Walt Disney Parks and Resorts

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Executive Summary
Walt Disney is an international company founded in 1923 by brothers Roy and Walt Disney. The corporate headquarters and primary production facilities are located at The Walt Disney Studios in Burbank, California, the area where Disney was initially created. Today Disney is one of the largest and most reputable companies in the film and entertainment industry earning $43 billion in revenues in 2007. Walt Disney Company earns revenues in four strategic areas including consumer products (9.6%), media networks (38.4%), studio entertainment (26.4%) and parks and resorts (29%). As a major player in the film and entertainment industry Disney is affected by the growing trends in leisure activities. In recent decades consumers have chosen to spend more of their time and money on vacation and pleasurable activities. Currently Disney has several customers from Generation X who are family oriented and interested in the products that Disney offers. The initial target market for Disney were children under 12, but with the importance of decision makers the market expanded. Now not only do children love Disney, their parents do too. Disney must compete on many stages due to its product breadth. In the film and television industry intense competition exists among well-established rivals. In other segments of Disney’s revenues, parks and resorts, they remain the market leader. However, despite it’s domination in the theme parks and resorts area, Disney faced several problems entering the European theme park market. This case analysis reviews the eight factors that led Disney theme parks to be so successful in America and how they differ in comparison with Euro Disneyland. The eight key success factors that contribute to Disney’s position as market leader are: originality of concept, geographic location, integrated services, international expansion, innovation, partnerships, yield management and B2B marketing. The originality of concept was unique to America and adored by American culture. A problem that Disney faced in founding Euro Disneyland (the original name of the Parisian theme park) was finding a balance between standardization and specialization. Geographic location is an essential key to the success of theme parks because ticket sales are related to accessibility and climate. Euro Disney was faced with uncontrollable foreign environment factors with regard to their geographical choice in Paris, France. Integrated services have enabled Disney to offer customers a full package of entertainment, food, shopping and accommodations. A problem that faced integrated services at Euro Disneyland was the neglect to identify integrated services that appeal to a European family, not an American. International expansions to Hong Kong, Tokyo and Paris have been important business decisions that have aided in Disney’s increased global market share and increased sales. However, upon entering the European market Disney relied too heavily on the company’s success in Asia and used that as a benchmark for production. Innovation has allowed Disney to keep its customers entertained and excited about what Disney has to offer. Despite Disney being a traditional family founded company much of it success is accredited to its ability to recreate itself for new markets time and again. Partnerships have increased Disney’s power and ability to provide customers with everything they need in a vacation. Additionally partnerships have opened Disney to a new segment of business cusomers who seek to be sponsors of Disney products. Yield management is utilized as a tool to maximize revenue allowing for ticket discounts in the off-season and price increase in the peak-season. Lastly, Disney has entered the new market of providing facilities to B2B customers. Every Disney location has conference halls and hosts major seminars that are essential to the functions of B2B. This not only provides the business world with necessary facilities to conduct...
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