Table 8. Resources and Capabilities Analysis
Superfluous Strengths Key Strengths
Rides Brand
Operations
Global immersive user experience
Human resource
Service
Inconsequential Weaknesses Key Weaknesses
Limited number of location Waiting time for some attractions
Key strength:
Disney park and resort have key strengths such as brand, operations, global
immersive user experience, human resource and service that make them have
comparative advantage to competitors. In detail, the strong brand which specialize the
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quality of them make customers distinguish and think of Disney as the master of
theme park.
Disney also has strong team that are expert in their field and make sure to bring
customers best quality and service. Such a good team makes the company really
strong in operations, managing its different pars efficiently. Finally, all these strengths
work toward the main strength of Disney that offering a global immersive experience.
Superfluous strengths:
Rides, the rides in Disney theme park can bring customers good experience, but
it is not unsubstituted. Customers can use the rides of others with almost same
satisfaction.
Inconsequential Weaknesses:
limited number of location is really a weakness but it doesn’t much affect to
Disney theme park. Customers from all over the world is willing to go for long
distance, even oversea to use Disney service and entertainment.
Key weakness:
Waiting time for some attractions. The service of Disney theme park is
sometimes overload and guests have to wait hours to buy some ticket attractions.
Especially in hot season, they might be hustled and jostled. In the end, some of them
refuse to go to Disney in that period. It is the most weakness of Disney that might
cause customer satisfaction and decrease their loyalty.
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6.4 VRIS Analysis
6.4.1 Capability
Below are the capabilities, acquisition, management, innovation, and international
capabilities of Disney.
Table 9. VRIS Analysis – Capability
V R I S Competitive
consequences
Performance
implication
Acquisition O X O O temporary
competitive advantage
above average
to average
Management O O O O sustainable
competitive advantage
above average
returns
Innovation O X O X Competitive
consequences average returns
International O O O O sustainable
competitive advantage
above average
returns
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6.4.2 Resources
Below are the resources of Disney, including land, rides, brand, technology, capital,
and park.
Table 10. VRIS Analysis – Resources
V R I S Competitive
consequences
Performance
implication
Land O O O O sustainable
competitive advantage
above average
returns
Ride X O X O competitive parity Average
returns
Brand O O O O sustainable
competitive advantage
above average
returns
Technology
(animation,
know-how)
O O O O sustainable
competitive advantage
above average
returns
capital
(finance) O O O O
sustainable
competitive advantage
above average
returns
Park O X O X competitive parity average
returns
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Chapter 7 Value Chain
Looking into Disney Parks and Resorts’ value chain may allow us to analyze the
success of Disney, how they create synergy among its different departments, and bring
out the best of them, presenting to their guests.
Figure 8. Value Chain
7.1 Firm Infrastructure
Financial
Revenue
The total consolidated revenues of Disney company are 52,465 million.
According to Disney fiscal 2015 report, Parks and Resorts earn 16,162 million at the
same year, which is one third of total revenue. And they increase 7% from 2014 to
2015.
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Table 11. The Total Consolidated Revenues of Disney Company
(in millions)
Segment operating income (loss)
The total Disney segment operating income is 14,681 million in 2015. Park and
Resorts accounting for 3,031 million, it is almost one-fifth of total. Compare to fiscal
2014, 2,663 million, they have about 14% growth.
Table 12. Segment Operation Income
(in millions)
Investing Activities
For domestic market, Disney invest from 1,184 million (2014) to 1,457 million
(2015) for expand new attractions, systems infrastructure, cruise ships, capital
improvements. For International market, Disney invest from 1,504 million (2014) to
2,147 million (2015) largely because the construction of Shanghai Disney Resort.
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Table 13. Investing Activities
(in millions)
Organization
Disney has six Park and Resorts around the world which are managed in three
ways: sole property, partial ownership, and licensing. Disney owns and operates in
two location in USA. One is Walt Disney World Resort in Florida, and the other is
Disneyland Resort in California. For its international parts, Disney has 81% interest in
Disneyland Resort Paris (recapitalization), 47% in Hong Kong Disneyland Resort.
Disney practiced joint venture with French Government and the Government of the
Hong Kong Special Administrative Region, but Disney can wholly manage those two
parks. The situation is somehow different in Shanghai Disney Resort, where Disney
company has 43% ownership interest, the other 57% is owned by Shanghai Shendi(上
海申迪集團). Disney company has 70% interest of management right, the other 30%
right belongs to Shendi group. Tokyo Disney Resort in Japan is the exception, where
Disney licenses intellectual property to them instead.
Legal Affairs
Disney Park and Resorts is a huge organization. To manage this international
business well, Disney had formed a group to deal with business affairs, contracts,
privacy, country law, patents, copyrights, etc. This group plays an important role
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because it protects and solves any problem related to Disney comprehensively from
park construction to operation. For example, they investigate in people who infringed
trademark rights and copyrights, as well as the stores that use “Disney Store” name
without authorized. Another example is that this group negotiate with joint venture
partners when Disney entering into international market such as land lease, cost, and
capital to meet the win-win situation.
7.2 Human Resources Management
Recruiting
Disney has a standard operation procedure when recruiting new employees.
Besides basic qualifications, Disney prefer to recruit those who believe in and are
willing to follow Disney’s values. There are seven values including “Honesty,
Openness, Balance, Diversity, Integrity, Respect, and Courage.” Also, Disney has
released guidelines for their employees. They need to follow restrictions from clothing
(color of undergarment, accessory prohibition, tattoos covered, etc.) to behaviors
(chewing gum, smoking, having poor posture, etc., are prohibited). If the applicant
could not accept the requirements above, s/he may have no chance in getting into
Disney.
Training
Disney has its own learning school called “Disney University”. New employees
have to take the course “Disney Traditions” to learn about Disney-related facts. With
this course, new staff can understand Disney’s current status, development, features
and segmentations. They also learn from basic Disney story to their role in this family.
Disney would also asked full time employees to take classes each year to acquire
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more skills, trends and knowledge.
Welfare
To maintain staff loyalty, Disney offers a set of rewards package. The benefits
include medical insurance, accident insurance, annual leave, overtime payment,
laundry services for uniforms and costumes. Also, s/he will get free or discount ticket
for him/herself, family and friends to worldwide Disney theme parks and resorts. The
hotels, shopping stores, dining area also have discount if staff ID is shown.
7.3 Technology Development
There is no doubt that technology Development is significant for Disney.
Through creative and innovative techniques, Disney can provide customers
a-dream-come-true experiences and moments in the tale with the interaction manner.
When it comes to theme parks, examples of utilization of technology can be found in
many places, such as the Finding Nemo Submarine Voyages, where the latest visual
effects and sound immersion technologies are implemented. The latest technology is
not only used in innovation storytelling, but also in the reservation system of
DisneyPark.com, where customers can customize their trip to Disney Resorts in the
light of their own preferences.