Assessment InstructionsBased on the work your group has prepared in the second assessment, you are required to propose at least three strategic recommendations addressing the management issues identified in your group’s analysis. In preparing these recommendations, you will need to use theories and concepts discussed in weeks 9, 10 and 11.More specifically, your proposal MUST adhere to the following structure:- A brief recap of the identified issues that you and your group presented in week 9.- A detailed proposal of three strategic recommendations addressing identified issues.- A detailed proposal of strategic methods, evaluation and selection per each of therecommendations.You are required to use at least 6 sources of information that are referenced in accordance with Kaplan Harvard Referencing Guide. These may include corporate websites, government publications, industry reports, census data, journal articles, and newspaper articles. NB: Wikipedia and other ‘popular’ or non-academic sources of information are not to be used.
PowerPoint Presentation Disneyland Resort Paris Case Study Analysis HAT203 Tourism & Hospitality Management Ruby Yang 136447 Whenddhy Contreras 134472 Dong Duong Nguyen 138127 Thi Ngoc Van Tran 134804 Thuy Hoang (Emmy) 134807 Prakriti Ghimire CASE STUDY OVERVIEW Disneyland resort Paris did not perform well at its beginnings as it was planned by Walt Disney Corporation . Serious issues were faced as American planners did not take into consideration the differences in cultures, taste, market and economic depression of the European market. Forecast assumptions and beliefs that European consumers would be similarly attracted as the American market. Lack of research and planning led the park to years of debt and controversial issues. MACRO ENVIRONMENT STEEP ANALYSIS FOR DISNEYLAND IN PARIS Economical Disneyland Resort Paris was constructed in 1992 during the economic recession. Thus, it leaded to a decrease in revenue. It was recession period; the target attendance of guests was not achieved. This was displayed on the report a loss of US$317 and the attendance was 10% down on level achieved in 1993. The demand of foreign travel was down as the currency devaluation in Great Britain and Italy further depressed purchase power. Social The Disneyland employees in Paris must comply with the code of dress to match with the French culture of individualism and privacy. The Disneyland Paris has created itself into the French cultural landscape. For example, the Disney characters must be suitable with the nation’s culture. Technological Disneyland in Paris markets itself by transferring the advertising message to parents and grandparents to sympathy with their children’s emotional pleasure as well as it was a chance for adults to adventure themselves. Political •Government support (monetary and land) – the bank assisted to deal with the massive debt and provided an attractive location for European visitors. •Pricing policies were adjusted to offer reduced entrance admission charges in the evening. This policy related to the improvement in hotel occupancy, which rose steady from 55% in 1993 to 68% in 1995. •Code of dress policy required employees to comply with French’s culture. For example, women must have short fingernails, appropriate undergarments and strict policies on hairstyles. •Disneyland Paris also has contrasted its own safety management system. Environmental •French climate – Cold and dry in winter. Cloudy half of the year. •The land size – The largest single piece of construction (1950 hectares). MACRO ENVIRONMENT STEEP ANALYSIS FOR DISNEYLAND IN PARIS (CONT) PORTER’S FIVE FORCES Threat of new entrant Threat of Substitute Bargaining power of supplier Bargaining power of customer Competitive Rivalry - High cost of entry, US$4.4 billion for construction cost - Worsening economic condition in Europe 1990s - Different culture and customer behavior between US and Europe - Products limitation due to restricted polices in French => High threat of entrance - High entrance barriers to open up a theme park - Low threat of substitute - Moderate bargaining power of customer - Low bargaining power of supplier for long term supply => Low intensity of rivalry => Monopoly - For Walt Disney theme park, due to the limitation of "rides "manufactures, delivery difficulty and high material cost back in 1990s but the disadvantage is it's a one - time cost. => Moderate power of bargaining - For hotel and restaurant, the supplier doesn't have much strength in bargaining because they have a large amounts of suppliers lining up and can switch for cost efficiency => Low power of bargaining - Due to the drop of airfares and currency exchange, the consumers found out that it is more cost efficiency to travel to Florida rather than France theme park - More cost efficiency but time consuming - No other themes park, no competitors =>Low threat of substitute - High amount of potential customers which exceed 360 millions; , - The customers is not willing to use the service until the theme park provide pricing policies which offer lower entrance fee in nighttime or customer care programs => Customer decisions have impact on the pricing, however, there are also many external factors that contributed in such as the economic condition => Customers have moderate power of bargaining SWOT ANALYSIS STRENGTH Location closed to the Paris One of the most visited theme parks Reputation There are 14 million visitors each year Attractions and events Competitive prices Low intensity of rivalry Professional employment WEAKNESS Financials, high cost of service Inflexible price Low rate of occupancy Low repeat visitors Parking area High entrance fees Restricted alcohol policies Lack of knowledge in France culture OPPORTUNITIES Disneyland resort Paris enhances number of tourist attraction places Increased international tourists such as from French and domestic visitors Improve the quality of service Rising income Leading position in European market Huge amount of potential of customers THREATS Current Disneyland resort Paris growth rates Changing tastes and needs of customers Changing tourism market Environmental factors to impact hospitalities & tourism sector Worsening economic condition Currency devaluation in Britain and Italy leading to low demand in foreign travelling Terrorist attack in Paris 2016 IDENTIFIED ISSUES Not fully understanding of the market and its European customers. Unawareness of the financial difficulty Europe faced. Europeans unwillingness to pay high entrance fees. Lack of European market research and high and low season peaks. Property development plunged by the European economic issues. Lack of knowledge of the European culture, people and taste. Misunderstanding that European countries have same preferences. Misinterpretation of seasonal demand curve. Failure to address individualism and privacy of French culture. Expensive to visit due to currency exchange movements, visiting Florida was cheaper.