Disney Case Presentation
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Transcript of Disney Case Presentation
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THE WALT DISNEY
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Agenda
History
Business Lines
Eisners Strategic Management Analysis
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History
Walter Elias Disney founded Disney Brothers Studio
with his older brother Roy in 1923
Mickey Mouse was born and Disney released the first
animated film with sound Steamboat Willie Disney was the first company to release the first full-
length and full-color animated movie Snow White
and the Seven Dwarfsin 1937
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History Cont.
Followed the success of television program Disneyland,
Walt opened the first theme park Disneyland in Florida
Disney expanded the theme parks to international
market in Japan and Euro Michael Eisner was named as Disneys new CEO
Disney acquired Capital Cities/ABC for $19 billion
The first Disney Cruise Line was operated in 1999
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Business Lines
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MEDIA NETWORKS
Broadcasting ABC Television
Network TV Stations ABC Radio Networks Radio Stations
Cable Network &International
ESPN Disney Channel Toon Disney SoapNet
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STUDIO ENTERTAINMENT
Theatrical Films
Walt DisneyPictures
TouchstonePictures
HollywoodPictures
Miramax
Buena Vista HomeEntertainment
Buena Vista MusicGroup
HollywoodRecords
MammothRecords
Lyric RecordsTheatrical
Productions
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Theme Parks and ResortsWalt DisneyAttractions
Walt DisneyImagineering
Anaheim Sports Disney RegionalEntertainment
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ConsumerProducts
MerchandisingLicensing The Disney Store Disney Publishing Walt Disney Art Classic Disney Interactive
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Eisners Strategic Management
Managing synergies
Synergy boot camp
Synergy group
Cross-promotion
Developed Disneys business by promoting
Vertical growth: distributed film library, sport and newprogramming through the Internet and developed its owncontent like a movie studio
Horizontal growth: entered new types of entertainment asDisneyQuest and ESPN Zones
Geographically growth: expanded the company in Europe andJapan
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Strategic issues
Question:
What is the difference between a CEO and a president?
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Strategic issues
Lack of parenting advantage Justifying the parent company with parenting
advantage Only if the parent company`s influence creates value
And only if it creates more value than any of their rivalswould if they owned the same businesses.
How to achieve--value creation Vs. value destruction The parent organization can improve the businesses
plans and budgets, promote better linkages among them,provide especially competent central functions, or makewise choices in its own acquisitions, divestments, andnew ventures.
The rigid goal of 20% annual growth did not take externalenvironment into account.
Eisner`s management style could not create enoughvalue to some of its business units.
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Strategic issues
Question:
Is Disney in the category of concentric(related) diversification orconglomerate (unrelated)
diversification?
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Failure
www.go.com
Club Disney
ESPN stores
http://www.go.com/http://www.go.com/ -
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FUN FACTS
Over 4,000 acres at Walt Disney World is used for flowers and other gardenlandscapes.
Buses
There are over 270 buses available to take you on your tour of Walt DisneyWorld.
Mouse Hats
Every year, Walt Disney World sells enough Mickey Mouse ear hats to cover175 miles if put ear to ear.
Photos Galore
Over 100,000 photos are taken almost daily at Walt Disney World.
Tons of Laundry
The cast of Walt Disney World washes about 285,000 lbs. of laundry everyday.
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STRENGHTSGlobal StandardizationTargeted Effective MarketingCreative Process
Popular Brand Name
Diversification
STRENGHTSGlobal StandardizationTargeted Effective MarketingCreative Process
Popular Brand Name
Diversification
OPPORTUNITIES
With cheap real estate buy more landfor future venturesGlobal Localization - Characters ofnational or regional appeal
THREATS
CompetitorsHigh Cost of Fuel Cruise lineEmployee RetentionUnprofitable due to not well-plannedacquisitionsPiracyRegulatory risks
SWOT ANALYSIS
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FINANCIAL RATIOS
Data from Forbes.com
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Revenues
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Millions
Disney Revenues
Walt Disney StudioEntertainmentConsumer Products
Parks and Resorts
Media Networks
Internet Media/InteractiveMedia
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Resort Attendence
Amusement park corporations Year 2008 Year 2009 Year 2010
Walt Disney Parks and Resorts 118 M 119 M 121 M
Merlin Entertainments Group (UK) 35 M 39 M 41 M
Universal Studios Recreation
Group 26 M 24 M 26 M
Parques Reunidos (Spain) 25 M 25 M 26 M
Six Flags Inc. 25 M 24 M 24 M
Total Attendence 229 M 230 M 238 M
52% 52% 51%
0%
10%
20%
30%
40%
50%
60%
Year 2008 Year 2009 Year 2010
Top 5 Resort Companies Shareby % of Attendence
Walt Disney Parks and Resorts
Merlin Entertainments Group (UK)
Universal Studios Recreation GroupParques Reunidos (Spain)
Six Flags Inc.
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MOST WATCHED TV SHOWS
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5 FORCE MODEL (TRACY)
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EFAS (MIKE)
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Possible Solution 2
Expand Disneyland to other U.S citiesand international market as Thailand inSoutheast Asia, Dubai in Middle East.
Benefits
borrowing cost and real estate is cheap
Dubai resort will cater to 340M MiddleEast population (Currently ranks 9th in theworlds aqua parks)
Cost
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Possible Solution 3
Family experience organic grocerystore and organic experience
Benefits borrowing cost and real estate is cheap
Diversify Risk
Cost
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Possible Solution 4
Sell existing product lines cut ondiversification
Benefits
Costs
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Possible Solution 5
Improve and Support Current BusinessDivisions
Benefits
Costs
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Recommended Solutions
Improve and Support Current BusinessDivisions
Avoid long lines Expand 3D movies to TV series this is
the future
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