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Since the company is global and has parks in different countries, all of these macro-environment components vary in each country/region. This can be very difficult to manage since decisions about the company have to be based on each individual theme park. Some of these components, such as natural environment, play a huge role in park attendance. In this industry, park attendance is the key factor to success.
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The first of these is competition from rival sellers. Although Disney does offer a truly unique entertainment experience, people do enjoy going to other theme parks. Six Flags for example is known for their record breaking rollercoasters. Disney doesn’t offer a lot of roller coasters, so people who want that thrill are likely to go to Six Flags over a Disney park. Universal Studios focuses on themed rides. Although Disney’s rides are themed, it’s not to the extent that Universal does. The thing that sets Disney apart over the other competitors is not only its storytelling but its superb guest satisfaction. In the amusement park industry, there is little threat of new entrants. A theme parks initial startup costs are in the millions (roller coasters on average cost about $10-20 million alone). The entry to this market is also difficult because you have to find a significant amount of space to utilize if you plan on growing. Also, technology changes frequently and older rides are replaced with newer rides, so competing in the market is an ever-changing, ongoing process. There aren’t a whole lot of substitute products in this market; theme parks are a very unique industry. If you are looking for that rich family experience, going to a zoo or museum might give somewhat of a similar family experience. If you are looking for a thrill, sky-diving and bungee jumping are some of the alternatives. Overall
The first of these is competition from rival sellers. Although Disney does offer a truly unique entertainment experience, people do enjoy going to other theme parks. Six Flags for example is known for their record breaking rollercoasters. Disney doesn’t offer a lot of roller coasters, so people who want that thrill are likely to go to Six Flags over a Disney park. Universal Studios focuses on themed rides. Although Disney’s rides are themed, it’s not to the extent that Universal does. The thing that sets Disney apart over the other competitors is not only its storytelling but its superb guest satisfaction. In the amusement park industry, there is little threat of new entrants. A theme parks initial startup costs are in the millions (roller coasters on average cost about $10-20 million alone). The entry to this market is also difficult because you have to find a significant amount of space to utilize if you plan on growing. Also, technology changes frequently and older rides are replaced with newer rides, so competing in the market is an ever-changing, ongoing process. There aren’t a whole lot of substitute products in this market; theme parks are a very unique industry. If you are looking for that rich family experience, going to a zoo or museum might give somewhat of a similar family experience. If you are looking for a thrill, sky-diving and bungee jumping are some of the alternatives. Overall