Commentary
DisneyBizJournal.com
July 16, 2018
The
first time I wrote about the Walt Disney Company’s reputation for customer
service was after a visit to Disney World in the summer of 2011. The points in
that article (which originally ran in Long Island Business News) hold true to
this day. Here’s the bulk of that piece. And by the way, I’m pretty sure that
the lone criticism that I brought up in this piece seven years ago has largely
been solved. I’ll actually find out firsthand with another visit to Walt Disney
World later this summer.
Many Americans distrust so-called
“big business” – unless that big business happens to be the Walt Disney
Company.
When it comes to Disney, most
anti-big-business bets seem to be off. Instead, people think about family
entertainment, from television shows to movies to theme parks. That’s a great
credit to the way Disney has done business since 1923. In fact, Disney business
strategies are taught by the Disney Institute.
My family journeyed to Walt Disney
World in Florida for an August vacation. While enjoying the four main theme
parks – the Magic Kingdom, Epcot, Hollywood Studios and Animal Kingdom – along
with golf on a PGA Tour course, various restaurants, and perks at a Disney
resort hotel, it was hard to ignore how Disney excels at providing quality
service, achieving synergy and innovating.
Few consumers today are surprised by
incompetent or surly service at stores, restaurants or entertainment venues.
But after more than a week immersed in Disney World, instances of poor service
were rare exceptions.
Smiling, polite, friendly and
helpful “cast members” were the rule. Even when I was selected to briefly
become part of the Old West Hoop-De-Doo Musical Revue dinner show (as Davy
Crockett’s angel – don’t ask), the singers and dancers were supportive and
gracious.
The Disney Institute notes that the
company emphasizes attention to detail that leads to consistency in service;
designs standards and processes that raise customer satisfaction; and creates
“metrics to gauge the needs, perceptions and expectations” of customers.
I experienced Disney’s use of
metrics when asked to take a brief survey on the cleanliness of Epcot while
leaving the park one evening, and taking an online survey upon returning home
about golf at Disney World. Many businesses ask for customer feedback. But it’s
clear that Disney actually uses this information, while many others do very
little with such feedback.
As for synergy, it’s clear that the
various arms of the Disney entertainment conglomerate work together so that the
result turns out to be far more valuable than what the individual parts might
have produced separately. Movies, theme parks, hotels and resorts, stage shows,
books, music, television, sports, and other endeavors meld together to create
value, whether it be at one location, such as Disney World, or across this
global enterprise.
Two of Disney’s biggest moves in
recent years offer significant synergies. In 2006, Disney acquired Pixar
Animation Studios, which ranks as one of the most successful film studios in
Hollywood history. While previously distributing Pixar films, now Pixar tales
and characters – from Toy Story’s Buzz and Woody to Monsters Inc.’s Mike and
Sully – create added value by being in-house at Disney.
And in 2009, Disney acquired Marvel
Entertainment, with its thousands of superheroes and villains. That has been a
big plus for Disney’s movie business, and presents additional avenues for
increased revenue.
As for innovation, Walt Disney said,
“I believe in being an innovator.” Indeed, innovating and creating are central
to entrepreneurship and business, and that is perhaps most apparent when it
comes to an entertainment business. If the firm does not excel at creating,
then it will decline and eventually fail. Disney has not been immune to
creative lulls during its corporate history, but it emerged from those troubled
times. That’s notable, as it’s often difficult for large firms to establish a
culture and incentives that promote risk taking, creativity and change.
Oddly, where the Disney World
experience fell short was in merchandising. It struck members of my family how
much merchandise was missing regarding some highly successful Disney vehicles.
For example, products tied to top Disney Channel shows – such as Wizards of Waverly Place and Good Luck Charlie – were nowhere to be
seen. And I found no apparel for my favorite Pixar film – The Incredibles.
But in the end, Disney stands out as
a big business being warmly embraced. Of course, the fact that it is in the
entertainment business – selling beloved stories and characters – helps
tremendously.
But it must be kept in mind that
every big business was once a small startup. Walt Disney and his brother Roy
kicked things off in 1923, with Mickey Mouse debuting in 1928’s Steamboat Willie, which was Disney’s
first animated feature including sound effects and dialogue.
And small firms only become big
businesses by serving consumers well. As Walt Disney put it, “Give the public
everything you can give them.” He understood that building a small business
into a large enterprise was a positive accomplishment.
