its new venture.
Another smart thing which Disney did when starting this venture was that it financed this project in a way that the risk was minimized. Disney floated a new company in the market called the Euro Disney SCA. Through this company the financial arrangements were made in a manner that the Walt Disney group had a 49% holding where as the rest of the share was generated by raising capital from the public. Further more, Disney was ...Download file to see next pagesRead More
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