BUSSPP 1080: Strategic Management |
The Walt Disney Company Parks & Resorts |
Assignment 2 |
Olivia Green |
Mondays & Wednesdays 3:30-4:45 PM |
Table of Contents
Disney Parks & Resorts Overview 1
Porter’s Five Forces Analysis 1
PESTLE Analysis 2
Works Cited 8
Walt Disney’s Parks and Resorts business unit contains theme parks, hotels, dining, entertainment and sports complexes, conference centers, water parks, cruise lines and other leisure facilities. Under Disney’s ownership, they operate the Walt Disney World Resorts in Florida, the Disneyland Resort in California, Aulani, the Disney Resort & Spa in Hawaii, the Disney Vacation Club, the Disney Cruise Line and Adventures by Disney (8). Currently Disney’s Parks and Resorts dominate with 36.2% of the market (Appendix B). For the past five years up to the fiscal 2012, Disney’s global Parks and Resorts segment revenue has grown at an average annual rate of 2.4% to $13 billion (5)(Appendix F). In order to get a better understanding of the significance that Parks & Resorts has to creating revenue for the company, an external analysis will be conducted using PESTLE and Porter’s Five Forces, specifically focusing on Disney’s theme Parks.
PORTER’S FIVE FORCES ANALYSIS
The current barriers to entry are high when it comes to theme parks in particular. The top highest players account for a highly concentrated 81.5% of the total industry revenue in 2012 (5). This is a very significant barrier to entry for any prospective new entrant. Along with the market share, there are significant costs for entry associated with acquiring land, investing in public facilities, displays, decoration, rides and attractions (Appendix D). Even though a significant opportunity exists for smaller, niche players that operate in local or regional markets, the threat for new entrants is relatively low for Disney (Appendi.