WALT DISNEY Ajay Norman(DM18202) Ankur kislaya(DM18206)

Melissa Mariam Alex(DM18233) Saurabh Arora(DM18246) Shivam Shukla(DM18248)

Introduction

The Walt Disney company is an American mass media and entertainment conglomerate

Founded in 1923 by brothers, Walt Disney and Roy O. Disney

Founded as a cartoon studio Later diversified into mass media, entertainment,

film production, etc.

Case - TimeLine

1923• Walt Disney Productions

1955• Disneyland Opens

1984• Michael Eisner hired

1987• First Disney Store Opens

1995• Disney announces ABC deal

1996• Disney.com launched

2001• Disney shuts GO network

Case Analysis

Started out as a cartoon studio later became Disney Brothers studio which was a flat, non-hierarchical organisation.

After release of snow white, company grew 7 fold, and went public to finance their growth strategies

The decline caused by war slowed down growth and resulted in financial constraints

Diversified into WED, theme parks, cruise ships, in-house media, in-house travel company

Diversification

Studio Entertainme

nt

Theme Parks and Resorts

Media Networks

Internet and Direct Marketing

SEGMENTS

Consumer Products

Case Analysis

Walt Disney’s death caused company to deteriorate over the following years

Eisner’s takeover in 1984 Focused on annual growth of 20% Laid emphasis on managing creativity and synergy among

different enterprises 1994- Turmoil – Wells dies in helicopter crash Acquisition of ABC, Miramax Soon after ABC Acquisition, starts deteriorating Market leader of theme park industry

Eisner’s strategies

Cost cutting: Projected to save $500 million Reduced film budgets Leaner marketing of products Closed business not showing good returns – Club Disney,

ESPN stores Corporate synergy Only 20% overseas revenue – Strategy to improve overseas

operations

Introduced cruises and entered into internet, created ESPN Zones Managing the brand

Third in entertainment channels for kids Controversies among catholic groups, animal rights activists Traditional view questioned

Managing the creativity Gong show Conflicts between employees

Emphasis on cost cutting drove creative talent away

Ansoff Matrix

MarketDevelopment

Market Penetration

Diversification

Product Development

Existing New

New

Existing

Products

Markets

Recommendations -

Based on Ansoff Matrix, for Resorts and theme parks, Disney could focus on market penetration

For consumer products, it can develop new markets hence go for Market Development

For Disney Studios, given complete emphasis on creativity, for Music and Film production, in midst on intense competition – Disney could go for Diversification strategy

Smart or Dumb ?

Disney has expanded domestically as well as globally through corporate integration. It has shifted its focus from show quality and content to distribution, marketing, licensing and merchandising arrangements to respond to industry changes and replace lost revenues.

• Globalization: Disney products can be found all over the world in different forms and areas. As a global brand, Walt Disney international provides oversight of company’s activities outside US. The aim was to increase globalization to make it relevant to consumers world wide.

• Horizontal Integration: Disney owns many studios, media networks and consumer product companies. It uses this strategy to increase its market awareness and presence through cross promotions.

• Vertical Integration: The sub companies allow Disney to plan, produce, advertise and distribute all the products. It does not have to rely on anyone and hence has a better control on quality, content and costs.

• Media Synergy: production and distribution of products can be done by the Disney owned companies. An important factor of its success is the integrated nature of its products.

• Diversification: Disney has always focused on diversification. The variety of products and services ranging from movies, theme parks, shows, merchandise; all offer a range for the tastes and preferences of consumers of all ages.

• Distribution: whenever Disney produces a new image or brand such as a movie character, its licensing, marketing and business outlets continue to capitalize on that character till it has left the box office. It releases a line of toys or products followed by DVD release and the character’s presence in theme parks.