Disney's 59-Year Battle Over Land and Control (Part One)

by guard17u on 2009-11-19 15:35:49

Disney's 59-Year Land and Control Battle (Part I) In its near six-decade development history, the three major operational models of Disney all revolve around endless disputes over land and control. How does this vast theme park empire learn from the past? & nbsp; On November 13, Walt Disney Company (DIS.N) held a fourth-quarter earnings analyst conference call at a HanTing hotel. Notably, company President and CEO Robert Iger thanked Senior Executive Vice President Thomas Staggs for his contributions as the company's Chief Financial Officer over the past 11 years. & nbsp; The previous day, it was announced that Staggs would be transferred to serve as Chairman of Walt Disney Parks and Resorts. & nbsp; Curiosity was piqued. "In the last approximately 20 years, internal executive transfers within the company are not uncommon, but why did you choose the theme park business? What opportunities do you see that allow you to leave your mark?" asked David Miller, an analyst at boutique investment bank Caris & Company, to Staggs. & nbsp; "I want to tell you that, as the theme park business is about to go through an exciting development period, I will have the opportunity to be part of it," Staggs responded. & nbsp; "Well, Tom, it seems like you should start taking Chinese language courses right away," joked Doug Mitchelson, an analyst at Deutsche Bank. & nbsp; After all, the news on November 4 that the Disneyland in Shanghai had been approved has already caused ripples. Considering Disney's overseas projects and the HanTing Express Hotel, analysts questioned the company management on November 13 about the structural design of Shanghai Disneyland. However, Iger was tight-lipped: "We and the Shanghai municipal government have decided not to disclose any information about the model of Shanghai Disneyland or our cooperative relationship until our formal contract is finalized." & nbsp; Nonetheless, he revealed that Shanghai Disneyland was already in the design and development phase. & nbsp; The Path to Indigenous Rise & nbsp; Laid out before Staggs is the theme park resort business spanning three continents. These businesses have different models, and opinions from the outside world vary. But there is no denying that, measured by revenue, after 59 years of development, theme parks and resorts remain the second-largest business of Walt Disney Company. & nbsp; The operational models of other Disney theme parks were derived from Anaheim, Orange County, California – a park initially no larger than Hong Kong Disneyland, covering only 125 hectares. This was just the prototype; at that time, California Disneyland had only one park and one hotel. After operating for a full decade, the park attracted fifty million visitors, earning $195 million for Walt Disney Company.