A Spirited Perfect Ten

lebeau

lebeau

Well-Known Member
JediMasterMatt said:
It's a lot easier to compare Cedar Fair run parks to Disney these days since Matt Ouimet has taken over. I have seen a very solid understanding of hitting at the core of what each of the Cedar Fair parks in the chain are best at and he's already righted the ship from the Paramount "reach exceeding the grasp" phase. Seasonal/regional theme parks have no business trying to compete with Disney/Uni/or even Busch on a "theme" playing field. You can't overbuild the "theme" around a mediocre attraction (like Paramount did using Kings Island's Tomb Raider for example). The best ROI for the seasonal/regional theme park is to put the value in the quality of the attraction and then the remaining amount on the theme. Banshee last summer at KI was a great example of this. Great ride with just a pinch of theme to sell the attraction. I think Ouimet is doing a fantastic job thus far. I'm really excited to see what is coming down the road from him.

You could even apply the argument above towards some of Disney's efforts in the last decade where the spend of attraction/theme balance could've been better leveraged - case in point Expedition Everest. Great multi-layered themeing, applied to a very mediocre roller coaster. Strip away the theme, and EE wouldn't be much of an attraction. I'm not even factoring in the overspend on the underperforming and even when working, under utilized Yeti AA.

Of course if you want to talk about overspend in the wrong areas, we can always discuss the E ticket show building around the C+/D ticket Little Mermaid: Ariel's Undersea Adventure at MK. I'm fine with what the ride is (and will be with the upcoming refurb) as the MK needs many more attractions like it; but, you could argue that some of the funds for the elaborate queue and show building would've been better spent elsewhere.
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Agree wit lots of what you have said. The one thing I will say is CF has a tendency to miss some of the cheap and easy theming that used to make a lot of difference in the early days. Playing pop music on International Stree just robs it of the flavor it used to have. And as much as I love Diamondback, I miss what Rivertown used to be.
 
CaptainAmerica

CaptainAmerica

Premium Member
ParentsOf4 said:
I suspect this directly related to the relatively recent improvement in Parks & Resorts gross margin, something Jay Rasulo could never get a handle on.

Looks like I need to post a graph later tonight. ;)
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Isn't gross margin something that's generally detested around here? I've seen folks mock Iger for poor margins in the TP&R segment while, in the same breath, also complaining about high prices and cost-cutting. High prices and lower costs are precisely the drivers of those margins.
 
the.dreamfinder

the.dreamfinder

Well-Known Member
Tom just isn't sure how to react to the news.
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Rodan75

Rodan75

Well-Known Member
WDW1974 said:
@flynnibus raised some interesting points in his wordy post about the makeup of the fan community and, indeed, this one. Lots of things I'd like to say, but limited time. You might say I'm working on China time this evening. :)

I'd just like to talk about why I'm here and what I care about.

I am a critic, a shareholder, a member of the larger business and, yes, above all -- a fan/consumer.

I'm not here to give Disney free consulting (I know what they pay consultants!) and I'm not here to defend a heartless corporation that hasn't really been Walt's company for many decades now. And I'm certainly no BRAND advocate.

It all started so innocently, back two decades ago when everyone didn't have a voice online and the 'net was new. My first posts were attempts to help folks with trip planning matters and the ever-futile effort to correct misinformation (think how laughably quaint such a notion is today) etc. I was quite friendly with execs and Imagineers and people in all facets of TWDC, and while it never crossed my mind in those wild west days that important eyes were watching, I was much more careful about what I pointed out. For instance, guys at WDI that I just despised like Barry Braverman and Timur Galen execs ...well, the point here is that I let others, like Al Lutz, go after them.

Somehow, about a year after DCA opened and it was obvious that the company needed new leadership and, yes, even 9/11 and the police state it created, just turned a switch in me and I started posting much more serious stuff and taking no prisoners. By that point any/every one with any significance at Disney started to realize exactly who this 74 character was/is, but it didn't matter to me. Opening eyes that were glued shut with Pixie Dust sorta became my reason for being online.

Disney doesn't need, no company needs, a fan community that mindlessly supports every action that it takes. Much more important that fans who care hold their feet to the fire ...or burn a few at the stake as required.

And now here we are and it is 2015 and ...some of the most wonderful, amazing Spirits have come into my life because of this crazy persona that ultimately wants Disney to simply be Disney and people (and corps) to live up to standards and ethics and their own words. So, has it been worth the threats, the special treatment by my 'friends' at TWDC, the fanbois making some ... Um ... Ahm ...interesting proposals, the Lifestylers peddling my secret identity to Celebration Place drones in hopes of getting on 'the list'?

Hell yeah! Just a shame I can't be enjoying a rainy afternoon at my favorite little park on Lantau right now
(Hong Kongers are like SoCal residents when it rains and the temp dips below 68, they hide in bed!!!)
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Well said! TWDC has built itself on fan devotion and because of that voices like yours and others in this forum are an important reality check. I may not always agree with your words, but your message is always clear and consistent. Thank you!
 
ford91exploder

ford91exploder

Resident Curmudgeon
CaptainAmerica said:
Isn't gross margin something that's generally detested around here? I've seen folks mock Iger for poor margins in the TP&R segment while, in the same breath, also complaining about high prices and cost-cutting. High prices and lower costs are precisely the drivers of those margins.
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There are multiple ways to drive margin, Eisner focused on increasing top line revenues while producing a premium product, Iger/Staggs/Rasulo have driven margin by quality cuts and price increases which is a short term only strategy.

