STRATEGIC MANAGEMENT

“The Walt Disney Company:

The Entertainment King”Group 3Group 3

CASE SUMMARY

1923 Walt DisneyProductions

1928 Mickey Mouse

introduced

1955Disneyland

Opens

1966 Walt Disney dies

1971 Walt Disney World opens

1980Touchstone

1984 Eisner & Wells

hired

19871st Disney

Stores

1993Miramax

1995Acquisition

of ABC

Disney Business Line

Market Size

33,747

35,510

37,84336,149

38,063

31,940

2,5333,374

4,6874,427

3,3073,963

Past Strategy & Challenge

Past Strategy • Flat organization chart (Non-hierarchical) • Classic branding

Challenge • To be the one of the world leading to develop the

most creative and innovative.

Macro Environment Analysis

Political-Law & Regulation-Rating control

Economic- Complementary goods

Technology-New Technologies & Innovation Ideas

Social-Trendy traveling-Relaxing-Multicultural

Globalization

-Worldwide to access an Information

Five Force Analysis

Media Netwo

rk

Theme Park

& Resort

Studio Entertainm

ent

Consumer

Product

Internet &

Direct Mkt.

New Entry

Low Low Low Low High

Supplier Low High High Low Low

Buyer High Medium Low High High

Substitute

High High Low High High

Revelry High Medium High Medium High

Competitor Analysis and Comparison

Broadcast TV Station √ √ -

Broadcast TV network √ √ √

Cable distribution systems

- √ -

Cable networks √ √ -

Satellite TV √ √

Film production √ √ √

Film library √ √ √

Movie theaters -- - √

Music √ √ √

Radio √ - -

Publishing √ √ √

Internet √ √ √

Theme parks √ √ √

Retailing √ √ √

Audio//video player - - -

Supply chain

Activity

Technology

Operation

Sale& Marketi

ng

Distribution

Service

Media Network

Studio Entertainment

Theme Park & Resort

Consumer Product

Internet & Direct Mkt.

Value Chain

Support Activity: HR Function Managing SynergiesRelated

Unrelated

Resource, Capabilities & Competency

Tangible Resources Inventories of content Technology

Intangible Resources Knowledge Experiences Human assets

Capabilities

Human assets

Resource

Competency

Shared resource

ex. Sale & Mkt.Creative&

Innovation

SWOT

It’s the largest media and entertainment company in the world

Globalization The logo & characters of Walt

Disney is popular Innovative Ideas Differentiation

High operating cost .High Investment with High

risk involved Frequent Changes in Senior

Management Limited range of target

audiences mainly children

Global localization : Think Global ,Act Global

Diversification business Entertainment value

Major competitors (Universal Studios, Paramount parks, etc)

Government Policy Employee retention Piracy

GE

Weak 03.36.70

6.7

3.3

Internet

Product

Park

Media

Studio

Competitive Strength/Market Position

Ind

ustr

y A

ttra

cti

ven

ess

Weak

Generic Business Strategy AnalysisGeneric Business Strategy Analysis

- Studio Entertainment- Media Network

-Theme Park & Resort-Consumer Product-Internet & Direct Marketing

Corporate Strategy

Consumer Product

Theme Park & Resort

Studio Entertainme

nt

Media Network

Internet & Direct Mkt.

Diversify into new business

Marge & Acquisitio

n

Internal new

venter

Recommendation

Diversify

Outsource.- Reduce operation

cost

Outsource.- Reduce operation

cost

HR- Training of cooperate synergy to CEO- Creative Talent Culture