EconomicPositionoftheWaltDisneyCompanyPhaseIIPamGabel,KimberlyKellett,JenniferLawrence,JeremyZlatnikUniversityofPhoenixPrinciplesof….docVIP

Economic Position of the Walt Disney Company: Phase II Pam Gabel, Kimberly Kellett, Jennifer Lawrence, Jeremy Zlatnik University of Phoenix Principles of Microeconomics ECO/365 Bert Wheeler January 11, 2010 Economic Position of the Walt Disney Company: Phase II The purpose of the four phases of this paper is to review the economic position of the Walt Disney Company. The economic position provides the organization an understanding of their position in a given market. The first phase provided an overview of the organization and the focus of the second phase is the current market conditions that will affect the company. The conditions will include market structure, impact of new companies entering the market, pricing, technology, productivity, cost structure, price elasticity of demand, current competition, supply and demand analysis, and the impact of government regulations. Market Structure The Walt Disney Company seems to fall under the oligopoly description of a market structure. This is due to lack of variation and support of the different companies that could be involved in operating theme parks but choose not to be. In other words, very few companies participate in this market. This might be because of the specialization required to attract the customers to this line of product. The costs are high in maintaining and operating theme parks as well as visiting them. Theme parks have to be placed in a largely populated area to ensure the number of visitors or consumers will be high enough to build an income rather than lose an asset (Colander, 2008). Technology The technology used in this market is no secret between companies. Park rides are constructed uniquely to the company and the brand it supports but many safety regulations keep everything to a set standard. This allows the oligopoly rather than a monopoly to occur over this market because the technologies used are based on items the consumers use everywhere they go. For example, many rides, like the Sta