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Company Report
The Walt Disney Company (Theme Parks & Resorts Division)
DIS Theme Parks & Resorts
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Abstract
The Walt Disney Company is an American mass media and entertainment conglomerate
with worldwide operations. The Theme Parks and Resorts division is the second-largest revenue
source for the company, and one of its’ four industry-leading segments. Included in the Parks
and Resorts division is, the Disney Cruise line and the very well-known Disney theme parks and
their surrounding resorts. Disney has theme parks located in the U.S., France, Japan, and
China. With eight of the top ten most visited theme parks in the world belonging to the Walt
Disney Company, their theme parks and resorts are dominating the theme park industry.
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Table of Contents
Abstract 1
Table of Contents ___________________________________________ 2
Sections Assigned____________________________________________ 3
Executive Summary__________________________________________ 4
Introduction__________________________ 6
Company Background & Current Stage in Growth Life Cycle_________ 7
Detailed Financial Information -- Microeconomics___________________ 22
Industry Landscape, Trends & Competitors -- Macroeconomics__________ 25
Recent Developments, Analyst Opinions & Wall Street Consensus_______ 28
Group’s Recommendations______________________________________ 33
Conclusion__________________________________________________ 34
Works Cited_________________________________________________ 35
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Table of Contents
● Abstract - Chantel Navy
● Table of Contents - Carla Ramirez
● Executive Summary - Chantel Navy
● Introduction - Sarah Williams
● Company Background & Current Stage in Growth Life Cycle - Carla Ramirez
● Detailed Financial Information (Microeconomics) - Sarah Williams
● Industry Landscape, Trends and Competitors (Macroeconomics) - Chantel Navy
● Recent Developments, Analyst Opinions & Consensus - Dana Flores
● Group’s Recommendation - All Members
● Conclusion - Dana Flores
● Works Cited - All Members
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Executive Summary
The Walt Disney Company, commonly known as Disney, is an American diversified
multinational mass media and entertainment conglomerate headquartered at Walt Disney
Studios in Burbank, California. In 1929, the company started out as a small movie studio called
Walt Disney Productions. This studio has since become the foundation on which The Walt
Disney Company was built.
In the summer of 1955, The Walt Disney Company opened its first theme park in
Anaheim, California. Disneyland consists of eight themed lands called, Main Street USA,
Adventureland, New Orleans Square, Frontierland, Critter Country, Fantasyland, Mickey's
Toontown, and Tomorrowland. On October 5th of the same year, the Disneyland Hotel opened
on a 6-acre lot next to Disneyland and had 990 rooms. Ten years later, in 1965, a larger scale
theme park was in the works and set to open near Orlando, Florida. Walt Disney, unfortunately,
did not live to see the park's completion, and on October 1, 1971, the park opened in his honor.
To date, there are four theme parks located at Walt Disney World alone, with a total of eleven
different theme parks worldwide. In addition to the theme parks, the Walt Disney Company also
has two water parks and a Disney Cruise Line.
In 2017, The Walt Disney Parks and Resorts segment alone, “generated $18.42 billion in
assets, which contributed to the $95.79 billion in total assets to-date” (Statista). With the
expansion of several park additions and various media/studio projects in progress, admission
prices may rise, but the Walt Disney Company still takes over 49.3% of the market share for
the U.S. amusement parks. The Securities and Exchange Commission noted an increase for the
products due to guest spending and got investors interested. The closing week on November 7,
2017, according to NASDAQ, (DIS) stock skyrocketed to over $100 dollars per share, after a
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month of being under. There is an estimated increase in price per share, with analysts
predicting that it will remain steady due to the improvements in each company-wide.
The main competitors for The Walt Disney Company (Theme Parks & Resort Division)
are Six Flags Entertainment (SIX), Cedar Fair (FUN), and Universal Studios, whose theme parks
are run by Comcast (CMCSA). Disney offers more than 31,000 guest rooms in its U.S. theme
parks alone, and due to steady growth in average room spending, hotel revenues have been on
an uptrend over the past few years. From 2010 to 2013, Disney’s theme parks also noticed
growth in attendance, as well as per capita guest spending.
