Theme parks such as Disney World are a billion-dollar industry built on deep roots in middle-class family entertainment. Disney’s parks and resorts’ profits have nearly doubled over the past five years to $2.2 billion in fiscal year 2016, according to Forbes (Sylt, 2014). However, attendance to the theme parks was down about 4 percent when comparing summer 2016 to summer 2015 (Sylt, 2014).
Drawing on the material you read about pricing strategies for firms with market power, what can Disney do to sustain its profits while ensuring that it does not lose market share?
Sylt, C. (2014, November 21). The Secrets Behind Disney’s $2.2 Billion Theme Park Profits. Retrieved from https://www.forbes.com/sites/csylt/2014/07/14/the-secrets-behind-disneys-2-2-billion-theme-park-profits/#a3376ca584fb
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