The Walt Disney Company CASE PDF

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The Walt Disney Company:A Corporate StrategyAnalysisDiscussion Questions1. Describe how Disney’s businesses are integrated. Wh y does integration work so well for Disney and not for other companies? Can you think of any other companies that follow a similar strategy?Disney has 5 business segments: M...

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The Walt Disney Company: A Corporate Strategy Analysis Discussion Questions 1. Describe how Disney’s businesses are integrated. Why does integration work so well for Disney and not for other companies? Can you think of any other companies that follow a similar strategy? Disney has 5 business segments: -

Media Networks Park and resort Walt Disney Studios Disney Consumer Products Disney Interactive

All of its businesses are perfectly integrated with each other thanks to a well-functioning strategy. There is one core business: Walt Disney studio which gives substance to the other businesses. In other words, the other segments serve to : - Maximize the economic value produced by the Disney studios. - Build customer loyalty - Create an experience and promote Disney values - Reaching a maximum number of clients (family, child etc) through different type of experiences This is particularly effective at Disney, since the different businesses are not in competition with each other but are complementary; the success of one branch is beneficial for the others.

One company that made us think about Disney's strategy is Game Freak, which is at the origin of a multitude of video games that the brand exploits in all their forms. This is notably the case of the famous Pokémon game. The Pokémon Company is thus a branch of the Game Freak group and manages all the business associated with the small creatures: - Pokémon cards - Movies and TV series - Video games on console or laptop - Derivative products

2. Walt Disney parks have not always been successful internationally; most notably, Disneyland Paris was losing money in 2012. Why would Disney theme parks have difficulty transferring the same experience to a culturally different market?

3. How are technological changes likely to influence Disney’s businesses in the future? Which businesses are most susceptible to these changes? How can Disney remain profitable amidst technological change?

PESTEL All areas of Disney will be influenced in one way or another by new technologies. Media Networks According to the case, the most lucrative business of the group, the media industry, is the most susceptible to be influenced by technological changes. Indeed, as the case points out, the diversification of viewing media (tablets, telephones or computers) is revolutionizing the television world through their practicality and exponential performance. Thus, this technological change constitutes a form of threat for the group that makes the majority of its revenues through the television channel. -> To remedy this, Disney has developed and implemented a new platform: Disney + . It works in the same way as the well-known Netflix platform. It offers all Disney, pixar, marvel and lucas' film productions as well as original programs and series. Parks and Resorts : Technological advances can also concern attractions in parks, which must evolve in line with consumers' expectations and dreams. To do this, Disney invests and modernizes old attractions by adding new technologies such as virtual reality.

Walt Disney studio New technologies can be found to improve the image and produce better quality content. -> Disney can then develop various branches to meet these new expectations: R&D and M&A as was the case with pixar acquisition

4. Disney has diversified into a variety of businesses over the years, but they all seem to be connected to a common core. How would you describe this core? Are there any other businesses that are similar enough that Disney should seriously consider getting involved in them? The link between all Disney's businesses is also the target of the company : children. They use the same processes every time : they release a film, and when the movie is becoming popular among children, they launch derived products of this movie on the market and the movie, or even sometimes certains characters, become a brand. So the core of the activity, like we said before, is driven by Disney Studios. Thus, we observe that thanks to using Disney Studios entertainment and cartoons as market penetration is a good strategy, because for example when a woman is watching Frozen with her kids, it brings her so many memories like disney films that she watched when she was a kid and so she thinks of a whole environment, and it works. Because she was used to consume Disney movies, her kids will consume Disney movies to. In order to stay competitive with dominant markets of the moment, Disney company is focusing on streaming since the beginning of 2019 with their platform Disney +. So much so that the last Pixar’s cartoon hasn’t even been released in movie theathers, but was primarily diffused on Disney +. Company executives clearly affirmed that they want to compete against Netflix and its 200 millions of subscribers. -

parler de l’émotion sucité du fait relation ancien enfants clients de disney 5. Why are international Disney parks partially owned by external entities? What are the positives and negatives of having international joint ventures?

The Disney parks are co-owned with other entities because this allows Disney to share the costs since they are very important. Positive point : 1 – New insights and expertise Starting a joint venture provides the opportunity to gain new insights and expertise. Think about it; the market is now way easier for you to understand given the short-term partnership that you have forged. 2 – Better resources Forming a joint venture will give you access to better resources, such as specialized staff and technology. All the equipment and capital that you needed for your project can now be

used. 3 – Both parties share the risks and costs In case the joint-group project fails, you are not alone when bearing the costs of its failure. Because you two had volunteered to share the expenses, you both will also support the losses. 4 – Joint ventures can be flexible According to assignment writing service writers, an example of this is that a joint venture can have a limited lifespan and can only cover only a fraction of what you do, thereby limiting your commitment as well as your business’s exposure. 5 – You will build relationships and networks Even though your partnership is only for a specific goal, this move will enable you to create long-lasting business relationships. Negative point : 1 – There is no such thing as an equal involvement. An equal pay may be possible, but it is extremely unlikely for all the companies working together to share the same involvement and responsibilities. 2 – Great imbalance Because different companies are working together, there is a great imbalance of expertise, assets, and investment. This can have a negative impact on the effectiveness of the joint venture. 3 - The management The company cannot fully control its subsidiary if it does not own more than 50% of the shares.

6. If you had money to invest in 2012, would you have bought Disney stock? Why or why not? Yes I will invest because Disney is extremely diversified and has very high value assets. It has been able to enhance the value of its assets such as its films by developing the merchandising. Disney is known for its films but also has a lot of media, which allows it to occupy several sectors. The fact that the company is led by Robert Iger is also a good thing because he is known for his managerial qualities. The company is increasingly emphasizing its ethics, and employees are proud to work for the company. Disney's vision is also a good thing because it wants to create maximum long-term value for its shareholders. Finally, Disney's future prospects are also very good because the company continues to grow through its various acquisitions but also through the growth of its various departments. Disney remains timeless and has proved it since its creation in 1923....