Disneyland Resorts have long been known as family friendly tourist destinations. Disney’s American Parks and Resorts fits this description. Disney does, however, attract families without children. Walt Disney World’s families are predominantly ‘affluent.’ Geographically, Walt Disney World’s patronage is disproportionately dominated by Americans living along the coast, with the highest concentration in Virginia and New Jersey. It is possible that the proximity of Walt Disney World to its location could be the reason why so many people are attracted to it. [ii]
Disney Parks and Resorts are faced with many competitors. Disney Parks and Resorts provides services which other tourism companies also provide. Six Flags is a major competitor, as are local and international hotels and food festivals. Disney Parks and Resorts offer a wide range of products. These include souvenirs, Disney apparel and clothing as well as the experience of using Disney hotels and attractions. They are now expanding globally with new locations in China, Japan and other countries. Prices are moderate, but tickets to hotels in local areas can cost hundreds[iii]. It uses social media as well as traditional advertising methods such television[iv]. Pixar, Walt Disney Animation Studios and Touchstone Pictures are primarily focused on family-oriented movies such as Up or Tangled which have a wide appeal[vi]. Walt Disney Studios Motion Pictures and Marvel Studios each target a more mature and older demographic. While Walt Disney Studios Motion Pictures produces live action films like Pirates of the Caribbean that have a very strong appeal, Marvel Studios makes films that are aimed at a smaller niche and capitalize on their titular intellectual property. Touchstone Pictures was able to position itself, despite being a distributor only, as a movie source for an older demographic. Good Morning Vietnam was marketed individually to a mature audience who were willing to take on serious narratives based on contemporary events.
The Walt Disney Studios faces competition from other producers, because it is both a producer and a distributor. Viacom Inc. Twenty First Century Fox Comcast, CBS, and CBS are among its biggest competitors. The company offers a variety of products ranging from music to movies and live theatre performances[viii]. These products can be purchased through various distribution channels including radio, theaters and movie theatres. Prices are set according to market rates and promotions include both traditional and social media advertising. As an example, Guardians of the Galaxy tickets were priced the same way as other movies[x] with both television commercials and social media advertising[xi].
Disney Consumer Products offers both merchandise and books. Disney Publishing is one of the company’s subsidiaries that sells magazines and books to children between 0-12 years old[xii]. Disney Store’s second subsidiary sells items for children and adults. The most notable product range is clothing inspired by Disney animated intellectual properties[xiii]. Disney’s animated properties are designed to appeal to kids and families. Therefore, some of its products may not be appealing to adults who do not have children. Disney Publishing’s all-digital format allows it to reach an unlimited number of people. Disney Stores are not located in every state, despite the fact that there are several. Disney Consumer Products has to compete with many other retailers as well as publishers. Penguin Books, HarperCollins LLC and other major publishers are among the main competitors. It has an extensive range of merchandise including apparel, toys, books and merchandise. The products are announced primarily through social media and with fewer traditional promotions. They also have a more expensive price tag compared to other retailers. For example, a Disney Cars Artists Series toy may be priced higher than generic toy cars purchased from other retailers after it is announced on social networks[xiv].
Disney Interactive also has a market similar to that of Disney. Its products are primarily games that use Disney’s animated characters. A website is one of its products that is explicitly called a “virtual environment for children”. Disney’s family-oriented audience is nicely completed by a parent blogging space. Other blogging websites, spaces geared towards children, and game makers are its main competitors. The main competitors are Tumblr and WordPress, PBS Kids and Nintendo, which produce video games aimed at children. These products usually have aggressive prices, are sold by Amazon resellers, and are heavily advertised using traditional media. Disney Infinity was, for example priced lower than the average price video games are sold at, sold via distributors such as Amazon or Best Buy, and advertised with multiple commercials.
Disney Media Networks are extensive and cover a wide range of demographics, from young children to adults. Disney Junior and Disney XD cover early childhood programming across 160 countries[xvii], whereas ABC Daytime, ABC Entertainment Group and ABC Family are marketed as adult-oriented programming stations with a high penetration in the 18-49 demo (as demonstrated by their Neilsen award)[xviii]. ABC-owned channels are able reach more that a fifth all television households[xix]. ESPN is also able to draw a young male demographic that is mostly employed and has a college education[xx]. Disney’s demographics on television are mostly affluent. They are also more likely than not to come from affluent families who live in urban areas. The mix consists of a variety of original programs aimed at adults, like Scandal or The View. Also included are children’s shows and sports and news broadcasts. Disney distributes these products through their own channels. ABC stations are also included. They are often priced in cable and television subscription packages. Both traditional and digital media are used to promote the products.
Disney is a major competitor in the news, television, and sports industries. Fox Broadcasting Company serves again as a competitor, producing news, TV, and acting as a source of sports information. Yahoo and MSN are also sources of sports and news information.
Disney is in a position to have a sustainable and powerful competitive advantage because of its strong brand, widespread goodwill, extensive trademarks and IP, as well as copyrights. Forbes rated the brand of Disney as one the most powerful in the World[xxi]. Of its assets of 72 billions of dollars, nearly 10 percent was made up of intellectual property and copyrights[xxii]. A similar estimate of 27 billions was made[xxiii]. Forbes ranked Disney at the top of the list for “leisure”. Its nearest competitor, Fox ranked only 34 places below it[xxiv]. Disney is unbeatable.
Disney’s life cycle is currently at a ‘growth’ phase. Disney’s recent earnings[xxv] have increased, and its market value[xxvi] has risen. There are still opportunities for growth, both locally and internationally. Sales are rising. Risks are decreasing. Time Warner, Viacom and other key competitors are struggling to secure sales[xxvii]. Disney has now reached its peak.
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