Disney As A Corporation

Raineman

Well-Known Member
Original Poster
So, I need to ask this question, and I'm asking it as a serious question, not trying to troll people:why is there the perception that , in regards to constant price increases and cutbacks, Disney as a corporation should be completely different than any other Fortune 500 organization (Disney is currently ranked 55th on that list)? In 2018, increased profit margins and increased demand from shareholders seem to drive increased costs and increased cutbacks for most if not all of the major corporations in the world. In general, products seem to be more cheaply made but rising in cost to the consumer, services have decreased in value but increased in cost, wages have decreased while benefits are cut and working hours increased. Why would people, at this point, expect anything different from Disney when it comes to their theme parks? The expectation in the past was an affordable, immersive experience with top shelf customer service, but that was back when Disney had not grown into the corporate entity is is now.
I want to add to this that I would personally love to see lower prices, better value for money and better customer service, but not just from Disney, from every mega-corporation that I purchase goods and services from.
 

xdan0920

Think for yourselfer
So, I need to ask this question, and I'm asking it as a serious question, not trying to troll people:why is there the perception that , in regards to constant price increases and cutbacks, Disney as a corporation should be completely different than any other Fortune 500 organization (Disney is currently ranked 55th on that list)? In 2018, increased profit margins and increased demand from shareholders seem to drive increased costs and increased cutbacks for most if not all of the major corporations in the world. In general, products seem to be more cheaply made but rising in cost to the consumer, services have decreased in value but increased in cost, wages have decreased while benefits are cut and working hours increased. Why would people, at this point, expect anything different from Disney when it comes to their theme parks? The expectation in the past was an affordable, immersive experience with top shelf customer service, but that was back when Disney had not grown into the corporate entity is is now.
I want to add to this that I would personally love to see lower prices, better value for money and better customer service, but not just from Disney, from every mega-corporation that I purchase goods and services from.
Because they sell only 1 thing at the theme parks. Customer satisfaction, and I guess nostalgia, which is an offshoot of that. So, maybe it might be a good idea to engender some loyalty from your "guests"?

It worked for decades.
 

Raineman

Well-Known Member
Original Poster
Because they sell only 1 thing at the theme parks. Customer satisfaction, and I guess nostalgia, which is an offshoot of that. So, maybe it might be a good idea to engender some loyalty from your "guests"?

It worked for decades.
I'm sure it would still work on the customer's end, but I'm sure if the majority of stockholders saw their share price/dividends leveling out or going down as a result of lower profit margins resulted from increased spending to improve the parks and customer service/decreased costs to the customer, they would not be happy and could result in less trading and lower share price, which would be a bad thing from the corporation's view. Once you take your company public and have to answer to your shareholders, you are kind of at their mercy when making financial decisions. Theme parks are only part of the Disney corp, but still a substantial money earner.
 

disneyflush

Well-Known Member
Do the other companies have fan forums that react positively to price increases for their product? I think 'expected to act differently' might be the wrong phrase here. Most people that post here love to visit WDW and when the cost to do so goes up they are unhappy. I believe this reaction is probably consistent across the users of most products/services offered by the Fortune 500.
 

eliza61nyc

Well-Known Member
I think for the most part because we have the "What would Walt do" mystique with Disney. Walt seems to be some "holy" God like figure to the uber fan who could do no wrong. It's a constant refrain, "walt wanted this, walt wanted that". Disney also has this strong "nostalgia" appeal, again you see this almost in every thread about how in 19XXX it was so much better and my favorite how Disney was for the common man.
So when there is a price hike it's almost as if disney short sheeted the Pope. People take it as apersonal affront.
 

Raineman

Well-Known Member
Original Poster
Do the other companies have fan forums that react positively to price increases for their product? I think 'expected to act differently' might be the wrong phrase here. Most people that post here love to visit WDW and when the cost to do so goes up they are unhappy. I believe this reaction is probably consistent across the users of most products/services offered by the Fortune 500.
I myself do not like having to pay more for less, to use a general term. But, I don't get as upset or shocked or angry as some do, as I almost expect it to happen at this point, and expect it to continue to happen, and this goes for all of these Fortune 500 listers. Is this a sad reflection on the state of capitalism? Absolutely. But, IMO, there really isn't any reason to expect Disney to do anything different, as much as we all want and think that it should happen.
 

