The Walt Disney Company is one of the biggest media and entertainment corporations worldwide. It was founded by Walt Disney in October 1923 starting with the production of a series of Alice Comedies. The first Mickey Mouse cartoon was then released in 1928 (The Walt Disney Company, 2013a).
Today the company operates in five business segments: media networks, studio entertainment, consumer products, interactive media and parks and resorts (The Walt Disney Company, 2013b): the Media Networks comprise broadcast, cable, radio, publishing and digital businesses across two divisions – the Disney/ABC Television Group and ESPN Inc. Disney Studios include Walt Disney Animation Studios and Pixar Animation Studios, Disneynature, Marvel Studios, Lucasfilm and Touchstone Pictures. They also own two music labels and theatrical groups producing Broadway shows like ‘The Lion King’ or ‘Disney on Ice’. Disney Consumer Products is the world largest licensor and delivers toys, apparel and books. They operate 350 Disney retail stores worldwide. The business segment Interactive Media creates entertainment for digital media platforms like games. Finally, the segment parks and resorts comprises five vacation destinations with 11 theme parks and 44 resorts in North America, Europe and Asia, with a sixth destination currently under construction in Shanghai. They also have four Disney Cruise Line ships; 12 Disney Vacation Clubs approaching a total of 200,000 member families; and Adventures by Disney, which provides guided family vacation experiences to global destinations.
In 2013, Disney earned revenues of $45,041 million which represents an increase of 7% compared to 2012. The net income gained 8% to $6,136 million and the earnings per share for the year 2013 increased 8% to $3.38 (The Walt Disney Company, 2013c, p.1). Its profits amount to $5.6 billion and the market cap is $103.96 billion which makes the company very valuable. At the moment Disney has approximately 166,000 employees around the world (Forbes, 2013). The parks and resorts segment was one of the main growth drivers in 2013: they contributed more than 31% ($14.1 billion) to the overall company revenues and 21% to the segment operating income. (...) Therefore, the parks and resorts play a very important role in the company's brand portfolio. The paper will therefore focus on this business segment.
Table of Contents
- Company Overview
- The Walt Disney Company
- The amusement park industry
- Marketing Environment Analysis
- Microenvironment
- Macroenvironment
- Competitive Analysis
- Market Analysis
- Basis for Sustainable Competitive Advantage
- Marketing Strategy
- Product Line Strategy
- Branding & Positioning
- Pricing Strategy
- Marketing Communication Strategy
- Customer Service
- Overall Assessment of Marketing Strategy
- References
Objectives and Key Themes
This analysis aims to provide a strategic marketing overview of Walt Disney's Parks and Resorts business segment. It examines the company's position within the amusement park industry, analyzes its marketing environment, and explores the basis of its competitive advantage. The analysis focuses on the effectiveness of Disney's marketing strategies across various aspects, including product line, branding, pricing, communication, and customer service.
- The Walt Disney Company's overall business structure and the Parks and Resorts segment's contribution to its success.
- Analysis of the competitive landscape within the amusement park industry, including the competitive forces at play.
- Evaluation of Disney's marketing environment, considering both micro and macro factors.
- Examination of Disney's sustainable competitive advantage within the industry.
- Detailed assessment of Disney's comprehensive marketing strategies across different aspects.
Chapter Summaries
Company Overview: This chapter introduces The Walt Disney Company, highlighting its diverse business segments and focusing specifically on its Parks and Resorts division. It details the company's history, current financial performance (revenue, net income, market capitalization), and its significant role within the global media and entertainment landscape. The chapter emphasizes the Parks and Resorts segment's substantial contribution to Disney's overall revenue and profitability, thus justifying its selection as the focal point of the subsequent analysis. The amusement park industry is also introduced, highlighting its size, key players (including Disney's competitive position), and revenue streams. The chapter sets the stage by establishing the context and importance of the chosen subject of study.
