Walt Disney Case Study

• The Walt Disney Company (known as Disney) was founded on October 16th 1923 by brothers Walt and Roy Disney as a small animation studio.

• Now it is one of the largest Hollywood studios.• It owns 11 theme parks, 2 water parks and several

TV channels, including the American Broadcasting Company (ABC.)

• Disney’s corporate headquarters and primary production facilities are located at the Walt Disney Studios in Burbank, California, USA.

• June 12th 2006 – Disney Mobile phone service is launched.

• January 23rd – Disney announces a deal to purchase Pixar Animation Studios in an all-stock transaction worth $7.4bn.

• July 2006 – Disney film Pirates of the Caribbean 2 is the highest grossing film in opening weekend history at $135,000,000 USD.

• Employees 2006 – 133,000.

DIVISIONS OF DISNEY

Media and Entertainment:• American Broadcasting Company• Buena Vista Distribution• Buena Vista Motion Pictures Group• Walt Disney Studio Entertainment• Walt Disney Parks and Resorts• Disney Consumer Products

SWOT ANALYSIS...Strengths:• Global Standardisation. • Achieves target audience (children.)• Creative Process.• Brand name known across the world.• Diversification• Financially strong

Weaknesses:• High sunk cost.• Excessive research and development.• High investment.• High risk factor.

SWOT ANALYSIS CTD...Opportunities:• Merchandise expanding.• Global localisation.• Characters of national or regional appeal.• Cheaper alternatives to soft toys.• Disney Music Channel.

Threats:• Competitors: national, regional & global.• Employee retention.• Highly demanding in terms of sales, creativity and

innovation.• Brand consistency.• Profit differentiation.

CONVERGENCE• Disney Channel.• Disney theme parks and resort.• Disney Stores.• Disney Studios.• DVD/Blu Ray/video.• Soundtracks.• Board games.• Offers a co-branded Visa card to adults – card holders earn $1 for every

$100 charged to the card (can charge up to $75,000 annually) and then can redeem earnings for Disney merchandise or services.

• Home depot – offering a line of licensed childrens room paint colours with paint swatches in the signature Mickey Mouse ears shape.

• Licensed food products with its characters on its brands, e.g. Disney provides a yoghurt called Yo-Pals yoghurt with features Winnie the Pooh and friends.

CONVERGENCE KEY EXAMPLES• Pirates of the Caribbean – video game,

DVD/video, TV series and comic books.• Home on the Range – accompanying sound track

album, line of toys, clothing featuring the heroine, theme park ride and a series of books.

• Kim Possible – stationery, lunchboxes, food products, room decor, sportswear, sleepwear, daywear, accessories, action figures, beanbags, fashion dolls, diaries, junior novels, comic books, soundtrack, DVD/video and a Game Boy Advance game.

2012 FIGURES• Net income: $5.7bn – an increase of 18% from 2011.• Revenue: Record $42.3bn – up 3% from 2011.• Gained the media brands: ESPN, ABC, Pixar and

Marvel. • Wreck-It Ralph delivered the highest grossing

opening weekend in Disney Animation history and also became the 75th Disney film to cross the $100m domestic box office threshold.

• Marvel’s The Avengers was the year’s #1 hit as well as the third-highest grossing film of all time, with more than $1.5bn.