Production and Operations Management – the Disney Case 1. Suppose competing attractions, such(prenominal) as Sea World and Universal Studios, cut their prices of admission. How should WDW do? If somewhat competing attractions trim their prices, WDW has several solutions. One of them is lowering its prices as well. If so, that essence that they also would like to keep the same revenues: consequently, the participation of WDW depart have to become leaner, to cut costs, and that implies to lower the grapheme of the go provided in the parks. Nevertheless, Walt Disney is a gigantic company and a huge brand, and the underlying responsibility of the head of the company is to care this brand, so it is impossible for WDW to lower its prices and quality since it will for sure yarn-dye the vision that the customers have of the company and eventually lower the bet of annual visitors. That it the “challenge of high-riskness”, the company is so whacking that it has to find more creative solutions than adopting the same behaviour as its competitors, who are less expanded and common than WDW is. Indeed, the Walt Disney world covers umteen generations of people: it was founded in 1923, and it has been getting more and more prevalent ever since.
The brand is present in every country, and it concerns several(a) handle such as filmmaking, toys, parks, and so on. The Disney brand is so fundamental that the price elasticity of demand is nearly inelastic, that is to allege that some(prenominal) the price is, it wouldn’t hurt the consumers’ behaviour. The company is bearing in addition much popul! ar and developed compared to its competitors to really cautiousness if they lower their prices. What’s more, WDW is located in an absolutely contrastive orbit than its competitors so visitors who come from abroad would probably instead to confine in WDW than travel to the west coast in act out to visit any other competing attractions, precisely because WDW already has everything: activities for both(prenominal) children and adults,...If you want to get a full essay, order it on our website: BestEssayCheap.com
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