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
Disney is the epitome of children’s entertainment. Disney serves as one of the largest sources of
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.
As financial consultants, we have been asked by Walt Disney’s management to provide an evaluation of this alternative to the company for this financing decision. For this estimate, we have reviewed the data of the Consolidated Income Statements from 1982 to 1983, the Consolidated Balance Sheets of 1984 and 1983, the Historical Summary of Average Yen/Dollar Exchange Rates and Price Indexes, ECU/Yen Swap flows in the following ten years, Yen Long-dated foreign exchange forward, Cash flow of 10-year ECU Euro bonds with sinking fund (Exhibit 6), and also the list of the French Utility’s outstanding publicly Traded Eurobonds.
Media network is first with a score of 8.35, because again this unit contributes a great deal to relative market share, costs relative to competitors’ costs, ability to benefit from strategic fit with sister businesses, brand image and reputation, competitively valuable capabilities, and profitability relative to competitors. All is achieved through the exploitation of IP. They are connected to many huge networks and have acquired major comic book characters as well. Park and resort score a 7.15. They contribute to the competitively valuable capabilities. With the recent addition of two ships and having resorts/parks in Orlando, California, Hawaii, and a Disney Vacation Club; Disney sets themselves apart by having unique attractions that make consumers come back for more morning and night. They get so much traffic some people were rejected from their resorts and parks. Also, 90% of their cruise is booked each year. Tied, are studio and consumer product at 6.7. The consumer product is average across the board, but studio takes control of the ability to benefit from strategic fit with sibling businesses, brand image and reputation, and competitively valuable capabilities. Disney is versatile in the amount they can release a certain Pixar, Disney, or Marvel movie. The
The creation of the Mickey Mouse character marks the beginning of a long journey to bring high quality family entertainment to the adoring Walt Disney fans. The company utilizes many industries to bring high-quality family content to the customers, from motion pictures where it began, to television, live productions, theme parks, cruise ships, and much more. The early acquisition of ESPN demonstrates the company’s commitment to providing entertainment for the entire family. Additionally, as the company has seen the technology trends continuing to push forward, The Walt Disney Company has been sure to join the innovative industries that are drawing the consumer’s attention at this time. Most recently, the acquisition of Maker Studios, a company that produces online videos that is a prominent fixture on YouTube, has brought the company further into the technological realms. Previously, acquisitions of companies such as
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
Companies such as Disney own a vast number of media outlets so they are able to influence culture in a biased way that is shaped to how they want. The more money a company has then the more power and influential they can be and the Disney corporation has plenty of money and power. They are able to give us the information they want us to see and have in order to shape popular culture.
[1] Information was mainly taken from the Harvard Business Case Study “The Walt Disney Company: The Entertainment King”
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.
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.
The Walt Disney Company is known throughout the world as a leader in entertainment. The strategies that the Walt Disney Company have used include competitive advantage, a growth strategy, and a renewal strategy. When a person mentions a theme park, Disney is the first park that comes to mind. They were not the first theme park, but they have mastered the art of creating memories for adults and children alike. As a former employee of Disney I can vouch for the amount of effort that goes into creating memories for families. Disney is a leader when it comes to the theme park business, and other parks look at Disney as a leader. An example of this is that other parks will not raise admission prices, until Disney first raises their prices. WESH.com said "It remains to be seen if Disney's move will trigger a round of similar increases at other Orlando theme parks. Historically, when Disney raises its prices, the other parks follow" (2011, p.1). There is not a company in the world that can provide the "magic" that the Walt Disney World company can provide (Disney.com, 2011).
In conclusion, Disney appears to be a very strong company financially. They do not have any major red flags. Their liquidity ratios and other information does not seem to be alarming in any way. They have been around for many years and are extremely successful, so any obstacle in their way will not be an issue. They will be able to work through it and bounce back from it without a problem.
Disney embraces the use of modern technology to reach its core customers. Disney has taken advantage of social media as well. Disney is extremely active in the social media sphere under the name “Disney Living.” ("Disney Living - the official channel for the coolest and newest Disney products for all ages.") Disney has more than 300,000 “likes” on Face book, 29,000 followers on Twitter and 8.8 million views on YouTube in just less than two years. (Warren) In addition to social media, Disney advertises in conservative media as well. It believes in steady advertising both online and offline, so as to be forever in its customers’ minds. Disney uses sales promotions and direct mail. Whether it is the theme parks or the movie theater, Disney tries to provide entertainment to children and the child in everybody. It believes in repeatedly improving its products and service contributions. In its theme parks, Disney continually updates and modernizes its rides so as to satisfy usual customers while attracting newer ones. Disney is also a marketing genius by continually creating new sources of revenue. If you look around when inside of one of the Disney parks you will notice advertising everywhere. The rides, the kiosks, even the building signs have sponsors on them. Disney is a master at building synergy among its businesses, such as theme parks, merchandising, movies which bring in more revenues and profits. To
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.
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