Although The Walt Disney Company is a global brand, they offer incentives for in-state
residents, while trying to engage their international fans. To stay ahead of the competition, The
Walt Disney Company is constantly trying to expand and incorporate new ideas into their theme
parks. At the D23 Expo, Disney announced the official opening of the “Star Wars themed” land,
and other various attractions set to open at Disneyland and Disney World. The company has
such great brand awareness to the point that you could be anywhere in the world, and
immediately think of Disney when you see the black Mickey Mouse symbol. The Walt Disney
Company has become more than that symbol by truly understanding its customers while
continuing to thrive as a sustainable industry leader.
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Introduction
The Walt Disney Company’s Theme Park & Resorts division is a great example of a true
industry leader. As one of the largest media conglomerates in the world, the Walt Disney
Company, which started as the Disney Brothers Studio, has evolved into many other segments
that dominate the attraction world. The company has a total of eleven different theme parks
around the globe, four of which are located at Disney World, in Orlando, Florida. Major
contributions to the $95.79 billion in assets for media networks, studio entertainment, consumer
products, and interactive media. The Theme Park and Resorts segment alone contribute up
$18.42 billion of revenue for 2017. After researching DIS stock and the Walt Disney Company
as a whole, it’s clear why Disney is such a successful multinational media conglomerate.
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Company Background & Current Stage in Growth Cycle
In the early 1950s, Walt Disney began designing a huge amusement park to
be built near Los Angeles, California. According to History.com Disneyland was created, to have
an educational and amusement value as well as to entertain adults and their children. The Walt
Disney Company purchased land in the farming community of Anaheim, about 25 miles
southeast of Los Angeles, and began construction in 1954.
Walt Disney in front of Fantasyland during Disneyland grand opening.
During the summer of 1955, special invitations were sent out for the grand opening of
Disneyland that would be held on July 17th. Unfortunately, the passes were counterfeited,
causing thousands of uninvited people to be admitted into Disneyland on opening day. Due to
the fact that it was supposed to be a soft opening, the park was not ready for the public; food
and drinks ran out, a women’s high-heeled shoe got stuck in the wet asphalt of Main Street
USA, and the Mark Twain Steamboat nearly capsized from having too many passengers. Shortly
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after, Disneyland recovered and attractions such as Sleeping Beauty’s Castle, Mr. Toad's Wild
Ride, Snow White's Adventure, Space Station x-1, Jungle Cruise, and Stage Coach were added
to the park.
Walt Disney speaking during a national telecast of the opening of Disneyland.
On October 5, 1955, the Disneyland Hotel opened on a 6-acre site next to Disneyland
and had 990 rooms. The Disneyland Hotel offers two restaurants, a tiki bar, pools, a water play
area, and a variety of luxurious themed suites. The Walt Disney Company did not only acquire
hotels just for families; on January 18, 1958, the Ken-L Land pet Motel opened outside the
Disneyland main gate. It's convenient and affordable to have someone look over your pet. With
a rate of $20 dollars per pet. The pet motel is available only on a first-come, first-served basis
30 minutes before the park opens. In 1995, The Walt Disney Company purchased the Pan
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Pacific Hotel, and in 2001, changed its name to the Paradise Pier Hotel, a title which it still
carries today. In January 2001, Downtown Disney opened at a location that would later sit right
in between Disneyland and California Adventure. Downtown Disney offers a range of activities
from outdoor entertainment, to shops and dining. Disney's Grand Californian Hotel & Spa also
opened in January 2001. Shortly after, Disney's California Adventure theme park opened on
February 8, 2001. The 72-acre park is themed after the history and culture of California.
Costumed actors prepare for the parade celebrating the opening.
