Walt Disney Parks and Resorts Worldwide Inc.’s Market

Market Structure

The company, Walt Disney Parks and Resorts Worldwide Incorporation, operates in the oligopolistic market structure. The company has unique operational strategies which can be equated to the ideals of oligopolistic strategies, characterised by few competitors dominating the global parks and resort business (Baumol & Blinder, 2011). Strong commitment to quality and product innovation has enabled the company to get the right experience for their customers. This has been possible through the recruitment of employees with the right skills and knowledge. These employees are further trained to understand the company production strategies. Moreover, the company conducts more market research to ascertain customer thoughts and changing demands. For instance, the company has consistently increased its production modification and diversification of products in the market instead of reducing output with intent of increasing prices.

We will write a
custom essay
specifically for you

for only $16.05 $11/page
308 certified writers online
Learn More

Market industry

There are few competitors who dominate the park and resort industry such as Six Flags Entertainment Corp, Universal Pars and Resorts, and Seaworld Entertainment among others. These companies control the fifty three billion dollars industry. The Walt Disney Parks and Resorts Worldwide Incorporation has the largest market control of 24% with the other companies sharing the rest of the market. Since the industry is dominated be few global brands, it is very difficult for a new company to enter in this market and breakeven since the competitors benefit from economic of scale. Besides, the capital requirement for entry is very enormous for a new entrant. Most of products and services offered by the Walt Disney Parks and Resorts Worldwide Incorporation and its competitors are perfect substitutes and tend to have similar price ranges due to standardized operational costing and targeting strategies. Since these companies target similar customer segment, they have limited alternatives in terms of multiple pricing (Witcher & Chau, 2010). The companies use self-advertisement and other forms of media to market different products. The self-advertisement is possible due to their global brand image and active presences in the major markets across the globe.

Industry structure and company strategies

The industry structure affects the strategies used by the Walt Disney Parks and Resorts Worldwide Incorporation in terms of pricing of its products and customer segmentation. Since the main competitors offer perfect substitute products, the company has to ensure that its prices remain competitive to avoid losing customers to some of the competitors. Besides, the company has to constantly remodel and integrate its products to maintain its current top position, which can easily be taken by the few giant competitors (Flynn, McConnell, &Brue, 2012).

Since the market structure is oligopolistic, the financial performance of the Walt Disney Parks and Resorts Worldwide Incorporation has been stable and predictable since it has been able to earn very high profits since the barriers to entry such as large capital and logistic support blocks new entrants from penetrating the market (Marshall, 2004). Besides, the company has been able to use product differentiation strategy by offering series of brands from similar product category such as magic, wonder, dream, and fantasy to ensure that the revenues of the company are above that of its major competitors.

Financial Performance Data

The table below summarized the financial performance of the Walt Disney Parks and Resorts Worldwide Incorporation for the last three years.

Specific Variable 2012 2013 2014
Sales ($ millions) 65,225 78,249 85, 083
Gross Profits 25,684 33,818 48,662

References

Baumol, W., & Blinder, A. (2011). Economics: Principles & policy. New York, NY: Joe Sabatino.

Flynn, S., McConnell, C., & Brue, S. (2012). Loose leaf essentials of economics with connect access card. New York, NY: McGraw-Hill Education.

Get your
100% original paper
on any topic

done in as little as
3 hours
Learn More

Marshall, A. (2004). Principles of economics. New York, NY: Wiley & Sons.

Witcher, B., & Chau, V. (2010). Strategic management: Principles and practice. Alabama, Al: Cengage Learning.

Print Сite this

Cite this paper

Select style

Reference

StudyCorgi. (2021, January 20). Walt Disney Parks and Resorts Worldwide Inc.’s Market. Retrieved from https://studycorgi.com/walt-disney-parks-and-resorts-worldwide-inc-s-market/

Work Cited

"Walt Disney Parks and Resorts Worldwide Inc.’s Market." StudyCorgi, 20 Jan. 2021, studycorgi.com/walt-disney-parks-and-resorts-worldwide-inc-s-market/.

1. StudyCorgi. "Walt Disney Parks and Resorts Worldwide Inc.’s Market." January 20, 2021. https://studycorgi.com/walt-disney-parks-and-resorts-worldwide-inc-s-market/.


Bibliography


StudyCorgi. "Walt Disney Parks and Resorts Worldwide Inc.’s Market." January 20, 2021. https://studycorgi.com/walt-disney-parks-and-resorts-worldwide-inc-s-market/.

References

StudyCorgi. 2021. "Walt Disney Parks and Resorts Worldwide Inc.’s Market." January 20, 2021. https://studycorgi.com/walt-disney-parks-and-resorts-worldwide-inc-s-market/.

References

StudyCorgi. (2021) 'Walt Disney Parks and Resorts Worldwide Inc.’s Market'. 20 January.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal.