Disney diversification part of success

1. M.TARIQ KHAN

2. HISTORY

3. October 16, 1923:
This date is considered the start of the Disney Company first known as The Disney
Brothers Studio.
1928:
First Mickey Mouse cartoon, and the first appearance by Minnie Mouse.
1932:
Flowers and Trees, first full-color cartoon and first Academy Award winner.
1939:
The Disney Studio begins its move to Burbank, California.
1940:
Walt Disney Productions issues its first stock.
History

4. 1955:
Mickey Mouse Club debuts on television.
1971:
Walt Disney World Resort opens with the Magic Kingdom and two hotels near Orlando,
Florida.
1982:
EPCOT Center opens at Walt-Disney World Resort .
1983:
Tokyo Disneyland, the first international Disney theme park, opens in Japan.
1987:
The first Disney Store opens, in Glendale, California.
Growth

5. 1989:
Disney-MGM Studios opens at Walt Disney World Resort.
1992:
Disneyland Paris opens.
1995:
Disney agrees to purchase 25 percent of the California Angels baseball team,
Disney agrees to purchase Capital Cities/ABC for $19 billion. The Disney
Channel begins operation in the UK.
1996:
Disney Online launches Disney.com.
Radio Disney, a live 24-hour music-intensive radio network, debuts.
1998:
ESPN Magazine debuts, Disney’s Animal Kingdom opens at Walt Disney World
Resort, Disney Magic cruise ship departs on its inaugural cruise.
Growth cont.

6. Vision
Walt Disney strives to be the world’s
most famous entertainment
company by creating an amazing
experience for individual of all ages.

7. Media
Networks
Studio
Entertainment
Theme
Park/Resorts
Consumer
Products
Internet &
Direct
Marketing
Broadcasting
Cable
Networks &
International
Theatrical
Films
Beuna Vista
Home
Entertainment
Beuna Vista
Music Group
Theatrical
Productions
Distribution
Television
Production
Televentures
Walt Disney
Attractions
Walt Disney
Imagineering
Anaheim
Sports
Disney
Regional
Entertainment
Disney
Online
ESPN
Internet
Group
ABC Internet
Group
GO.com
Comerce
GO.com
International
GO Network
Merchandisin
g Licensing
The Disney
Store
Disney
Publishing
Walt Disney
Art Classic
Disney
Interactive
diversified

8. LOCATION MAP
Disney Resorts:
1.California
2.Florida
3.Tokyo
4.Hong Kong
5.Paris

9. DISNEYS
Resorts

10. THEME PARKS

11. DISNEY MEDIA AND CRUISE
SHIPS

12. DISNEY STUDIO

13. Media Networks Park and Resorts
• ESPN
• Disney/ABC Television
Group
• ABC Entertainment Group
• ABC News
• ABC Owned Television
Stations Group
• ABC Family
• Disney Channels Worldwide
• Hyperion Book s
• Disney Land Resorts
• Walt Disney World Resort
• Tokyo Disney Resort
• Disneyland Paris
• Hong Kong Disneyland
• Disney Cruise Line
• Disney Vacation Club
• Adventures by Disney
• Walt Disney Imagineering
Walt Disney Divisions

14. The Walt-Disney Studios Disney Consumer Products
• Walt-Disney Studios Motion
Pictures
• Marvel Studios
• Touchstone Pictures
• Disneynature
• Walt Disney Animation
Studios
• Pixar Animation Studios
• Disney Music Groups
• Disney Theatrical Group
• Disney Licensing
• Disney Publishing Worldwide
• Disney Store
Disney Interactive Media
Group
• Disney Online
• Disney Games
Walt Disney Divisions Cont.

