Walt Disney was born in 1901 and showed an early interest in art, enrolling in art school at age 14. He founded several animation companies, producing the first Mickey Mouse cartoon in 1928. Disney expanded into feature films, TV, and theme parks, opening Disneyland in 1955. Some of Disney's most successful films included Snow White in 1937 and Mary Poppins in 1964. Disney diversified his business over his career and worked until his death in 1966 to grow The Walt Disney Company into a global entertainment empire.
2. The Education of Walt Disney
• Born in Chicago in 1901
• Enrolled in Kansas City Art Institute at age
14
• “Iwerks-Disney Commercial Artists” formed
with friend in 1920, company went bankrupt
in 1923
• Moved to Hollywood founded Disney
Brothers Cartoon Studio
• Developed series, Oswald the Lucky
Rabbit, with brother Roy but did not obtain
copyright for Oswald
• Universal Pictures retained copyright which
resulted in a loss revenue and his staff
3. Early History
• Walt Disney produces Steamboat Willie on his own
• 1928 Mickey Mouse is born
• Company is reincorporated as Walt Disney
Productions in 1929
• 1932 Disney received Academy Award for creation
of Mickey Mouse
• 1935 Mickey Mouse is filmed in color
• Disney launched spin-offs from Mickey Mouse that
include: Donald Duck, Goofy and Pluto
4. Other Key Dates
• 1937: Snow White and the Seven Dwarfs,
Disney's first full-length animated film, debuts.
• 1940: Pinocchio and Fantasia released.
• 1955: The Mickey Mouse Club debuts;
Disneyland opens in Anaheim, California.
• 1966: Walt Disney dies of lung cancer.
• 1971: Walt Disney World opens near Orlando,
Florida; Roy O. Disney dies.
• 1982: EPCOT Center opens on the grounds of
Walt Disney World
5. Disney’s Growing Entertainment
Empire
• 1989: Disney-MGM Studios Theme Park opens near Orlando
• 1992: Euro Disney (later named Disneyland Paris) opens.
• 1996: Disney acquires television station Capital Cities/ABC for
$19 billion; Radio Disney debuts.
• 1998: Animal Kingdom opens in Walt Disney World, Florida.
• 1999: Disney Cruise Line begins operations with the Disney
Magic
• 2001: Disney's California Adventure opens next to Disneyland;
Disney acquires Fox Family Worldwide for $5.3 billion.
• 2003: Roy E. Disney--son of Roy O. Disney, last of the
founding family and Stanley Gold quit the Disney board and
starts Save Disney.com in an attempt to oust CEO Michael
Eisner.
6. Current Structure and Corporate
Strategy
• Mission Statement:
The Walt Disney Company's objective is to be one of the
world's leading producers and providers of entertainment
and information, using its portfolio of brands to
differentiate its content, services and consumer
products.
7. The Walt Disney Corporate Structure
• CEO ROBERT A. IGER – PRESIDENT AND CEO OF
DISNEY, INC.-2005 succeeded Michael Eisner
Business Units:
• Studio Entertainment
• Consumer Products
• Parks and Resorts
• Media Networks
• Internet Entertainment
Source: The Walt Disney Company Annual Report
8. Corporate Responsibility
Robert A. Iger: “While there's always room for improvement,
we seek to be a good corporate citizen and hope to be as admired
for the way we do business as for the quality of the family
entertainment we create.”
Focus Area Objective
Children & Family We strive to support the well-being of children and families.
Content & Products We seek to create content and products responsibly.
Environment We work to embed good environmental stewardship in the
Company’s decision-making process from start to finish.
Community We aim to be a positive and productive member of the
Communities in which we live and work.
Workplaces We strive to foster safe, inclusive and respectful workplaces
Wherever we do business and wherever our products are made.
