First, read the following articles/watch the videos:
- “How Disney Makes Money? Understanding Disney Business Model Core Elements” Links to an external site.via R&P
- “The Secrets Behind Disney’s $2.2 Billion Theme Park Profits” Links to an external site.via Forbes
- “The Walt Disney Company” Links to an external site.via Wikipedia
Then, please respond to the questions below (about 10 sentences for each question). Then Respond (in 5 or more sentences) to two or more posts made by your classmates ( will attach to posts by classmates below)
- What is the business model/strategy of Disney?
- Which of the 10 operations decisions are covered in the above links?
- Do you think the Disney operations are aligned with their business model?
1. The business model for Disney consists of five elements. Those elements are Disney’s media networks, parks and resorts, studio entertainment, consumer products, and interactive. From my perspective, the business strategy of Disney is to constantly evolve and adapt to remain relevant on a global scale throughout changes in society. The evolution of a creator’s initial plan and design may be hard to maintain and scale for future growth. The ability to remain a formidable competitor over time is no small feat. To endure, among other things, Disney has a strategy to possess progressive and forward-thinking minds, as well as a loyal fan base, and the unwavering propensity to hold true to their core beliefs and mission statement. From the company’s inception, Disney has prided itself on being steadfast in its approach to family-oriented fun. It is the company’s mission, in part, ‘to entertain, inform, and inspire the globe through their storytelling.’ Some of Disney’s core values include community, decency, and innovation. The incorporation of this strategy, the business model, and the core values are reflected in the company’s efforts to plan, design, and execute all their experiences and offerings. Overall, the strategies and business model employed by Disney has propelled the organization into a national and international conglomerate, dominating as some of the globe’s most popular theme parks.
A few of the ten operating decisions were revealed in the articles. The design of goods and services is demonstrated in Disney’s business model and the vast array of product offerings. This is highlighted in “How Disney Makes Money? Understanding Disney Business Model Core Elements,” by Margaret Visnji. The model described in the feature demonstrate all the segments geared to Disney’s consumers’ needs. Disney listens to what their consumers want and desire. Products by way of merchandise or experiences are then created based on these wishes. Quality management is carefully measured, and this is echoed in the Forbes article, “The Secrets Behind Disney’s $2.2 Billion Theme Park Profits” by Christian Sylt. The story features astonishing statistics that state that Disney retains a command of the top ten list of theme parks visited throughout the world. The management and statistical process control is also featured in this article, as metrics are constantly measured and utilized by Disney to improve consumer attendance. Location and layout strategies, along with inventory management, were also addressed in this article. The location of gift shops for shopping with ease when exiting attractions, is an example of a location strategy Disney uses that is a part of the operation decision. A new upcoming attraction to the Paris Park would potentially reimagine the layout, which would boost traffic and Disney’s bottom line. Layout in this case would be the capacity needs, technology, personnel levels, and inventory requirements that go into the new design. In the future of planning for the park in Paris, inventory management by way of recognizing the need for additional hotel accommodations was mentioned. This will be addressed by a 400-room facility that was scheduled to be opened.
In my opinion, I believe that Disney’s operations are aligned with their business model. Each segment of the business model is divided and has focused attention devoted to the differing aspects within that unit. I believe that the operations management for each segment varies as each area has unique needs. This is noted by the specifics of the model and all the manners by which Disney earns its revenues. Operations management for each factor of the model plays a huge role in the overall success of the company. The operational management which includes the all the ways that Disney’s products and services are produced for society’s well-being is carefully orchestrated and maintained. The attention that operations management plays for each of these segments is overwhelming to me. There are many moving parts in the world of Disney that are required to sustain the business wholly. For me, I recognize that operations management absolutely plays a crucial role in the cohesion of Disney’s business model that leads to its success.
2. What is the business model/strategy of Disney?
Disney’s business model is split into five different categories that have allowed the company to amass billions in revenue yearly. Media Networks such as cable television, radio stations, including networks such as ESPN, Disney, ABC Network are all a part of the media network category. Disney makes additional revenue off this sector for affiliate fees for cable television, advertising, and sales of media to stations or for DVD’s. Expenses incurred for this part of the model are related to distribution and operational labor costs. Parks & resorts are another major model that makes Disney what we all know it as today. There are various locations around the world with two locations in the United States in Florida & California, including globally in Tokyo, Hong Kong, & Paris. Most of Disney’s revenue in this sector comes from park tickets, merchandise, and hotel costs, with expenses such as property management and direct staff labor. Disney is also known for its live action and animated pictures within its Studio Entertainment model. Revenue is accounted for by ticket sales in theaters & recorded music, where expense can vary within production and participation cost. Disney also has a lot of merchandise that varies from T-shirts and collectables, Consumer products within the business model includes merchandise online and in-stores. Sales and licensing characters to 3rd parties add to revenue while expenses are dependent on operational labor & retail cost per location. Interaction is the most important when it comes to revenue with sales or consumer goods sales. Branded games with online advertising helps Disney increase their revenue, while expense is based on labor and retail cost.
Which of the 10 operations decisions are covered in the above links?
Disney covers all of the 10 operations within their business model. Disney designs many services and goods that they sell at there parks and advertise on there media channels. Managing quality is also very important as Disney ensures that all of there products or productions are up to snuff with what audience members love. In order to have consistent quality and how the service is produced process and capacity design is also prevalent within Disney operations. Location Strategy is important as consumers have to have the ability to access products or live entertainment, thus why Disney has multiple park locations all over the world. Layout Strategy allows Disney operations to plan out what type of technology or material is needed to produce television shows or how much product is needed to produce a Mickey Mouse plush toy. In order to productively run all of the Disney parks and live entertainment Disney utilizes the Human Resources and Job Design to make sure all operations have the best talent for performance. Disney also requires major use of the Supply Chain management decision depending on how much product, labor cost, and material is needed to carry out business functions. Inventory Management is also utilized as consumers may want to purchase different movies, or merchandise, it is important to have all products in stock to make adequate sales. In order to make all business decisions happen it is imperative that Disney uses Scheduling strategy to make sure all operations happen in the allotted time for customer waiting, facilities, and ordering of products. Lastly to maintain all of parks and production Disney also makes Maintenance decisions to makes sure all facilities are working properly and production demands are met.
Do you think the Disney operations are aligned with their business model?
Disney’s operations and their business model coincide with one another to make the bigger picture of there revenue and popularity. Disney’s clear picture for there company as a whole from their mission statement “to entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.” This statement aligns with the five sectors of there business model including the ability to deliver to their consumers consistently building Disney into the empire we know it as today. Operations management allows Disney to give the consumer what they want as far as new entertainment options for live shows or additional collectables for merchandise. Consumers also gave Disney the drive to make sure that new rides and attractions at their parks were available to keep customers coming back. These few options given to Disney consumers would not be possible if Disney was not directly correlating their operations with there business model such as Locations strategy and managing quality. Each part of Disney’s operation management is like a domino effect if one portion of the business model or operation is not performed properly another piece will fall. Disney’s operations are unparallel by taking the brand globally and selling to 3rd parties in order to extend reach to those who may not have access to Disney retail spaces or parks based on location. The production of this company paved way for a billion dollar revenue yearly that is continuously growing and providing jobs to millions around the world. Disney has aligned its model and operations to allow for continued success and improvements for more exciting entertainment to come year after year.