Analysis Of The Article ' Disney Discovers Peak Pricing '

Two of the biggest theme parks in Orlando, Florida are Walt Disney World and Universal Studios Florida. Both of the theme parks are huge competitors when it comes to getting customers and money. In this essay I will show you which of the two theme parks is better than the other, by using multiple different categories that theme parks use when making their parks.

By conducting a value chain analysis for Walt Disney Company, I will be able to accurately show the “parts of its operations that create value, and those that don’t” (Hitt, Ireland, and Hoskisson, 87). The value chain is segmented into two categories: support functions and value chain activities. Support functions include finance, human resources, and management information systems which “support the work being done to produce, sell, distribute, and service the products [Walt Disney] is creating” (Hitt, Ireland, and Hoskisson, 87). Value chain activities include supply chain management, operations, distribution, marketing, and follow-up services, which Walt Disney

For the theme park industry on the Gold Coast this low level of power held by the roller-coaster suppliers means that any of the theme parks will be able to discuss their needs with a number of manufacturers due to the large number available to choose from and due to the suppliers reliance on the theme park industry to sell their products, prices will be reasonable which will also be helped by the fact that there is large competition between the suppliers due to their numbers.

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.

Recent years have seen a major growth in the Walt Disney Company "enterprise" as one would call it. Growing from movies, TV, theme parks, stores to Broadway shows, Disney Company has set a benchmark for other companies. Early in 1996, Disney completed its acquisition of Capital/ABC. The $19 Billion deal brought the country's top television network to the Disney, in addition to 10 TV Stations, 21 radio stations, 7 daily newspapers, and ownership positions in 4 cable networks.

Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and

Of the four business units that make up The Walt Disney Company (Disney), the Media Networks unit is by far the largest with revenues accounting for about 43% of total company revenues in 2016 (Appendix C) (MERGENT Online). This segment is made up of cable networks like ESPN and Freeform, broadcasting networks, and all the technology and assets that go into producing content for these networks (MERGENT Online). Through it’s media networks division, Disney aims to provide family-friendly entertainment options to households across the world through television and radio networks. Because the cost to watch Disney’s channels is essentially the same as the cost to watch a competitor’s channel, competitors in this industry must compete on differentiation to attract viewers. This value proposition and strategy helps to focus the segment’s value chain and its efforts to capture value. The value chain (Appendix A), seems to suggest Disney’s brand, technologies, and recruitment capabilities are driving the segment towards its 24.86% margin (MERGENT Online).

The anticipation of heightened demand dynamically affects admission price for theme parks. Walt Disney World and Disneyland recently introduced variable pricing in 2016 so that park tickets will cost more during holidays and peak period weekends. This only applies to one-day tickets, and not multi-day packages. Disney’s major competitor, Comcast’s Universal Studios, has also adopted demand-based pricing. One difference though, is that their system provides incentives for visiting on off-peak days, and/or booking tickets online in advance. Guests can get $5 to $20 off the walk-up price, with the bigger discounts saved for midweek, low-demand periods. A variety of other discounts, packages, and promotions are available to guests that are all designed to bring down the per-day admissions cost for visitors, while simultaneously ensuring a longer stay for guests. A longer stay is a win-win situation because it means more money spent overall at theme parks, restaurants, hotels, and gift shops.

Globalization is forcing all companies, large and small, to focus on a larger competitive landscape. For many companies hypercompetition arises and they are left with stunted growth while competing with other businesses across the globe. Fortunately, Disney has constructed one of the world’s most recognizable and beloved brands in the entire world. To understand the external environment in which Disney competes, we must first discern which market we wish to analyze. Disney owns a plethora of companies across an extensive list of industries including publishing, game production, retail, theme parks, and software. By far the two largest segments of Disney’s business are its parks/resorts and media networks; those will be

The success of movies and television programs were due to diversity and distribution. It does its own distribution and targets several markets from children to adults. Finally, the Disney character consumer product sector, which includes clothing, home goods, and toys, has been an extremely important asset to the company. For example, by establishing deals such as an agreement with Mattel, Disney was able to manufacture more than 14,000 Disney licensed products. Furthermore, Disney expanded it’s retailing by opening up Disney stores.

1. About Disney Difference and how it will affect the company’s corporate, competitive, and function strategies.

Competing amusement parks has upgraded their attractions to attract more consumers and Disney is has recently strategizing this approach to a more concentrated perspective. This can ultimately lower their revenues until the plan is complete.

The Walt Disney Company (DIS) has a history marked with ups and downs. Taking numerous risks, expanding internationally, acquiring various businesses and diversifying its operations; the company has emerged stronger than ever. Ranking #53 on the Fortune 500, DIS has experienced continuous growth for the past 5 years, with bright prospects. Detailed analysis shows the market undervaluing the stock despite its healthy performance, indicating potential future gains.

For my final paper I chose to discuss The Walt Disney Company. Since the Company is so large and made up of four primary business segments, I decided to focus on one particular segment: Parks and Resorts. This segment is composed of the theme parks, cruise-line, and vacation club resorts.

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.