9. DISNEY Topics: Miramax Films
ACQUISITION IN 1993 FOR $80 MILLION
CURRENTLY IN NEGOTIATIONS SELLING AT
BETWEEN $625- 700 MILLION
AWARD WINNING FILM LIBRARY INCLUDES – NO
COUNTRY FOR OLD MEN & PULP-FICTION
11. DISNEY Topics: Social Network
Website TWITTER
• ON-LINE MARKETING- 100 MILLION USERS
• HOLLYWOOD AD SPENDING CUT BY 8% 2009
• “ANY WAY TO GET THE WORD OUT IN AN ERA
OF STRETCHED BUDGETS”
• NEW MARKETING CHIEF
12. SWOT Analysis
Strengths
• Diversification of their products and
services-produces balance revenue
streams:
• Well known characters
• Widespread cable networks
• Strong brand name-ranked 9th
in top 100
brand names
Revenues FY
2009 (in Millions) % of Revenue
Media Networks $16,209 45%
Park and Resorts $10,667 30%
Studio
Entertainment $6,136 17%
Consumer
Products $2,425 7%
Interactive Media $712 2%
Total $36,149
13. SWOT Analysis
Weaknesses
• Weak performance of studio entertainment
– Produced failures such as Fantasia 2000, 102
Dalmatians and Treasure Plant
• Overdependence on the North American
markets
– 75% of revenue is derived from North America
market
– Little presence in emerging Asian Markets;
accounted for only 6.7% of company's revenues
14. SWOT Analysis
Opportunities
• Acquisitions to strengthen their position in
the market
– Jetix Europe-has programming geared toward
kids 6-14, broadcasts in 58 countries
– Club Penguin-adds to online assets
• Improving presence in emerging Indian
and Asian markets
• Agreement with DreamWorks to distribute
six films a year
• Positive market outlook for the global
media
15. SWOT Analysis
Threats
• Intense competition in each business line:
– Media- CBS and Fox Broadcasting
– Parks and Resorts-Xanterra Parks and
Resorts
• Piracy in the entertainment industry
• Regulatory risks- must comply with FCC
regulations, which can hinder future cash
flow
• "Lagging Economy“
• New technology compromises ability to
protect intellectual property
16. Academy Awards
• Walt Disney holds the record for both the most Academy Award nominations
(59) and the number of Oscars awarded (22). He also earned four honorary
Oscars. His last competitive Academy Award was posthumous.
• 1932: Best Short Subject, Cartoons: Flowers and Trees (1932)
• 1932: Honorary Award for creation of Mickey Mouse.
• 1934: Best Short Subject, Cartoons: Three Little Pigs (1933)
• 1935: Best Short Subject, Cartoons: The Tortoise and the Hare (1934)
• 1936: Best Short Subject, Cartoons: Three Orphan Kittens (1935)
• 1937: Best Short Subject, Cartoons: The Country Cousin (1936)
• 1938: Best Short Subject, Cartoons: The Old Mill (1937)
• 1939: Best Short Subject, Cartoons: Ferdinand the Bull (1938)
• 1939: Honorary Award for Snow White and the Seven Dwarfs (1937) The
citation read, "For Snow White and the Seven Dwarfs, recognized as a
significant screen innovation which has charmed millions and pioneered a
great new entertainment field." (The award, unique in the history of the
Oscars, is one large statuette and seven miniature statuettes.)
• 1940: Best Short Subject, Cartoons: Ugly Duckling (1939)
17. Financial Analysis:
Stock Price
• Traded on the NYSE
under the ticker DIS
• Current stock price: 37.65
• Industry leader in market
capitalization: 72.85B
• Beta of 1.21 indicates
stock is less volatile than
competitors
Walt Disney (DIS) News Corporation (NSWA) Time Warner Inc. (TWX) Industry
Market
Capitalization 71.45B 40.43B 38.05B 2.87B
Beta 1.21 1.58 1.31
18. Financial Analysis:
Income Profit Ratios
• Highest net
income
• In good position
with a ROA of
5.29%
• Despite recession
still a profitable
company
Walt Disney
(DIS)
News Corporation
(NSWA)
Time Warner
Inc. (TWX)
Net Income 3.31B -3.37B 2.03B
Return on
Assets 5.29% 4.74% 3.54%
Revenue 36.29B 30.93B 25.78B
19. Conclusion
• As the company grew, Disney diversified production beyond cartoons and
animated movies. Treasure Island, released in 1950, was the studio’s first
live-action film, and the company formed Buena Vista Distribution a few
years later. With its own in-house distribution company, Disney could
continue to churn out movies while significantly saving on distribution costs.
Live-action hits such as Swiss Family Robinson in 1960 and Mary
Poppins in 1964 followed. Disney's TV debut came around the same time
as Treasure Island, with the special One Hour in Wonderland. The
popular Mickey Mouse Club debuted as a TV series in 1955.
• But it was another TV program that began in 1954, called Disneyland, that
showed Walt Disney had even bigger plans for the company. A few years
earlier, Disney established WED Enterprises as a separate company and
began drawing up plans for Disneyland, a giant theme park. Because the
park was technically part of a separate corporation, Disney was able to
develop it in secret, worrying about how shareholders would react.
Disneyland opened in 1955 as a theme park unlike any other the world had
seen.
20. • Disney employed a unique strategy to make the theme park quickly
successful. He solicited several corporate sponsorships to subsidize costs,
and outsourced food and merchandise within the park. Once Disneyland
was earning revenue, the company repurchased those rights and kept the
revenue internally. Plans for a second park, which ultimately became Walt
Disney World, began with the acquisition of land in Florida in the 1960s.
This second park would contain Disney's vision of what the future urban
community would look like; he called it the "Experimental Prototype
Community of Tomorrow", now commonly known as Epcot Center.
