Euro Disneys Analysis of the external and internal Essay

This essay has a total of 1421 words and 7 pages.

Euro Disneys Analysis of the external and internal environment

Euro Disney' marketer's before entering a market as in this case has been the European
market should have scanned the environment. By scanning the environment they should
analyze the mega-environment as well as the task environment for possible opportunities
and threats . Yet, a close attention could have been paid to their strength and weaknesses
inside the company. Indeed, the consideration about any trends should have been
incorporated in their environment analysis.

In this case there has been a recognition of a trend, which is the trend of people going
to theme parks during the weekends for entertainment of them as well as their children.
Also here is an existing need for entertainment of this kind. Therefore, an opportunity
exists in the European market that Euro Disney could have taken advantage of. However,
their failure to pick up signals from the macro environment and microenvironment as well
as to position their product accordingly, had negative effects on their operations. A
further analysis of their macro and micro environment highlights their malfunction.


MACRO ENVIRONMENT (P.E.S.T)
The components of the macro environment are the political-legal environment, the economic
environment, the socio-cultural environment, and the technological environment in which
Euro Disney operates.

Political-legal environment:
Euro Disney's decision to open its Theme Park near Paris has caused a negative publicity
in the sight of many French politicians. In fact, they have objected the existence of
Theme Parks in the center of their French culture since the park has been viewed as a
visible symbol of the U.S. culture. Although Euro Disney marketers probably choose this
location, in particularly France, due to the fact that is the center of Europe and could
most probably be the most convenient place for people to arrive and settle in their hotel
to be entertained. For instance, people from all over Europe could travel quickly to Paris
due to short distance and travel convenience like people from Germany or Spain could
quickly and conveniently arrive in Paris.

However, the ignorance of the politicians' unfriendliness and deterrence caused the dire
publicity to be spread all over France and probably wider. Politicians are usually the
most publicly articulated figures. Thus, their opposition view would probably be spread to
many potential visitors or customers that are most likely to decide not to buy or visit
Euro Disney Theme Park or products. The negative publicity should have been important
factor that Euro Disney marketer did not considered when placing the Theme Park and
sustaining the U.S. spirit.

Socio-cultural environment:
Euro Disney marketers have recognized a trend. People are going to theme parks during the
weekends for adults as well as children entertainment. Indeed, there is an existing need
for entertainment of this kind. Therefore, an opportunity exists in the European market
that Euro Disney could have taken advantage of.

However, the opportunity should have not been ‘taken for granted'. Other cultural
factors should have been analyzed to decide the positioning of Theme Park. Their prevalent
mistake has been the failure to recognize the cultural differences between Americans and
French people. Locating the Theme Park near Paris and acquiring agricultural land as well
as imposing the U.S spirit undeniably negatively affects french citizens. The French
peoples' lifestyle deeply depends on the gratitude to their traditional agriculture. Thus,
the land takeover by an American Company mainly does not provide pleasure to them.

In addition, the politicians' negative publicity and the cultural leaders' unfriendliness
toward the Euro Disney theme park caused the company to close down one resort hotel and
laid off 5000 employees. Taking this into account the Euro Disney marketers should have
anticipated peoples' resistance toward the Theme Park and should have changed their
positioning in accordance to the cultural as well as lifestyle changes. Probably they
could have changed their positioning toward more French like spirit such as French names
for their labeled products or shows. Probably their decision not to have French names has
been due to the targeting market, which is whole Europe containing many cultures and
languages. Indeed, they have overlooked the market since it is too broad target market to
fit the different cultural needs.

Continues for 4 more pages >>




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