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Disney Presentation
By: Nicholas Cotton, Katie Parkhurst & Daniell Jackson
Introduction & Overview
WDW is located in Lake Buena Vista,
FL.
It was founded in 1971.
Neighbors the cities Orlando and
Kissimmee.
WDW is owned by Disney Parks (a
division of The Walt Disney Company).
Approximately 25,000 acres in size.
Comprised of 4 Theme Parks, 2 Water
Parks, 27 Resort Hotels & Golf
Courses.
History & Market
Idea began in November 15th, 1965 to
build a park similar to Disneyland in
Anaheim, CA
Magic Kingdom opened October 1st, 1971
Epcot opened October 1st, 1982
Hollywood Studios opened May 1st, 1989
Animal Kingdom opened April 22nd, 1998
Marketed to mainly children, but enjoyed
by adults of all ages
Disney Character meet-and-greet’s,
photo-ops, etc. targeted mainly towards
children.
Top Competitors
Competitors- CBS Corp and Viacom
Inc.
Both operate in the Broadcasting sector
and in the Media/Entertainment
industry
Both Distribute content and connect
audiences through television programs,
motion pictures, applications, games,
brands for consumer products, social
media and other entertainment content.
As of Aug 12th, 2019, a merger and deal
has been in the talks. Meaning an even
stronger competitor for Disney.
Revenue Streams
Media Networks
Parks, experiences and
products
Studio entertainment
Consumer products and
interactive media
Competition Structure
Oligopoly competitive structure
Very few firms are in the market
Viacom, Time Warner, etc.)
No real competitive pricing
Consumers have little options to
choose from
Barriers to entry are high
Government regulation favors pre-
existing firms making it difficult
for others to enter the market
Consumers Income
Change in potential customers’ income
could have varying effects for Disney as a
company because it is so large.
For services such as Disney+ or some
merchandise, a change in customers’ income
may not be a very large factor in demand
because the price tag is not very large.
Walt Disney World or Land could see more
of an effect if customers’ income changed.
During an economic downturn, a trip to a
theme park would be much more difficult to
afford. However, many customers would
likely to be able to afford a $6.99 monthly
subscription fee to a streaming service.
Price of related goods
Disney+ costs $6.99 per month. There is an option to
bundle this service with Hulu and ESPN for $12.99 per
month.
There are many other options for streaming services;
Netflix is as low as $8.99 per month, Hulu is $5.99 per
month, ESPN is $5 per month, as well as various other
streaming services and traditional cable and satellite
options.
Changing the price, within reason, may not have much
effect on demand. Now that Disney has its own service,
they can better control how their products are available.
A change in the price would most likely have little effect
on demand. The app has been downloaded over 15.5
million times and collected over $5 million in its first 13
days. The demand is clearly present, and the price
seems to acceptable to consumers.
Now that consumers have experienced the streaming
platform, a higher price wouldn’t deter them. Netflix
raised prices in 2019 by $1-2. Customers were okay with
this increase as long as the content increased in quality
and quantity with the price.
Tastes within the market
Some trends or changes that should be
noted are what is happening with
competitors. While Disney stock hit
record high with the release of Disney+,
competitive streaming services didn’t
seem to see any negative effects.
This can ripple out into other areas for
different production companies. Disney
may see this reflected in attendance in
parks.
However, Universal Studios has a
competing park. Since streaming
competitors didn’t see much of an affect
from the launch of Disney+, Universal
may not see any changes either.
Expectations within the market
Disney’s consumers have so many options for
their buying habits. Because of the cult like
following Disney has created, as well as the
different experiences, Disney has many ways
to capitalize on ways consumers buy.
Disney will most likely dominate the 2019
Holiday season at the box office. Although
many of these customers may also be Disney+
subscribers and will have access through that
service soon enough, they still will opt for the
experience of being an early adopter of new
releases they must see in theatres.
They will also choose to experience new
releases at the theatre. Disney fanatics will
likely become more obsessive in all the ways
they can get their Disney fix.
Number of buyers
The quality of the content is surely a
driving force behind the amount of
customers Disney will see in the future.
Although Disney is a company that already
has such a large, die hard following that a
significant decrease in potential customers
seems unlikely.
