“How Disney Makes Money? Understanding Disney Business Model Core Elements”

 

First, read the following articles/watch the videos:

“How Disney Makes Money? Understanding Disney Business Model Core Elements” Links to an external site.via R&P
“The Secrets Behind Disney’s $2.2 Billion Theme Park Profits” Links to an external site.via Forbes
“The Walt Disney Company” Links to an external site.via Wikipedia
Then, please respond to the questions below (about 10 sentences for each question). Then Respond (in 5 or more sentences) to two or more posts made by your classmates ( will attach to posts by classmates below)

What is the business model/strategy of Disney?
Which of the 10 operations decisions are covered in the above links?
Do you think the Disney operations are aligned with their business model?

Classmate posts:

1. The business model for Disney consists of five elements. Those elements are Disney’s media networks, parks and resorts, studio entertainment, consumer products, and interactive. From my perspective, the business strategy of Disney is to constantly evolve and adapt to remain relevant on a global scale throughout changes in society. The evolution of a creator’s initial plan and design may be hard to maintain and scale for future growth. The ability to remain a formidable competitor over time is no small feat. To endure, among other things, Disney has a strategy to possess progressive and forward-thinking minds, as well as a loyal fan base, and the unwavering propensity to hold true to their core beliefs and mission statement. From the company’s inception, Disney has prided itself on being steadfast in its approach to family-oriented fun. It is the company’s mission, in part, ‘to entertain, inform, and inspire the globe through their storytelling.’ Some of Disney’s core values include community, decency, and innovation. The incorporation of this strategy, the business model, and the core values are reflected in the company’s efforts to plan, design, and execute all their experiences and offerings. Overall, the strategies and business model employed by Disney has propelled the organization into a national and international conglomerate, dominating as some of the globe’s most popular theme parks.

A few of the ten operating decisions were revealed in the articles. The design of goods and services is demonstrated in Disney’s business model and the vast array of product offerings. This is highlighted in “How Disney Makes Money? Understanding Disney Business Model Core Elements,” by Margaret Visnji. The model described in the feature demonstrate all the segments geared to Disney’s consumers’ needs. Disney listens to what their consumers want and desire. Products by way of merchandise or experiences are then created based on these wishes. Quality management is carefully measured, and this is echoed in the Forbes article, “The Secrets Behind Disney’s $2.2 Billion Theme Park Profits” by Christian Sylt. The story features astonishing statistics that state that Disney retains a command of the top ten list of theme parks visited throughout the world. The management and statistical process control is also featured in this article, as metrics are constantly measured and utilized by Disney to improve consumer attendance. Location and layout strategies, along with inventory management, were also addressed in this article. The location of gift shops for shopping with ease when exiting attractions, is an example of a location strategy Disney uses that is a part of the operation decision. A new upcoming attraction to the Paris Park would potentially reimagine the layout, which would boost traffic and Disney’s bottom line. Layout in this case would be the capacity needs, technology, personnel levels, and inventory requirements that go into the new design. In the future of planning for the park in Paris, inventory management by way of recognizing the need for additional hotel accommodations was mentioned. This will be addressed by a 400-room facility that was scheduled to be opened.

In my opinion, I believe that Disney’s operations are aligned with their business model. Each segment of the business model is divided and has focused attention devoted to the differing aspects within that unit. I believe that the operations management for each segment varies as each area has unique needs. This is noted by the specifics of the model and all the manners by which Disney earns its revenues. Operations management for each factor of the model plays a huge role in the overall success of the company. The operational management which includes the all the ways that Disney’s products and services are produced for society’s well-being is carefully orchestrated and maintained. The attention that operations management plays for each of these segments is overwhelming to me. There are many moving parts in the world of Disney that are required to sustain the business wholly. For me, I recognize that operations management absolutely plays a crucial role in the cohesion of Disney’s business model that leads to its success.

 

2. What is the business model/strategy of Disney?

 

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