walt disney company (case study)

UMAR ALIHAMID AFZALZUBAIR SAEED

Group Members

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It’s not about just Disneyland….!

Walt Disney Company

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HISTORY

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1923:

Disney and his brother Roy arrived in California to sell “Alice Wonderland”.

October 1923:

Disney Brother Cartoon studio was founded. But in 1925 the name was changed to “Walt Disney Studio”.

1928:

First time ever, the Mickey Mouse emerged as the cartoon in sound.

1932:

Flowers and Trees, first full-color cartoon and first Academy Award winner.

1950:

The first live action film “Treasure Island” was completed.

History

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1954:

The company began television with Disneyland anthology series.

1955:

The most successful series “The Mickey Mouse Club” began as well as the opening of new Disneyland Park in California.

1969:

The Disney started its Educational films and materials.

1971:

Walt Disney world Resort was opened with a Magic Kingdom and two hotels in Orland, Florida.

1982:

Epcot Center was opened as part of Walt Disney World.

History

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1983:

Tokyo Disneyland, first international Disney theme park opened in Japan.

1988:

At the Walt Disney World, Floridian Beach and Caribbean Beach Resort were opened.

1990:

Disney moved towards Hollywood Pictures and acquiring Wrather corp. and television station KHJ.

1991:

Disney purchased The Discover magazine (the leading consumer science).

1992:

The Paris Disneyland was opened in France.

History

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1993:

The Disney was awarded the franchise for a National Hockey League team, The Mighty Ducks of Anatheim.

1995:

The Disney Channel started operation in UK.

1996:

Disney Online launches Disney.com.

Radio Disney, a live 24-hour music-intensive radio network, debuts.

1998:

ESPN magazine started as well as the opening of Animal Kingdom at The Disney World Resort.

2006:

Disney unveiled Disney Xtreme Digital, a networking site aimed at children younger than 14 years of age.

History

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Location

Disney Resorts:1.California2.Florida3.Tokyo4.Hong Kong5.Paris

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The Walt-Disney Studios

Disney Consumer Products

• Walt-Disney Pictures

• Miramax Films

• Buena Vista Home

Entertainment

• Disney Records

• Buena Vista Records

• Hollywood Records

• Touchstone Pictures

• Pixar Animation Studios

• Disney Theatrical Group

• Disney Hard Lines

• Disney Soft Lines

• Disney Toys

• Disney Press

• Disney Publishing

Worldwide

• Disney Store

Disney’s Corporate Structure

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Disney’s Corporate Structure

Media Networks Park and Resorts

• ESPN

• Disney/ABC Television

Group

• ABC Owned Television

Stations Group

• Internet Group

• ABC Radio

• Disney Land Resorts

• Walt Disney World

Resort

• Tokyo Disney Resort

• Disneyland Paris

• Hong Kong

Disneyland

• Disney Cruise Line

• Disney Vacation Club13National Textile University04/11/2023

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Mission StatementWalt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, inovative and profitable entertainment experiences and related products in the world."

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Proposed Mission StatementThe mission of Walt Disney company is to be one of the biggest and trusted producer of entertainment and information provider and committed to balancing environmental stewardship(to help) with its corporate innovative goals and operations by using advance technology in all brands throughout the world for individuals.

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Purposed Vision StatementWalt Disney Company

is to be one of the world's leading producers and

providers of entertainment and

information.