In today’s political climate, a scandal could
have an effect, but it would probably only
be temporary because Disney fans are so
devoted. Disney has become tradition for
many friends and family.
Therefore, the number of potential
customers will most likely only increase
with each new generation introduced.
Elasticity
Many of Disney’s customers are have already
decided on the investment they are willing to
make in Disney.
Disney has already established themselves at a
certain price range that most customers are
willing to accept at whatever level they can
afford to.
Disney+ allows customers to experience Disney
content at a rather affordable price. A trip to a
Disney park may be quite a bit pricier.
Disney has created such a foothold in the
industry, as well as in consumers’ hearts that
they can control so much of their production
and cost, that they can easily set prices in a
range that feel is acceptable for consumers of
any income.
Input Prices
An expanded venture, for example, the Walt Disney Company
could confront a wide scope of elements that could physically
influence its future advancements and execution.
Apart from increased competitive pressures, some of the main
threats include changes in macroeconomic conditions, adverse
weather conditions or natural disasters, labor disputes, intellectual
property rights, pension and welfare benefits, Turmoil in the
financial markets could increase its cost of borrowing and impede
access to or increase the cost of financing its operations and
investments, and The impact of foreign currency exchange rates.
Since the company operates in the consumer discretionary sector,
an increase in price levels generally or in a price level in a particular
sector such as the energy sector could result in a shift in consumer
demand away from the entertainment and consumer products
Disney offers, which could also adversely affect its revenues and
increase its costs.
Demand for Disney’s products and services, particularly its theme
parks and resorts, highly depends on the general environment for
travel and tourism. The environment for travel and tourism, as well
as demand for other entertainment products, can be significantly
adversely affected in the U.S., globally, or in specific regions, as a
result of a variety of factors beyond its control. 
Technology
Disney has called Disney
Plus the future of the company.
It's the entertainment
giant's streaming service for
almost everything it's ever created
or bought, taking
on Netflix and an emerging
crop of rivals like Apple TV
Plus and HBO Max.
And perhaps best of all, Disney
Plus has brought us Baby Yoda. 
Expectations
The company’s products are outlined as groups
composing the product mix. As a global
conglomerate, The Walt Disney Company has an
increasing variety of product lines beyond its
initial media and entertainment products. The
strategic acquisition of other businesses is a
major factor in this diversification of the
company’s product mix.
Disney’s products were initially only in the
media and entertainment industry. However,
through expansion and diversification, the
company has added products in the parks and
resorts industry, and the retail industry through
the sale of consumer goods in its amusement
parks, stores, and other places. This part of
Disney’s marketing mix is expected to continue
evolving, alongside strategic changes in business
operations and trends in the global market. 
Entry/Exit
It’s relatively easy for competitors to enter the market
and would only take a few years for them to do so as far
as entering the new venture of live streaming after
seeing how successful Disney plus has been for Disney.
However, Disney says it's "likely" to bring its various
streaming services together, and that's no surprise as it
offers consumers an option to pay for the entirety of the
company's content ecosystem.
Netflix and the rest of the SVOD gang should be
intimidated by that bundling potential. Disney's reach
could surpass even that of Netflix, and customers
looking for a simple all-in-one solution will find Disney's
live and on-demand options very robust.  
A growing sports streaming service, a respectable rival
to Netflix, and now, a Disney+ offering with an enviable
library of content, combine all of that into a House of
Mouse bundle, and you have an all-in-one streaming
solution that quite simply can't be matched by any of its
competitors unless they manage to join forces. 
Wrap-Up
Disney is a powerful company that
has had many ups and down but has
always still managed to come out on
top. The company has been going
strong for decades and shows no
sign of slowing down any time soon.
With the new Disney+, Disney is
ready for modern day streaming and
in just a few short months they have
been dominating the media
streaming market and is taking a
whole new meaning to tv streaming
into the future of the company.
References
Vega, N. (2019, November 26). Disney is adding nearly a million new subscribers a day, according to research firm. Retrieved December 6, 2019, from https://www.marketwatch.com/story/
disney-is-adding-nearly-a-million-new-subscribers-a-day-2019-11-26.