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Children rushing the Fantasyland castle at Disneyland.
In 1965, The Walt Disney Company began the process of creating a larger scale Disney
theme park and resort that would be set to open near Orlando, Florida. Although Walt Disney
unfortunately passed away before its completion, after seven years of planning, the park
opened in his honor on October 1, 1971. The grand opening had only about 10,000 visitors,
which allowed any problems that sprang up to be fixed with minimal inconvenience. According
to research, the Magic Kingdom, which “encompassed approximately 107 acres, featured
Adventureland, Fantasyland, Frontierland, Liberty Square, Tomorrowland, a Main Street USA,
and about 5,500 Cast members” (Disney History.com).
A few weeks later, Walt Disney World held a three-day grand opening celebration
starting on October 23rd. “Celebrities like Bob Hope, Julie Andrews, Rock Hudson, Jonathan
Winters, Annette Funicello and Fred MacMurray arrived in Orlando on that day to begin WDW's
official opening festivities” (Disney history). By October 25th the Admiral Joe Fowler Riverboat,
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Peter Pan's Flight, and 20,000 Leagues Under the Sea had all opened to guests as well.
Television cameras caught all the action over these three days for an October 29th broadcast.
By the end of October 1971, the total on attendance was around 400,000. The day after
Thanksgiving of that same year, 500,000 guests entered the Magic Kingdom.
Disney World under construction in 1969
Key dates leading up to Disney World's October 1, 1971, opening were:
● April 15, 1964 - Disney attorneys head to Florida to begin land purchases
● June 18, 1964 - Disney attorneys finalize large Central Florida land purchase
from Demetree Family
● May 04, 1965 - Rumors of East Coast Disney theme park circulate
● June 14, 1965 - Walt holds planning meeting for new Florida theme park
● June 25, 1965 - Attorney confirms anonymous buyer has completed all Florida
land purchases
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● November 15, 1965 - Disney formally launches Disney World project
● December 15, 1966 - Walt Disney dies at age 65
● December 17, 1966 - Roy O. Disney postpones his retirement to oversee
construction of Disney World
● December 17, 1966 - Roy O. Disney announces re-naming Disney World to Walt
Disney World, a tribute to his brother
● February 2, 1967 - Roy O. Disney outlines late brother's plan
● May 12, 1967 - Lake Buena Vista and Bay Lake are established
● May 30, 1967 - Site prep begins on Walt Disney World project
● September 26, 1967 - Compass East Corp. becomes Walt Disney World Company
● May 22, 1968 - Walt Disney Travel Company incorporated in Florida
● April 30, 1969 - Walt Disney World has first official press event
● May 6, 1969 - Railroad engines purchased for Walt Disney World Railroad
● April 6, 1971 - LOOK magazine reports on the nearly completed Walt Disney
World
● June 28, 1971 - Disney announces plans for an airstrip to be built on Disney
World property
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Walt Disney World grand opening parade.
The Walt Disney World Resort in Orlando, Florida, is one the world’s most popular
vacation destinations and is as big in size, as the city of San Francisco. The Walt Disney
Company has four theme parks, two water parks and three other resort destinations located at
the Disney World Orlando Resort. The Magic Kingdom spans 107 acres and opened October 1,
1971, making it the first, and smallest park to open at Disney World. The second park, Epcot
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opened on October 1, 1982, and spans across 300 acres, making it more than twice the size of
the Magic Kingdom. The third park, Disney's Hollywood Studios opened on May 1, 1989.
Disney's Hollywood Studios was designed to be a "half-day" park and offers only a handful of
attractions. The park covers 135 acres, making it larger than the Magic Kingdom, but still
smaller than Epcot and Disney's Animal Kingdom. The Animal Kingdom opened on Earth Day,
April 22, 1998, and is the fourth theme park built at the resort. The park is dedicated and
themed entirely around the natural environment and animal conservation, a philosophy
pioneered by Walt Disney himself. The Animal Kingdom park covers more than 500 acres, and
has over 250 different species, with a total of 1,000 animals.
