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

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

August 22, 2019

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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Williams-Sonoma: Systems Approach to Mitigating Tariffs

Williams-Sonoma: Systems Approach to Mitigating Tariffs

Williams-Sonoma is engaging in efforts to mitigate the impacts of tariffs on imports from Chinese production.

In addition to pulling shipments forward to beat the tariff this summer, the company will reduce China sourcing by 50% in 2020. Williams-Sonoma will expand its manufacturing operation in factories in Tupelo, Mississippi.

The mitigation helps Williams-Sonoma avoid raising prices by 11%.


Video Spotlight: Williams-Sonoma CEO: Dodging Tariffs on China


This post is based on the Supply Chain Dive article, Williams-Sonoma will halve China sourcing in the next year, by Emma Cosgrove, June 4, 2019; and the YouTube video, Williams-Sonoma CEO: Dodging Tariffs on China, by  Mad Money | CNBC, May 14, 2019. Image source: Shutterstock / RomanR

Discussion Questions:

1. What are the factors that drive Williams-Sonoma’s decision to halve the amount of goods it sources from China?

Guidance: Chinese tariffs make it more costly for Williams-Sonoma to outsource its production to China. The company has been shifting its production from China to Vietnam, Indonesia, Thailand, and Cambodia to lower production cost. The company will also expand its factories in Tupelo, Mississippi to produce in-house.

2. What considerations go into Williams-Sonoma’s capacity strategy?

Guidance: Williams-Sonoma adopts Continue reading

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Is Walmart Adopting a More Responsive Supply Chain Strategy?

Is Walmart Adopting a More Responsive Supply Chain Strategy?

June 10, 2019

Walmart is starting next-day delivery to catch up with Amazon.

Walmart is expected to have higher costs since all items are not stocked in a fulfillment center closest to the customer.  To reduce these inventory costs, the company will seek to stock items in regional fulfillment centers based on local market needs, and will impose a minimum dollar amount of $35 for orders.

The program rolled out to Phoenix and Las Vegas first, with Southern California next in the lineup.


Video Spotlight:


This post is based on the CNN article, Walmart is rolling out next-day delivery. Look out, Amazon, by Nathaniel Meyersohn, May 14, 2019; and the YouTube videos, Walmart launches free next-day delivery by Fox Business, May 14, 2019; and How Walmart is taking on Amazon, by CNN Business, May 17, 2018. Image source: Shutterstock / sirtravelalot

Discussion Questions:

1. What impact does next-day delivery speed have on smaller retailers?

Guidance: Students should recognize that customers are expecting next-day delivery as an order qualifier in the future.  If delivery speed becomes the domain of the major retailers, what can a Continue reading

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