Rogers, T. N. (2019, April 3). Netflix prices are going up. Retrieved November 6, 2019, from https://www.cnn.com/2019/04/02/tech/netflix-price-increase-email-trnd/index.html.
Wisel, C. (2019, November 18). It's Not 'Weird' to Be an Adult Woman Who Loves Disney. Retrieved December 6, 2019, from https://www.yahoo.com/lifestyle/not-weird-adult-woman-
loves-130000201.html.
Fuster, J. (2019, November 8). Will the Box Office Rely on Disney Again This Holiday Season? Retrieved December 6, 2019, from https://www.yahoo.com/entertainment/box-office-rely-
disney-again-184510729.html.
Hayes, D. (2019, November 26). Disney Stock Hits Record High As New Research Puts Disney Downloads At 15.5M – Update. Retrieved December 6, 2019, from https://www.yahoo.com/
entertainment/disney-stock-hits-high-analyst-180457546.html.
Sin Yee, L. (2013, July 11). Is the Walt Disney Company an Oligopoly Structure? Retrieved November 11, 2019, from http://econsgenius.blogspot.com/2013/07/is-walt-disney-company-
oligopoly.html.
Mullin, B., & Cimilluca, D. (2019, August 12). CBS and Viacom are in the final stages of deal talks. Retrieved November 11, 2019, from https://www.marketwatch.com/story/cbs-and-
viacom-are-in-the-final-stages-of-deal-talks-2019-08-12.
https://www.reuters.com/article/us-disney-layoffs/exclusive-disney-looks-for-cost-savings-ponders-layoffs-sources-idUSBRE9060AH20130107
Dianey looks for cost savings, ponders layoffs
Ronald Grover January 7,2013
https://www.cnet.com/news/disney-plus-streaming-service-everything-to-know-baby-yoda/
Disney plus : Everything to know about Disney’s new streaming service
Mike Sorrentino, Joan E Solsman. November 27, 2019
http://panmore.com/walt-disney-company-marketing-mix-4ps-analysis
Walt Disney company marketing Mix (4Ps) analysis
Alex Williams March 7,2019
https://www.fool.com/investing/2019/04/25/disneys-powerful-bundling-potential.aspx
Disney’s Powerful Bundling Potential Should Have competitors Worries
Stephen Lovely April 25,2019

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Disney microeconomics presentation

  • 1. Disney Presentation By: Nicholas Cotton, Katie Parkhurst & Daniell Jackson
  • 2. Introduction & Overview WDW is located in Lake Buena Vista, FL. It was founded in 1971. Neighbors the cities Orlando and Kissimmee. WDW is owned by Disney Parks (a division of The Walt Disney Company). Approximately 25,000 acres in size. Comprised of 4 Theme Parks, 2 Water Parks, 27 Resort Hotels & Golf Courses.
  • 3. History & Market Idea began in November 15th, 1965 to build a park similar to Disneyland in Anaheim, CA Magic Kingdom opened October 1st, 1971 Epcot opened October 1st, 1982 Hollywood Studios opened May 1st, 1989 Animal Kingdom opened April 22nd, 1998 Marketed to mainly children, but enjoyed by adults of all ages Disney Character meet-and-greet’s, photo-ops, etc. targeted mainly towards children.
  • 4. Top Competitors Competitors- CBS Corp and Viacom Inc. Both operate in the Broadcasting sector and in the Media/Entertainment industry Both Distribute content and connect audiences through television programs, motion pictures, applications, games, brands for consumer products, social media and other entertainment content. As of Aug 12th, 2019, a merger and deal has been in the talks. Meaning an even stronger competitor for Disney.
  • 5. Revenue Streams Media Networks Parks, experiences and products Studio entertainment Consumer products and interactive media
  • 6. Competition Structure Oligopoly competitive structure Very few firms are in the market Viacom, Time Warner, etc.) No real competitive pricing Consumers have little options to choose from Barriers to entry are high Government regulation favors pre- existing firms making it difficult for others to enter the market
  • 7. Consumers Income Change in potential customers’ income could have varying effects for Disney as a company because it is so large. For services such as Disney+ or some merchandise, a change in customers’ income may not be a very large factor in demand because the price tag is not very large. Walt Disney World or Land could see more of an effect if customers’ income changed. During an economic downturn, a trip to a theme park would be much more difficult to afford. However, many customers would likely to be able to afford a $6.99 monthly subscription fee to a streaming service.
