Selecting A Strategic Option For Walt Di

d
Selecting a Strategic Option for Walt Disney
AUTHOR: Anthony Olabode Ayodele

COURSE: International Marketing
SUPERVISOR: Kelly Strong
MODULE: PT 304 PT304
An
international
Marketing
strategy for
Walt Disney
Choosing a Arrowhead Strategic Options for Walt Disney, By Anthony Ayodele Page 1
An
international
Marketing
strategy for
Walt Disney
Selecting a Strategic
Option for Walt Disney
ABSTRACT: The purpose of this report is to

analyse the Theme Park industry and the
various markets that make it up. It also
looks at Walt Disney as a player within the
industry and seeks to identify the resource
based value (RBV) internal strengths and
weaknesses, external threats and
opportunities of the organisation from the
Park and Resorts segment perspective. It is
also seeks to analyse the challenges,
competition and competitive advantage of
the company on a similar basis. All with the
view of arriving at a Strategic Option to
move the company forward.
NB: This report references and is based upon

the Chartered Postgraduate Diploma in
Marketing (Level 7) Dec 201, March 2013
Analysis and Decision Case Study linked here :
CIM Case Study
AUTHOR: Anthony Olabode

Ayodele COURSE:
International Marketing
SUPERVISOR: Kelly Strong
MODULE: PT 304
An
international
Marketing
strategy for
Walt Disney
TABLE OF CONTENT
TABLE OF CONTENT ......................................................................................................................................... 3
1 SUMMARY SITUATION ANALYSIS ........................................................................................................... 5
1.1 INTRODUCTION ............................................................................................................................... 5
1.1.1 THEME PARK INDUSTRY BACKGROUND .................................................................................. 5
1.2 AUDIT SUMMARY OF WALT DISNEY ................................................................................................ 6
1.2.1 WALT DISNEY AND WALT DISNEY PARK AND RESORTS BACKGROUND .................................. 6
1.3 WALT DISNEY PARK AND RESORT TIMELINE ................................................................................... 7
1.4 PUPOSE OF THIS REPORT................................................................................................................. 7
1.5 APPROACH TOWARDS ACCOMPLISHING THE TASK AND MODULES USED ..................................... 8
1.5.1 CHALLENGE OF MODULE SELECTION AND STRATEGIC OPTION SELECTION PROCESS ............ 8
1.6 THE WALT DISNEY SWOT TOWS MATRIX ........................................................................................ 9
1.7 HOW THE THREE STRATEGIC OPTIONS AND THE SINGLE OPTION TO PURSUE WAS ARRIVED AT . 9
1.7.1 AFASOS MODULE ................................................................................................................... 10
1.8 STEP BY STEP PROCEDURE TO ARRIVE AT AN ARROWHEAD STRATEGIC OPTION FROM
NUMEROUS STRATEGIC OPTIONS TO CHOSE FROM. ................................................................................ 11
1.9 TABLE SHOWING SUMMARY OF STRATEGIC OPTIONS FOR .......................................................... 11
WALT DISNEY BASED ON MODULES .......................................................................................................... 11
1.10 COMBINING STRATEGIC OPTIONS TOGETHER TO FORM STRONGER STRATEGIC OPTIONS ......... 14
1.10.1 SELECTING THE THREE PRIMARY OPTIONS (COMBINING RELATED OPTIONS). .................... 15
1.11 SUITABILITY ACCEPTABILITY FEASIBILITY (SAF) FRAMEWORK ..................................................... 16
1.12 ASSESMENT OF PRIMARY STATEGIC OPTIONS FOR WALT DISNEY ............................................... 18
1.13 JUSTIFICATION OF FINAL SELECTED STRATEGIC OPTION .............................................................. 21
1.14 MARKETING MIX FOR PROPOSED WALT DISNEY FOOD CHAIN ..................................................... 23
2 APPENDIX............................................................................................................................................... 24
2.1 MODULES PRODUCED TOWARDS ACHIEVING THIS TASK ............................................................. 24
2.2 THE INTERNAL FACTORS EVALUATION MATRIX ............................................................................ 26
2.3 THE EXTERNAL FACTORS EVALUATION MATRIX............................................................................ 27
2.4 THE WALT DISNEY TELESCOPIC FRAMEWORK .............................................................................. 27
2.5 THE WALT DISNEY COMPETITIVE PROFILE MATRIX ...................................................................... 35
2.6 ANSOFF EXTENDED MATRIX .......................................................................................................... 35
2.7 MARKET ATTRACTIVENESS MATRIX .............................................................................................. 36
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2.8 HOFSTEDE’S CULTURAL DIMENSIONS ........................................................................................... 38

2.9 WALT DISNEY VRIO FRAMEWORK MODULE ................................................................................. 39
2.10 WALT DISNEY VALUE CHAIN .......................................................................................................... 40
2.11 WALT DISNEY’S BOWMAN’S STRATEGIC CLOCK............................................................................ 41
2.12 WALT DISNEY MARKET ATTRACTIVENESS/BUSINESS SEGEMENT GE MATRIX .............................. 50
2.13 WALT DISNEY EXTENDED SWOT ANALYSIS ................................................................................... 51
2.14 BCG Matrix..................................................................................................................................... 62
2.15 MARKET SEGEMENTATION ............................................................................................................ 63
2.15.1 DEMOGRAPHICS .................................................................................................................... 63
2.15.2 PSYCHOGRAPHIC ................................................................................................................... 64
2.15.3 BEHAVIOUR............................................................................................................................ 65
2.16 MARKET ENTRY STRATEGIES ......................................................................................................... 65
2.17 MARKETS THAT WALT DISNEY PARK AND RESORTS OPERATES IN ............................................... 68
2.18 WALT DISNEY PESTLE..................................................................................................................... 68
2.19 VALUE CHAIN ANALYSIS................................................................................................................. 70
2.20 ORCHESTRA MODEL ...................................................................................................................... 70
3 CONCLUSION ......................................................................................................................................... 71
4 BIBLIOGRAPHY ....................................................................................................................................... 73
Table of Figures
Figure 1 WALT DISNEY PARK AND RESORT TIMELINE ............................................................................... 7

Figure 2 THE WALT DISNEY SWOT TOWS MATRIX .................................................................................... 9
Figure 3 THE AFASOS MODULE ..................................................................................................................... 10
Figure 4 INTERNAL FACTOR EVALATION (IFE) MATRIX.................................................................................. 26
Figure 5 THE EXTERNAL FACTORS EVALUATION (EFE) MATRIX............................................................... 27
Figure 6 THE WALT DISNEY COMPETITIVE PROFILE MATRIX .................................................................. 35
Figure 7 COMPETITIOR ANALYSIS PROFILE.................................................................................................... 37
Figure 8 HOFSTEDE'S CULTURAL DIMENSION PROFILE ................................................................................. 38
Figure 9 VRIO FRAMEWORK .......................................................................................................................... 39
Figure 10 VALUE CHAIN ................................................................................................................................. 40
Figure 11 -25 BOWMAN STRATEGIC CLOCK DIAGRAM'S .............................................................................. 49
An
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Walt Disney
QUOTE 1 SUMMARY SITUATION ANALYSIS

1.1INTRODUCTION
‘’ The industry grows along
the trends of economic 1.1.1 THEME PARK INDUSTRY BACKGROUND
growth, signified by The theme park, being an off-shoot of the entertainment park
improved Gross Domestic industry (only differing in the sense that the former has a
Product. Thus, as this report theme built around it) reportedly started off with what could
be considered as the most global entertainment based theme
will reveal, based on data
of all; a theme park built around Santa Claus (Father Christmas)
provided in the case study,
at the Santa Claus Land in Santa Claus, Indiana United States in
countries with improved
1946.
GDP figures over the years
like China have well, out- Nine years later, Walt Disney, renowned for his success in the
performed more stagnant animated film industry, set up the Disneyland Theme Park in
countries like United California. Ever since other theme park operators have sought
to play catch-up with the highly creative U.S originated
Kingdom in terms of Theme
company that has since raced ahead across major cities around
park industry performance
the globe to keep the world’s theme park industry alive.
over the same period.
The Theme park industry is a high cost, highly competitive
terrain. There are the dominant major key players like Walt
Disney, Merlin Entertainment, and Universal Studios who have
a high felt impact and presence on major regional markets.
These are closely followed by the not too dominant players like
six Flags and OCT, who have their fair share of the market, but
work behind the major key players, to maintain a strong
presence in various regions where they are found.
Today, Walt Disney, strongly positioned in the US, Asia and

Europe, owns the world’s most successful theme parks by
virtually any parameter: this includes the world’s top eight
theme parks alongside owning the highest number theme parks ( eleven) amongst the world’s top 25 (CIM
CaseStudy,
IMAGE: Higher2013) .
York E-Learning Staff 2013 Staff
Survey Logo
The group has competition in Universal Studios which apparently has positioned itself in the same
geographical market as Walt Disney and owns four out the world top 25 theme parks with the strongest
among them based in Tokyo, Japan; two of these based in Florida and one in California; all Walt Disney
strong areas.
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UK based Merlin Entertainment seems to have cornered the UK market putting together a number of
acquisitions that have seen it dominate and virtually own the industry in the region. It also very strong in
European countries such as Germany. In terms of volume it is the second largest theme park, having
registered a visitor volume of 46.40 million in 2011, rising from 41 million in 2010. This is only second to
Walt Disney Group figures of 121.4 and 120.60 million in the respective years. (CIM CaseStudy, 2013) .
Other strong players in the industry include Six Flags (which is also strong in the US); Sea World Parks and
Entertainment and, OCT Parks; presently dominating the ever increasingly growing market of China.
The industry operation is spread out across major regional markets across the globe with The United States
serving as the main performing market. Others include a strong but seemingly stagnant Europe followed by
a rapidly growing Asian market.
The industry grows along the trends of economic growth, signified by improved Gross Domestic Product.
Thus, as this report will reveal, based on data provided in the case study, sees countries with improved GDP
figures over the years like China well out-perform more stagnant countries like United Kingdom in terms of
Theme park industry performance over the same period.
The fact that expenditure on theme parks is discretionary and not a necessity has made this obvious.
1.2 AUDIT SUMMARY OF WALT DISNEY