Walt Disney World map
In addition to the four theme parks located at the Walt Disney World, there are also
three additional destinations guests can visit while at the Orlando resort. On March 22, 1975,
Lake Buena Vista Village opened. Lake Buena Vista Village at the time was, what is now called
Disney Springs, which up until September 2011, was known as Downtown Disney. Disney
Springs is a place where guests can explore the shops, dine and even enjoy live entertainment.
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As an addition to Disney’s Springs, Disney’s Boardwalk opened on July 1, 1996. The boardwalk
is a quarter mile promenade of exquisite dining, unique shops and exciting nightlife. Walt
Disney World's third destination is ESPN Wide World of Sports, which opened in 2008 and hosts
over 60 different sports and thousands of events for all ages.
Disney World’s Typhoon Lagoon
Disney World’s Blizzard Beach
Walt Disney World is also home to two water parks. Typhoon Lagoon opened June 1,
1989, and was the first water park to open at Disney World. It's a tropical oasis packed with
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innovative water rides, and features a Shark Reef as a main attraction. At Typhoon Lagoon,
guests are also able to snorkel and swim with real marine life. Disney World opened its second
water park, Blizzard Beach, on April 1, 1995. Blizzard Beach is modeled after a real ski resort
and has a variety of attractions such as a wave pool, speed slides, tube rides, and a kiddie play
area. The entire water park is surrounded by faux snow and ice. Before Typhoon Lagoon and
Blizzard Beach, there was Disney's River Country water park. River Country opened in 1976 and
was Disney World’s first water park. In 2001 the park was shut down due to maintenance
issues, and in 2005 it was announced that the park would not reopen. It has been left to rot
away for over 15 years, being covered by vines, weeds, and rust. In 2016 the 330,000-gallon
pool was drained and filled with concrete.
Tokyo Disneyland
Furthermore, the Walt Disney Company has a total of eleven different theme parks
across the globe. Tokyo, Japan was the first place the Walt Disney Company expanded to
outside of the U.S., and on April 15, 1983, Tokyo Disneyland Resort opened. In July 2000,
Tokyo Disney debuted Ikspari, a shopping, dining, and entertainment complex. Almost two
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decades after Tokyo Disney’s opening, on September 4, 2001, the resort expanded with Tokyo
DisneySea, a park with an overall nautical exploration theme. Disney’s second resort complex
outside the United States, Disneyland Paris, opened on April 12, 1992, as the Euro Disney
Resort. Disney Village, which is the Parisian equivalent to Disney Springs, also opened on April
12th, at the Euro Disney Resort. Walt Disney Studios, Euro Disney’s second theme park, opened
at the resort in 2002.
Sleeping Beauty’s Castle at Euro Disney
After expanding to Europe, the Walt Disney Company set its eyes on China. The Hong
Kong Disneyland Resort sits on reclaimed land beside Penny's Bay and opened on September
12, 2005. The resort is owned by Hong Kong International Theme Parks Limited, a joint venture
of the Government of Hong Kong and The Walt Disney Company. The park consists of four
lands— a Main Street U.S.A., Fantasyland, Adventureland, and Tomorrowland. The Hong Kong
Disneyland Resort includes three resort hotels and retail, dining and entertainment facilities
covering 320 acres of the island.
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Sleeping Beauty’s Castle at Hong Kong Disney
Hong Kong Disneyland characters
On November 4, 2009, the Shanghai Municipal Government announced that the
Shanghai Disney project had been approved by the national government, with an estimated
total investment of 24.5 billion Chinese yuan. The park opened on June 16, 2016, and covers
about 963 acres and is approximately three times the size of the Hong Kong Disneyland Resort.
