Question

analyze Disney Land recent performace( profitable or not) and apply 5 force analysis

Answer 1

It is important to mention that each day the cost of operating Disney land is about 11 billion and at the same time 13 billion is made by Disneyland each day. Therefore, after deducting all the maintenance costs, each day the park makes about 6 million profit.

Porter's five forces analysis of Disneyland are as follows:

1. Industry rivalry- Disneyland faces stiff competition from the other market competitors and this acts as a strong force. The other competitors include Universal amusement parks, King's Island, Six Flags parks.

2. Bargaining power of suppliers- The presence of a large number of suppliers have made the market of the suppliers very competitive. Furthermore, the bargaining of suppliers acts as a weak force.

3. Bargaining power of customers- The customers has a lot of option to choose from, a lot of amusement parks exist beside Disneyland. This acts as a strong force.

4. The threat of being substituted- It acts as a weka force because Disneyland has got its fame and different experience for its customers which cannot be substituted.

5. Threat from new entrants- It acts as a weak force because new entrants will not be able to provide the experience facilitated by Disneyland.

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