Based on your own knowledge of Disney and the information provided in the scenario, does Disney appear to create value in its businesses primarily through a cost leadership or through a differentiation strategy?
Why do you think that Mickey's Kitchen failed? Support your answer with a logical argument, using business-level strategy, relationship between customers and business-level strategies, five forces of competition model
WALT DISNEY COMPANY
Walt Disney Company is famed for its creativity, strong global brand, and uncanny ability to take service and experience businesses to higher levels. In the early 1990s, then-CEO Michael Eisner looked to the fast-food industry as a way to draw additional attention to the Disney presence outside of its theme parks—its retail chain was highly successful and growing rapidly. A fast-food restaurant made sense from Eisner's perspective since Disney's theme parks had already mastered rapid, high-volume food preparation, and, despite somewhat undistinguished food and high prices (or perhaps because of), all its in-park restaurants were extremely profitable. From this inspiration, Mickey's Kitchen was launched. The first two locations were opened in California and in a suburb of Chicago, adjacent to existing Disney stores. Menu items included healthy, child-oriented fare like Jumbo Dumbo burgers and even a meatless Mickey Burger. Eisner thought that locating each restaurant next to existing Disney stores was sure to increase foot traffic through both venues. Less than 2 years later Disney closed down the California and Chicago stores and shuttered further expansion plans. Eisner cited overwhelming competition from McDonalds and general oversaturation in the fast-food industry as the primary reasons for closing down the failing Mickey's Kitchen.
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Based on your own knowledge of Disney and the information provided in the scenario, does Disney...
Case Study Notes Case Questions 1- Is Disney liquid compared to its peers? 2- Does Disney manage its assets effectively compared to its peers? 3- Does Disney’s debt load suggest trouble paying its creditors? 4- Compare Disney’s profitability to its peers. 21,922 36.5% 46.7% 24,701 41.1% 6,095 38.8% PECP Studio Entertainment 10,065 16.7% 19.1% 3,414 5.7% -738 -4.7% -668 -10 Eliminations Total 59,434 HOW DISNEY MAKES MONEY PARKS, EXPERIENCES & CONSUMER PRODUCTS A previous Disney Case used the company's financial...
Financial fraud is often uncovered by exploring financial statements. This is easier with a public company than a private one, as we will see by studying the fall of health technology cor- poration Theranos. This case study’s pre-work article takes a close look at the startup Theranos which was founded and run by Elizabeth Holmes. It is a tale of a 19 year old female startup founder that led her company to a $6 billion evaluation by some in Silcon...
Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, “It’s a Small World After All,” promoted “an idealized vision of America spiced with reassuring glimpses of exotic cultures all calculated to promote heartwarming feelings about living together as one happy family. There were dark tunnels and bumpy rides to scare the children a little but none of the terrors of...
Financial fraud is often uncovered by exploring financial statements. This is easier with a public company than a private one, as we will see by studying the fall of health technology cor- poration Theranos. This case study’s pre-work article takes a close look at the startup Theranos which was founded and run by Elizabeth Holmes. It is a tale of a 19 year old female startup founder that led her company to a $6 billion evaluation by some in Silcon...