Research and Development
Disney’s R&D division develops better ways of providing entertainment to their
guests. Walt Disney Imagineering Research & Development, Inc. is the research and
development arm of The Walt Disney Company, it is responsible for the creation,
design, and construction of Disney theme parks and attractions worldwide. They
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design and building Disney theme parks, resorts, and other entertainment venues at all
levels of project development.
Technology (Bringing Innovation)
Disney Parks and Resorts is a typical example of the spirit of innovation. Much
of that innovation is driven by technology to create new and exciting experiences.
Their imagineers love Disney stories and experience, and used technology to make
them more interactive, and even more entertaining. For example, they use 3D
innovation with 4D to enhance the attraction and allow guests to experience the story
from a toy’s perspective. The guests can also experience Toy Story Midway Mania! at
Disney California Adventure Park.
7.4 Procurement
Disney is a unique and important customer to many of its suppliers, therefore it
has the ability to purchase with the lowest price while obtaining the highest quality of
its supplies. Procurement is a support function where the company can make the
greatest savings. This is due to the fact that capital expenditures for domestic and
international Parks and Resorts take up almost 70% of the total capital expenditures of
the company. Because of diverse business lines with their own business strategies,
Disney could not use standardization as their fundamental strategy for procurement
and supply chain management throughout the conglomerate. That being said, its
diverse business lines also bring opportunities for cooperation and generating
synergies among them. Procurement for Disney Parks and Resorts include activities to
maintain the optimum operating level cost efficiently. Some Disney parks products
can be found in others Disney parks, and the design can be use in others countries.
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7.5 Inbound Logistics
Disney Park and Resort’s strategy is based on providing “customer experience”,
thus its inbound logistics would be quite unusual comparing to conventional
manufacturing industries.
Construction facilities, goods and warehouses
Disney Parks and Resorts have sustainable suppliers for their inbound, from
attraction construction to hotel, cruise and restaurant. Being a global brand, its goal is
to bring the best experience to visitors. Therefore, they customize by offering safe
rides, fresh foods, comfortable hotel, and etc.…from the very first inbound.
Technology
Animation technology and technology know-how are components that contribute
greatly to Disney Parks and Resorts. They are the key elements in bringing the
characters from films of Disney to life in Disney theme parks. The continuously
developing technology in Disney Parks and Resorts also gives customers special
experiences and convenience. For example, the magic band – small bracelets that has
chip connecting to park tickets, hotel rooms and credit cards.
Employees
Disney Parks and Resorts have teams of workers that are experts in their field.
Their duties are bringing visitors happiness and quality service. The thoughtfulness
within Disney’s employees towards their guests is one of their elements of success.
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7.6 Operations
Construction and maintenance
The main active of Disney park and resort are constructing rides and attractions
which also including repairing and adding in new technology and appearance.
Creating events and trips
One of the biggest difference of Disney park and resort is their themes of cartoon
characters, stories,…from films or animation that they produced. They not only create
parade, music concert in special events annum in the park and resort but also voyage
in many periods all over the world.
Service (attractions, hotels, cruise, restaurant, and etc.)
As the master of service industry, good service is the most important things that
Disney wants to bring to their customers. Service in park, hotel, cruise and restaurant
contribute a large percentage to the different operation of Disney park and resort.
7.7 Outbound Logistics
We believe that Outbound logistics is not really applicable in the value chain of
Disney parks and resort. Outbound logistics is usually part of the value chain of
manufacturing and trading companies. Disney parks and resorts belongs to a specific
industry with a specific value chain.
7.8 Marketing & Sales
One of the strongest strength of Disney is integrating all of its business activities
to create this synergy that brings in profit, the product of the movie industry could be
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have the effect of marketing for the theme park industry or Disney’s consumer
merchandises. In this analysis, we will be focusing on the marketing and sales
activities related to Disney Parks and Resorts.
Content Marketing
As we have mentioned before, Disney is an empire selling stories, imaginations,
and happiness. When you visit a Disney theme park, you see rides, restaurants, hotels
that are designed around a certain Disney movie or Disney character you have seen
before. In a way, we can say that Disney movies play heavy roles in marketing of the
parks. There are many examples, such as Tokyo Disney introducing their new
attraction based on “Finding Nemo” and “Finding Dory” in 2017, and Hong Kong
Disney’s new attraction “Iron Man Experience”.
Figure 9. Finding Nemo /Dory attraction/ride concept art
Figure 10. Finding Nemo
The Walt Disney Company Case Study
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