After researching the company’s revenues we found that a majority of their income comes from their successful amusement park attendance. Ticket sales have continued to increase, but customers are still willing to pay the additional fee’s because they see value in their purchase. Disney’s parks are also among the only ones in the world in which customers attend for more than one day, which is due in part to the limited locations. This works to their advantage because they are providing an experience, an affordable vacation providing rides, attractions, food, beverages and entertainment for everyone. Due to these advantages our group saw great potential in expanding the amusement park locations abroad.
Disney first expanded their locations to Tokyo, where they modeled the park after their two US based locations. Even though Disney was only receiving a portion of ticket sales, and all other sales they were still generating a large revenue. We realize the creation of these parks is time consuming and extremely costly, but given past experience Disney has proven that each park’s success has made the entire operation worthwhile.
The first country we would like to expand to is Brazil, because of its diverse population, warm climate, safety, and GDP. Our major focus was on climate, we noticed that in the past ticket sales have greatly dropped due to the changing of seasons and climate. We wanted to provide customers with a park that’s climate would allow them the opportunity to attend year round. Disney’s sales already surpass costs and expectations but we felt there was still opportunity for growth. If Disney can sustain ticket sales year round they will see a positive increase in sales and customer satisfaction.
The reason we chose to focus on expansion and not the other recommendations are due largely to the fact that we determined Disney to be a blue ocean company. Disney is so well established, branded and innovative that no other company has even come close to meeting the same customer needs or wants. We felt we should capitalize on the unique experience and opportunity Disney provides their customers by opening a park in a warm location that would afford more of the international and global consumers the opportunity to experience all that Disney has to offer.
We felt as though our alternative recommendations would be too costly and time