The Risk and Benefits of Expanding the Disney Brand in New Ways - Case Study Example

Brands define or break the industry because brands help to organize inventory and accounting records. Moreover, customers are intricate about brands because it defines their personality. A legal function that brands offer is that that brand name can be protected through registered trademarks.

The risk of expanding this business is competition and losing this intricate value itself. If Disney expands their organizations, the cost of this experience will be less because it will be more widely available. This will diminish not only the experience itself but the local businesses that reap the incentives from Disney. This also makes Disney lose leverage on exclusivity because other vendors are less likely to pour their investments into Disney itself. Brand loyalty provides security and forecasting of the demand for Disney itself. More importantly, it creates barriers to entry that make it difficult for other firms to enter the market. Read More