PESTEL Analysis of Disneyland

Topics: Paris, Amusement park, SWOT analysis Pages: 8 (2355 words) Published: November 8, 2014
The purpose of this assignment is to prepare as director of Disneyland Europe, two strategic scenarios for the next 5 years plan (2009-2014) for consideration by the board. Firstly will assume that the credit crunch is short- lived and that the European growth starts again in 2010-11. Secondly will assume that the credit crunch effect will get worse, combined with increasing prices in particular construction materials and fuel. It will provide recommendations and description on how Euro Disney will look at the end of 2014. Current economic circumstances will be addressed. Strategic analysis

PESTEL Analysis
Political and Legal Economic Social.
The age of the population is increasing. (Office for national statistics). This is bad news for Euro Disney as it will mean a smaller target market. Technological
New technology is very important to theme parks as it enables them to provide the attractions necessary for attracting customers. It can also be used to improve efficiency and queue waiting times. It is also important tin terms of competition, to be a world leading theme park- state of the art technology needs to be implemented. Transactions for holidays are often made online. There are a number of computer viruses that enable criminals to steal the details of customers online. If this was to become e a major problem, customers would be discouraged from purchasing holidays to euro Disney online and methods of increasing security would need to be implemented Environmental

In order to remain a reputable company Euro Disney must ensure it does not operate in a way that result s in damaging the environment. This would tarnish their image and create a bad image for the company. Despite green methods of business often being more costly, companies cannot afford in terms of legislation as well as public opinion to operate in environmentally unfriendly ways. In terms of competition euro Disney is faring well and competing effectively.

Situation audit
Most visited tourist destination in Europe.
Attendance is currently at record levels
Euro Disney comprises two Theme Parks offering 54 attractions It is located 35 minutes east of Paris and therefore in a prime location with good accessibility. 44% of customers are French
By creating 49,000 jobs, Euro Disney has a positive effect on the French economy. It is the 5th largest convention facility in France with vast meeting and seminar facilities. (Disneyland Paris)

Currently Euro Disney has a remaining debt of 1.9 million (case study) SWOT Analysis
Euro Disney is already a well established and reputable company. According to Disneyland (2008), Euro Disney is the most visited tourist destination in Europe and the top tour operator in France in terms of number of clients, with 15.3 million visits in 2008. This is strength for the company as is seen favourably by the public and does not have to struggle to overcome any image issues. Euro Disney only has to maintain and re-enforce its reputation to be successful in terms of public image. According to the case study, despite the economic downturn Euro Disney has made record profits. This is strength for the company as it suggests they are already on the right track to success and objectives are being achieved. A wide variety of attractions are offered, giving diversity to what Euro Disney offers customers. The resort is very well located and easily accessible to customers. Weaknesses

The company is in massive debt of 1.9 million Euros. Despite their success a net loss of 42 million Euros was made due to interest charges on the remaining debt. Euro Disney plans to fund all attractions in the future with self-generated cash; this does not seem an attainable objective at the moment as their largest profit ever made was 44 million Euros. The company’s debt impacts on their ability to generate capital for further growth. (case study)

The credit crunch. According to...

References: Kotler, F., et al (2008) Principles of Marketing, England, published by Prentice Hall
Needham, D., Grandfield, R., (2000) Business, England, Published by published by Prentice Hall
Budworth, D., (2008) The credit crunch explained, Times Online, www. [Available][accessed 18/12/2008]
Disneyland Paris, www. [Available][accessed 20/12/2008]
Disneyland Paris www.[Available][accessed 20/12/2008]
Disneyland Paris www.[Available][accessed 20/12/2008]
Griffin, J., (2008) Credit crunch means extra visitors for Drayton Manor Park,, www. [Available][accessed 18/12/2008]
Office for National Statistics (2008), Population Trends, www. [Available][accessed 18/12/2008]
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