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Walt disney strategic analysis
Walt disney strategic analysis
Walt disney strategic analysis
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Upon evaluating The Walt Disney Company, our specialized team comprised of financial, marketing and operations managers have determined based on the current strategy a few recommendations and performance upgrades the corporation may want to consider. Based on previous financial statements and future projections, we advise that the steps provided in this report be used to improve Disney’s prospective performance and strategy. In accordance with our steps we have included several exhibits to assist with our prognosis of Disney. Our team has identified how Disney revolves around a corporate strategy of diversification. Disney has profitably diversified themselves from their competition using a plethora of business units which consist of their …show more content…
Both components enable the company to achieve sustainability through diversification of product offerings. Primary Components: o Offer diversity within each business unit through acquisitions and expansion while at the same time create an exuberant experience for the entire family to enjoy. Secondary …show more content…
Together with ABC Family and ESPN, the media network has been able to offer distinct, local news across domestic and international cable networks. Parks and resorts have expanded across the world and continue to maintain the brand loyalty Disney so ever craves. Studio Entertainment has allowed Disney to expand into motion pictures, home entertainment and live performances to bring the excitement to customers. Consumer products are constantly being offered across the world in department stores, malls and shopping centers. Each one of the above business units represent an incredible strategic fit mainly because all contribute a substantial amount of revenue toward the company and have a unique way of maintaining customer loyalty. On the other hand, interactive media has failed to reach revenue goals due to the invention of smartphones. This is not considered a strategic fit due to its inability to adapt to consumer trends and remain relevant with the world’s innovations. For additional references please refer to pages 7 – 8 in Exhibit 1: Disney Value Chain Analysis which provides the structure and explanation of how the primary and secondary components function. When discussing the context of the strategy, out team developed and examined a SWOT Analysis as shown on page 9 in Exhibit 2: Disney Company SWOT Analysis. From
The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.
It allows opportunities to combine the performance of certain activities, thereby reducing costs and capturing economies of scope. This is done by acquiring IP that is underexploited or unused by the owner. They have opportunities to transfer their skills, technology, or intellectual capital from on business to another. This is yet again done through media networks, parks and resorts, and also their studio entertainment. All of which allow them to go globally. Along with the opportunity to transfer skills and technology, they can use their brand name across multiple product or service categories. This is seen in the multiple IP networks, studio entertainment, multiple resorts and parks that are all around the world, and lastly, in their consumer products that were ranked number one in 2011 for being the largest licensor of character-based merchandise in the world. Value chain match-ups seen in primary activities are inbound logistics, operations, outbound logistics, the marketing/sales, and service. All lead to support activities such as technology, human resources, and general administration. Opportunities for skills transfer is seen in the media networks, parks and resorts,studio entertainment, and consumer products. Disney Company can share iconic Marvel characters in their parks/resorts, movies, and consumer products, due to buying the IP to Marvel and it does not stop at just Marvel ABC and ESPN are also involved.
The Business Lessons behind Disneys Magicalexperiences Comments. N.p., 06 July 2013. Web. 01 Dec. 2013. .
The Walt Disney Company is a highly diversified media and entertainment company that has been growing by leaps and bounds since its inception in the late 1920’s. In the past few decades, The Walt Disney Company has expanded into numerous markets and diversified its business greatly. The company states that their corporate strategy is targeted at creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and expanding internationally. Upon studying the happenings of the company throughout the years, it is easy to see that the company is executing this strategy well through numerous strategic moves in the industry.
The Disney corporation is easily the greatest empire of entertainment in the world thanks to the creator Walt Disney and his brother. Disney’s influence has been great within culture and society and I learned how much of an influence Disney has had through our course this semester. This influence is reflected and broadcasted through the many works and readings that we examined in class. The articles gave me new knowledge about Disney that I was previously unaware of.
Product, as one of the four Ps it is very important in marketing situations. Figuring out what products a company wants to sell is crucial to making a profit, Disney has three main products that it sells. Although Disney has only three main, there are plenty more products that they sell. Disney’s three main products are movies, toys, and their amusement parks placed all over the world.
