Disney World The first Walt Disney theme park was Disneyland in Anaheim, California, which opened in 1955. The company had been subject to financial constraints that limited the size of the park, but with the idea proving popular Walt Disney began to search for a site where the company could build a much larger theme park. By the mid-1960s, the concept for what would become Walt Disney World was tested at the 1964 World's Fair in New York. The concept was a success and the company began secretly acquiring land in central Florida. Construction began shortly after Walt Disney died and the Magic Kingdom opened in 1971. The original Walt Disney World configuration consisted primarily of the theme park, but the vision was grander. Over the years, additional properties and businesses were added to the complex. Walt Disney World added Epcot Center (now just Epcot) in 1982 -- an acronym for Experimental Prototype Community of Tomorrow. Later additions included Disney-MGM Studios (now Hollywood Studios) in 1989, Animal Kingdom in 1998, multiple hotels, water parks, the Boardwalk, the Wide World of Sports Complex and several golf courses (Bennett, 2011).

The company has a number of strengths -- its brand name, its history in the industry, the multitude of popular characters supported by Disney's entertainment properties, and its internal expertise including hiring and training. Disney World has few weaknesses, but the age of the property is becoming one, with the flagship Magic...

Age of recreation properties becomes an issue when potential customers have seen most of the attractions -- gaining repeat customers is a challenge. The weather in central Florida can be unreasonable in the summer -- a problem the Anaheim property does not contend with.
There remain many opportunities, however, for Disney World. The parks can be reinvigorated with new rides, attractions and characters, as Disney has continued to build an impressive roster of characters and entertainment properties. The Disney World franchise can be expanded globally as well -- already Paris, Tokyo, Hong Kong are open and ground has broken on a new Shanghai park as well to take the Disney World theme global (CNN, 2011). Brand extension is another opportunity -- Disney has already launched a cruise ship line. There are many threats to Disney World as well, however. The state of the economy is a threat as reduced consumer spending often means discretionary spending like vacations are the first cuts (Sherman, 2011). Increasing competition is a further threat -- families often can enjoy theme parks closer to home, for example.

Disney has always pursued differentiation as the core of its corporate strategy. The company feels that its characters have superior appeal to children in particular, and this is a source of sustainable competitive advantage that allows it to earn premium rents on its products and services. The company-level strategy begins…