Theme park swot analysis

Title：Walt Disney Company Case Study

Author(s): Anna(方榆安)，Adrien(安磊恩), Jackie(楊欣樺), Judy(洪靖雯),

Zoe(范氏黃英)

Class: 1 s t

and 2 nd

year of Department of International Business

Student ID: M0566104, M0400975, M0419066, M0401183, M0570968

Course: Global Strategic Management

Instructor: Dr. Dr. Fang-Yi Lo

Department: Department of International Business

Academic Year: Semester 1, 2016-2017

The Walt Disney Company Case Study

1 FCU e-Paper (2016-2017)

Abstract

In an ever-changing world, we researched how a company like Disney and more

particularly the Walt Disney Parks and Resorts division can become and stay a leader

in its industry.

We analyzed the different levels of strategy, created a strategic map, applied a

five forces analysis of the company, did a group analysis, did a VRIS and

Resource/Analysis, did a BCG matrix and Synergy analysis, a value chain analysis,

explained the diversification strategy.

These researches allowed us to define the key point that makes Disney the

reference in the amusement park industry: offer a unique, immersive and positive

experience to each visitor through a great storytelling that is constantly renewed. The

future success of the company depends on its ability to innovate and keep delivering

an outstanding user experience.

Keyword： Disney parks, amusement parks, strategy

The Walt Disney Company Case Study

2 FCU e-Paper (2016-2017)

Table of Content

Chapter 1 The Walt Disney Company ........................................................................... 8

1.1 Introduction ...................................................................................................... 8

1.2 Choosing Disney .............................................................................................. 8

1.3 Facts and Statistics ........................................................................................... 8

1.3.1 Company ............................................................................................... 9

1.3.2 Divisions: .............................................................................................. 9

1.3.3 Subsidiaries ........................................................................................... 9

Chapter 2 Strategic Level ............................................................................................. 10

2.1 Disney’s Corporate Level Strategy ................................................................ 11

2.2 Disney’s Business Level Strategy .................................................................. 11

2.3 Disney’s Functional Level Strategies ............................................................. 12

2.3.1 Research and Development ................................................................. 12

2.3.2 Human Resource ................................................................................. 13

2.3.3 Finance ................................................................................................ 13

2.3.4 Marketing ............................................................................................ 14

2.3.5 Tokyo Disney Resort ........................................................................... 15

Chapter 3 Strategic Map .............................................................................................. 16

3.1 Guest Experience ........................................................................................... 16

3.2 Telling Stories ................................................................................................ 18

3.3 Family Entertainment ..................................................................................... 18

Chapter 4 Five Forces Analysis ................................................................................... 19

4.1 Industrial Rivalry ........................................................................................... 19

4.2 Threat of Substitutes ...................................................................................... 21

4.3 Potential Entrants ........................................................................................... 21

4.4 Bargaining Power of Supplier ........................................................................ 22

4.5 Bargaining Power of Buyers .......................................................................... 23

Chapter 5 Strategic Group Analysis ............................................................................. 27

5.1 Single Location Theme-based Parks .............................................................. 28

5.1.1 Internal competition of cluster: Medium ............................................ 28

5.1.2 Mobility barriers: Medium .................................................................. 28

5.2 Single Location Mainly Theme with Few Rides Parks Cluster ..................... 29

5.2.1 Cluster internal competition: High ...................................................... 29

The Walt Disney Company Case Study

3 FCU e-Paper (2016-2017)

5.2.2 Cluster Mobility: Low-medium .......................................................... 30

5.3 Multiple Location, Mainly Theme with Few Rides Park............................... 30

5.3.1 International competition of cluster: Low ........................................... 30

5.3.2 Mobility barriers: Medium .................................................................. 30

5.4 Multiple Location Sensation-Based Cluster .................................................. 31

5.4.1 Cluster internal competition ................................................................ 31

5.4.2 Cluster Mobility .................................................................................. 31

5.5 Global Theme and Sensation Parks Cluster ................................................... 32

5.5.1 Cluster internal competition ................................................................ 32

5.5.2 Cluster Mobility .................................................................................. 33

Chapter 6 Resource and Capability Analysis ............................................................... 34

6.1 Resources ....................................................................................................... 35

6.1.1 Tangible resource ................................................................................ 36

6.1.2 Intangible resource .............................................................................. 37

6.1.3 Human Resources ............................................................................... 42

6.2 Capabilities .................................................................................................... 43

6.3 Resources and Capabilities Analysis ............................................................. 45

6.4 VRIS Analysis ................................................................................................ 47

6.4.1 Capability ............................................................................................ 47

6.4.2 Resources ............................................................................................ 48

Chapter 7 Value Chain ................................................................................................. 49

7.1 Firm Infrastructure ......................................................................................... 49

7.2 Human Resources Management .................................................................... 52

7.3 Technology Development .............................................................................. 53

7.4 Procurement ................................................................................................... 54

7.5 Inbound Logistics ........................................................................................... 55

7.6 Operations ...................................................................................................... 56

7.7 Outbound Logistics ........................................................................................ 56

7.8 Marketing & Sales ......................................................................................... 56

7.9 Service ............................................................................................................ 60

Chapter 8 BCG Matrix and Synergies ......................................................................... 63

8.1 BCG Analysis ................................................................................................. 64

8.1.1 ESPN Inc. - Dog ................................................................................. 64

8.1.2 Lucasfilm - Star ................................................................................... 64

The Walt Disney Company Case Study

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8.1.3 Disney Channels Worldwide－Question Mark ................................... 65

8.1.4 Walt Disney Animation Studios - Star ................................................ 67

8.1.5 Pixar Animation Studios - Star ............................................................ 70

8.1.6 Disney Parks and Resorts - Cash Cows ..........................................