Walt Disney Case

Walt Disney Case

Why has Disney been successful for so long?

• Extend the time spent in theme parks & drive brand value
• Utilize the movie library in different distribution channels
• Limit budget in movies and streamline production
• Produce TV shows for other channels to emphasize quality
• Promote brand value and increase revenues through licensed goods
• Content and experiences relevant to all age groups, globally
• Investment in company culture to promote synergies
• Maintain brand image and increase revenues through different business lines via cross promotion
• Focus on creativity
• Globally known brand associated with all aspects of entertainment
• Highly loyal fan base through its characters
• Years of knowhow and high synergy culture among business units & cross promotion
• Develop target resources internally by utilizing current resources, as in the TV & movie business, Touchstone
• Borrow resources or partner up to acquire them in an effort to attain the desired value, as in Euro Disney Paris case
• Purchase resources if applicable with company strategy and is a good fit, as in ABC acquisition

What did Michael Eisner do to rejuvenate Disney? Specifically, how did he increase net income in his first four years?

Disney’s turnaround during Eisner’s first couple of years was mainly due to vigorous exploitation of Disney's considerable and unique assets

• Focus on creativity and delivering quality TV shows, and produce them for networks (such as ABC, NBC)
• Produce movies with budget constraint where the scripts came from talented yet not widely known writers and cast was selected among well-known actors in career slumps and/or TV actors
• Further utilize Disney studios and expand target segment without damaging the brand value through Touchstone
• Establishment of Disney Development Company
• Increase awareness and traffic by first time television ads and media broadcast events
• Remove the restrictions on number of visitors permitted in parks
• Foundation of a corporate marketing department
• Monthly meeting between marketing executives from different divisions
• Alignment on company wide initiatives such as Snow White’s 50th Anniversary and Mickey’s 60th Birthday
• Enter consumer products as retail-as-entertainment via Disney Stores
• Target grown-up fans through the collector’s items

To sustain the current diversification levels and its competitive position Disney needs to tackle some key strategic issues

Disney has been able to create a competitive advantage over the last years due to the addition of new resources (selected examples):