This can be found in the PESTEL (see Appendix) conducted for this report. The Internal Factor Evaluation
(IFE) and External Factor Evaluation (EFE) models however (see appendix for both modules) retuned a score
of 3.10 and 2. 6 respectively. This suggest that internal factors that support Walt Disney (score of 3.10) are
stronger and have a greater positive impact on the company that the external factors, which at 2.6 are just
about average. (See factors and how they were scored in diagrams in appendix). Thus, efforts need to be
made concerning the impact of the external factors towards strengthening Walt Disney’s position. It is
hoped the Strategic option arrived at in this report will do just that in line with the organisations vision,
mission and objectives stated in the case study (see case study).
1.2.1 WALT DISNEY AND WALT DISNEY PARK AND RESORTS BACKGROUND
As pointed out above Walt Disney, an animated cartoon film based organisation which built its very first
theme park in California in 1955, is the present dominating force in the Theme Park industry. Walt Disney
operates in five Key Business Segment areas being: Studio Entertainment, Consumer Products, Interactive
Media, Media Networks and Parks and Resorts. The focus of this Report is on the Parks and Resorts
segment.
Since its first Park and Resort in California mentioned earlier, Walt Disney has situated 13 Theme parks
across the world with the last billed to open in Shanghai, China in 2016. A timeline of theme parks owned
by Walt Disney across the world with relevant data about them is seen below:
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1.3 WALT DISNEY PARK AND RESORT TIMELINE
Figure 1 WALT DISNEY PARK AND RESORT TIMELINE
1.4 PUPOSE OF THIS REPORT

The purpose of this report is to analyse the industry and the various markets that make it up. It also looks
at Walt Disney as a player within the industry and seeks to identify the resource based value (RBV) internal
strengths and weaknesses, external threats and opportunities of the organisation from the Park and Resorts
segment perspective. It is also seeks to analyse the challenges, competition and competitive advantage of
the company on a similar basis.
Moving forward the overall objective is to re-position the company based on this analysis to gain further
competitive advantage in the industry by taking advantage of a justified, best of three analysed
international strategic market expansion options, premised on ensuring Walt Disney remains the industry
leader it is in years to come.
This to be accomplished through the assignment outline which in part requests that one should:
Towards accomplishing strategic growth internationally for Walt Disney Park and Resorts identify
three or more potential strategic options for the organisation to pursue.
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Justify the organisations embankment on one of the options recommended above, providing
rational for the selected market.
State a marketing mix to be implemented by the organisation towards accomplishing the selected
strategy.
1.5 APPROACH TOWARDS ACCOMPLISHING THE TASK AND MODULES USED
Towards accomplishing the task set out and the objectives of this report, we have selected and
used a number of modules designed to analyse aspects of the industry; Walt Disney as an
organisation and, the Parks and Resorts Business segment.(see Appendix for MODULES PRODUCED
TOWARDS ACHIEVING THIS TASK).
Though the author is aware that there are numerous modules that could be used towards
accomplishing this objective (too many for all be produced here) those selected have been chosen
on the basis with which one is comfortable that they can be used to sequentially arrive at the overall
objective as listed above (See Appendix for a comprehensive list of modules).
Likewise, much of the data provided in table format in the appendix found within the case study has been
re-produced in graphical bar chart format to present them in a clearer manner, making the information
more easily analytical. (see Case Study Appendix and Appendix in report).
It is on the basis of the analysis arrived at within the modules and the data re-produced in the tables that
the three strategic options recommended for Walt Disney is arrived at and a minimum of one of these (or
more if time permits) is justified.
1.5.1 CHALLENGE OF MODULE SELECTION AND STRATEGIC OPTION SELECTION PROCESS

Around 15 modules were used to generate 23 Strategic Options arrived at in this report. The author
considered that each module among the numerous available has a unique approach in option selection and
as many as possible should be used.
Since only one Strategic Option is to be presented to the organisation the challenge was which tool(s) could
one use to select the most suitable Strategic Option. The SAF (Suitability, Acceptability Feasibility) Matrix
or Module, though suitable for option sections would be out of place to use it when dealing with as many
as 23 Options.
Thus the author devised and designed a separate tool/module called the Anthony’s Funnelled Arrowhead
Strategic Option Selecting (AFOSOS) Module (see below). This module (combined with the SAF Module) is
used to arrive at a final option which we have tagged ‘Arrowhead Strategic Option’ for Walt Disney
(explained later).
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Also immediately below one of the Modules used (Swot/Tows Module) is presented showing how
numerous options are generated by just one module. For this reason some of the related options are
combined together to give secondary options before the overall strategic option is arrived at.
The remaining modules used in this report are found in the Appendix.
1.6 THE WALT DISNEY SWOT TOWS MATRIX
Figure 2 THE WALT DISNEY SWOT TOWS MATRIX
In the diagram (figure 2) above the strengths and weaknesses of Walt Disney along with the
Opportunities and Threats were used to offset each other (for example strengths were used to
offset weakness and threats; one after the other; then opportunities used to off-set threats and
weakness likewise) to arrive at various strategic options from which the three major options for
this report could be chosen from.
How those options are eventually chosen is highlighted in the next section of this report.
1.7 HOW THE THREE STRATEGIC OPTIONS AND THE SINGLE OPTION TO
PURSUE WAS ARRIVED AT
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1.7.1 AFASOS MODULE

The below module, tagged the AFASOS Module (Anthony’s Funnelled Arrowhead Strategic Option Selecting
Module) The AFASOS Module was designed to help select an arrowhead strategic option from numerous
strategic options made available to Walt Disney.
The initial options to select the final strategic option (which here is tagged the: Arrowhead Strategic Option)
from, were arrived at using various modules. These options were further narrowed down to a lesser number
with the latter list tagged as primary strategic options.
In this report’s case over 15 modules (listed below and mainly found in the Appendix) were used to analyse
the case Study provided. Twenty- three (23) options (called secondary strategic options) were arrived at
while the AFASOS Module selection process narrowed this down to three Primary strategic options.
The three Primary Strategic options (from which the Arrowhead Strategic Option was chosen from) were
then run through a SAF (Suitability, Acceptability Feasibility) module table and scored accordingly. On the
basis of this scoring the final strategic option called the arrowhead strategic option (in the sense that we
recommend it is the strategic option Walt Disney should work on first, given the circumstances provided)
is then arrived at.
After the Arrowhead Strategic Option is arrived at and justified a marketing mix is devised for its
implementation.
Figure 3 THE AFASOS MODULE
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1.8 STEP BY STEP PROCEDURE TO ARRIVE AT AN ARROWHEAD STRATEGIC

OPTION FROM NUMEROUS STRATEGIC OPTIONS TO CHOSE FROM.
STEP 1 SECONDARY STRATEGIC OPTIONS: Analyse available data with various chosen modules (e.g., SWOT,
BCG, GE Matrix etc.) suggesting as many strategic options as you can; each one, multiple times if necessary.
STEP 2: Draw up a table showing number of times each strategic options is mentioned in each module.
STEP 3: Give major score each time an option is mentioned in a module (5) and minor score (2) each time
it is mentioned more than once in the same module
STEP 4 (PRIMARY STRATEGIC OPTIONS): Calculate scores and combine possible related strategic options
together to give primary strategic options.
STEP 5: Run options through SAF, scoring each based on chosen parameters.
STEP 6: (ARROW HEAD STRATEGIC OPTION): Choose arrowhead strategic option.
STEP 7: Devise marketing mix to release arrowhead strategic option.
1.9 TABLE SHOWING SUMMARY OF STRATEGIC OPTIONS FOR
WALT DISNEY BASED ON MODULES
STRATEGIC OPTION MODULES WHERE FOUND (AND NUMBER OF TIMES NUM SCORE
MENTIONED IN MODULE) BER
OF
MOD
ULES
MEN
TION
ED IN
1. DIGITAL SWOT/ TELESCOPIC 2 10+4+6=
MARKETING TOWS (2) OBSERVATION 20
LEVERAGED BY (3)
BRAND EQUITY
2. GROWTH IN ASIAN SWOT/ BOWMAN’S BCG 3 15

MARKETS TOWS STRATEGIC MATRIX
CLOCK
3. ASIAN THEME SWOT/ TELESCOPIC EXTENDED 3 15+4 =
ANIMAL TOWS OBSERVATION ANSOFF 19
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KINGDOM PARK & MATRIX (2)

RESORT IN ASIA
4. SET UP R & D IN SWOT/ TELESCOPIC VRIO EXTEND 4 20+4= 24

TECHNOLOGY TOWS (2) OBSERVATION FRAMEWORK ED
SWOT
ANAYLSI
S
5. ESTABLISH JOINT SWOT/ EXTENDED BOWMAN’S 3 15
VENTURE IN TOWS ANSOFF STRATEGIC
AFRICA EG WITH MATRIX CLOCK
ZOO
6. SET UP DE- SWOT/ BCG EXTENDED 3 15+6=21
CENTRALISED TOWS (3) MATRIX ANSOFF MATRIX
STANDALONE
FOOD CHAIN
7. PROVIDE LOW SWOT/ EXTENDED 2 10+4=14
COST/LOW PRICED TOWS (2) ANSOFF
THEME PARK IN MATRIX
AFRICA
8. BRAND EQUITY SWOT/ TELESCOPIC 2 10
BACKED CSR TOWS OBSERVATION
9. SEEK FOR WD SWOT/ TELESCOPIC EXTENDED EXTEND 4 20