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The Strategy-Formulation Analytical Framework

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Input Stage

External Factor

Evaluation (EFE)

Internal Factor

Evaluation (IFE)

Competitive Profile Matrix (CPM)

EFE MatrixKey External Factors Weight Rating Weighted

Score

OPPORTUNITIESJob opportunity 0.15 3 0.45Highly profitable for state 0.10 2 0.20Special offers for schools and tourists 0.08 4 0.32People get freshness on demand movie 0.04 1 0.04

Sale of Hit Dramas DVDs 0.03 2 0.06Increase media network 0.10 3 0.30

Threats Change in technology 0.12 4 0.48Unaffordable for middle and lower class 0.05 3 0.15

Economic recession 0.10 3 0.30Stop physical growth of children 0.07 2 0.14Success in not predictable 0.08 1 0.08Security threat due to terrorism 0.08 2 0.16

TOTAL 1.00 2.81 20National Textile University04/11/2023

IFE MatrixKey Internal Factors Weight Rating Weighted

Score

Strength

Best entertainment place in the world 0.08 4 0.32

Strong diversification 0.15 3 0.45

Good image (Goodwill) 0.09 4 0.36

Innovation (puppets to digital media) 0.15 4 0.60

Get easy feedback through social network 0.08 3 0.24

Acquire popular teams of different leagues. 0.05 3 0.15

Target niche market 0.05 3 0.15

Weakness

Costly to visit 0.05 1 0.05

Huge investment with high risk factor 0.10 2 0.20

Specific target market 0.05 2 0.10

More costly R & D 0.05 1 0.05

Negative impact on children’s mind 0.10 1 0.10

TOTAL 1.00 2.77

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Competitive Profile Matrix (CPM)

Disney Time Warner CBSCritical Success Factors

Weight Rate Weighted Score Rate Weighted

Score Rate Weighted Score

Advertisement 0.20 4 0.80 3 0.60 3 0.60

Management 0.18 3 0.54 4 0.72 3 0.54

Market Share 0.10 3 0.30 2 0.20 1 0.10

Global Expansion 0.08 3 0.24 2 0.16 1 0.08

Financial Position 0.10 2 0.20 3 0.30 1 0.10

Product Quality 0.15 4 0.60 3 0.45 2 0.30

Price Competition 0.07 2 0.14 3 0.21 2 0.14

Revenue 0.12 3 0.36 4 0.48 2 0.24

TOTAL 1.00 3.18 3.12 2.1022National Textile University04/11/2023

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Matching Stage

24

Matching Stage

SWOT Matrix

SPACE Matrix

BCG Matrix

IE Matrix

Grand Strategy Matrix

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Strength – S1. Best entertainment place in

the world.2. Strong diversification.3. Good image in the mind of the

people. (Goodwill)4. Innovation (puppets to digital

media)5. Get easy feedback through

social network. (Disney Xtreme Digital).

6. Acquire popular teams of different leagues.

7. Target niche market.

Weakness – W1. Specific target market.2. Costly to visit Disney

Parks and Resorts.3. Huge investment with

high risk factor. (forecasting based)

4. More costly Research and Development.

5. Negative impact on children’s mind.

Opportunities – O1. Job opportunity.2. Highly profitable for state.3. Special offers for schools

and tourists.4. People get freshness on

demand movie.5. Sale of Hit Dramas DVDs.6. Increase media network.

SO Strategies

S1, S3 + O1, O2 =

Market development

WO Strategies

W1 + O2, O6 =

Product Development

Threats – T1. Change in technology.2. Unaffordable for middle

and lower class.3. Economic recession4. Stop physical growth of

children.5. Success in not

predictable.6. Security threat due to

terrorism.

ST Strategies

S2, S4 + T1, T2, T3 =

Batter ManagementThrough cover the

cost

WT Strategies

W3, W4 + T1, T5 =

Focus on R & D

SWOT Matrix

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SPACE Matrix

Internal Position External PositionFinancial Strength Rating Environmental

StabilityRating

Liquidity 6 Technological Change -5

Working Capital 3 Security Threat -3

Earning Per Share 5 Economic Recession -2

Return On Investment 4 Competitive Pressure -5

Cash Flow 4 Change in Demand -6

Total 22 Total -21

Competitive Advantage

Rating Industrial Stability Rating

Market Share -1 Financial Stability 6

Product Quality -2 Market Growth 5

Customer Loyalty -3 Utilization of Resources 5

Diversification -2 Increase media network 3

Total -8 Total 19 26National Textile University04/11/2023

Calculation:

SPACE Matrix

2.45

21

components ofNumber

ES of Sum

4.45

22

components ofNumber

FS of Sum

ES

ES

FS

FS

X Axis = CA + ISX Axis = -2 + 4.75X Axis = +2.75

Y Axis = FS + ESY Axis = 4.4 + (-4.2)Y Axis = +0.2

75.44

19

components ofNumber

IS of Sum

24

8

components ofNumber

CA of Sum

IS

IS

CA

CA

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ISCA

FS

ES

(+2.75 , +0.2)

AggresiveConservative

Defensive competitive

StrategiesMarket DevelopmentMarket PenetrationProduct DevelopmentForward IntegrationBackward IntegrationHorizontal IntegrationRelated DiversificationUnrelated Diversification

SPACE Matrix

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BCG Matrix

Park & Resort

Relative market shareHigh Medium low1.0 0.5 0.0

Mark

et

gro

wth

ra

te

High +20

Medium 0

Low -20

Media Network

Parks & ResortsStudio Entertainment

Consumer Products

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Strong Average Weak

3.0 to 4.0 3 2.0 to 2.99 2 1.0 to 1.99 1

IFE Total weighted score (2.77)

EFE T

ota

l W

eig

hte

d

score

(2.8

1)

4

High3.0 to 3.99

3

Medium2.0 to 2.99

2

Low1.0 to 1.99

1

IE Matrix

Hold and Maintain

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StrongCompetitive Position

WeakCompetitive Position

Slow Market Growth

Rapid Market Growth

Quadrant 1Quadrant 2

Quadrant 3 Quadrant 4

StrategiesMarket DevelopmentMarket PenetrationProduct DevelopmentForward IntegrationBackward IntegrationHorizontal IntegrationRelated DiversificationUnrelated Diversification

Grand Strategy Matrix

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Decision Stage

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• QSPM MatrixDecision Stage

QSPM Matrix(Quantitative Strategic Planning

Matrix)R & D Market

Development

Key Factors Weight

AS TAS AS TAS

OpportunitiesJob opportunity 0.15 4 0.60 3 0.45

Highly profitable for state 0.10 4 0.40 3 0.30

Special offers for schools and tourists 0.08 3 0.24 2 0.16

People get freshness on demand movie 0.04 --- --- --- ---

Sale of Hit Dramas DVDs 0.03 --- --- --- ---

Increase media network 0.10 2 0.20 1 0.10

ThreatsChange in technology 0.12 4 0.48 3 0.36

Unaffordable for middle and lower class 0.05 3 0.15 2 0.10

Economic recession 0.10 2 0.20 3 0.30

Stop physical growth of children 0.07 --- --- --- ---

Success in not predictable 0.08 2 0.16 1 0.08

Security threat due to terrorism 0.08 2 0.16 1 0.08

TOTAL 1.00 2.59 1.93

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QSPM Matrix(Quantitative Strategic Planning Matrix) R & D Market

Development

Key Factors Weight AS TAS AS TAS

StrengthBest entertainment place in the world 0.08 3 0.24 2 0.16

Strong diversification 0.15 --- --- --- ---

Good image (Goodwill) 0.09 4 0.36 3 0.27

Innovation (puppets to digital media) 0.15 3 0.45 2 0.30

Get easy feedback through social network 0.08 --- --- --- ---

Acquire popular teams of different leagues. 0.05 --- --- --- ---

Target niche market 0.05 4 0.20 3 0.15

WeaknessCostly to visit 0.05 --- --- --- ---

Huge investment with high risk factor 0.10 2 0.20 1 0.10

Specific target market 0.05 1 0.05 2 0.10

More costly R & D 0.05 1 0.05 2 0.10

Negative impact on children’s mind 0.10 --- --- --- ---

TOTAL 1.00 1.55 1.18

GRAND TOTAL4.14 3.11

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Strategy we adopt is:

Research and Development

Recommendation

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ANY QUESTION??????????