DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE
The case tracks the story of Disneyland Resort Paris from its opening in 1992 until the end of 2006, illustrating how the resort's managers learned from their initial errors how to take a strong cultural product (the Disney experience) and implement it effectively in a multicultural environment. However, by the end of 2006 the park was still not profitable and the managers were hoping for 2007, the Park's 25th anniversary season, being a turnaround year. The case presents the dilemma of global integration vs local adaptation in a multicultural and culturally-sensitive environment.It draws upon unique insights from some of historic key players as well as the current ones and sets up situations that can be interpreted from different roles in an organization (marketing, operations, senior management, etc.) and some of the issues they faced being the first multi-cultural Disney theme park in the world. Disneyland Resort Paris opened its gates in April 1992 amidst enormous controversy as a bastion of American cultural imperialism in Europe. By 2006 it was the most visited tourist site in Europe with over 12 million annual visitors. In spite of a difficult tourist industry in the early 2000s, Disneyland Resort Paris's attendance remained stable: 60% of its visitors were repeat visitors, and guest satisfaction was extremely high. The operation had created 43,000 jobs, invested more than a??5 billion and contributed to the development of a new region. As the leaders developed their execution plans, they wondered what principles should guide them and how to interpret Disney in multicultural Europe. Guests from different parts of Europe wanted different things from a vacation: how could they keep the classic Disney magic yet successfully appeal to European consumers? After 15 years of switching between French and American leadership, the answers were still not obvious. The leaders agreed that the 2007 celebrations of its 15th anniversary should set the scene for Disney's recognition as a well established experience in the heart of Europe, and a long-term financial success. But what would it look like and what path would take them there? Learning objectives: The case was written to support two teaching objectives; the class can focus on one or both depending on time and instructor objectives. It raises issues that can be dealt with through perspectives of organizational behaviour, general management and marketing. 1. Identifying the complex role of national or ethnic cultures in multinational firms. Disneyland Resorts were "selling" one culture (idealistic American culture) to guests from many cultures, and only started to become successful when they could articulate cultural issues well. 2. Working with the global standardization vs local adaptation tension. Disneyland Resorts could be neither completely standardized nor adapted. Finding an "intermediate" solution is not obvious but is key to managing the Resort for high performance.
Swot Analysis of "DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE" written by Martha Maznevski, Karsten Jonsen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Disneyland Resort facing as an external strategic factors. Some of the topics covered in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE case study are - Strategic Management Strategies, Globalization, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, wage bills are increasing, cloud computing is disrupting traditional business models,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Disneyland Resort, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Disneyland Resort operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE can be done for the following purposes –
1. Strategic planning using facts provided in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE case study
2. Improving business portfolio management of Disneyland Resort
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Disneyland Resort
Strengths DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Disneyland Resort in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE Harvard Business Review case study are -
High switching costs
– The high switching costs that Disneyland Resort has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Disneyland Resort is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Disneyland Resort is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Martha Maznevski, Karsten Jonsen can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Disneyland Resort has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Disneyland Resort digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Disneyland Resort has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Disneyland Resort is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Disneyland Resort is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Disneyland Resort in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Disneyland Resort is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Disneyland Resort in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Disneyland Resort are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Disneyland Resort has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Disneyland Resort to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE firm has clearly differentiated products in the market place. This has enabled Disneyland Resort to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Disneyland Resort to invest into research and development (R&D) and innovation.
Weaknesses DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE are -
No frontier risks strategy
– After analyzing the HBR case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Disneyland Resort is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Disneyland Resort has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Disneyland Resort has relatively successful track record of launching new products.
High cash cycle compare to competitors
Disneyland Resort has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, firm in the HBR case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Disneyland Resort 's lucrative customers.
Lack of clear differentiation of Disneyland Resort products
– To increase the profitability and margins on the products, Disneyland Resort needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE HBR case study mentions - Disneyland Resort takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE, is just above the industry average. Disneyland Resort needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Disneyland Resort is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Disneyland Resort needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Disneyland Resort to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Martha Maznevski, Karsten Jonsen suggests that, Disneyland Resort is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Disneyland Resort to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Disneyland Resort to increase its market reach. Disneyland Resort will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Loyalty marketing
– Disneyland Resort has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Disneyland Resort can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Disneyland Resort to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Building a culture of innovation
– managers at Disneyland Resort can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Disneyland Resort in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Disneyland Resort has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Disneyland Resort to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Disneyland Resort can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Disneyland Resort can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Disneyland Resort in the consumer business. Now Disneyland Resort can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Disneyland Resort to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Disneyland Resort to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Disneyland Resort can use these opportunities to build new business models that can help the communities that Disneyland Resort operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE are -
High dependence on third party suppliers
– Disneyland Resort high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Disneyland Resort with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Disneyland Resort.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Disneyland Resort can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Disneyland Resort is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Disneyland Resort in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Disneyland Resort
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Disneyland Resort.
Regulatory challenges
– Disneyland Resort needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Consumer confidence and its impact on Disneyland Resort demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Disneyland Resort has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Disneyland Resort needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Disneyland Resort in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Disneyland Resort needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Disneyland Resort can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of DISNEYLAND RESORT PARIS: MICKEY GOES TO EUROPE is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Disneyland Resort needs to make to build a sustainable competitive advantage.