  • 8. Price of related goods Disney+ costs $6.99 per month. There is an option to bundle this service with Hulu and ESPN for $12.99 per month. There are many other options for streaming services; Netflix is as low as $8.99 per month, Hulu is $5.99 per month, ESPN is $5 per month, as well as various other streaming services and traditional cable and satellite options. Changing the price, within reason, may not have much effect on demand. Now that Disney has its own service, they can better control how their products are available. A change in the price would most likely have little effect on demand. The app has been downloaded over 15.5 million times and collected over $5 million in its first 13 days. The demand is clearly present, and the price seems to acceptable to consumers. Now that consumers have experienced the streaming platform, a higher price wouldn’t deter them. Netflix raised prices in 2019 by $1-2. Customers were okay with this increase as long as the content increased in quality and quantity with the price.
  • 9. Tastes within the market Some trends or changes that should be noted are what is happening with competitors. While Disney stock hit record high with the release of Disney+, competitive streaming services didn’t seem to see any negative effects. This can ripple out into other areas for different production companies. Disney may see this reflected in attendance in parks. However, Universal Studios has a competing park. Since streaming competitors didn’t see much of an affect from the launch of Disney+, Universal may not see any changes either.
  • 10. Expectations within the market Disney’s consumers have so many options for their buying habits. Because of the cult like following Disney has created, as well as the different experiences, Disney has many ways to capitalize on ways consumers buy. Disney will most likely dominate the 2019 Holiday season at the box office. Although many of these customers may also be Disney+ subscribers and will have access through that service soon enough, they still will opt for the experience of being an early adopter of new releases they must see in theatres. They will also choose to experience new releases at the theatre. Disney fanatics will likely become more obsessive in all the ways they can get their Disney fix.
  • 11. Number of buyers The quality of the content is surely a driving force behind the amount of customers Disney will see in the future. Although Disney is a company that already has such a large, die hard following that a significant decrease in potential customers seems unlikely. In today’s political climate, a scandal could have an effect, but it would probably only be temporary because Disney fans are so devoted. Disney has become tradition for many friends and family. Therefore, the number of potential customers will most likely only increase with each new generation introduced.
  • 12. Elasticity Many of Disney’s customers are have already decided on the investment they are willing to make in Disney. Disney has already established themselves at a certain price range that most customers are willing to accept at whatever level they can afford to. Disney+ allows customers to experience Disney content at a rather affordable price. A trip to a Disney park may be quite a bit pricier. Disney has created such a foothold in the industry, as well as in consumers’ hearts that they can control so much of their production and cost, that they can easily set prices in a range that feel is acceptable for consumers of any income.
  • 13. Input Prices An expanded venture, for example, the Walt Disney Company could confront a wide scope of elements that could physically influence its future advancements and execution. Apart from increased competitive pressures, some of the main threats include changes in macroeconomic conditions, adverse weather conditions or natural disasters, labor disputes, intellectual property rights, pension and welfare benefits, Turmoil in the financial markets could increase its cost of borrowing and impede access to or increase the cost of financing its operations and investments, and The impact of foreign currency exchange rates. Since the company operates in the consumer discretionary sector, an increase in price levels generally or in a price level in a particular sector such as the energy sector could result in a shift in consumer demand away from the entertainment and consumer products Disney offers, which could also adversely affect its revenues and increase its costs. Demand for Disney’s products and services, particularly its theme parks and resorts, highly depends on the general environment for travel and tourism. The environment for travel and tourism, as well as demand for other entertainment products, can be significantly adversely affected in the U.S., globally, or in specific regions, as a result of a variety of factors beyond its control. 
  • 14. Technology Disney has called Disney Plus the future of the company. It's the entertainment giant's streaming service for almost everything it's ever created or bought, taking on Netflix and an emerging crop of rivals like Apple TV Plus and HBO Max. And perhaps best of all, Disney Plus has brought us Baby Yoda. 