Walt Disney1955

Well-Known Member
They do deserve to make money, and they do deserve to make profit. No question about it. Unfortunately, they do seem to be the standard for parks, everyone knows this. Remember when Disneyland hit $100 for a day at the park? Well, other places follow. It means Universal then becomes more expensive than before, or Sea World or Six Flags. Granted, Disney is still the best experience overall of course.

There are some things they could change of course. Parking does not have to be $22 for instance.
 

lazyboy97o

Well-Known Member
The idea that cutting services/goods/whatever and increasing costs is the one and only way to run a business is absolute bunk. What happens when there is nothing left to cut? That being your only strategy is a sign that you do not know your business and don't have any good ideas. Disney doesn't like the theme park business and does not understand it. It is something they are saddled with and they don't know why people like the stupid things. This is why a minor dip causes a panic, because nobody can explain the situations to investors.
 

xdan0920

Think for yourselfer
I think for the most part because we have the "What would Walt do" mystique with Disney. Walt seems to be some "holy" God like figure to the uber fan who could do no wrong. It's a constant refrain, "walt wanted this, walt wanted that". Disney also has this strong "nostalgia" appeal, again you see this almost in every thread about how in 19XXX it was so much better and my favorite how Disney was for the common man.
So when there is a price hike it's almost as if disney short sheeted the Pope. People take it as apersonal affront.
Before I get in trouble. I’ll edit this post to just...

lol
 
Last edited:

Smiley/OCD

Well-Known Member
I wish they allowed the parks to work as their own entity, instead of just a line item that's rolled up.
That wouldn't happen for 2 reasons...first the parks/resort portion of the business is still a money maker and on "less profitable" quarters/years in the other portions of the company, the profits can (and are) siphoned off the parks/resorts to finance the rest of the company. The second reason is if Disney were to "spin off" the parks/resorts division to a majority Disney owned entity, it would make the whole corporation too easy for another company/investor to pick it off and seize control
 

DisneyDoctor

Well-Known Member
I think it's a clear spill-over of our own mysticism and love for the parks that make us think so irrationally about the them. Ask someone who hates WDW (assuming people like that exist ;)). Of course they would agree that raising prices is a good idea. It'd be idiotic for them not to raise prices. They know they have us by the tail, we just can't get enough and we will pay those prices for years on end.

Is it ethically moral? That's a different discussion..
 

s8film40

Well-Known Member
Disney spent many years trying to establish themselves as a brand that stood for quality, family entertainment and basically something more than just a company. Over and over again they told people about things like the Disney difference, "if we can dream it we can do it", magical experiences etc.

The truth is they are a company, and over the years there's been so much change that really the company that exists today as Disney is actually a totally different company than in the past. I think people may have taken it better if in one of the many past mergers that diluted the original company they had taken on the name of the other company. If for example Disney were today just a subsidiary of Comcast, which almost happened then I think people would view it more as just simply a company. Most people balked at the idea of the Comcast deal, simply because it's Disney and to them it's more than just a company and it has to continue on the way it was and what it stood for. The truth is this actually happened many years ago, Disney was "bought out" by all the companies it consumed along the way. It's just one of those things people don't want to accept. No one wants to think that Walt's Disney is gone forever, but the truth is it is.
 

wdisney9000

Truindenashendubapreser
Premium Member
The idea that cutting services/goods/whatever and increasing costs is the one and only way to run a business is absolute bunk. What happens when there is nothing left to cut? That being your only strategy is a sign that you do not know your business and don't have any good ideas. Disney doesn't like the theme park business and does not understand it. It is something they are saddled with and they don't know why people like the stupid things. This is why a minor dip causes a panic, because nobody can explain the situations to investors.
This post is spot on and will (sadly) be overlooked by so many.
 

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