CHARACTERS TOWS OBSERVATION ANSOFF ED
BEYOND US (eg MATRIX SWOT
CHINA) ANAYLSI
S
10. JOINT VENTURE SWOT/ TELESCOPIC 2 10
WITH TOWS OBSERVATION
GOVERNMENTS
11. ESTABLISH SWOT/ EXTENDED 2 10
FOREIGN CULTURE TOWS ANSOFF
THEME BASED MATRIX (2)
RIDES IN NORTH
AMERICA
12. FURTHER SWOT/ 1 5
LEVERAGE TOWS
STRENTHEN AND
PROMOTE GENRIC
BRAND, WALT
DISNEY TO
PROMOTE ALL KEY
SEGEMENTS
13. PARTNERSHIP TELESCOPIC 1 5
WITH NICHE OBSERVATI
COMPANIES ON
14. TRAIN TELESCOPIC 1 5+4=9
VOLUNTEERS AND OBSERVATI
INTERNS ON (2)
15. EXPERTISE IN TELESCOPIC 1 5
DIFFERENT OBSERVATI
MARKETS TO ON
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START NEW
VENTURE
16. TARGET NEW TELESCOPIC EXTENDED 2 10
DEMOGRAPHICS/ OBSERVATI SWOT
TARGET AUDIENCE ON ANAYLSIS
17. LIMITED EXTENDED 1 5+4=9
DIVERSIFICATION ANSOFF
STRATEGIES BY MATRIX (2)
EMBARKING ON A
NON UNTILISED
LAND EXPANSION
STRATEGY
18. SPECIAL EFFECT IN EXTENDED 1 5
PARKS DURING ANSOFF
OFF SEASON LIKE
EXTENDING SNOW
19. GIVE WALT DISNEY EXTENDED 1 5
CHARACTERS ANSOFF
FOREIGN NAMES MATRIX
AND OUTLOOK
20. PARTIAL EXTENDED 1 5
DIVERSIFICATION ANSOFF
BY SETTING UP MATRIX
ASIAN AND
AFRICAN
SEGEMENTS OF
RIDES IN EXISTING
PARKS
21. MARKET EXTENDED BOWMAN’S 2 10
EXPANSION VIA ANSOFF STRATEGIC
THE PROVISION OF MATRIX CLOCK
MORE RIDES BEING
A MARKET
PENETRATION
STRATEGY USING
WD’S CURRENT
FOCUSED
DIFFERENTIATION
STRATEGY
22. PROVIDING BOWMAN’S 1 5
SCALED DOWN, STRATEGIC
LOW VALUE, HIGH CLOCK
PRICED RIDES FOR
PRIVATE
INDIVIDUALS
23. GROWTH IN GE MARKET EXTENDED MARKET BUSINES 4 20
EMERGING ATTRACTIVE SWOT ATRACTIVENESS S
MARKETS NESS ANAYLSIS FACTORS STRENG
BEGINNING WITH BUSINESS TH
CHINA STRENGTH FACTOR
MATRIX S
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1.10
COMBINING STRATEGIC OPTIONS TOGETHER TO FORM STRONGER
STRATEGIC OPTIONS
Twenty-three different strategic options were arrived at in this report for Walt Disney to pursue.
Since only one option is to be selected ( The Arrowhead Strategic Option) to ensure Walt Disney chooses
the best option related strategic options are combined (and probably given a new option name) to provide
even stronger options to choose from.
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1.10.1 SELECTING THE THREE PRIMARY OPTIONS (COMBINING RELATED OPTIONS).

The arrowhead strategic option is selected from the 23 options arived at from the various modules used. It
is suggested however that after arriving at this option an attempt should be made to combine
simlar/related options to arrive at the remaining two options that can be run through the SAF Matrix/table
with the arrowhead strategic option.This is done below:
The following options were combined (due to their related nature) to give two new strong options:
New Option 1: Setting up a Park and Resort in China, with an Asian theme and using Asian devised
Walt Disney Characters based on the Asian culture of worshiping Animals (eg the Dragon).
This is made up of a combination of three related options being options:
2) - Growing Walt Disney in the Asian Market, (15)
23) - Growth in Emerging Market of which China, an Asian country is selected as prime (20)
and option
9) Walt Disney devising Asian based Walt Disney characters. (20)
Totalling 55
New Option 2: Using Digital Marketing and Technology to drive sales and promote Walt Disney.
This was a combination of three related options; being options:
1) - Digital Marketing leveraged by brand equity (20)
and options
2) - Setting up a R&D department to focus on using Technonlogy to grow Walt Disney (24)
were combined together to give a second Primary option with a total score of 44.
20+24 = 44
Remember: It is suggested that the combination of options for stronger options should be done for a
remaining two (where possible) after the arrowhead strategic standalone option has already been chosen
and selected.
Finally option 6 (setting-up a centralised standalone food chain) with a score of 21 (it was not combined
with any other secondary option) was selected.
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NB: Take note where an option is mentioned several times in a single module the option will take
prominence ahead of an option that is mentioned in several modules but only mentioned once in each;
irrespective of whether the latter has a higher total score. Thus, option 6 (SET UP DECENTRALISED
STANDALONE FOOD CHAIN) with a total score of 21 and found in 3 modules (Swot/Tows. BCG and
Extended Ansoff Matrix) but mentioned thrice in one of them (Swot/Tows) is selected ahead of option 4
(SET UP R & D IN TECHNOLOGY) which although with a score of 24 and mentioned/found in 4 modules
has only two multiple mentions in one of them (Swot /Tows, where it is mentioned twice).
These are the three strategic options selected and shall be further analysed based on the case study and
Strategic Management theory. The final option that will be justified will be selected based on the running
of the three options through SAF parameters as mentioned earlier.
Thus, so far the three strategic options (though not in order of importance) selected are:
1) Using Digital Marketing and Technology to drive sales and promote Walt Disney.
2) Setting up another Park and Resort in China, with an Asian theme and using Asian devised Walt
Disney Characters based on the Asian culture of worshiping Animals (for example, the Dragon).
3) Setting up a standalone Walt Disney Food Chain Store (similar to and in the same market with
McDonald’s) to serve the dual purpose of serving all Walt Disney organisations and to have outlets
throughout the world.
Before we analyse each of the three options and justify one of them. We will use SAF framework to select
the one that will be justified.
1.11 SUITABILITY ACCEPTABILITY FEASIBILITY (SAF) FRAMEWORK

The Suitability, Acceptability Feasibility Framework (SAF) model was designed by Johnson and Scholes to
evaluate strategic options. It is used to assess the strategic options on the basis of certain criteria that looks
at whether they are suitable for the business, acceptable to all concerned and actually feasible for
implementation. Below a SAF table has been drawn out with various factors under the three sub-heading
of the SAF framework. Each factor is given a weight to underpin its importance or less importance in the
mix. The three selected strategic options are evaluated accordingly with the total score of each used to
determine the option to be pursued by Walt Disney. (Best, 2009).
SAF Matrix SCORE TOTAL

topic option Option Option Option Option Option
Weight 1 2 3 1 2 3
SUITABILITY
Fits companies objectives 1 1 4 5 1 4 5
Suitable technology for 8 10
implementation 2 4 4 5 8
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Fits company portfolio 4 4 4 5 16 16 20

