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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Williams-Sonoma: Systems Approach to Mitigating Tariffs

Williams-Sonoma: Systems Approach to Mitigating Tariffs

June 28, 2019
Anita Lee-Post, Ph.D.

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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Demand for BK’s Impossible Whopper Strains Supply

Demand for BK’s Impossible Whopper Strains Supply

June 2, 2019
David Little, Ph.D.

Burger King’s pilot of the Impossible Whopper spread rapidly from St. Louis to three more cities.

This plant-based patty from Impossible Foods has the consistency and flavor of a traditional hamburger.  Burger King has already experienced product shortages in its test markets.

Increasing demand for its plant-based burgers has already led Impossible Foods to add a third shift and build a second production line.

Video Spotlight: Trying Burger King’s Impossible Whopper

This post is based on the CNN article, Burger King is bringing the Impossible Whopper to three new cities, by Danielle Wiener-Bronner, May 14, 2019; and the YouTube video, Trying Burger King’s Impossible Whopper, by CNET, April 1, 2019. Image source: Foodcollection

Discussion Questions:

1. Which inventory management system would be helpful at Burger King to better manage the Impossible Burger product?

Guidance: Students will likely choose the fixed-order quantity system with safety stock.  However, this is a chance to discuss whether this new product is a fad.  Should inventory be managed differently or not?

2. How can Burger King create a competitive advantage with the Impossible Whopper, given that other fast food chains are already sourcing from Impossible Continue reading →

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