Strategic Marketing Management - Essay Example

This section provides a macro and micro-level analysis of the market, review of the amusement park industry, consumer and competitor analyses, and a brief internal analysis of the competencies currently sustained by Walt Disney Parks and Resorts’ organisational model. PESTEL analysis The political environment, both domestically and internationally, are relatively favourable for support of amusement park businesses. The United States is a free market economy, one in which there is minimal government regulation of business behaviour which allows firms to develop their own financial strategies and diversification practices to insulate the business from risk.

It is a stable, democratic government system with virtually no risk for political upheaval or non-government militant activity. Hence, the United States provides support for business growth and unregulated access to key consumer markets and market information (Appleby 2010). The United States also maintains a very strong economy which is currently in a significant recovery stage stemming from the 2008-2010 global recession. In 2013, the U.S. sustained a gross domestic product of $16.6 trillion, making it the largest single economy in the world (Federal Reserve Bank of St.

Louis 2013). The United States has also experienced a 7.1 percent growth in foreign tourism, with a total of 14 million foreign tourists visiting the U.S. in 2012 (Alkhatib, Sallam, Alkhatib and El-Ammar 2012). With a national population of approximately 306 million people, it is estimated that there were 408 million leisure trips occurring domestically with U.S. citizens (US Travel Association 2013). This represents a market that provides ample economic benefits to businesses that cater to domestic and foreign travellers.

Socially, there are many changes in the North American market that could pose risk to Walt Disney Parks and Resorts. In 2008, 31 percent of adults travelled with children. In 2012, this number reduced to 26 percent (US Travel Association 2013). This represents a significant change in the dynamics of family travel, impacting the amusement park industry that often caters to the needs of children.