Published on September 17, 2014
STRATEGIC MANAGEMENT “The Walt Disney Company: The Entertainment King” GGrroouupp 33
CASE SUMMARY 1923 Walt Disney Productions 1928 Mickey Mouse introduced 1955 Disneyland Opens 1966 Walt Disney dies 1971 Walt Disney World opens 1980 Touchstone 1984 Eisner & Wells hired 1987 1st Disney Stores 1993 Miramax 1995 Acquisition of ABC
Disney Business Line
Market Size 33,747 35,510 37,843 36,149 38,063 31,940 2,533 3,374 4,687 4,427 3,307 3,963
Past Strategy & Challenge Past Strategy • Flat organization chart (Non-hierarchical) • Classic branding Challenge • To be the one of the world leading to develop the most creative and innovative.
Macro Environment Analysis Political -Law & Regulation -Rating control Economic - Complementary goods Technology -New Technologies & Innovation Ideas Social -Trendy traveling -Relaxing -Multicultural Globalization -Worldwide to access an Information
Five Force Analysis Media Network Theme Park & Resort Studio Entertainment Consumer Product Internet & Direct Mkt. New Entry Low Low Low Low High Supplier Low High High Low Low Buyer High Medium Low High High Substitute High High Low High High Revelry High Medium High Medium High
Competitor Analysis and Comparison Broadcast TV Station √ √ - Broadcast TV network √ √ √ Cable distribution systems - √ - Cable networks √ √ - Satellite TV √ √ Film production √ √ √ Film library √ √ √ Movie theaters -- - √ Music √ √ √ Radio √ - - Publishing √ √ √ Internet √ √ √ Theme parks √ √ √ Retailing √ √ √ Audio//video player - - -
Value Chain Supply chain Activity Technology Operation Sale& Marketing Distribution Service Media Network Studio Entertainment Theme Park & Resort Consumer Product Internet & Direct Mkt. Support Activity: HR Function Managing Synergies Related Unrelated
Resource, Capabilities & Competency Tangible Resources Inventories of content Technology Intangible Resources Knowledge Experiences Human assets Capabi lities Human assets Resour ce Compet ency Shared resource ex. Sale & Mkt. Creative& Innovation
SWOT It’s the largest media and entertainment company in the world Globalization The logo & characters of Walt Disney is popular Innovative Ideas Differentiation High operating cost .High Investment with High risk involved Frequent Changes in Senior Management Limited range of target audiences mainly children Global localization : Think Global ,Act Global Diversification business Entertainment value Major competitors (Universal Studios, Paramount parks, etc) Government Policy Employee retention Piracy
GE Attractiveness 6.7 Industry 3.3 Competitive Strength/Market Position Internet Product Park Media Studio 0 6.7 3.3 Weak 0 Weak
Generic BBuussiinneessss SSttrraatteeggyy AAnnaallyyssiiss - Studio Entertainment - Media Network -Theme Park & Resort -Consumer Product -Internet & Direct Marketing
Corporate Strategy Consumer Product Theme Park & Resort Studio Entertainment Internet & Direct Mkt. Media Network Diversify into new business Marge & Acquisition Internal new venter
Recommendation Diversify Outsource. - Reduce operation cost Outsource. - Reduce operation cost HR - Training of cooperate synergy to CEO - Creative Talent Culture
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