case walt disney (strategic management)
TRANSCRIPT
Walt Disney Company
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SITUATION
ANALYSIS
Established
Walt Disney
And
Brother Roy
Geographic Growth
United
States
Of America
Decline
Studio
Entertainment
192376 % Revenue
&
77 % operating
income
Experienced
decreasing revenue in
Last three
years
Market Overseas
United states
&
Canada
Disney
land
ParisAsia pacific
Latin America
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Consumer Products Studio Entertainment
Parks & Resort Media network Broadcasting
Market Segment Analysis
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TIME WARNER CBS Corporation Discovery Network Ocean Park ( Hong-Kong)
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Competitor Analysis
Deal with Creative
process
Long Term Debt
Asia Pacific
SWOT
Brand Name
Market
diversification
High Maintenance Cost
Excessive R & d
Spreading Risk Recession
Overseas Legal
requirements
opportunities Threats
weaknesses
Global
Standardization
Strength
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Net Income Analysis
$ 3374 m ( 2006)
$ 4687 m (2007)
$ 4427 m (2008)
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Year 2008 2007 2006
Media Network 16,116 15,104 14,186
Parks and resort 11,504 10,626 9,925
Studio Entertainment 7358 7491 7529
Consumer Product 2875 2289 2107
Year 2008 2007 2006
Media Network 4,755 4,275 3,481
Parks and resort 1,897 1,710 1,534
Studio Entertainment 1087 1195 728
Consumer Product 718 631 607
Revenue and Operating Income by Segment
REVENUE
Operating Income
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Symptoms
Decline in segmented revenue of Studio Entertainment
Decline in segmented operating income of Studio Entertainment
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CORE ISSUES
Decline in Walt Disney’s Net
Operating Income level by Studio Entertainment
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Strategy
Evaluating strategy
Change Product
delivery lineStrategy # 1
Strategy # 2
Digitalize content to
utilize technology and
lower cost
Pros
• Desire Customer
• Diversification of risk
Cons
• Loss Customer
• Income level goes down
• High investment
Change Product delivery line
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Pros
• Attract Customer
• User Availability
• Generate revenue
• All classes of customer
Cons
• High Investment
• Loss the standard of content
Digitalize content to utilize technology and lower cost
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Analysis Problem Identification Alternatives Solution Implementation Contingency
Recommended Strategy
Digitalize content to utilize
technology and lower costWHY?
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Solution
21st century
mindset
Customer Demand
Profit
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Implementation
01Target All age of customer
Telecast all the things via Disney's
media channel 02
Make all the product free but
taking money from Media
channel 03
THANK YOU