Results 1 to 10 of 10
  1. #1

    • MiceChat News Team
    • Thanking the Academy
    • Offline

    Join Date
    Jul 2005
    Location
    Cartoon Wasteland
    Posts
    4,828
    Blog Entries
    68

    Should Disney Buy Build-A-Bear Workshop?

    Build-A-Bear Workshop recently announced that they've retained investment bank Lehman Brothers to explore "a broad range of potential strategic alternatives to enhance long-term shareholder value" (read: merger or sale).

    This announcement has one Wall Street analyst speculating that Disney could be a prime candidate to take over the struggling retailer (same store sales are down 7-9% from last year) and infuse some new life with their army of classic characters.

    Disney has a history of partnerships with Build-A-Bear, both on the licensing and promotional fronts. Do you think it would be a smart move for them to acquire Build-A-Bear outright, or should they heed the lessons of The Disney Store and stick to licensing?
    Last edited by disneytim; 06-28-2007 at 12:13 PM.

  2. #2

    • Fastest Man Alive
    • Offline

    Join Date
    Dec 2006
    Posts
    1,659

    Re: Should Disney Buy Build-A-Bear Workshop?

    Buy it. Build-a-bear is insanely popular. Plus with Disney's deep catalog of plush characters, and the opportunities to customize your characters or sell 'niche' plush? They'd make a fortune. They are already trying it small scale with 'Build-a-pirate-hat' and 'build-a-pirate--skull' in the parks along with the 'Tote-a-tail' where buy a little plush and add accessories. So they are thinking of going this direction anyways. Why not make it easier and take over the Build-a-Bear infrastructure?
    "If we cut the budget are you going to be the one standing at the exit explaining to guests why the ride they just rode is a piece of crap?" - - John Lasseter

  3. #3

    • back to WDW in January
    • Offline

    Join Date
    Aug 2006
    Location
    Massachusetts
    Posts
    971

    Re: Should Disney Buy Build-A-Bear Workshop?

    If Build-a-Bear were able to retain it's identity and it didn't become Build-a-'Disney'-Bear at it's existing locations, then IMHO Disney would be a good candidate. They could certainly infuse a lot of the Disney magic into it and use the existing concept to their own ends by adding more of their own unique characters to the mix (but not completely replacing what is already there).
    They could open Build-a-Bear or Build-a-Disney-Character Plush satellite shops in the Parks or at The World of Disney stores that would undoubtedly be extremely popular. On a smaller scale, they seem to have done alright with Mr Potato head so I guess then if handled properly, Disney could indeed pull it off.

  4. #4

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Re: Should Disney Buy Build-A-Bear Workshop?

    You know, I believe Build-a-Bear to be a flawed business concept...

    I always have felt that way... I always will...
    Check out my other blog:

  5. #5

    •   
      MiceChat Moderator
    • Where should we go next?
    • Offline

    Join Date
    Apr 2005
    Location
    All smiles at the DL!
    Posts
    20,517
    Blog Entries
    4

    Re: Should Disney Buy Build-A-Bear Workshop?

    No way. This is one trend that's on its way out. Don't buy a sinking ship Disney!
    Good morning, son
    In twenty years from now
    Maybe we'll both sit down and have a few beers
    And I can tell you 'bout today
    And how I picked you up and everything changed
    It was pain
    Sunny days and rain
    I knew you'd feel the same things...





  6. #6

    • back to WDW in January
    • Offline

    Join Date
    Aug 2006
    Location
    Massachusetts
    Posts
    971

    Re: Should Disney Buy Build-A-Bear Workshop?

    Quote Originally Posted by cellarhound View Post
    You know, I believe Build-a-Bear to be a flawed business concept...

    I always have felt that way... I always will...
    in what way exactly?

  7. #7

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Re: Should Disney Buy Build-A-Bear Workshop?

    Quote Originally Posted by tjcjr View Post
    in what way exactly?
    The business model is too limited to a nitch retail store concept...

    1. Profit Margin will be limited unless you own into manufacturing.

    2. Revinue will be limited unless you can find a way become a vendor in discount department venue.

    3. Licensing is a problem too - what kind of trademark image is being developed that can be sold in a mixed media format? Not much, they are more likely a reseller of other companies' liscenses.

    The driving mechanism of the business is custom specialization... The more you specialize generally the lower the profitablity.

    Toys-R-Us is getting hammered by discount department stores... Which is why they had to alter their business strategy to develope Babies-R-Us. In fact many toy retailers are getting hammered and have gone out of business.
    Check out my other blog:

  8. #8

    • back to WDW in January
    • Offline

    Join Date
    Aug 2006
    Location
    Massachusetts
    Posts
    971

    Re: Should Disney Buy Build-A-Bear Workshop?

    Quote Originally Posted by cellarhound View Post
    The business model is too limited to a nitch retail store concept...

    1. Profit Margin will be limited unless you own into manufacturing.

    2. Revinue will be limited unless you can find a way become a vendor in discount department venue.

    3. Licensing is a problem too - what kind of trademark image is being developed that can be sold in a mixed media format? Not much, they are more likely a reseller of other companies' liscenses.

    The driving mechanism of the business is custom specialization... The more you specialize generally the lower the profitablity.

    Toys-R-Us is getting hammered by discount department stores... Which is why they had to alter their business strategy to develope Babies-R-Us. In fact many toy retailers are getting hammered and have gone out of business.
    interesting insight ...thanks

  9. #9

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Re: Should Disney Buy Build-A-Bear Workshop?

    Quote Originally Posted by tjcjr View Post
    interesting insight ...thanks
    When I think of their peer group - Chuck E. Cheeze comes to mind as a close model to the direction they are growing... (Very limited)
    Check out my other blog:

  10. #10

    • Gloomy Day, probably rain
    • Offline

    Join Date
    Jan 2005
    Location
    Orange, CA
    Posts
    624

    Re: Should Disney Buy Build-A-Bear Workshop?

    If Disney buys it they should put it in their Disney Stores. Throw out the huge stuffing parties but make sure to have plenty of Disney characters to make your own. I'll be investing in plenty of Eeyore Build a Bears!

Similar Threads

  1. First, Build - A - Bear, Then, Build - A - Light Saber, and now......
    By Dan - Tasmic! in forum Disneyland Resort
    Replies: 38
    Last Post: 05-29-2008, 08:23 AM
  2. Build a Bear Haters and Huggers
    By symbolic in forum Disneyland Resort
    Replies: 60
    Last Post: 10-15-2007, 06:06 AM
  3. Replies: 7
    Last Post: 05-29-2007, 06:51 AM
  4. Build a bear Collections
    By Indiana J in forum MiceChat Main Lounge
    Replies: 23
    Last Post: 05-06-2007, 08:42 PM
  5. Build a bear work shop
    By HarvestMoonRocks in forum Disney Interactive and Game Industry Discussion
    Replies: 2
    Last Post: 08-16-2006, 01:07 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •