disney case presentation

7/31/2019 Disney Case Presentation

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THE WALT DISNEY


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Agenda

History

Business Lines

Eisners Strategic Management Analysis


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History

Walter Elias Disney founded Disney Brothers Studio

with his older brother Roy in 1923

Mickey Mouse was born and Disney released the first

animated film with sound Steamboat Willie Disney was the first company to release the first full-

length and full-color animated movie Snow White

and the Seven Dwarfsin 1937


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History Cont.

Followed the success of television program Disneyland,

Walt opened the first theme park Disneyland in Florida

Disney expanded the theme parks to international

market in Japan and Euro Michael Eisner was named as Disneys new CEO

Disney acquired Capital Cities/ABC for $19 billion

The first Disney Cruise Line was operated in 1999


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Business Lines


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MEDIA NETWORKS

Broadcasting ABC Television

Network TV Stations ABC Radio Networks Radio Stations

Cable Network &International

ESPN Disney Channel Toon Disney SoapNet


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STUDIO ENTERTAINMENT

Theatrical Films

Walt DisneyPictures

TouchstonePictures

HollywoodPictures

Miramax

Buena Vista HomeEntertainment

Buena Vista MusicGroup

HollywoodRecords

MammothRecords

Lyric RecordsTheatrical

Productions


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Theme Parks and ResortsWalt DisneyAttractions

Walt DisneyImagineering

Anaheim Sports Disney RegionalEntertainment


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ConsumerProducts

MerchandisingLicensing The Disney Store Disney Publishing Walt Disney Art Classic Disney Interactive


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Eisners Strategic Management

Managing synergies

Synergy boot camp

Synergy group

Cross-promotion

Developed Disneys business by promoting

Vertical growth: distributed film library, sport and newprogramming through the Internet and developed its owncontent like a movie studio

Horizontal growth: entered new types of entertainment asDisneyQuest and ESPN Zones

Geographically growth: expanded the company in Europe andJapan


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Strategic issues

Question:

What is the difference between a CEO and a president?


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Strategic issues

Lack of parenting advantage Justifying the parent company with parenting

advantage Only if the parent company`s influence creates value

And only if it creates more value than any of their rivalswould if they owned the same businesses.

How to achieve--value creation Vs. value destruction The parent organization can improve the businesses

plans and budgets, promote better linkages among them,provide especially competent central functions, or makewise choices in its own acquisitions, divestments, andnew ventures.

The rigid goal of 20% annual growth did not take externalenvironment into account.

Eisner`s management style could not create enoughvalue to some of its business units.


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Strategic issues

Question:

Is Disney in the category of concentric(related) diversification orconglomerate (unrelated)

diversification?


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Failure

www.go.com

Club Disney

ESPN stores
http://www.go.com/http://www.go.com/


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FUN FACTS

Over 4,000 acres at Walt Disney World is used for flowers and other gardenlandscapes.

Buses

There are over 270 buses available to take you on your tour of Walt DisneyWorld.

Mouse Hats

Every year, Walt Disney World sells enough Mickey Mouse ear hats to cover175 miles if put ear to ear.

Photos Galore

Over 100,000 photos are taken almost daily at Walt Disney World.

Tons of Laundry

The cast of Walt Disney World washes about 285,000 lbs. of laundry everyday.


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STRENGHTSGlobal StandardizationTargeted Effective MarketingCreative Process

Popular Brand Name

Diversification

STRENGHTSGlobal StandardizationTargeted Effective MarketingCreative Process

Popular Brand Name

Diversification

OPPORTUNITIES

With cheap real estate buy more landfor future venturesGlobal Localization - Characters ofnational or regional appeal

THREATS

CompetitorsHigh Cost of Fuel Cruise lineEmployee RetentionUnprofitable due to not well-plannedacquisitionsPiracyRegulatory risks

SWOT ANALYSIS


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FINANCIAL RATIOS

Data from Forbes.com


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Revenues

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Millions

Disney Revenues

Walt Disney StudioEntertainmentConsumer Products

Parks and Resorts

Media Networks

Internet Media/InteractiveMedia


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Resort Attendence

Amusement park corporations Year 2008 Year 2009 Year 2010

Walt Disney Parks and Resorts 118 M 119 M 121 M

Merlin Entertainments Group (UK) 35 M 39 M 41 M

Universal Studios Recreation

Group 26 M 24 M 26 M

Parques Reunidos (Spain) 25 M 25 M 26 M

Six Flags Inc. 25 M 24 M 24 M

Total Attendence 229 M 230 M 238 M

52% 52% 51%

0%

10%

20%

30%

40%

50%

60%

Year 2008 Year 2009 Year 2010

Top 5 Resort Companies Shareby % of Attendence

Walt Disney Parks and Resorts

Merlin Entertainments Group (UK)

Universal Studios Recreation GroupParques Reunidos (Spain)

Six Flags Inc.


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MOST WATCHED TV SHOWS


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5 FORCE MODEL (TRACY)


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EFAS (MIKE)


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Possible Solution 2

Expand Disneyland to other U.S citiesand international market as Thailand inSoutheast Asia, Dubai in Middle East.

Benefits

borrowing cost and real estate is cheap

Dubai resort will cater to 340M MiddleEast population (Currently ranks 9th in theworlds aqua parks)

Cost


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Possible Solution 3

Family experience organic grocerystore and organic experience

Benefits borrowing cost and real estate is cheap

Diversify Risk

Cost


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Possible Solution 4

Sell existing product lines cut ondiversification

Benefits

Costs


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Possible Solution 5

Improve and Support Current BusinessDivisions

Benefits

Costs


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Recommended Solutions

Improve and Support Current BusinessDivisions

Avoid long lines Expand 3D movies to TV series this is

the future


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