FLOW OF PRESENTATION

• INTRODUCTION

• OVERVIEW

• VISION & MISSION

• SWOT & TOWS

• PORTER’S FIVE FORCES MODEL

• BCG MATRIX

• ANSOFF’S MATRIX

• PEST ANALYSIS

• BLUE OCEAN STRATEGY

“We don’t make movies to make money.We make money to make movies”

~ Walt Disney

• Founded By Walt Disney• Established in 1923• Headquartered in California,USA• Currently World’s Largest conglomerate in terms of revenue

Disney - contribution of segments to revenues

Media Networks 45%Parks & Resorts 31%Studio Entertainment 13%Consumer Products 8%Interactive 3%

ABSTRACT

OVERVIEW

• The Walt Disney Company represents an organization composed of 35.5 billion dollars in 2007.

• The five SBU’s are Disney Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks Broadcasting , and these can be further subdivided into 28 categories and are composed of different brands

OVERVIEW

• The two fundamental commonalities that are found upon inspection of the entirety of the Walt Disney Company’s holdings are entertainment and information.

• Every business activity that Disney is engaged in is related in some manner of providing its consumer base entertainment and/or information

VISION & MISSIONANALYSIS

CURRENT VISION ANALYSIS

“TO MAKE PEOPLE HAPPY”

Effective Elements Shortcomings

• Memorable• Feasible

• Vague• Generic

CURRENT MISSION ANALYSIS

"THE MISSION OF THE WALT 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, INNOVATIVE AND PROFITABLE ENTERTAINMENT EXPERIENCES AND RELATED PRODUCTS IN THE WORLD."

Effective Element Shortcoming

• Product oriented statement.

• Focus on what products to sell and what services to offer.

Lack of 5 essential components:

• Customers• Technology• Philosophy• Concern for public image• Employees

New Vision Statement

New Mission Statement

“As the world’s leader in entertainment and information we seek to create an engaged and collaborative culture for our employees in order to turn our customers‘ moments into a unique experience, by providing special services and innovative products through movies, parks and the e-world. By taking advantage of our diversified portfolio to differentiate our content in all segments, we aim to develop the most profitable entertainment company worldwide, which would yield increasing profits to our shareholders.”

“To Make Entertainment The Wheel Of Life”

SWOT ANALYSIS

SWOT ANALYSIS Brand Reputation•Highly Diversified Portfolio

•Strategic & Tactical Acquisitions•Global Expansion & Alliances

•Economies of Scope•Loyal Customers

•Strong Financial Position

•High Cost of Operations•Concentration of Revenues In

North America•The Constant Need Of succesfull Development

material

•Benefits From IT Advances & Mobile Gaming

•Build A More Eco-Friendly Image• Further expansion in new

emerging economies •Release of New Successful Stories

& Characters

•Financial Récession•Increasing Piracy•Strong Competition•Continous Need For Technological Update•Change in Consumers Preferences & Tastes

•Negative Publicity Due to Unexpected Event

S W

TO

TOWS ANALYSIS

STRENGTHS:

1. Brand Reputation2. Highly Diversified Portfolio3. Strategic & Tactical Acquisitions4. Global Expansion & Alliances5. Economies of Scope6. Top Management7. Loyal Customers8. Strong Financial Position

S2-O1: Develop mobile game applications with Disney charactersS1-O2: Collaborating with WWF so as to promote environmental issuesS6-O3: Build a multinational management teamS8-O4: Consumer research on their preferences nowadays

SO Strageties:

1. Benefits From IT Advances & Mobile Gaming

2. Build A More Eco-Friendly Image3. Further expansion in new

emerging economies (India, Russia)

4. Release of New Successful Stories & Characters

Opportunities:

STRENGTHS:

1. Brand Reputation2. Highly Diversified Portfolio3. Strategic & Tactical

Acquisitions4. Global Expansion &

Alliances5. Economies of Scope6. Top Management7. Loyal Customers8. Strong Financial Position

1. Financial Recession2. Increasing Piracy3. Strong Competition4. Continuous Need For

Technological Update5. Change in Consumers

Preferences & Tastes6. Negative Publicity Due to

Unexpected Event

Threats:

S7-T1: Offer discounts to all members of Disney fun clubS3,S4-T3: Expansion in Brazil market through alliances and synergiesS8-T4: Invest on R&D for one high tech departmentS6-T5: Monthly consumer research via online polls

ST Strategies:

1.High Cost of Operations2.Concentration of Revenues In North

America3.Approaches Antitrust Law Limits

Weakness:

Opportunities:

1. Benefits From IT Advances & Mobile Gaming

2. Build A More Eco-Friendly Image3. Further expansion in new emerging

economies (India, Russia) 4. Release of New Successful Stories &

Characters

W1-O1: Digitalization of our operations in order to low costs & utilize technologyW2-O3: Target India as possible expansion through consumer products

WO Strategies:

Weakness:

1.High Cost of Operations2.Concentration of Revenues In NorthAmerica3.Approaches Antitrust Law Limits

Threats:

1. Financial Recession2. Increasing Piracy3. Strong Competition4. Continuous Need For Technological

Update5. Change in Consumers Preferences &

Tastes6. Negative Publicity Due to Unexpected

Event

W1-T1: Re-edit and release in cinemas old classic Disney filmsW2-T3,T4: Take advantage of operations that take place in N. America by investing in Technology and R&D for that area

WT Strategies:

PORTER’S FIVE FORCESMODEL

Rivalry Among Firms (High)

• Competition from entertainment producers, media outlets and theme

parks.

