CASE: Disney Stores: Going the Apple Way -

Abstract

In October 2009, Walt Disney Co. (Disney) announced that it was revamping its international chain of Disney Stores, with help from Steve Jobs (Jobs), co-founder and CEO of Apple Inc. The company planned to adopt several of Apple’s business practices, in order to make its stores as successful as the Apple Retail Stores. Moreover, the company expected the revamped stores to boost its other businesses like theme parks, movies and TV channels. However, many observers felt that Disney was taking a big risk by going in for such an expensive initiative during an economic downturn.

Issues:

» Retail store design
» Customer shopping experience
Introduction

In October 2009, Walt Disney Co. (Disney) announced that it was revamping its international chain of Disney Stores. The stores were part of Disney Consumer Products, a business division of Disney that made US$ 30bn (£19bn) in global sales in 2008. The stores, which sold only Disney related items — many of them exclusively – were to be given a makeover with help from Steve Jobs (Jobs), co-founder and CEO of Apple Inc…

Questions for Discussion:

1. Critically evaluate Disney’s initiative to go in for an expensive revamp of its retail stores during an economic downturn? In your opinion, given the differing nature of their products, will Disney be able to repeat Apple’s success story? Why or why not?
2. Disney expected the revamped stores to boost its other businesses as well. In your opinion, to what extent is this expectation justified? Explain.