The centerpiece of the park is the Iconic Enchanted Storybook Castle. The castle reaches up to
197 feet, making it the tallest, largest, and most interactive castle that represents all the Disney
princesses (AboutDisneyParks).
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Shanghai Disney’s Enchanted Storybook Castle
On August 29, 2011 the Walt Disney Company opened the Aulani “messenger of a chief”
Resort in Ko Olina, Hawaii. Aulani was inspired by the natural wonders and rich traditions of
Hawaii. Aulani sits on 21 ocean front acres, between verdant mountains and serene ocean.
Resort guests can enjoy golfing, shopping, dining, and different outdoor activities like water
sports, snorkeling, and fishing.
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Disney’s Aulani Resort
Disney’s Aulani Resort characters
In addition to their many theme parks and resorts, the Walt Disney Company has also
established the Disney Cruise Line. In February 1994, when Disney’s negotiations with Carnival
and Royal Caribbean, did not produce results, Disney had cruise ship designs immediately
drawn up. On May 3, 1994, The Walt Disney Company announced that they intended to start
their own cruise line with operations starting in 1998. Disney Cruise Line operates the Disney
Cruise Line terminal in Port Canaveral, Florida, and in May 1998, the first ship set sail. Disney
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Cruise line currently operates four ships: Disney Magic, Disney Wonder, Disney Dream, and
lastly Disney Fantasy. There are three yet-unnamed ships that will join in 2021,2022, and 2023.
Three as-yet-unnamed ships will be joining the fleet in 2021, 2022, and 2023.
A ship from Disney Cruise Line’s fleet & its’ characters
Even though its first theme park opened in California, the Walt Disney Company has
been able to spread their magical touch all over the world. According to Disney World
Discovery, the company has "a total of thirty-one resorts where the customer has the option to
choose from the Point Value to Deluxe Villas." Although the Walt Disney Company owns thirty-
one resorts and eleven theme parks, they will not stopping their expansion efforts anytime
soon. Currently, the company is working on a new theme land revolving around Star Wars with
the characters BB-8, Chewbacca, Rex, and Kylo Ren all being featured. Disney’s Hollywood
Studios is also scheduling to open its new Toy Story Land in the summer of 2018.
The Walt Disney Company is also expanding its resorts. The Disney Riviera Resort and
an Immersive Star Wars-Theme hotel are in the works. A new transportation system called
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Disney Skyliner is also in the early production stage; this will give guests a bird’s-eye view of
the Walt Disney World Resort. Another new transportation service featuring “Minnie” Vans has
been developed to offer a point-to-point transportation service for guests visiting the Orlando
Resort.
Detailed Financial Information -- Microeconomics
The Walt Disney Company is the largest media conglomerate and dominates the movie,
publishing, television, and theme parks industries. IBISWorld reported the media giant takes
49.3% of the market share for amusement parks in the United States. The segment as a whole
takes in $17.7B in revenue with a $3.5 billion profitability overall. The Walt Disney Company is
“responsible for 7.7% of the $18.8 billion revenue contribution to global tourism, and holds
about 1.1% of the market share” (Alvarez). With the current and projected new expansions to
their amusement parks, The Walt Disney Company is reported to have 8,733.7 million of
amusement park industry revenue. The operating income for the industry has proven to expect
strong growth at a rate of 13.4% to $1.6 billion this year, the Disney’s “annual operating
income is estimated at $13.78 billion” (Sayler). The Walt Disney Company in its entirety is
profitable and one of the most distinguished companies to date, as they continue to expand and
innovate their current assets while planning for the future.