Threat Of Substitutes (Low)

• More Brand Loyalty.• High product differentiation

• Other products cannot give same experience

Threats Of New Entrants (Low)

• High investment to enter new Market.

• Brand Name is strong

Bargaining Power of Buyers (High)

• The product offerings are desires not

necessities.

• Financially restricted consumers may not

buy

Bargaining Power of Suppliers (Medium)

• Equipment manufacturers, construction companies, and vendors are highly capital

intensive and have more power.• Food, toys, and clothing vendors do not

have much power.

BCG MATRIX

HIGH LOW

HIGH • MEDIA NETWORKS

LOW• STUDIO

ENTERTAINMENT• PARKS AND RESORTS• CONSUMER

PRODUCTS • INTERACTIVE MEDIA

Relative Market ShareRe

lativ

e M

arke

t Gro

wth

ANSOFF MATRIX

Market penetration

New Movies Animated TV shows. Disney Toys.

Product Development

3D Movies 3D Animated Movies

Market Development Disney Lands in countries

like India , Sri Lanka , Pakistan etc.

Diversification

Chip Boards in India

Existing

New

Existing New

PRODUCTS

MARKETS

PEST ANALYSIS

POLITICAL

The animation industry enjoys tax benefits.Political differences are an obstacle to International Trade.Tighter regulations regarding products safety.

ECONOMIC

Global financial crisis slows down growth.Emerging markets such as India offer a cost advantage in terms of salaries

and the overall cost of production.Economic growth, per capita income and stage of economic development

among different countries needs to be considered.

SOCIAL

Different local cultures, as well as stories and history of the host place.Changes in customers preferences for entertainment.Significant role of kid’s and family’s entertainment.

TECHNOLOGICAL

Technological advancements are having a profound effect on the world’s media.

Changes in technology affect demand for entertainment products as well as the cost of production.

Blue Ocean

StrategyBLUE OCEAN

STRATEGY

• Create uncontested market space.

• Make the competition irrelevant

• Create and capture new demand.

• Break the value-cost tradeoff.

• Align the whole system of a firm’s activities in

pursuit of differentiation and low cost.

The Four Organizational Hurdles to Strategy Execution

Cognitive HurdleAn Organization

wedded to statusquo

Political HurdleOpposition frompowerful vested

interests

Resource HurdleLimited Resources

MotivationalHurdle

Unmotivated Staff

• Cognitive hurdle that blinds employees from seeing that radical change is necessary

• Resource hurdle that is endemic in firms

• Motivational hurdle that discourages and demoralizes staff

• Political hurdle of internal and external resistance to change.

Break Through the Cognitive HurdleRide the “Electric Sewer”

• “Seeing is believing” - inspire a fast change in mindset that is internally driven of people’s own accord.

• Experiences that don’t involve touching, seeing, or feeling actual results, such as being presented with an abstract sheet of numbers, are shown to be non-impactful and easily forgotten.

• Numbers are disputable and uninspiring, but coming face-to-face with poor performance is shocking and inescapable, but actionable.

Meet with Disgruntled Customers

• Get them to listen to their most disgruntled customers firsthand - there is no substitute for meeting and listening to dissatisfied customers directly.

Jump the Resource Hurdle• Multiplying Value of Resources

• Hot spots are activities that have low resource input but high potential performance gains.

• Cold spots are activities that have high resource input but low performance impact

• Horse trading involves trading your unit’s excess resources in one area for another unit’s excess resources to fill remaining resource gaps.

Redistribute Resources to Your Hot Spots

• Feed resources to your hot spots

Redirect Resources from Your Cold Spots

• Free up resources by searching out cold spots

Engage in Horse Trading

• Trade resources you don’t need for those of others that they do need.

Jump the Motivation HurdleKingpins

• Kingpins are key influencers in the organization, who are natural leaders, who are well respected and persuasive, or who have an ability to unlock or block access to key resources.

• Concentrate your efforts on Kingpins

Fishbowl Management

• Shine a spotlight on Kingpins’ actions in a repeated and highly visible way – through transparency, inclusion, and fair process.

Atomization

• Framing of the strategic challenge - breaking the challenge into bite-size atoms that employees at different levels could relate to.

• Unless people believe that the strategic challenge is attainable, the change is not likely to succeed.

Knock Over The Political HurdleLeveraging Angels

• Angels are those who have the most to gain from the strategic shift.

Silencing Devils

• Devils are those who have the most to lose from it.

Secure a Consigliere on Your Top Management Team

• A consigliere is a politically adept but highly respected insider who knows in advance all the land mines, Including who will fight you (Devils) and who will support you (Angels).

Identify your detractors (Devils) and supporters (Angels)

• Isolate your detractors by building a broader coalition with your angels before a battle begins. Key to winning over your detractors or devils is knowing all their likely angles of attack and building up counterarguments backed by irrefutable facts and reason.