  • 15. Expectations The company’s products are outlined as groups composing the product mix. As a global conglomerate, The Walt Disney Company has an increasing variety of product lines beyond its initial media and entertainment products. The strategic acquisition of other businesses is a major factor in this diversification of the company’s product mix. Disney’s products were initially only in the media and entertainment industry. However, through expansion and diversification, the company has added products in the parks and resorts industry, and the retail industry through the sale of consumer goods in its amusement parks, stores, and other places. This part of Disney’s marketing mix is expected to continue evolving, alongside strategic changes in business operations and trends in the global market. 
  • 16. Entry/Exit It’s relatively easy for competitors to enter the market and would only take a few years for them to do so as far as entering the new venture of live streaming after seeing how successful Disney plus has been for Disney. However, Disney says it's "likely" to bring its various streaming services together, and that's no surprise as it offers consumers an option to pay for the entirety of the company's content ecosystem. Netflix and the rest of the SVOD gang should be intimidated by that bundling potential. Disney's reach could surpass even that of Netflix, and customers looking for a simple all-in-one solution will find Disney's live and on-demand options very robust.   A growing sports streaming service, a respectable rival to Netflix, and now, a Disney+ offering with an enviable library of content, combine all of that into a House of Mouse bundle, and you have an all-in-one streaming solution that quite simply can't be matched by any of its competitors unless they manage to join forces. 
  • 17. Wrap-Up Disney is a powerful company that has had many ups and down but has always still managed to come out on top. The company has been going strong for decades and shows no sign of slowing down any time soon. With the new Disney+, Disney is ready for modern day streaming and in just a few short months they have been dominating the media streaming market and is taking a whole new meaning to tv streaming into the future of the company.
  • 18. References Vega, N. (2019, November 26). Disney is adding nearly a million new subscribers a day, according to research firm. Retrieved December 6, 2019, from https://www.marketwatch.com/story/ disney-is-adding-nearly-a-million-new-subscribers-a-day-2019-11-26. Rogers, T. N. (2019, April 3). Netflix prices are going up. Retrieved November 6, 2019, from https://www.cnn.com/2019/04/02/tech/netflix-price-increase-email-trnd/index.html. Wisel, C. (2019, November 18). It's Not 'Weird' to Be an Adult Woman Who Loves Disney. Retrieved December 6, 2019, from https://www.yahoo.com/lifestyle/not-weird-adult-woman- loves-130000201.html. Fuster, J. (2019, November 8). Will the Box Office Rely on Disney Again This Holiday Season? Retrieved December 6, 2019, from https://www.yahoo.com/entertainment/box-office-rely- disney-again-184510729.html. Hayes, D. (2019, November 26). Disney Stock Hits Record High As New Research Puts Disney Downloads At 15.5M – Update. Retrieved December 6, 2019, from https://www.yahoo.com/ entertainment/disney-stock-hits-high-analyst-180457546.html. Sin Yee, L. (2013, July 11). Is the Walt Disney Company an Oligopoly Structure? Retrieved November 11, 2019, from http://econsgenius.blogspot.com/2013/07/is-walt-disney-company- oligopoly.html. Mullin, B., & Cimilluca, D. (2019, August 12). CBS and Viacom are in the final stages of deal talks. Retrieved November 11, 2019, from https://www.marketwatch.com/story/cbs-and- viacom-are-in-the-final-stages-of-deal-talks-2019-08-12. https://www.reuters.com/article/us-disney-layoffs/exclusive-disney-looks-for-cost-savings-ponders-layoffs-sources-idUSBRE9060AH20130107 Dianey looks for cost savings, ponders layoffs Ronald Grover January 7,2013 https://www.cnet.com/news/disney-plus-streaming-service-everything-to-know-baby-yoda/ Disney plus : Everything to know about Disney’s new streaming service Mike Sorrentino, Joan E Solsman. November 27, 2019 http://panmore.com/walt-disney-company-marketing-mix-4ps-analysis Walt Disney company marketing Mix (4Ps) analysis Alex Williams March 7,2019 https://www.fool.com/investing/2019/04/25/disneys-powerful-bundling-potential.aspx Disney’s Powerful Bundling Potential Should Have competitors Worries Stephen Lovely April 25,2019