Marketing Environment Analysis: This section delves into the factors influencing Disney's marketing strategies. The microenvironment analysis focuses on Porter's Five Forces, examining the bargaining power of buyers and suppliers, threats from new entrants and substitutes, and the intensity of rivalry within the amusement park industry. The analysis assesses the significant bargaining power of buyers due to low switching costs, prompting the need for exceptional customer service and a clear value proposition. The relatively low bargaining power of suppliers is explained by the partnerships between ride manufacturers and theme park operators. The high barrier to entry due to significant capital investment is identified as minimizing the threat of new entrants. This sets the scene for understanding the external pressures and opportunities impacting the firm's marketing decisions.
Keywords
Walt Disney Company, Parks and Resorts, Amusement Park Industry, Marketing Strategy, Competitive Advantage, Porter's Five Forces, Customer Satisfaction, Branding, Pricing, Marketing Communication, Revenue Generation, Microenvironment, Macroenvironment.
Walt Disney Parks and Resorts Marketing Strategy Analysis: FAQ
What is the purpose of this document?
This document provides a comprehensive strategic marketing overview of Walt Disney's Parks and Resorts business segment. It analyzes the company's position within the amusement park industry, its marketing environment, and the basis of its competitive advantage. The analysis focuses on the effectiveness of Disney's marketing strategies across product line, branding, pricing, communication, and customer service.
What topics are covered in the analysis?
The analysis covers several key areas, including a company overview of The Walt Disney Company and its Parks and Resorts segment, a detailed marketing environment analysis (both micro and macro environments), a competitive analysis of the amusement park industry, a market analysis, an examination of Disney's sustainable competitive advantage, and a thorough assessment of their marketing strategy encompassing product line, branding, pricing, marketing communication, and customer service. Finally, it includes an overall assessment of the marketing strategy and a list of references.
What is included in the "Company Overview" chapter?
The "Company Overview" introduces The Walt Disney Company, its diverse business segments, and specifically focuses on the Parks and Resorts division. It details the company's history, current financial performance (revenue, net income, market capitalization), and its role in the global media and entertainment landscape. It emphasizes the Parks and Resorts segment's contribution to Disney's overall revenue and profitability. It also introduces the amusement park industry, highlighting its size, key players, and revenue streams.
What does the "Marketing Environment Analysis" section cover?
This section examines the factors influencing Disney's marketing strategies. The microenvironment analysis utilizes Porter's Five Forces, examining buyer and supplier bargaining power, threats from new entrants and substitutes, and the intensity of rivalry. It assesses the bargaining power of buyers and suppliers, the high barriers to entry, and explains the implications for Disney's marketing decisions. The macroenvironment is also considered.
What are the key themes explored in this analysis?
Key themes include The Walt Disney Company's overall business structure and the Parks and Resorts segment's contribution; analysis of the competitive landscape in the amusement park industry; evaluation of Disney's marketing environment (micro and macro factors); examination of Disney's sustainable competitive advantage; and a detailed assessment of Disney's marketing strategies across various aspects.
What are the key chapters and their summaries?
The key chapters include: Company Overview (introducing Disney and the amusement park industry), Marketing Environment Analysis (examining micro and macro environmental factors using Porter's Five Forces), Competitive Analysis, Market Analysis, Basis for Sustainable Competitive Advantage, Marketing Strategy (detailed breakdown of product, branding, pricing, communication, and customer service strategies), and Overall Assessment of Marketing Strategy. Each chapter provides a summary of its findings.
What keywords are associated with this analysis?
Keywords include: Walt Disney Company, Parks and Resorts, Amusement Park Industry, Marketing Strategy, Competitive Advantage, Porter's Five Forces, Customer Satisfaction, Branding, Pricing, Marketing Communication, Revenue Generation, Microenvironment, Macroenvironment.
What is the target audience of this analysis?
While the document states the content is for academic use, the analysis is relevant to anyone interested in the strategic marketing of large entertainment companies, the amusement park industry, or the application of marketing principles in a highly competitive environment.
- Quote paper
- Isabelle Köhler (Author), 2013, Strategic marketing analysis of Walt Disney’s Parks and Resorts, Munich, GRIN Verlag, https://www.grin.com/document/271362