Meets requirements of customers 5 2 3 5 10 15 25
Has a Unique selling point (USP) 5 3 3 5 15 15 25
Has short delivery times 2 3 1 5 6 2 10
FEASIBILITY
The organizational structure is 6 10
designed towards its implementation 2 3 4 5 8
Staff Knowledge/Training 4 1 5 5 4 20 20
Sufficient funds available 2 3 4 4 6 8 8
Fits with the mission and vision 3 2 4 5 6 12 15
Implementable 5 4 5 5 20 25 25
production structure 5 5 3 5 25 15 25
environmental / site feasibility 2 4 4 5 8 8 10
ACCEPTABILITY
Return on Investment (ROI) 5 4 4 5 20 20 25
Risks Involved 5 4 3 5 20 15 25
Profitability based on risks 3 5 3 5 15 9 15
Customers acceptably 5 2 4 5 10 20 25
Shareholders acceptability 3 2 3 5 6 9 15
Employees acceptability 4 2 3 5 8 12 20
Suppliers acceptability 2 1 2 5 2 2 10
Government acceptably 1 4 1 5 4 1 5
Bank 3 3 2 5 9 6 15
Result 225 250 323
Design ©Marijn Mulders | www.tolobranca.nl adapted by Anthony Ayodele
Based on the above SAF chart we can see that Option 3, being; ‘Setting up a standalone Walt Disney
Food chain Store) to serve all Walt Disney organisations and to have outlets of such throughout the
world; emerges as the most suitable option with 323 points as against option 2 (with 250 points) and
option 1 (with 225 points).
We will now explain briefly the three options chosen, before we justify the selected option 3.
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1.12 ASSESMENT OF PRIMARY STATEGIC OPTIONS FOR WALT DISNEY
OPTION 1: Using Digital Marketing and Technology to drive sales and promote Walt Disney.
Benjamin and Mabey it was who said that: ‘although the cause of change remains within factors found
within the external environment (see Pestel conducted on Walt Disney in Appendix) of an organisation, it
is those within the organisation who determine how such change is implemented. (Burnes, 2009). Stiff
competition, coupled with a continuous changing environment makes it imperative for organisations like
Walt Disney to constantly explore strategic options that could be pursued towards gaining or maintaining
competitive advantage.
Former Harvard University lecturer, Michael Porter, postulated that to gain competitive advantage –
required for an organisation to survive and outdo competition in a market - a the company must either
operate by pursuing a low-cost strategy where the company, due to core competencies or critical Success
factors, is able to produce a product or service below the cost required by others or, a differentiation
strategy, where the company produces a product or service so distinct and different to others in the market
that customers are willing to pay a premium for it. (Although Ansoff and Bowman have devised further
strategic options as seen in the Ansoff Matrix and Bowman’s strategic clock found in the Appendix)
(Kennedy, 1991).
Under the Bowman’s strategic clock mentioned above (see appendix) we have examined even more
strategic Options for Walt Disney under categories such as Differentiation, Focused Differentiation, Hybrid,
and Increased price/ standard product. A remaining four options under Bowman’s strategic Clock are all
low price, low value options and were not evaluated for options as they should be avoided.
It is on this basis that this report has been produced with the three primary Strategic Options below arrived
at:
STRATEGIC OPTION 1: Using Digital Marketing and Technology to drive sales and promote Walt Disney.
The provided Case Study outlined the identification of technological changes as one of the risks/
challenges faced by Walt Disney in 2011. This highlights the fact that the issue of how to catch up with
technology needs to be addressed by the organisation. (CIM CaseStudy, 2013).
Ferrari World, Abu Dhabi has already proved what up to date technology can do in producing the
world’s fastest roller coaster. The fast speed car manufacturers have incorporated Ferrari high speed
technology into the theme park, underpinning that advanced technology is a Critical Success factor
moving forward in the theme park industry. (CIM Case Study, 2013, pg 22).
The SWOT/TOWS and TELESCOPIC OBSERVATION modules in this report arrived at the option of
employing Digital Marketing to drive Walt Disney while both modules along with VRIO FRAMEWORK
and EXTENDED SWOT ANAYLSIS (see Appendix) advance the use of technology as a Strategic option to
gain competitive advantage for the company.
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Though Walt Disney has sparingly used technology (such as for the introduction of the Disneyland Wait
Times’ app for smart phones users designed to help keep track of ride waiting times; and a FASTPASS
system for a similar purpose) the case study notes that for well over a decade technology has been used
to enhance theme park experiences. Universal studios is reportedly ahead in this area with avatars and
a 3d definition ride which shows they are taking advantage of up to date technology.
Establishing a R&D department in technology and looking for means to promote Walt Disney
merchandise/ticking premised on a stronger Digital Marketing platform will give Walt Disney, an
organisation that already has a strong brand Equity, an edge.
The strategy has little risks involved as technology and Digital Marketing are known to enhance
Strategic Business Units worldwide.
STRATEGIC OPTION 2: Setting up a Park and Resort in China, with an Asian theme and using Asian devised
Walt Disney Characters based on the Asian culture of worshiping Animals (eg the Dragon).
The Case Study point out that due to the risk associated to a dependency on the North American Market
Walt Disney is look at increasing presence in emerging markets such as China, Hong Kong, India and Russia.
(CIM Case Study, 2013, pg 13).
The Asian theme Park and resort additionally suggested along with locating a park and resort in China would
be to segment the market on a Psychographic Segmentation basis (see Market segmentation in appendix)
where Asians are targeted for a theme based theme park in China based on the values, religion, ideas and
beliefs they hold in common.
A GE Matrix based on Market Attractiveness plotted against Business Strength factors found in the appendix
was used to determine which of these emerging markets (for the lack of adequate data on Russia in the
Case Study, this market was replaced with Brazil in the evaluation conducted) was most suitable for Walt
Disney to increase its presence in. This was also suggested in the extended Swot matrix also found in the
Appendix
The choice of China falls in line with the countries thriving economy, suitable for theme park location with
a GDP set to almost multiply by five from 1.5 million in 2006 to a predicted roughly 8 million in 2015. (see
table 37 in Case Study page 51 and graph on Gross Domestic Product in Appendix).
The BCG matrix in in the Appendix suggest growth in Asian countries, of which China is prime.
We are informed in the case study (page 19) that the middle class of the Asian country will grow
from 12% to 74% of citizens in the country by 2030. This differs and is more favourable than the
aging economy and possible expected economic woes of Europe.
Though Walt Disney already is planning a theme park in China in Shanghai, China by2016 being a
market development strategy being since it is a new market and exiting product; the Extended
Ansoff Matrix in the appendix proffers a Partial Diversification Strategy suggesting that Walt Disney
could modify its theme around its present well known characters and or characters only based on
animals (from the animal kingdom) that are worshiped and recognised in China.
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The proposed modification of Walt Disney theoretically is referred to as think global act local or
global localisation being the manner in which an international global product is localised to suit a
local market.
This strategic option hereby suggested thus is a combination of many theoretical strategies all fused
together to form one strong strategy.
The main risk associated with increasing presence in China would be that it could cannibalise the
about to be opened Shanghai theme park mentioned earlier as this could see people travel from
round China to visit it. However, the Case Study does explain that there are many cities that do not
have Theme Parks (especially, Walt Disney Theme Parks) so the organisation needs to position the
theme park strategically. Another threat that Walt Disney should look at closely as regards market
penetration in China (considering a new theme park cannot be opened until after the Shanghai one in
2016) is the threat of competition.
According to the Case Study OCT Parks China is strong and dominant in China with 10 theme parks. Walt
Disney would not want what occurred to it in Tokyo Japan to re-occur; where, while they experienced drops
in volume in 2010 and 2011 in both of their theme parks being TOKYO DISNEYLAND, Tokyo, Japan (from
114,452,000 in 2010 to 13,996,000 in 2011) and TOKYO DISNEY SEA, Tokyo, Japan ( from 12,663,000 in 2010
to 11,930,000) representing - 3.52 and – 5.8 percentage drops respectively; Walt Disney’s competitor,
Universal Studios Japan, Osaka, experienced volume growth figures of 8,160 from 2010 to 8,500,000 in
2011 being 4.2% increase within the same period. (See APPENDIX NINE Top 25 amusement/theme parks
worldwide items 3, 4 and 9 in the case study).
The Hofstede’s cultural dimensions (see appendix for chart) identifies Uncertainty Avoidance of China as
low as 30. This suggest that the Chinese are willing to try out new things and are not afraid of embracing
new adventure. This further supports the location of an Asian animal themed Park and Resort in China as
suggested in the report.
STRATEGIC OPTION 3: Setting up a standalone Walt Disney Food chain outlets (similar to and in the same
market with McDonald’s) to serve all Walt Disney organisations and to have outlets throughout the world.
The Food chain will serve to promote the Walt Disney Parks and Resorts eve outside the Park and Resorts
venue attracting those who are yet to visit, via in house T.V, on-screen live transmission and adverts in all
of the food chain outlets across major cities in the world. The Walt Disney Food chain outlets could operate
on a franchise basis (See market entry options in appendix) which though novel to Walt Disney, will provide
them extra revenue from those willing to purchase the franchise and not too much control. Or it could
equally considered a joint venture with an existing eatery (a good example would be subway).
This strategic option will further drive the volume and revenue of the Walt Disney Park and Resorts in line
with the organisations objectives and commitment to its stakeholders/shareholders.
The BCG Matrix in the appendix in line with information given in the case study identifies the selling of food
and wine as a Star that could be further invested in. The possibility off setting up its own Food chain is also
mentioned in the SWOT/TOW matrix and the Ansoff matrix (under partial diversification strategies) both
found in the appendix. In the SWOT/TOW the option serves as an S-O entry, where a strength is used to
leverage an opportunity.
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Food is flagged up as a major issue in the case study under the section tagged food with it pointing out that
there has been criticism over the kind of food theme parks offer.
We are also informed how Merlin Entertainment tackled the problem.
Walt Disney could see this as an opportunity to set up their own healthy oriented, own food chain.
Though Disney has segmented food for different kind of customers, making it recipes available throughout
the city as a food chain store would further draw attention to the Walt Disney Park and Resort. The strong
brand and brand equity of Walt Disney being 43rd brand wise according to Top 100 Most Valuable Global
Brands (see case study) could be easily used to leverage the food chain. Production of food at such a greater
level will also provide economies of scale.
There are virtually no risk associated to Walt Disney setting up a food chain. Being a Partial Diversification
Strategy since it is a modified product in an existing Walt Disney Park and Resorts) and new market (food
chain outlets worldwide) food is not seasonal and if good and healthy, with the backing of Disney’s strong
brand name it should be and instant sell. More on this is stated later with the VIRO framework module among
other being used to justify this chosen option.
1.13 JUSTIFICATION OF FINAL SELECTED STRATEGIC OPTION

SETTING UP A WALT DISNEY FOOD CHAIN
The value Chain provided in the appendix under the sub-section of Human Relations Management points
out how well trained (implying the level of expertise) the staff of Walt Disney are. The area of expertise is
in customer service which is also revealed as high quality in the Case Study.
Furthermore, the VRIO framework also found in the appendix highlights that excellent customer service is
part of what provides Walt Disney with Sustained Competitive Advantage. This is pointed out alongside the
evaluation of the Brand also in the VRIO (see appendix) which both could leverage the success of a Walt
Disney owned food chain outlet.
The lending of a successful brand name to the launching of a new or modified product is known as brand
extension. Extending a highly successful, strong brand such as Walt Disney to a necessity product such as
food will further help to market Walt Disney across the globe.(Kennedy, 1991)
An additional advantage of a food chain store is virtually that in all of the markets where Walt Disney is
operating or hoping to operate in (see Positioning Map in appendix and the section on markets Disney
operates in) would be suitable for a food chain; subtly marketing the organisation and the kind of quality
food available at the Walt Disney Park and Resorts.
This strategic option has already been run through a SAF framework (see SAF Framework above) which
considers factors such as: (SUITABILITY) whether it fits Walt Disney’s objectives; has suitable technology for
implementation; fits company portfolio; meets requirements of customers; has a unique selling point (USP)
and has short delivery times.
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Under FEASIBILITY it looks at whether Walt Disney’s organizational structure is designed towards the
implementation of the option; Staff Knowledge/Training for the strategy; Sufficient funds available,
whether it fits with the mission and vision; whether it is Implementable, whether the production structure
is set up to implement the option and whether the environment and site for the option is okay.
Finally, under ACCEPTABILITY the SAF looked at factors such as the Return on Investment (ROI); Risks
Involved; Profitability based on Risks; Customers Acceptably; Shareholders Acceptability; Employees
Acceptability; Suppliers acceptability and Government acceptably.
Under all factors considered, the option scored high in comparison to others. This is considering the viability
of linking a sound, world renowned brand of an organisation of immense goodwill such as Walt Disney with
high quality, healthy food as being suggested in the case study.
The case Study further informs us that Walt Disney recorded a profit of 18% being 1.6 billion dollars in 2011
and is reportedly one of the largest family entertainment media companies. This suggest it would not have
problems financially implementing the option also considering the ROI on food is his and fast recovered.
Food is an all season product and it will impact positively on all sectors of WALT Disney in the sense that
the chain outlet could be used to promote all segments, hence the choice if this option.
As stated above while mentioning the three strategic options given, the BCG Matrix in the appendix in line
with information given in the case study identifies the selling of food and wine as a Star that could be further
invested in. The possibility offsetting up its own Food chain is also mentioned in the SWOT/TOW matrix and
the Ansoff matrix (under partial diversification strategies) both found in the appendix. In the SWOT/TOW
the option serves as an S-O entry, where a strength is used to leverage an opportunity.
Food is flagged up as a major issue in the case study under the section tagged food with it pointing out that
there has been criticism over the kind of food theme parks offer.
We are also informed how Merlin Entertainment tackled the problem.
Walt Disney could see this as an opportunity to set up their own healthy oriented, food chain.
Though Disney has segmented food for different kind of customers, making it recipes available throughout
the city as a food chain store would further draw attention to the Walt Disney Park and Resort. The strong
brand and brand equity of Walt Disney being 43rd brand wise, according to Top 100 Most Valuable Global
Brands (see case study) could be easily used to leverage the food chain. Production of food at such a greater
level will also provide economies of scale.
The food chain strategy suggested as a strategic option will also bring together ideas via suggestion boxes
from non-Walt Disney Park and Resort users who visits the food outlets that ‘think’ feel’ and ‘do’ something
for Walt Disney even though they do not work for the company which is in line with a theory postulated by
Matt Perry in August 2014 edition of Harvard Business Review (See details of Orchestra model in Appendix).
This will further give Walt Disney an interacting link with members of the public they hope to draw or to
patronise the company’s products whenever they are in the position (especially financially) in future to do
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so. Or, at least, influence those whom they know they can. Doing this will be in line with the objective of
this report to strengthen Walt Disney’s external position as stated based on the outcome of the Internal
and External Factor evaluation scores of 3.2 and 2.6 respectively (see appendix). Reaching further to the
public outside the walls of Walt Disney through a food chain outlet will allow Disney to feel the pulse of the
public about the organisation and seek to orchestrate such in the company’s favour.
This theory was described by Harvard Business Review on its cover as the new basics of marketing where
an organisation gets non workers to think’, ‘feel’ and ‘do’ for them. The food chain will serve Walt Disney
as a means to reach out to such people.
There are virtually no risk associated to Walt Disney setting up a food chain. Being a Partial Diversification
Strategy since it is a combination of a modified product in an existing Walt Disney Park and Resorts and a
new market (food chain outlets worldwide). Food is not seasonal and if it good and healthy, with the backing
of Disney’s strong brand name, it should be an instant sell.
1.14 MARKETING MIX FOR PROPOSED WALT DISNEY FOOD CHAIN

