Resources and Capabilities Analysis

Table 8. Resources and Capabilities Analysis

Superfluous Strengths Key Strengths

Rides Brand


Global immersive user experience

Human resource


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


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




Acquisition O X O O temporary

competitive advantage

above average

to average

Management O O O O sustainable

competitive advantage

above average


Innovation O X O X Competitive

consequences average returns

International O O O O sustainable

competitive advantage

above average


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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




Land O O O O sustainable

competitive advantage

above average


Ride X O X O competitive parity Average


Brand O O O O sustainable

competitive advantage

above average





O O O O sustainable

competitive advantage

above average



(finance) O O O O


competitive advantage

above average


Park O X O X competitive parity average


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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



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


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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)


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


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 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.


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, where customers can customize their trip to Disney Resorts in the

light of their own preferences.

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