The Problems of the Walt Disney - Case Study Example

Problems: The problems of the Walt Disney include both internal and external areas. The external problems include those which the people or customers are experiencing. The internal problems include those within the company itself. These two areas of include concern of Walt Disney pushed them to launch an ambitious, next-generation CRM that will help improve resolve their problems. The external issues of the company include long lines in rides, food stalls and restaurants. The theme parks have fidgety crowds. The customers are also complaining of the high ticket prices. The customers have been experiencing these issues and because of this, they are not likely to visit the park again. The internal management itself are experiencing major issues. These issues are affected and caused by the increasing external problems. First, the Walt Disney Company is experiencing a sliding attendance figures. Their revenues are decreasing. The lower hotel occupancy rates and decline in attendance add up to their problems. And lastly, Walt Disney’s capital expenditure is down. Solutions: The goal of the company is to more with less. Walt Disney Co. CIO Roger Berry, has been helping to create a cutting-edge technology strategy. This is to restore luster of aging brand and increase efficiencies and boost attendance. The company is going to introduce IT Convergence such as use of global satellites, smart sensors, wireless technology and mobile devices. Walt Disney wanted to promote a more personalized environment with IT at the core. The most visible manifestation of the strategy implemented is the 10 ½ inch tall stuffed doll, the Pal Mickey. He is the virtual tour guide powered by sensors. The idea of this is to give the park goers up to the minute information to preset preferences. The company also wants to make data accessible across all lines of business. Another initiative of Walt Disney is the destination web site called the Magical Gathering. The intention is to boost new revenues and group business bookings. The company also is looking to expand digital imaging and let the visitors staying at a Disney hotel use their room television sets to review and buy photographs taken of them on rides during the day. Berry also says the resort is looking to improve Fastpass. The company wants to have a service that allows visitors to schedule ride times to avoid long lines. RESULT: The introduction of the initiatives is getting positive feedbacks from the business analysts. By introducing these strategies, Walt Disney is being able to cut their expenses. They are promoting more services for no increase in expenses. By having more digitalized and personalized environment, they will surely attract more visitors. If the line issues, crowd, and ticket prices are resolved, surely the customers will be more than happy to visit the place again. Reference: D’Agostino, Debra. Case Study: Walt Disney World Resorts and CRM Strategy, (2004). Web. 23 April 2011 CASE STUDY: VERIZON Problems: Two of the Fortune Companies are going to merge. However, they are having issues enhancing an ambitious enterprise CRM program. They are preparing for the enhancement of company’s customer focus and their new brand. Both GTE and Bell Atlantic had decent CRM visions. But GTE obliged to an outdated technology platform. Bell Atlantic has a different set of issues. Bell Atlantic has a surfeit of single purpose, application centric systems. The company executives themselves are hesitant of the new CRM initiatives because they think it would be too costly and not sustainable. The Vice President for the Database Marketing for Verizon, Leonard, is having a hard time introducing this new initiative because it would mean beginning from the start or ground zero. There will be a shift from a product focus to customer focus program. This means instilling a new sense of cultural urgency. Thus, he is stuck to a great dilemma: whether to go for a broke or launch a bona fide business driven CRM. And this would mean, going through a hard part convincing the company executives. Solutions: The first thing Leonard did was to establish the PRACTICE AND LEARN program. She formed a CRM steering committee of executives followed by the CRM Core Team which is the cross-functional group of managers who would help define CRM capabilities. The first step of the team was to understand customer interaction. They are introducing customer focused process such as providing a special level of service for high-value customers. Another approached was implemented by Leonard’s team. They used the Building Block Approach which required a solid technology foundation. Leonard promoted the use of solid data foundation. Result: However, the implementation resulted in few challenges. They experienced cultural and organizational issues rather than tactical. Leonard also charges various product vendors with “quick wins” which is crucial to instilling the corporate consciousness of CRM as a true enterprise program. They are also experiencing the challenge of harnessing individual proclivities for building single-purpose, single-user systems. But amidst these challenges, Leonard and her team continued to be mindful of the customer’s perception. According to Leonard, understanding how they wanted their company to be perceived has major implications on how they approached CRM. Because of this, Verizon Communications has embraced enterprise CRM for a series of captivating and overarching strategic reasons. Verizon’s approach to CRM became sustainable designed around to improve customer’s experience while bolstering company’s brand image. In the end, Leonard was able to do her job and she was able to introduce the use of this CRM to the new company. She proved to the company that people, process and technology are interrelated and that CRM involves all three. Read More