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Walt Disney World’s Epcot
Walt Disney Parks and Resorts “generated $18.42 billion in assets, which contributed to
the $95.79 billion in total assets to-date” (Statista). The 2016 sales for this segment made
$16,974 and makes up 30% company wide. The United States’ leisure attractions industry
generated $37.9 billion in 2015 and is projected to earn 168.2 billion by the end of 2020 (SWOT
Analysis pp. 7). According to the same report, “Media Networks held a strong 42.6% of The
Walt Disney Company’s total revenue earnings last year. Park and Resorts is the next largest
contributor at 30.5%, then Studio Entertainment with 17%, and lastly, Consumer Products and
Interaction at 9.9%” (SWOT pp. 9). Forbes “estimates the attendance figure to cross 100
million by the end of [the] forecast period,” this attendance growth will also increase the
demand for Disney's hotels located in these theme parks. The Parks and Resort segment totaled
$55.5M during the 2016 fiscal year, and when you combine that with expected expansions
projected to open in 2019, the DIS stock will reach above $100 per share after being below for
over a month.
Disney’s attraction and theme park tickets have increased tremendously to make more
revenue for the 14-acre Star Wars expansion at Disneyland Anaheim. The expansion was
estimated at $1 billion price point, thus the noticeable ticket increases. LA Times stated that
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“On peak-demand days, a one-day adult ticket to Disneyland or California Adventure climbs to
$124, up from $119. On low-demand days, a one-day adult ticket jumps to $97, from $95,” and
a “three-day ticket to both parks, climbs from $295 to $315 for adults” (Martin). The famous
quote “if you build it, they will come,” could not be a more accurate statement, even with
higher ticket prices over the years, attendance keeps increasing, and there is no end in site for
the media giant. In Hong Kong, with assistance from the Hong Kong government, Disney built a
310-acre theme park totaling at $4.1 billion; Disney contributed $350 million, while Hong Kong
government owns 57% and picked up the remainder of the expenses. The different segments
can affect the company in many ways, but together, they are reflected in the success and
losses with the DIS stock, which happens to be one of the highest recommended stocks to
invest in.
Walt Disney World’s Disney Springs
Hoover’s financial data notes that DIS earned the total equity of $41,315, and $1,500
outstanding shares as of September of 2017. On November 2nd, the NYSE saw DIS come back
up into the triple digits after a month of being below it. NASDAQ analysts have the PEG Ratio at
2.20, a 9.41% earnings growth and forecast of the Consensus EPS of 6.24 for September 2018.
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At market close, as of November 19, 2017, the P/E Ratio was 18.18 with a Forward P/E after a
year at 16.60. The current yield sits at 1.50% and market cap at $159,657,670,606 (Walt). The
2016 10-K Form released by the Securities and Exchange Commission reported that the
Disneyland Shanghai Resort cost around $156 million to build and $53 million in restructuring
and impairment charges. The 10-K also noted the “cost of products for fiscal 2016 increased
3%, or $167 million, to $5.3 billion, due to the Infinity Charge, higher guest spending and cost
inflation at our domestic parks and resorts” (Iger). Although there was a setback on the
international side and attraction depreciation on the domestic front for the Walt Disney
Company, it still stands as one of the most differentiated conglomerates in the world.
Industry Landscape, Trends and Competitors -- Macroeconomics
The Walt Disney Company’s theme parks and resorts, as well as Disney Cruise Line,
compete with other forms of entertainment, lodging, tourism, and recreational activities. “The
profitability of the leisure-time industry may be influenced by various factors that aren’t directly
controllable, such as economic conditions, travel industry trends, the amount of available leisure
time, oil and transportation prices, and weather patterns and natural disasters” (Market Realist).
All of the Walt Disney Company’s theme parks and its associated resort facilities are operated
on a year round basis. The theme parks and resorts business usually experience fluctuations in
attendance and resort occupancy resulting from the seasonal nature of vacation travel. Peak
attendance and resort occupancy generally occur during the summer months, when school
vacations occur, and during early-winter and spring-holiday periods.
