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Walt Disney Competitive Advantage

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Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. There are three types of competitive advantage. a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy. Strategies that have been applied by The Walt Disney Company in creating value are: Cost Leadership In the existing market …show more content…

Moreover, using this factor company also can cover the cost. The Walt Disney Company exemplifies a company that uses product differentiation to gain competitive advantage. It contains several examples of Disney using product differentiation. Some of Disney’s theme park product differentiation features include a friendly staff, extremely clean facilities, an extensive range of entertainment offerings and unique customer experience. The complexity of the product offering allows customers to have numerous price points and ability to decide how much of the Disney experience they want to enjoy. For examples, the offerings include transportation, resort accommodations, and meal plans. The larger product mix creates entry into the resort, hotel, and restaurant businesses. Although Disney was not first in the theme park market, its large size and connection to kid’s movies was revolutionary. The expansion into the Orlando market was such a sense impression, it has caused other theme parks to make there as well hoping to receive spill over

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