The marketing mix of Walt Disney ((WD) Food Chain wll consists of numerous elements that will provide a
robust marketing system for it.. Here we discuss 7P’s towards making WD Food chain a viable and strong
standalone business that supports the organisation finacialy and that attracts additional customers through
attracting customers via promotions and publicity throughout the world to the parent company that it lends
it’s name from.
PLACE :- Walt Disney Food Chain should be spread throughout major cities of the world. A drive in, drive
out, mini-ertertainment eatery, in line with the objectives of Walt Disney is preferable. The entire process
of bringing the products to the customer should be in an easliy entertaining, relaxed manner.
PRICE :- The bulk of pricing of food at the WD Food Chain should be in consonance with pricing in the parent
company. The food chain should gain competitive advange through differientiaion in line with Porter’s
postulation likewise. However, the food should also be segemented to target different target auduences,
givng everyone a chance to identify with WD somehow. Differientiation is what Walt Disney is known for,
therefore it is perferred above a low price strategy as the latter goes against the organistion adding value
for a premium price objective. Prices should be based on locality and market.
PHYSICAL EVIDENCE :- Walt Disney Food Chain should maintain clean, attractive food outlets in line with
the organisation’s values. Those who enter the food chain outlet, any where in the world, should feel the
presence of the company.
Just like with the main company, while children should be the main focus at the Walt Disney Food Chain
outlet, adult parents and teenagers should happily be drawn in as well.
Customers should have the opportunity to engage in promotions, lucky dips, win prize/ tickets and be
encouraged to fill in a ‘my experience at Walt Disney Park and Resort’ online internet form (directed to at
the WD food chain outlet) towards winning bigger prizes.
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PRODUCT :- Empahsis should be placed on satifying the customer and meeting their needs. Products should
be backed up by excellent customer service and personal face-to-face delivery service that Walt Disney is
known for. A diversified range of food items, modified to suit locality and under a partial diversification
strategy as seen in the Ansoff Matrix (see appendix) should be adapted. Input of customers via customer
suggestion boxes and the filling of questionaires (see Orchestra model in Appendix) should be included.
Wlat Disney should provide both fast and regular food.
PEOPLE :- As stated above the high standards of Walt Disney staff should be maintained in their food chain
outlets. Freindliness and promptness should be critical success factors that the staff possess. The four
standards of service outlined in the case Study (page 27) should be adhered to, being: ensuring smooth
operations (Efficiency) giving the VIP treatement to customers (Courtsey) ensuring the well-being of all
customers (Saftey) and providing in house up to date entertainment on in-house screens including airing
transmission of live events at the resort and Parks (Show).
PROCESS :-Customers should be clear of what they are buying into in terms of both the product and the
process through which it is delivered. A well defined process made transparent to the customers shold be
devised. Excellent and very high hygine standards should also be adhered to.
PROMOTION : marketing communications on standard T.Vas well as those owned by Walt Disney should
be embarked upon. Advertsing via all forms of electronic and print media likewise. Loyalty schemes, point
of sale display, merchandising, direct mail, sales promotions, and door drops should be factored in . A
combination of all of these should be used effectively to postion the WD chain store as the place to buy
food, eat and be entertained.
2 APPENDIX
2.1 MODULES PRODUCED TOWARDS ACHIEVING THIS TASK

• SWOT Analysis: A module that examines Strengths and Weakness (internal factors) and
Opportunities and Threats (External factors) that impact an organisation.
• TOWS (integrated in SWOT) TOWS, integrated with SWOT analyses uses the strengths and
opportunities to offset the weakness and threats towards arriving at strategic options for an organisation.
• Internal Factor Evaluation Matrix: a look at the internal factors impacting an organisation and the
extent to which they do so.
• External Factor Evaluation Matrix: a look at the external factors impacting an organisation and the
extent to which they do so.
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• Telescopic Observation: A look a key factors as spelt out in the module (see diagram in appendix)
that impact an organisation internally and externally.
• Competitive Profile Matrix: A comparison of the competitors of an organisation and how they
relate.
• Ansoff Extended Matrix: this is an extension of the Ansoff Matrix being a marketing analysis tool to
determine an organisation’s market growth strategy. The extended Ansoff matrix goes beyond the Ansoff
matrix in the sense that while the former provides six cells, the latter provides nine cells that looks at various
product and market strategy combinations which on the basis of whether market and products to be
considered are existing or new; and when combined whether they fall under categories such as
diversification, Market Penetration, market development and product development. The extended Ansoff
which is used in this report also looks at in-between situations such as partial development or partial
diversification etc.
• Market Attractiveness: a weighted measurement of factors that determine whether a particular

market is more attractive than another.
• Business Strength Factors: a weighted measurement of factors that determine what is the
particular business strength of an organisation in a chosen market.
• PESTEL: Used to analyse and evaluate external environmental factors of an organisation being
Political, Environmental, Sociological, Technological and legal
• GE Matrix based on Market Attractiveness and Business Strength: Used to determine which market
would be best invested in compared to others
• VRIO Framework Evaluation: A framework that looks at core of an organisation on the basis of
whether it is valuable Rare imitable and it is organised to capture value.
• Walt Disney Value Chain: This looks that the process stages an organisations product or services
passes through from the initial stage to that of reaching the customer and evaluating how value is added
at each stage.
• Bowman’s Strategic Clock: an evaluation of various strategic options a company could use; each
revealing different combinations of value and price ranged from low to high.
• BCG Matrixes: Looking at whether products or services offered in an organisation should be

divested from (dog) invested in ( Star) sustained because it generates the organisations main revenue
(Cash Cow) or, reconsidered for either being divested from or tinkered further and invested in (question
mark).
• Hofstede’s Cultural Dimensions: Considering aspects of a market on the basis of its cultural such as
values and language
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• Suitability Acceptability and Feasibility (SAF) Framework: A framework that looks that whether an
option is suitable, acceptable and feasible to be embarked upon.
• AFASOS Module: (explained in details in report).
2.2 THE INTERNAL FACTORS EVALUATION MATRIX
Figure 4 INTERNAL FACTOR EVALATION (IFE) MATRIX
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2.3 THE EXTERNAL FACTORS EVALUATION MATRIX
Figure 5 THE EXTERNAL FACTORS EVALUATION (EFE) MATRIX
2.4 THE WALT DISNEY TELESCOPIC FRAMEWORK

A Telescopic Observations Strategic Framework as designed by George Panagiotou is produced for Walt
Disney
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INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT
STRENGTHS WEAKNESESS OPPORTUNITES THREATS
S
The need to Walt Disney can Rivals such as Universal
constantly come up acquire unique Studios acquiring
with ideas to keep characters in new interesting characters
the characters alive markets upon such as the acquisitions
which to base local of Wizardry and Harry
theme parks upon Potter by the latter,
alongside exiting making Walt Disney
characters Characters less attractive
N
Walt Disney The huge size of To form more Possible merger and
enjoys large Walt Disney if not alliances and acquisitions by
economies of structured along partnerships with competitors
scale protected by market demands of niche companies in
the fact that the individual markets the industry
barrier to new could be difficult to
Entrants is high manage and apply
considering the change where
capital intensive necessary.
financial
requirements for
set up in Theme
park Industry
O
Walt Disney Very big size, huge Technology could Competitors could take
structured under salary outlay, high be used to provide advantage of technology
five key business standards for entertainment at a (eg, OCT in China) to set
segments which staffing, requiring cheaper cost up a less expensive
all are diverse in expensive training. organisational structure
nature. Parks and and provide
Resorts is entertainment
leveraged on a experience at a cheaper
strong brand cost
equity. The
Company’s
expansion policy
is incremental
growth its diverse
portfolio means it
can cope in an
economic
downturn.
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I
The industry key Not leading the Innovative new
success factors industry in the area rides, dominating Competition using
are innovative of technological Asian market with technological
new rides, advancement Asian culture based advancement to provide
exceptional theme, using cheaper entertainment
customer technology to experiences with
services, usage of provided cheaper innovative themes
technological entertainment
advancement, experience.
T
Large economies Huge size, not easy To institute a more External changes may
of scale and vast to implement robust Holistic TQM impact on time and
resources to change. practice embracing extent of
experiment with Digital Marketing implementation; smaller
and implement and fully utilising competition may get
TQM technology wind of strategic moves
and implement faster.
A
Alliances Less control on Could further utilise Over dependence on
companies that successful projects similar Joint operating with strong
have strong than desired. venture option, second partners.
domestic since it is the
knowledge of preferred market
market such as entry option of
Joint Venture Walt Disney. The
with Oriental company can create
Land Company in a Joint Venture
Tokyo with Thinkwell
Group presently
working on an
Monkey Kingdom
project for another
client to look at the
EY TELESCOPIC OBSEVATIONS possibilities setting
up an Animal
Kingdom or Dragon
Kingdom for Walt
Disney
V
Well trained staff; Employee issues Venturing into new Losing trained staff to
unique, childhood and high cost of markets and seizing competition.
established training. Employee opportunities with
characters turnover large organisational
structure.
R
Vast Human and Resources could be Further utilising of Government regulation
financial under-utilised, such Resources eg, brand that could hinder
resources; as land, Advent of name and
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Intangible technology could reputation in Digital conversion of vast yet to