Disney has always BEEN a luxury brand, However to maintain that brand one needs products to match. Current strategy is luxury brand price, WalMart quality. Which will work for a while but when it fails it fails HARD.
 
ParentsOf4

ParentsOf4

Well-Known Member
CaptainAmerica said:
Isn't gross margin something that's generally detested around here? I've seen folks mock Iger for poor margins in the TP&R segment while, in the same breath, also complaining about high prices and cost-cutting. High prices and lower costs are precisely the drivers of those margins.
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Yes, the way Disney has been operating for about the last decade, they've been trying to improve gross margins primarily through higher prices, quality reductions, and lower investments. However, it wasn't always like that.

Before messing up The Gap, former Parks & Resort Chairman Paul Pressler broke the Parks & Resorts financial miracle that Walt Disney created.

My definition of "financial miracle": High Quality + High Capex + Reasonable Prices = Excellent Gross Margin.

Walt Disney created a business model that succeeded for decades; a business model that no one else believed in until Walt Disney simply went out and did it.

I'll try to explain it all tonight. It probably will take me a couple of hours to write up.
 
ford91exploder

ford91exploder

Resident Curmudgeon
ParentsOf4 said:
I suspect this directly related to the relatively recent improvement in Parks & Resorts gross margin, something Jay Rasulo could never get a handle on.

Looks like I need to post a graph later tonight. ;)
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Interesting the only one of the triad who had some feelings for P&R was able to drive increased margin, Strange how that works. Once again proving you cannot run a company simply 'By the numbers' and expect success you need some passion for the product as well.
 
Gabe1

Gabe1

Ivory Tower Squabble EST 2011. WINDMILL SURVIVOR
ParentsOf4 said:
Yes, the way Disney has been operating for about the last decade, they've been trying to improve gross margins primarily through higher prices, quality reductions, and lower investments. However, it wasn't always like that.

Before messing up The Gap, former Parks & Resort Chairman Paul Pressler broke the Parks & Resorts financial miracle that Walt Disney created.

My definition of "financial miracle": High Quality + High Capex + Reasonable Prices = Excellent Gross Margin.

Walt Disney created a business model that succeeded for decades; a business model that no one else believed in until Walt Disney simply went out and did it.

I'll try to explain it all tonight. It probably will take me a couple of hours to write up.
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Perfect snapshot and articulated well. Thanks as always....:inlove:
 
BrerJon

BrerJon

Well-Known Member
WDW1974 said:
One down (and soon to be out of the company).

One to go.:cool::devilish::)
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Rasulo's clearly gone (hooray! ding dong the *itch is dead!), Iger's soon to go, but Staggs now seems the heir apparent, exactly the position Iger was in during Eisner's rocky patch.

The only way he won't become CEO now is if they bring in someone from outside, but as much as we'd all love to see that, what incentive is there for the board and Wall Street to want that when - especially after recent results - their mutual love affair is so strong?

I can see all the analysts being quite content to let Iger make the final call and trusting his judgment, and all the signs point to him anointing his pal Tommy.

Whatever happens, we're getting a new head of P&R who isn't Rasulo or Staggs, so that appointment will be the most important and interesting one to tell which way the wind's blowing for the aspects we concern ourselves with here.
 
ULPO46

ULPO46

Well-Known Member
Exactly. Current management has lost that idea. It has lost the belief in a high quality product. It's not just Disney every major Forutune 500 company is facing the same issue. Money has become priority number one. The base of customer satisfaction is just, if they have money they will continue using our resources or buying our product. But we need to be cost affective and stop spending on infrastructure. Make a cheaper product that our customers wont even notice and thus, continue on said path. It's a fallout to any buisness model and unfortunately Disney has become said one of those corporations.
 
ford91exploder

ford91exploder

Resident Curmudgeon
ParentsOf4 said:
Yes, the way Disney has been operating for about the last decade, they've been trying to improve gross margins primarily through higher prices, quality reductions, and lower investments. However, it wasn't always like that.

Before messing up The Gap, former Parks & Resort Chairman Paul Pressler broke the Parks & Resorts financial miracle that Walt Disney created.

My definition of "financial miracle": High Quality + High Capex + Reasonable Prices = Excellent Gross Margin.

Walt Disney created a business model that succeeded for decades; a business model that no one else believed in until Walt Disney simply went out and did it.

I'll try to explain it all tonight. It probably will take me a couple of hours to write up.
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That's true - interestingly enough like Carly Fiorina, Paul Pressler has destroyed EVERY company he has been with. Pressler left wreckage in his wake at Kenner and Parker Bros, Then on to Disney and ending with the destruction of The Gap stores.

Fiorina was part of the disaster known as the AT&T breakup, then she went to Lucent - closed Bell Labs and completely destroyed Lucent's optical and telephone switching business she finally got booted from the flaming wreckage of Lucent and went to HP where she destroyed the most innovative integrated technology firm in the world leaving it selling cheap printers and PC's and overpriced ink.
 

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