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are made through Disney’s corporate strategies and enabled them to reach long-term success. One will discuss Disney’s long-run success through a general approach. Eisner’s turnaround of the company and his specific implications/strategies will be examined in detail in part II. Disney could reach long-run success mainly through the creation of value due to diversification and the management and fostering of creativity, brand image and synergies between businesses (1, p.11-14).
In reviewing the vast corporation of the Walt Disney Company and all that it has to offer, one profound statement made by Walt Disney himself comes to the forefront, “I only hope that we don’t lose sight of one thing – that it was all started by a mouse” (Walt, n.d.). This statement suggests that the company has a strong focus to continually guide them in the way of the original idea of the company. Even as it watches the changes taking place in society and adapts to the new technologies and innovations, the Walt Disney Company has been able to implement diverse strategies for its growth and prosperity.
[Online]. http://www.m-w.com/cgibin/dictionary?book=Dictionary&va=opportunities Retrieved Oct. 18, 2005, from http://corporate.disney.go.com/ The Walt Disney Company, Disney Online. Retrieved October 19, 2005. Available: [Online] http://corporate.disney.go.com/corporate/business.html Thomas S. Bateman, Scott, (2004).
The company that I choose to explore is The Walt Disney Company. Walt Disney started the Disney Brothers studio in 1926, after years of working as a cartoonist. I selected this company due to the fact I am a fan of their products and services. Disney produced some of my favorite films like Aladdin, Hook and The Lion King. After I visited their website, I discovered that Disney owns multiple media outlets, in such areas as film, Internet, music, broadcasting, publishing and recreation. According to Disney’s “The mission of The Walt Disney Company is to be the one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, service and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world”. The Disney brand is doing exactly what their mission states.
This case provides a brief history of management conflict and change at Walt Disney Company. Former CEO Michael Eisner was considered to be controversial because of his abrasive style and tendencies toward micromanagement. It was this style that strained several important relationships to the Disney Company. Though his reign as CEO during the 80’s and 90’s helped advance Disney Company, it was his conflicting management style that led to his demise and the beginning of Robert Iger’s epoch at Disney. Since Iger has taken the helm as CEO Disney was ranked 67th in the Fortune 500 list for largest companies, it has become the largest media conglomerate in the world, and relationships and disputes stemming from Eisner have been reconciled.
This is a publicly traded company in the US that has been ding quite well in the recent years. The company’s 10k filing for the year 2014. From this statement, the risks facing the company will be identified classified and suggestions made on how best to mitigate them in the subsequent areas. There are various areas that the risks can arise based on the company’s 10k filling (Mertz, 1999).
Following the success of Disneyland Tokyo, Michael Eisner, the then new CEO of Disney in 1984, expressed his displeasure with how passive Disney’s commitment had been with Tokyo Disneyland’s development and operations; considering it to have been a big mistake (O’Rourke, 2007). He announced the planned development
The market segmentation of Walt Disney is divided into five main segments as follows: media networks, theme parks and resorts, Walt Disney studios, Disney consumer products and Disney interactive (Carillo, Crumley, Thieringer, & Harrison, 2012). As Carillo et al. (2012) continues to explain, media networks encompasses cable, broadcast television and radio networks, aside from digital operations. ABC, ESPN, and the Disney channel are some of the constituents of media networks. Theme parks and resorts, as Russell (N.d) states, include the operation of the Disney World Resort, the Disneyland hotel, the Disneyland Park, the Hong Kong Disney resort, and the Disneyland Pacific
Through the ratio analysis, we can conclude that Disney is a stable company, keeping up with industry trends and up to par with industry averages. Although at times it can seem that Disney is a risky and unstable company, those conclusions are false since the unstableness has come through decisions which will better establish Disney’s position on the market. Although Disney’s competition, namely CBS, is on a similar standing as Disney when comparing ratios, Disney will manage to remain the largest media conglomerate in the USA and one of the best corporations in the world.