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Animal Kingdom’s Tree of Life
The Walt Disney Company offers more than 31,000 guest rooms in its U.S. theme parks
alone. The room revenues for Disney’s hotel properties have been on an uptrend over the past
few years, due to the steady growth in average room spending, which increased from $227 in
2010 to $283 in 2014. During the same time period, Disney’s theme parks also witnessed stable
growth in attendance, as well as per capita guest spending. Per capita guest spending had
increased from $95 in 2009 to $131 in 2014. This can be primarily attributed to higher ticket
prices and growth in disposable personal income on better macroeconomic conditions. Disney
also introduced MyMagic+ in 2014. MyMagic+ is a ticketing system for Disney’s resorts and it
can function as a room key, entry ticket to the parks and for payments to be made in the park
for food, beverage, and other services.
The main competitors for The Walt Disney Company (Theme Parks & Resort Division)
are, Six Flags Entertainment (SIX), Cedar Fair (FUN), and Universal Studios, the theme park
chain controlled by Comcast (CMCSA). In recent years, competition in this segment has
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intensified due to Universal’s Harry Potter—themed addition that has boosted attendance to its
parks. According to the Orlando Sentinel, the parent companies of Walt Disney World and
Universal Orlando are “on major spending sprees as they build increasingly elaborate attractions
to compete with each other” (Pedicini). On May 25, Universal Orlando debuted its Volcano Bay
water park; and two days later, Walt Disney World opened Pandora The World of Avatar, at its
Animal Kingdom theme park. The Walt Disney Company is also working on “Star Wars” land,
which will open in 2019 at Disney World and Disneyland. Those are said to be Disney’s answer
to Universal’s Wizarding Worlds of Harry Potter, which opened in 2010, in Orlando, and 2014 in
Los Angeles. The Wizarding Worlds of Harry Potter at Universal Orlando Resort will have a
brand new addition in 2019. The attraction will be added to the Hogsmeade section, and “is set
to be one of the most highly-themed coaster experiences’ the theme park destination has ever
introduced” (Rowling). Universal is also opening Fast & Furious - Supercharged ride next year,
and it plans to open a Nintendo-themed land sometime in the future.
In 2018, The Walt Disney Company will have a new competitor, Twentieth Century Fox.
Fox announced a licensing partnership with Al Ahli Holding Group that will result in the
construction of a theme park and resort in Dubai. 20th Century Fox World, Dubai, will boast a
series of themed lands, with amusement park attractions, themed restaurants, and stores. The
park will also be “Fox-branded and will tap into the studio’s entertainment library” (LATimes).
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Animal Kingdom’s Pandora the World of Avatar
Since they’re such a global brand, there are many different aspects of the Walt Disney
Company’s industry landscape. The local market positioning for The Walt Disney Company is
offering better deals to in-state residents, while the national market positioning is, knowing how
to really engage the fans and keep them interested. The global market positioning for the
company is the same as nationally; in addition to knowing how to engage the customers, their
goal is also for the park to have a feel of accessibility with a touch of exclusivity. The Walt
Disney Company is a sustainable company and is constantly making an effort to stay that way.
One way they support the sustainability strategies is by developing, implementing and
maintaining a supplier sustainability program.
Recent Developments, Analyst Opinions & Wall Street Consensus
The Walt Disney Company has many developments underway. Most are to create a new
attraction, renovate a park, or dive into a different market to attract more guests into its parks
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and resorts. During the D23 Expo, a biennial event that focuses on the company’s current
developments, it was revealed the development of several projects that will lead the company
into a period of growth. Such developments include the Star Wars Galaxy Edge attraction that is
set to open in 2019. According to one of the company’s chairman, Robert Chapek, “The scale of
the attraction is unlike anything we’ve ever done before” (Levine). The attraction will include
Millennium Falcon and Star Wars Battle attractions as well. It was said that guest will feel as
though they are inside a Star Destroyer. Not only is the company bringing Star Wars to life, but
guest will be able to sleep among Wookies and Jedi Knights at the soon to be Star Wars themed
hotel. This will definitely attract all the Star Wars fans looking to experience what it’s like to be
among this galaxy. Mr. Chapek also said the Star Wars hotel is “the most experimental concept
ever” (Levine). There is no doubt these attractions will be a success due to the popularity of the
films, the latest to be released in December of this year.
