Did Disney Forecast the Demand Drop For Galaxy’s Edge?

Did Disney Forecast the Demand Drop For Galaxy’s Edge?

August 22, 2019
Lisa M. Spencer

Disney, worried about park overcrowding and negative guest experiences with the opening this summer of the Star Wars Galaxy’s Edge attraction, managed instead to kill off demand.

Ticket prices were higher, annual pass holders faced blackout dates, guests required reservations to ride the new Star Wars ride, and hotel prices went up in front of anticipated demand.  These plans were so “successful” in warding off an onslaught of guests that park attendance dropped three percent over the summer.

In addition, some guests may be holding off till the second Star Wars ride opens at the Anaheim Disneyland in January, while fans of the Orlando park are awaiting their first one at the end of this August.

Despite lower attendance, higher ticket prices contributed to a 10% jump in average guest spending, while hotels saw their occupancy rates increase from 86% to 88%.

Video Spotlight: WHAT’S HAPPENING with Star Wars Galaxy’s Edge?!

This post is based on the Business Insider article, Disney Discouraged “Star Wars” Fans From Visiting Its New Galaxy’s Edge Area, and Domestic Park Visits and Profits Dropped, by Theron Mohamed, August 7, 2019; the Fox News article, Disney CEO partially blames Star Wars land for Continue reading →

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Heated Issue in Sriracha Supply Chain

Heated Issue in Sriracha Supply Chain

August 19, 2019
Lisa M. Spencer

Tensions now run hot between Sriracha producer Huy Fong Foods and Underwood Ranches, the largest domestic source of the fresh jalapenos that are the main ingredient in the Southeast Asian sauce.

In the past, Underwood produced 100 million pounds of peppers per year on California farmland for Huy Fong.

The model worked this way: Underwood estimated the cost of the upcoming year’s harvest, Huy Fong Foods fronted the money and assumed the risk, and at the end of each year the two companies settled up.

After 28 years of business and friendship, issues arose and the relationship deteriorated.  Fong sued Underwood for not repaying a $1.5 million overpayment for the 2016 harvest season.  While the jury awarded to Fong, it concurrently gave Underwood Ranches $10 million in punitive damages and $14.8 million for contracts lost over the next two years when Huy Fong sourced its peppers elsewhere. 

Video Spotlight:

This post is based on the Modern Farmer article, Sriracha and Its Pepper Farmer Are Mad at Each Other, by Dan Nosowitz, July 23, 2019; the San Gabriel Valley Tribune article,  Continue reading →

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Amazon Wants Convenience Stores to Be More Convenient

Amazon Wants Convenience Stores to Be More Convenient

August 13, 2019
Corinne M. Karuppan, Ph.D.

As Amazon expands its presence in physical retail, it is also trying to disrupt it.

We all dread checkout lines at the grocery store. To eliminate this bottleneck in the shopping experience, Amazon is experimenting with a new concept that involves digital cameras, sensors, computers, and phone apps. The company’s initial building project has been scaled down from large grocery stores to convenience stores. After several years of research and millions of dollars spent, the project remains at the pilot stage.

In the end, the project may be more about a new, big idea than a store.   

Video Spotlight: Shopping Experience at Amazon Go

This post is based on the Bloomberg Businessweek article, Amazon’s Ambitious Research Project Is a Convenience Store, by B. Stone and M. Day, July 18, 2019, and the YouTube video, How Does Amazon Go Work?, by Techquickie, March 13, 2018. Image source: Hero Images / Image Source.

Discussion Questions:

1. At what stage of the life cycle is this project? Justify your answer.

Guidance: This is a pilot project. The pilot project itself is in the execution and monitoring stages. Quality is assessed with thorough testing, and changes are Continue reading →

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