resources in the make huge staff marketing, be utilised resources
area of strong structure
brand and unnecessary.
reputation,
Tangible
resources based
on land, capital
investment and
structure
E
Strong brand Structure of sales Walt Disney can Being beaten by
name and vast and merchandising save costs of competitors to taking
resources to not e- commerce inventory space by advantage of what
invest heavily on dependent. Users setting up strong e technology has to offer in
e commerce must visit parks –commerce for the area of e-commerce
and Resorts or merchandise. This sales and merchandising
shops basically to could be tied to
make purchase. Digital Marketing
and digital based
entertainment
S
Integration has Huge size and staff Acquisition of more By doing most of its own
seen Walt Disney to cater for due to suppliers in a stuff in-house Walt
acquire main acquisitions. The vertical integration Disney may be denying
suppliers. An need to effectively move, especially itself of the expertise and
example is the manage diverse smaller partners skills of other
acquisition of ABC business profile involved in joint organisations
shortly after set ventures in
up international
markets
B
Well-structured N/A Partnering with Competition selling
information Governments of lower than cost price to
system to handle other countries win over Walt Disney
buyers. Extensive customers
contacts, e.g., U.S
government
buildings
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O
Core Exceptional Train volunteers Competitors pouching
competencies of customer services who seek work already trained Walt
Walt Disney comes at very high experience and to Disney staff in time that
include customer training costs. Walt identify with Walt Walt Disney may have to
services and Disney staff Disney Brand name down size.
unique customer training standards on their C.V. This
experiences ( are high. could serve as pool
page 13 for employment in
paragraph 6) future
C
Economies of Need to study each Use presence and Quitting management
scale of a well- domestic culture expertise of staffing replicating Walt
established where ventured different markets to Disney strategy
structure that can start new ventures. elsewhere
be replicated and
tinkered based on
domestic culture
I
Well represented Yet to master Can easily take Changing regulations and
in various certain terrains advantage of way of doing business in
international entering new different markets
Markets and markets. The
countries. Used to Uppsala mode of
international entering a new
dynamics of market can be
marketing and adapted
trade occasionally to
avoidance
uncertainty
P
Numerous range Cannibalisation Leading the market Possibility of mergers
of highly issues with differentiation and further specialisation
competitive and competitive of competition
differentiated advantage in line
Products and with Porter’s theory
services in various areas
O
Flat management Lack of CSR cultural Embrace and Poor media in future
style, industry or organisation promote strong CSR concerning lack of CSR
benchmark objective programme focus.
training. leveraging on
strong brand equity
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C
Strong brand and Allows competition Could use Alliances and acquisition
strong brand to lead in technology to lead by competition.
awareness, 43rd innovation. again, leveraging on Competitive innovation
top brand in the vast resources such as Six flags and the
world increase in pressure from
competition. CS, pg 14,
paragraph 1
S
Provision of Seen as a children To reach out and Could be branded by
products and thing appeal to more media as having a
service demographics negative influence on
considered children
adaptable and
suitable for
children
entertainment
and education
E
Diverse portfolio Nature of Parks and Focus more on Being pushed under by
that does not all Resorts Revenue Digital marketing of Digital Marketing, tech
depend on based on merchandise savvy competition
weather as Parks favourable seasons.
and resorts does,
eg merchandise of
theme park
characters
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L
Strong employee Cost of maintaining Employee intern Change in theme park
policy and benefit employee benefit graduates, and operations regulations;
structure structure without part-time staff on a regulations regarding
violating legal learn and earn employees, on
requirements. scheme basis regulations
Disputes from
labour
E
Diverse portfolio The changes in the Establishing a Competition such as OCT,
of Walt Disney economic strong foothold in already well known in
across Five conditions of emerging Asia, envisage Walt
Business United States, economies like Disney’s strategic options
segments seeing where 75% of Walt Asia. Shanghai Park billed for
that they will not Disney revenue and Resort billed implementation in the
be too much comes from (pg 14, for opening in 2016 region and using brand
affected during 1st paragraph). provides means to recognition in the area to
and economic Unemployment in leverage brand via downplay Disney’s
downturn. U.S put at 12% (CS, pre-advertising and presence
pg 16) in publicity
2012.Similar
Economic recession
in Europe. High
unemployment
rates and financial
crises.
T
Walt Disney has Absence of R&D Exploit vast Changes in technology
introduced a department, resources to invest (page 14, paragraph 1)
number of especially in the in technological
Technological area of innovations that
premised Technological will provide
innovations such advancement, cheaper but same
as queue failure to protect value
managing data stored entertainment
software called electronically experience
the Disneyland relating to the
wait times app company.
and FASTPASS
system
STRENGTHS WEAKNESESS OPPORTUNITES THREATS
INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT
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2.5 THE WALT DISNEY COMPETITIVE PROFILE MATRIX
Figure 6 THE WALT DISNEY COMPETITIVE PROFILE MATRIX
2.6 ANSOFF EXTENDED MATRIX
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Figure 7 ANSOFF EXTENDED MATRIX
2.7 MARKET ATTRACTIVENESS MATRIX
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Figure 7 COMPETITIOR ANALYSIS PROFILE
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Walt Disney
2.8 HOFSTEDE’S CULTURAL DIMENSIONS

The Hofstede’s cultural dimensions identifies Uncertainty Avoidance of China as low as 30. This suggest that
the Chinese are willing to try out new things and are not afraid of embracing new adventure. This further
supports the location of an Asian animal themed Park and Resort in China as suggested in the report.
Figure 8 HOFSTEDE'S CULTURAL DIMENSION PROFILE
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Walt Disney
2.9 WALT DISNEY VRIO FRAMEWORK MODULE
Figure 9 VRIO FRAMEWORK
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Walt Disney
2.10 WALT DISNEY VALUE CHAIN
Figure 10 VALUE CHAIN
See more on value chain in appendix for more details.
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Walt Disney
2.11 WALT DISNEY’S BOWMAN’S STRATEGIC CLOCK
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Walt Disney
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Figure 11 -25 BOWMAN STRATEGIC CLOCK DIAGRAM'S
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Walt Disney
2.12 WALT DISNEY MARKET ATTRACTIVENESS/BUSINESS SEGEMENT GE MATRIX
Figure 26 GE MATRIX
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Walt Disney
2.13 WALT DISNEY EXTENDED SWOT ANALYSIS

STRENGTHS and WEAKNESSES
Major Minor Neither Minor Major NA

Weakness Weakness Strength Strength
Access to capital - - - - X -
Cash management - - - - X -
Inventory level and turns - - - X - -
Degree of capacity
- - - X - -
utilization
Asset management - - - - X -
Profitability - - - - X -
Liquidity - - - - X -
Other - - - - - -
WALT DISNEY SALES AND MARKETING capabilities.

Brand recognition - - - - X -
Market share - - - - X -
Sales force productivity - - - - X -
Market research - - - - X -
Pricing or product and
- X - - - -
services
Advertising and promotion - - - X - -
Location of outlets/sales
- - - - X -
force
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0ther - - - - - -
Walt Disney advertises locally, nationally and internationally. It generates income from sponsorship of rides
by other organisations.
Walt Disney’s EMPLOYEES and MANAGEMENT TEAM capabilities.

Management communication - - X - - -
Responsiveness to change - - X - - -
Ability to attract and retain the best
- - - - X -
people
Use of technology to improve
- X - - - -
profitability
Management teams leadership - - X - - -
Employees capabilities and skills - - - - X -
Company culture and values - - - - X -
Compensation and benefits - - - X - -
Strategic planning process - - - X - -
Other - - - - - -
QUALITY OF WALT DISNEY PRODUCTS and SERVICES.

To what extent is each a strength or weakness?

Quality of product/service - - - - X -
Product/service differentiation - - - - X -
Customer service - - - - X -
Breadth of product line - - - - X -
Depth of product line - - - - X -
New product development - - - X - -
R&D capabilities/resources - - - X - -
Customer satisfaction and
- - - X - -
loyalty
Other - - - - - -
Though customers are satisfied with the Walt Disney experience, the price has been described as a
discouraging factor to many.
DISTRIBUTION AND MANUFACTURING capabilities and resources of WALT DISNEY.

To what extent is each a strength or weakness?
Major Weakness Minor Weakness Neither Minor Strength Major Strength NA

Manufacturing facilities - - - X - -
Supply chain management - - - - X -
Manufacturing productivity - - - X - -
Procurement process - - - X - -
Warehousing capacity - - - X - -
Distribution systems - - - X - -
Relationship with suppliers - - - X - -
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Other - - X - - -
WALT DISNEY’S four major STRENGTHS?

Our greatest strength is...
They have a very strong Brand, being adjudged 43rd among Top 100 brands ranking
Our second greatest strength is...

Excellent Customer service based on intensive training, seeing it serve as the benchmark for the industry in
this area.
Our third greatest strength is...

The target audience of Walt Disney is a main strength in the sense that the major focus on the children
attracts the parents, who want to give their wards a wonderful experience.
Our fourth greatest strength is...

Walt Disney has a strong reputation, a diversified portfolio. It also has good brand extension strategy.
What are the four greatest WEAKNESSES of your company? Be specific and record them in order of
importance.
Our greatest weakness is...

Too country specific in the sense that 75% of revenue is generated from the US and Canada (North America).
Our second greatest weakness is...

It is considered expensive and an elitist product/service.
Our third greatest weakness is...

Maintenance cost are expensive and the rides cannot be easily updated due to cost.
Our fourth greatest weakness is...

Location and size is considered a weakness as Walt Disney parks are not easily accessible to all, and each
one requires a lot of land for set up.
OPPORTUNITIES and THREATS
WALT DISNEY are faced by the following CUSTOMER and MARKET factors

Threat Threat Opportunity Opportunity
Market growth rate - X - - - -
Changing customer needs and
- - - X -
preferences
Customers' price sensitivity X - - - - -
Access to new markets for our
- - - - X -
products/services
Technology change - - - X - -
Size of our market - - X - - -
Degree of product differentiation - - - - X -
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Other - - - - - -
COMPETITION and the COMPETITIVE FORCES in the Theme Park industry?

New competitors entering our
- - X - - -
market
Competitors' pricing
- X - - - -
policies/practices
Competitors' product/service
X - - - - -
quality
Competitors' strategies X - - - - -
Innovation in the industry - X - - -
Competitors product/service
- X - - - -
offering
Capacity utilization in the industry - - - - X -
Cyclicality/seasonality in the
- X - - - -
industry
Industry profitability - - - - X -
Intensity of competition - X - - - -
Size of competitors - X - - - -
Merger/acquisition activity in
X - - - - -
industry
Other - - - - - -
Factors based upon ECONOMY, GOVERNMENT and SOCIETAL AFFECTING THE THEME PARK INDUSTRY

Changes in government
X - - - - -
regulations
Changes in economic
X - - - - -
conditions
Tax policies - - X - - -
Changes in social values and
- X - - - -
norms
Changes in demographic of
X - - - - -
population
Other - - - - - -
EMPLOYMENT and WORKFORCE factors RELATING TO THEME PARK INDUSTRY

Availability of qualified and skilled
- X - - - -
employees
Values, beliefs and expectations of
- X - - - -
workers
Wage and salary costs X - - - -
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Costs of benefits and other

X - - - -
employee programs
Other - - - - - -
Please rate these RAW MATERIAL AND SUPPLIERS ISSUES RELATING TO THEME PARK INDUSTRY AND
HOW IT RELATES TO WALT DISNEY

Price of raw materials X - - - - -
Access to raw materials X - - - - -
Forward and backward
- - - X - -
integration
Quality of raw materials - - - X - -
Suppliers capabilities and
- X - - - -
resources
Other - - - - - -
OPPORTUNITIES WALT DISNEY SHOULD PURSUE?
Our greatest opportunity is...

