According to the lecture, strategy can be defined under two sub-topics, operational effectiveness and strategic positioning. In the theme park and tourism industry, strategy is extremely important in determining success amongst comsumers. At Walt Disney World, we employ several examples of operational effectiveness and strategic positioning that keep us ahead of our "rivals" in the theme park business.
Walt Disney World achieves operational effectiveness in several ways. Perhaps the best example of this can be seen in the DOCC (Disney's Operational Command Center) base which is located in the utilidors of the Magic Kingdom. In the DOCC base, a team of Disney Cast Members monitor the amount of Guests in the four Disney theme parks. They do this through an intricate series of cameras and sensors that alert them to how many Guests are coming through the turnstiles, how many Guests are in line at particular restaurants/attractions, and how how the guests are "flowing" through the park. As a Leader at the Magic Kingdom, the information given to me is essential to my operation. Each hour I receive a recap of how many Guests rode my attractions, letting me know if each attraction acheived its "guest carried target" in that particular hour. If the guest carried target is not achieved in a particular hour, I am able to immediately react to the information and look at either adding additional ride vehicles or add extra labor positions to ensure the next hour is more efficient. Similarly, in cases where the guest demand is not high enough, the information provided in the DOCC reports lets me know when to scale back on ride vehicles and labor.
Another great example of how Walt Disney World acheives operational effectiveness is through our Fastpass distribution system. Disney's Fastpass is a special system designed to help our guests experience minimal wait times at our most popular attractions. The rational behind the system is rather simple. Instead of waiting 40, 50, or 60 minutes for one of their favorite attractions, a guest can simply approach the attraction and insert their park ticket into a Disney's Fastpass machine located just outside the entrance to the queue. The guest will then receive a fastpass coupon instructing them to return to the attraction at a later time. This allows the Guest to enjoy lunch/dinner or another attraction where the line may not be as long. The DOCC base monitors the Fastpass distribution for each attraction, ensuring that we only distribute a certain number of tickets per hour (the number various depending on attendance). This way, the Fastpass line stays at a minimal wait while the standby line for each attraction maintains a consistent wait time.
Other theme parks such as Six Flags and Universal Parks have attempted their own versions of a fastpass system, but they lack the intelligence behind Disney's Fastpass. Unlike Disney, you must pay for the privilege to use their version of fastpass and the attractions are not monitored. For example while Disney limits the number of Fastpass tickets made available for Space Mountain each hour, guests who want to ride The Mummy at Universal Studios can flood the fastpass line, so long as they have purchased the ticket. It's just not nearly as efficient.
Walt Disney World has perhaps the strongest hold on strategic positioning within today's theme park industry. Before Disneyland was constructed in 1955, Walt Disney laid the foundation for the Company when he stated that the focus of Disneyland would be families. Not adults, not kids, but the family as a whole. Over 60 years later, the same strategy holds true at Walt Disney World today. At Walt Disney World, we utilize the practice of Disney Synergy (self-promotion of products such as movies through attractions, shows, merchandise, etc.) to bring families to our theme parks. Walt Disney World does this better than anyone, as it is the only theme park in the world where people can meet their favorite Disney Characters, ride an attraction based on a film, eat in a restaurant they saw in a movie, or purchase merchandise related to a popular TV show. Other theme parks have tried to model this trend, but no one has been able to duplicate the success of Walt Disney World mainly because the quality of the Disney brand is so well-known.
When it comes to Cost Leadership vs. Product Differentiation, I think it is clear that Walt Disney World employs both of these strategies, but tends to lean more heavily on product differentiation. This can be attributed to the example of synergy stated in the previous paragraph. While most theme parks throughout the world offer great roller coasters, thrill rides, etc., Disney offers great experiences that people have an emotional attachment to. This can be seen in most of the resorts, restaurants, and attractions that Walt Disney World offers. For example, Walt Disney World doesn't build roller coasters, instead we build a recording studio where you are greeted by a limo driver who needs to take you across town to an Aerosmith concert (not to worry, they got you a really fast car!); an attraction called "The Rock 'N' Roller Coaster staring Aerosmith."
These are just some examples of how the Walt Disney World Resort utilizes Operational Effectiveness and Strategy to remain the number one tourist destination in the world.
