Resource and Capability Analysis

Resource and Capability Analysis

Chapter 6 Resource and Capability Analysis


“It is important to distinguish between the resources and the capabilities of the

firm: resources are the productive assets owned by the firm; capabilities are what the

firm can do.” (Robert M.Grant,2007.)

In the entertainment industry, Disney must compete in a complex and

challenging environment to maintain its position as the master of globalization. Hence,

the importance of understanding the firm’s capabilities and resources, finding out the

firm’s competitive advantages, is unneglectable. On one hand, it is beneficial to

understand and enhance those capabilities, and reinforce on weaknesses – it helps to

increase customers’ satisfaction and strengthens customer relationship. On the other

hand, competitive advantages help Disney to be sustainable over time, generate

revenues and profits year by year.

Therefore, in this report, we’ve carried out an analysis of capabilities and

resource of Disney Parks and Resorts to find out how Disney has reached its success.

The Walt Disney Company Case Study

35 FCU e-Paper (2016-2017)

6.1 Resources

Below are some tangible and intangible resources of Disney, including financial

and physical resources, technology, reputation, patents, entertainment and culture, and

human resources.

Table 3. Resources

Resource Details Indicators



Financial Income Ticket sales, restaurants

income, hotel revenue


Parks Asset

Rides Many attractive rides





Technological know-how

Animation technology


Brand equity

Brand names 13 rank

Customer’s attendance large number visitor

every year

Patents Media Technology

The Walt Disney Company Case Study

36 FCU e-Paper (2016-2017)

Entertainment Characters and plots (from

Films and TV series)

Culture Organizational Culture

Human Resources Loyalty of employees Good salary rate,

restrictions, welfare

6.1.1 Tangible resource


 Income:

Disney park and resort has sustainable and large income every year from park

Tickets, restaurants, hotel and resort service. The revenue of Disney Park and Resort

increased yearly (14.087M $ in 2013 and 15.099M S in2014), while the profit is also

high (2.220M$ in 2013 and 2.663M$ in 2014). (By Walt Disney). As we know,

capital is one of the most important factor which contribute to the success of a firm,

and Disney has strong advantage in this factor.


 Parks:

Disney has six park and resorts in different location including California, Florida,

Tokyo, Paris, Hong Kong, and Shanghai, which can attract visitors around the world.

People from America to Asia, and even Europe can enjoy Disney atmosphere.

The Walt Disney Company Case Study

37 FCU e-Paper (2016-2017)

 Rides:

The rides in Disney fit almost every age level person. There are many rides in

Disney park with Disney characters or icons. The top three Disney classic rides are

Dumbo, Peter Pan’s Flight, and Its’s a small world.

 Land:

The land area of Disney is an advantage especially when comparing to other

amusement park. The largest one is in Florida, the USA, which has 12228 hectares

with four theme parks, two water parks, some other attractions, and thirty-four resorts

and hotels. The second largest is in Paris, which has 1951 hectare with five themed

land. The third is large location is located in Shanghai with 700-hectare land with

seven themed lands. California and Tokyo has similar area of land, one is 206 hectares

and the other is 201 hectares. The smallest Disney is in Hong Kong with 126 hectares

of land, but still larger than many other parks.

6.1.2 Intangible resource


 Animation technology:

Disney is famous for its work of art in the field of animation, numerous films and

TV series are the results of Disney’s hardworking animation artists. They constantly

develop new technology to bring their creation to the next level; for example,

animated hair/fur on human/animal characters has become more and more realistic

overtime, from Monster Inc. to this year’s Zootopia.

The Walt Disney Company Case Study

38 FCU e-Paper (2016-2017)

 Technological know-how:

Being technologically advanced is crucial for Disney Parks and Resorts, as it

helps operation around the parks, providing better guest experiences. For example, the

introduction of the Magic Band. Magic bands are small, wearable bracelets that has an

RFID chip connected directly to your credit card, hotel room, and park tickets. A

super easy way to get around the parks and resorts without any hassle. Fast Pass+ is

also a great example, Disney use crowd projections to allocate a certain number of

spots per ride per time frame, so that the guests can pre-select when they want to ride.

And then, having those reservations made and tied directly to your MagicBand makes

it that much easier.


 Brand Equity:

The Walt Disney was ranked 2nd in the world’s Most Reputation Companies,

2016, because of the citizenship and governance categories. Nielsen said: “The Walt

Disney Company is number one in the world when it comes to being perceived as a

good corporate citizen and also as a company with fair and ethical business


The Walt Disney Company Case Study

39 FCU e-Paper (2016-2017)

Place Your Order Here!

Leave a Comment

Your email address will not be published. Required fields are marked *