Exploring expanding into the EMERGING ECONOMIES ASIAN MARKETS AND THOSE OF BRAZIL AND
INDIA.
Our second greatest opportunity is...

Walt Disney has an opportunity in introducing and implementing technology that could save the company
money and space.
Our third greatest opportunity is...

Walt Disney could target different age groups, marketing a variety of products and services focused on
children and adults likewise.
Our fourth greatest opportunity is...

Walt Disney has the opportunity to adapt and develop more theme characters A good move would be to look
at adapting the Asian animal characters (eg Dragon of China)
What are the three greatest THREATS to your company over the next 2-3 years?
Our greatest threat is...

Stiff competition from rivals. For instance Universal Studios is experienced growth in visitor volume 2011-
2012 in Tokyo Japan, whereas Walt Disney did not, due to the latter’s introduction of Harry Potters Wizardry.
Our second greatest threat is...

Another threat to Walt Disney is the lack of space for expansion and the location of its theme parks.
Our third greatest threat is...

Staff uprising and protests as witnessed in Paris Theme Park.
Our fourth greatest threat is...
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Technological advancement: for instance in Korea, 3D technology and, advanced simulators, are out-doing
Walt Disney in the manner they are providing customers with a satisfying experience.
Table 36: Consumer Price Inde (CPI)

1800.0
1600.0
1400.0
1200.0
1000.0
800.0
600.0
400.0
200.0
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Brazil China Germany India Indonesia South Korea Spain Korea UK Korea US Korea
Global Theme Park Markets Visitors

North America 290
European 58
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Asian Market 100

Latin America 13.4
Africa 2
GLOBAL THEME PARK MARKETS VISITORS

Africa
Latin America
3% 0%
Asian Market
22%
North America
European
Asian Market
Latin America
European North America Africa
12% 63%
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Amusement and Theme Parks Selected Countries Volume

900
800
700
600
500
400
300
200
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Brazil China 52.75 Germany - India - Indonesia - South Korea - Spain - UK - US -
AMUSEMENT THEME PARKS SELECTED COUNTRIES ANNUAL

VOLUME LINE GRAPH
400
350
300
250
200
150
100
50
0
Brazil China Germany India Indonesia South Spain UK US
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Amusement Theme Park Volume Year on Growth

20.0
15.0
10.0
5.0
0.0
Brazil China Germany India Indonesia South Spain UK US
-5.0
-10.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gross Domestic Product (GDP)

12,000,000.0
10,000,000.0
8,000,000.0
6,000,000.0
4,000,000.0
2,000,000.0
0.0
Brazil China Germany India Indonesia South Korea Spain UK US
2012 2013 2014 2015
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Gross Domestic Product (GDP)

12,000,000.0
10,000,000.0
8,000,000.0
6,000,000.0
4,000,000.0
2,000,000.0
0.0
Brazil China Germany India Indonesia South Korea Spain UK US
2012 2013 2014 2015
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Amusement Theme Parks in North America
2010
2011
Change
-5000000 0 5000000 10000000 15000000 20000000
20 SEAWORLD TEXAS, San Antonio, 19 Valencia, California, USA

19 SIX FLAGS MAGIC MOUNTAIN, 18 Williamsburg, VA, USA
18 BUSCH GARDENS EUROPE, 17 HERSEY PARK, Hershey, PA, USA
16 CEDAR POINT, Sandusky, Ohio, USA 15 KINGS ISLAND, Kings Island, Ohio, USA
14 Ontario, Canada 14 CANADA’S WONDERLAND, Maple,
13 KNOTT’S BERRY FARM, Buena Park, California, USA 12 Tampa, Florida, USA
12 BUSCH GARDENS TAMPA BAY, 11 California, USA
11 SEAWORLD CALIFORNIA, San Diego, 10 Universal City, California, USA
10 UNIVERSAL STUDIOS HOLLYWOOD, 9 USA
9 SEAWORLD FLORIDA, Orlando, Florida, 8 Orlando, Florida, USA
8 UNIVERSAL STUDIOS, Universal 7 Anaheim, California, USA
7 DISNEY’S CALIFORNIA ADVENTURE, 6 Orlando, Florida, USA
TOP 25 AMUSEMENT THEME PARKS WORLDWIDE
20000000
15000000
10000000
5000000
0
1 2 3
-5000000
Park, location Park, location

1 MAGIC KINGDOM, Walt Disney World, 1 Lake Buenta, Florida, USA
2 DISNEYLAND, Anaheim, California, USA 3 TOKYO DISNEYLAND, Tokyo, Japan
4 TOKYO DISNEY SEA, Tokyo, Japan 5 DISNEYLAND PARK AT DISNEYLAND
5 PARIS, Marne La Vallee. France 6 EPCOT, Walt Disney World, Lake
6 Buenta, Florida, USA 7 DISNEY’S ANIMAL KINGDOM, Walt
7 Disney World, Lake Buenta, Florida, USA 8 DISNEY’S HOLLYWOOD STUDIOS,
8 Walt Disney World, Lake Buenta, Florida, 9 UNIVERSAL STUDIOS JAPAN, Osaka,
9 Japan 10 ISLANDS OF ADVENTURE, Universal
Walt Disney International Strategic Option, By Anthony Ayodele Page 62

-5000000
5000000
10000000
15000000
20000000
25000000
0
DISNEYLAND PARK AT…
1
PARIS, Marne La Vallee.…
WALT DISNEY STUDIOS…
2
DISNEYLAND Paris,…
3
EUROPA PARK, Rust,…
4
DE EFTELING, Kaathuevel,…
TIVOLI GARDENS,…
5
Denmark
6
PORTAVENTURA, Salou,…
7
LISEBERG, Gothenburg,…
GARDALAND, Castelnuovo…
8
Italy
Chart Title
9
ALTON TOWERS,…
10
LEGOLAND WINDSOR,…
11
THORPE PARK, Chertsey, UK
Walt Disney International Strategic Option, By Anthony Ayodele

12
PHANTASIALAND, Bruhl,…
Top 20 amusement/theme parks in Europe Change %

13
FUTUROSCOPE, Jaunay-…
Top 20 amusement/theme parks in Europe 2011 (million)

Top 20 amusement/theme parks in Europe 2010 (million)
14
15 LEGOLAND BILLUND,…
PARC ASTERIX, Plailly,…

16
PUY DU FOU, Les Epesses,…

17
MIRABILANDIA, Savio, Italy

18
GRONALUND, Stockholm,…
19
SLAGHAREN, Hardenbery,…
20
HEIDE PARK, Soltau,…
Page 62
TOP 20 AMUSEMENT/THEME PARKS IN EUROPE CHANGE %
1 DISNEYLAND PARK AT DISNEYLAND 1 PARIS, Marne La Vallee. France
2 WALT DISNEY STUDIOS PARK AT 2 DISNEYLAND Paris, Marne-La-Vallee
3 EUROPA PARK, Rust, Germany 4 DE EFTELING, Kaathuevel, Netherlands
5 TIVOLI GARDENS, Copenhagen, 5 Denmark
6 PORTAVENTURA, Salou, Spain 7 LISEBERG, Gothenburg, Sweden
8 GARDALAND, Castelnuovo del Garda, 8 Italy
9 ALTON TOWERS, Staffordshire, UK 10 LEGOLAND WINDSOR, Windsor, UK
11 THORPE PARK, Chertsey, UK 12 PHANTASIALAND, Bruhl, Germany
13 FUTUROSCOPE, Jaunay-Clan, France 14 LEGOLAND BILLUND, Billund, Denmark
15 PARC ASTERIX, Plailly, France 16 PUY DU FOU, Les Epesses, France
17 MIRABILANDIA, Savio, Italy 18 GRONALUND, Stockholm, Sweden
19 SLAGHAREN, Hardenbery, Netherlands 20 HEIDE PARK, Soltau, Germany
3%
6% 0% 6%
2%
0% 5%
3%
18% 5%
2%
36% 2%
14%
8%
4% 5%
7%
5% 5% 0%
2.14 BCG Matrix

2.15 MARKET SEGEMENTATION
A market could be segmented for targeting by an organisation on the basis of:
2.15.1 DEMOGRAPHICS
This looks at the Income, Population, and Age distribution, Gender, Education and Occupation. An
example is the middle class analysed in the case study (page 29) where we are told that those who can
afford $100 dollars daily in disposable income fall into this category. As at 2011 when the report was
drawn up 2 million people worldwide fell into that class. By 2020 1.7 billion Asian are expected to be
categorised as middle class out of a predicted 3.2 billion worldwide.
2.15.2 PSYCHOGRAPHIC
Where people are grouped according to their values, lifestyle and their attitudes. An example is the Asian
market. The example to set up an Asian themed Park and resorts on the theme of Asian animal kingdom
worship, falls into this category.
2.15.3 BEHAVIOUR
This examines whether people buy or do not buy a product, how often they buy and use it. An example
would be those who use different rides in the Walt Disney Park and Resort.
2.16 MARKET ENTRY STRATEGIES