Star Wars: Galaxy’s Edge model
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Star Wars: Galaxy’s Edge model
Walt Disney World’s Epcot, located in Orlando, Florida, will soon be going through major
changes. The 35-year old park initially had an edutainment focus geared towards adults. After
the recent Frozen ride debuted, “Disney realized the park needs more character themed
attractions to gain the attention of children” (Barnes). Although the original vision will remain,
some rides such as the fossil fuel ride and Living With the Land will be replaced. The company
is also aware of the growth and constant competition with new technology, which has led the
company into the immersion of E-sports. The Walt Disney Company owns one of the most
innovative sports facilities in Orlando, and will now be hosting video game championships at the
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facility located at the Walt Disney World Resort. It is hoped that because the competitors are
young and travel with family, it will bring business to the on-site hotels and parks (Sylt). There
are many events that take place throughout the year near the Orlando parks and resorts, which
attract business and generate high resort occupancy. The new approaches and developments
will allow Disney to reach new generations in multiple ways that will keep them interested.
The Walt Disney Company has debuted new attractions, while others are underway,
some of which have brought in higher revenue. In the past 12 months the company’s stock has
slightly dropped, but is “predicted to reach median levels” (NASDAQ). According to the
consensus recommendation among 31 investment analysts, the company’s current stock is
outperformed. Meaning it is expected to do better and reach higher value levels (4-Traders). It
is possible that the stock will have higher values in the near future, due to the coming changes
the company will be implementing. In the meantime, according to CNN Money, 27 analysts who
provided a price forecast for Disney, estimated an increase of +16.93% from the last stock
price. The Walt Disney Company’s shares “continue to bring positive attention from analysts,
while the buying predictions have been steady since last month” (Yahoo! Finance). The Walt
Disney Company stock seems to continue at a steady level due to the other business categories
it has on the market—cruises, merchandise, and movies. These are constantly continuing to
bring in revenue, which allows the company to have positive stock value while also working
towards company growth.
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Model for upcoming Toy Story Land
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Group’s Recommendation
Working on this report has been very beneficial in learning how such a well-known,
global brand works and operates. After a group discussion, we have come up with some
recommendations we have for the company.
Since they’re always expanding, it would be beneficial for the Walt Disney Company to
offer special inside looks at Disney studio projects, or even theme park exclusives to boost
publicity. Doing this would allow the company to use that money for the expansion, instead of
raising ticket prices, which will ultimately result in better customer satisfaction.
The next recommendation is to offer more deals for booking with Disney and not the
third-party vendors. The company could be missing out on a lot of potential business, due to
companies like AAA and Costco offering better vacation packages than Disney themselves.
Another recommendation for the company is, to incorporate more diverse characters
into their parks. Incorporating attractions with Pocahontas, Mulan, Princess Jasmine, Princess
Tiana and Moana will add more diversity to the Disney theme parks. Adding attractions with any
of those characters will show that the Walt Disney Company is recognizing the importance of
having diverse characters within its parks and resorts.
The final recommendation for the company is, to consider sticking with its classic
concept and not incorporating too much change. Although new rides and attractions can appeal
to more consumer markets, many park visitors are disappointed by the fact that some of their
favorite childhood rides are no longer available. This can reduce older visitors desire to attend
their theme parks.
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Conclusion
The Walt Disney Company has become a pioneer in the entertainment industry since the
opening of its first theme park in 1955. Due to its success the company has been able to spread
the magic around the world by opening new theme parks and resorts. Its strong presence in
the amusement park segment has made it one of the top competitors and continues be a
strong brand in the industry. With the current growth and development the company is
experiencing it is sure to attract new and current generations. There is no doubt the company
will revolutionize the industry with the debut of its most experimental concepts ever.
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