Numerous market entry strategies could be considered once a market entry strategic option has been
arrived at and has been considered. These are but not limited to:
LICENSING: This where a company in the country to be entered is permitted to use the know-how, trade-
mark, production and manufacturing process or skill by the company providing the license. An advantage

with licensing for Walt Disney would be that it would make money from selling its licence without having
to get that much involved in the affairs of the other company. Walt Disney could use this approach in the
proposed Walt Disney Food Chain outlets suggested in the report. A disadvantage however is that the
company that buys the licence may, due to little control not adhere strictly to stipulations issued by the
company selling the licence.
FRANCHISE: A franchise is similar to a licence, only that the situation is more formal and the company
selling the franchise may insist on more regulatory standards over the usage of its franchise. Franchising
is another option that Walt Disney could explore in the setting up of the food chain option. The advantage
is that the body selling the franchise may insist effect high standards and still make risk free money. The
disadvantage is that it requires more involvement and control than the licencing arrangement.
JOINT VENTURE: A joint venture is when two company’s maintaining their identity and structures, join
forces together in running or setting up a business of or arm/segment business sharing profits and
ownership. The advantage is that both companies can gain experience and help from each other without
changing their structure. A disadvantage is that joint venture demand a degree of commitment and re-
organising on behalf of both participating country for it to work. Walt Disney has seen most of its ventures
operate on this basis such as the Joint venture with ABC studious for the first Walt Disney Park and Resort
(Disneyland California in 1955 before a vertical integration move saw Disney purchase ABC later.
2.17 MARKETS THAT WALT DISNEY PARK AND RESORTS OPERATES IN
MATURE MARKET: This can be described as a market where there are limited growth opportunities. It is
mature because the potentials have been largely utilised and explored. In such the competition is well
established; the buying habits and behavioural patterns are seemingly fixed, there are limited growth
opportunities and investment cost/standards are high (Neil Kokemuller, 2014) According to our text the
U.S and Canada serve as a mature market to Walt Disney. It specifically states that it faces limited growth
opportunities in the North America Market. Hence the suggestion that it should focuses on increasing its
investment opportunities in the emerging markets. (CIM Case Study, 2013)
EMERGING MARKET: These are markets found in economies that are gradually advancing. The standards
and regulations may not be as advanced as what is obtainable in mature or advance markets/economies
but they show indications of progressing in that direction. The infrastructure in place also signifies as
much. (Investopedia, 2014).
The text describes China Hong Kong, India and Russia as Emerging Markets for Walt Disney. This is seen
in the potential that these markets provide. The theme Park industry itself acknowledges as much as the
OCT Parks, China was described as the eighth largest in the world (CIM Case Study, 2013)
The increase in prosperity, hence the consumer spending index in China has been stated as a reason for
increased traffic to theme parks. However, Walt Disney, just like the Mature US and Canada Markets holds
sway in the Asian market generally with Tokyo Disneyland boasting of 14million visitors in 2011. (CIM
Case Study, 2013)
FRONTIER MARKETS: This exercise has been defined in the area in which it relates to Disney, thus while
Europe is generally considered a mature Market (definitely ahead of the emerging markets) in the real

sense of it. In this case it is classified as a Frontier market, considering Walt Disney’s performance in the
market.
Economic conditions within Europe have been fluctuating. This has seen many operators uncertain of the
direction to follow concerning whether to stall investment. (CIM Case Study, 2013, page 23) Weather is
also not that favourable in Europe, seeing some parks closedown during winter. (CIM CaseStudy, 2013)

2.18 WALT DISNEY PESTLE
Political Economical
Many countries have
High unemployment caused by the
allowed Disney to operate, recession has left a tough economic
as it not only benefits the climate, therefore opening a theme
Disney Company but also park will have to be analysed carefully
before investing. Pg. 16-18
the people who live there.
France government had tax In 2010, the global theme park market
breaks to locate the park was worth US$24 billion and is
predicted to increase its value to
and founded easy access US$29.5 billion. This shows that
transport. Since its opening, Disney’s value will increase as it
Disney Paris has been one of dominates the market.
Investing in new rides, but also on
the most popular theme marketing could built a stronger
parks in the EU. Under 11 interest in visitors. Cost to build a
million visitors in 2011. Pg roller-coaster is around US$12 million
pg13/19/23
12
The Asian Market has a strong
economic growth and already has
more roller-coaster than any other
continent. By 2020 the global middle
class is foretold to grow to 3.2 billion
people
Social Technological
North America is one of the most Simulation games, virtal reality,
mature theme parks in the world, interactive technology
having over 400 amusement parks
3D media
and traditional attractions in the US. It
has been stated that 25% of the US 4D theme parks – mixture of
citizens visited and amusement park physical and virtual world.
in the past year and will visit again in RFID wristbands
within a year. Pg16

Theme parks are mainly aimed at Kinect sensors – detecting
young families and teenagers. peoples movements
However, there are fewer babies
Technology is cheaper than
being born across Europe. Pg 19
4.2 billion Live in Asia 60% of the traditional rides and can be easily
world’s population. updated.
Leading theme parks are heavily Disney has an app ‘Disneyland
concentrated in Florida Wait times’ permitting visitors
Environmental Legal
Universal still holds rights to marvel
Most theme parks depend on the pg 25
weather to be able to operate. Universal also licensed successful
DreamWorks characters (Sherk)
Existing products New products

Market penetration Product development
Simulators
Marketing Virtual law
Pricing (cheaper) Increasing product rage
Targeting at different ages
Market development Diversification

Targeting Africa and South America Anime
Innovation
4D theme park
RFID wristbands
Kinect sensors
Contributed By Erica Pasquel
2.19 VALUE CHAIN ANALYSIS

2.20 ORCHESTRA MODEL
Matt Perry, who devised the Orchestra model published by Harvard Business Review, July August
2014,noted that marketing leaders and CMO’s alongside global brands leaders operate like orchestras.
They tap for talent within and outside the company and orchestrate this together. (Orchestrator model,
2014)
He revealed further that social and digital media has organisation’s bring people together on the basis
of their being able to, ‘think’, ‘feel’ and ‘do for the company.

The food chain strategy suggested as a strategic option will bring together ideas via suggestion boxes
from non-Walt Disney Park and Resort users who visits the food outlets. The people, by providing
suggestions will ‘think’ feel’ and ‘do’ something for Walt Disney even though they do not work for the
company or are even yet to patronise the company numerous sectors.
Perry postulates that these ideas could further be orchestrated by those within the various
departments in the organisation that form the core or centre circle of its operations such as: Analytics
Sales, Customer Care, Marketing, Partner, Consultancy, Agency and Finance.
As Walt Disney works with these external people contacted through the food chain outlets they will
provide ideas and suggestions via surveys and suggestions boxes to give the company a further
competitive edge.

3 CONCLUSION
In conclusion, as stated earlier the internal factors that support Walt Disney are currently stronger and
have a greater positive impact on the company than the external factors. A Strategic Option to be
considered has to factor in, among other things the need to strengthen the positive impact external
factors relating to the company have on enhancing its competitive Edge. The Standalone Food Chain
Strategic Option, as analysed amongst the various options enumerated above will surely fit the bill in
this regard.
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Selecting a Strategic Option for Walt Disney

AUTHOR: Anthony Olabode Ayodele

ABSTRACT: The purpose of this report is to

NB: This report references and is based upon

AUTHOR: Anthony Olabode

2.8 HOFSTEDE’S CULTURAL DIMENSIONS ........................................................................................... 38

Figure 1 WALT DISNEY PARK AND RESORT TIMELINE ............................................................................... 7

QUOTE 1 SUMMARY SITUATION ANALYSIS

Today, Walt Disney, strongly positioned in the US, Asia and

1.2 AUDIT SUMMARY OF WALT DISNEY

1.3 WALT DISNEY PARK AND RESORT TIMELINE

Figure 1 WALT DISNEY PARK AND RESORT TIMELINE

1.4 PUPOSE OF THIS REPORT

1.5 APPROACH TOWARDS ACCOMPLISHING THE TASK AND MODULES USED

1.5.1 CHALLENGE OF MODULE SELECTION AND STRATEGIC OPTION SELECTION PROCESS

1.6 THE WALT DISNEY SWOT TOWS MATRIX

Figure 2 THE WALT DISNEY SWOT TOWS MATRIX

1.7.1 AFASOS MODULE

Figure 3 THE AFASOS MODULE

1.8 STEP BY STEP PROCEDURE TO ARRIVE AT AN ARROWHEAD STRATEGIC

STEP 6: (ARROW HEAD STRATEGIC OPTION): Choose arrowhead strategic option.

STEP 7: Devise marketing mix to release arrowhead strategic option.

1.9 TABLE SHOWING SUMMARY OF STRATEGIC OPTIONS FOR

WALT DISNEY BASED ON MODULES

2. GROWTH IN ASIAN SWOT/ BOWMAN’S BCG 3 15

KINGDOM PARK & MATRIX (2)

4. SET UP R & D IN SWOT/ TELESCOPIC VRIO EXTEND 4 20+4= 24

9. SEEK FOR WD SWOT/ TELESCOPIC EXTENDED EXTEND 4 20

1.10.1 SELECTING THE THREE PRIMARY OPTIONS (COMBINING RELATED OPTIONS).

This is made up of a combination of three related options being options:

2) - Growing Walt Disney in the Asian Market, (15)

9) Walt Disney devising Asian based Walt Disney characters. (20)

This was a combination of three related options; being options:

1) - Digital Marketing leveraged by brand equity (20)

1.11 SUITABILITY ACCEPTABILITY FEASIBILITY (SAF) FRAMEWORK

SAF Matrix SCORE TOTAL

Fits company portfolio 4 4 4 5 16 16 20

1.12 ASSESMENT OF PRIMARY STATEGIC OPTIONS FOR WALT DISNEY

We are also informed how Merlin Entertainment tackled the problem.

1.13 JUSTIFICATION OF FINAL SELECTED STRATEGIC OPTION

We are also informed how Merlin Entertainment tackled the problem.

1.14 MARKETING MIX FOR PROPOSED WALT DISNEY FOOD CHAIN

2.1 MODULES PRODUCED TOWARDS ACHIEVING THIS TASK

• Market Attractiveness: a weighted measurement of factors that determine whether a particular

• BCG Matrixes: Looking at whether products or services offered in an organisation should be

• AFASOS Module: (explained in details in report).

2.2 THE INTERNAL FACTORS EVALUATION MATRIX

Figure 4 INTERNAL FACTOR EVALATION (IFE) MATRIX

2.3 THE EXTERNAL FACTORS EVALUATION MATRIX

Figure 5 THE EXTERNAL FACTORS EVALUATION (EFE) MATRIX

2.4 THE WALT DISNEY TELESCOPIC FRAMEWORK

INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

STRENGTHS WEAKNESESS OPPORTUNITES THREATS

Intangible technology could reputation in Digital conversion of vast yet to

STRENGTHS WEAKNESESS OPPORTUNITES THREATS

INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

2.5 THE WALT DISNEY COMPETITIVE PROFILE MATRIX

Figure 6 THE WALT DISNEY COMPETITIVE PROFILE MATRIX

2.6 ANSOFF EXTENDED MATRIX

Figure 7 ANSOFF EXTENDED MATRIX

2.7 MARKET ATTRACTIVENESS MATRIX

Figure 7 COMPETITIOR ANALYSIS PROFILE