15. Assess long-term attractiveness
of each industry firm is in

16. Evaluating Industry Attractiveness Relative to othersEvaluating Industry Attractiveness Relative to others
Strategic
Factor
Weight
Interactive
media Rating
Interactive
media Score
Media
networks
Rating
Media
networks
Score
Market size 0.30 1 0.30 3 0.90
Industry
profitability
0.25 2 0.50 2 0.50
Intensity of
competition
0.35 3 1.05 3 1.05
Industry
uncertainty
0.10 2 0.20 3 0.30
total 2.05 2.75

17. Strategic
Factor
Weight
Park and
resort Rating
Park and
resort Score
Studio
entertainment
Rating
Studio
entertainment
Score
Market size 0.30 4 1.20 3 0.90
Industry
profitability
0.25 4 1.00 4 1.0
Intensity of
competition
0.35 3 1.05 3 1.05
Industry
uncertainty
0.10 1 0.10 2 0.20
total 3.35 3.15
Evaluating Industry Attractiveness Relative to othersEvaluating Industry Attractiveness Relative to others

18. Evaluating Industry Attractiveness Relative to othersEvaluating Industry Attractiveness Relative to others
Strategic Factor Weight Consumer products Rating Consumer products Score
Market size 0.30 2 0.60
Industry profitability 0.25 3 0.75
Intensity of
competition
0.35 3 1.05
Industry uncertainty 0.10 2 0.20
total 2.60

19. Assess competitive strength of
firm’s business units

20. Competitive strength of each of the companies business unitsCompetitive strength of each of the companies business units
Strategic
Factor
Weight
Interactive
media Rating
Interactive
media Score
Media
networks
Rating
Media
networks
Score
Relative
market share
0.10 1 0.10 3 0.30
Bargaining
leverage with
supplier
0.30 1 0.30 3 0.90
Technology
and
innovation
0.25 1 0.25 3 0.75
Brand name 0.35 1 0.35 3 1.05
total 1.00 3.10

21. Competitive strength of each of the companies business unitsCompetitive strength of each of the companies business units
Strategic
Factor
Weight
Park and
resort Rating
Park and
resort Score
Studio
entertainment
Rating
Studio
entertainment
Score
Relative
market share
0.10 3 0.30 2 0.20
Bargaining
leverage with
supplier
0.30 2 0.60 3 0.90
Technology
and
innovation
0.25 4 1.00 3 0.75
Brand name 0.35 4 1.40 4 1.40
total 3.30 3.25

22. Competitive strength of each of the companies business unitsCompetitive strength of each of the companies business units
Strategic Factor Weight Consumer products Rating Consumer products Score
Relative market share 0.10 2 0.20
Bargaining leverage
with supplier
0.30 3 0.90
Technology and
innovation
0.25 2 0.50
Brand name 0.35 3 1.05
total 2.65

23. 20
16
12
8
4
0
0
-4
-8
-12
-16
-20
100% 80% 60% 40% 20% 0%
M
a
r
k
e
t
g
r
o
w
t
h
Relative market share
Media network
Park and resort
Studio entertainment
Consumer products
Interactive media
BCG MATRIX
WALT DISNEY

24. Check competitive advantage potential of
cross-business strategic fits among business
units

25. MEDIA NETWORK
PARK AND RESORT
STUDIO
ENTERTAINMENT
INTERACTIVE MEDIA
ADVERTISMENT
CONSUMER PRODUCT

26. Rank performance prospects of
businesses and determine priority for
resource allocation

27.  Forbes Lists
 #14 World's Most Valuable Brands
 #100 Global 2000
 #185 in Sales
 #86 in Profit
 #300 in Assets
 #39 in Market value
Rank performance

28. Craft new strategic moves to improve
overall company performance

29.  Use product development to renovate and build new
attractions in order to attract an older target market.
 Use market development to build a new theme park which
will be more accessible to the North East area.
Strategies

30.  Build an indoor theme Park and Resort in New York.
 Improve advertising to promote entertainment which target
a more mature audience.
 Remove the Interactive Media Segment.
 Remodel and build new attractions in every Park and Resorts
to stay appealing to our customers.
In the next three years Walt Disney should..
Strategies

31. In the next year Walt Disney should…
Improve advertising to promote entertainment
Remove the Interactive Media Segment
Buy a land in New York City
Strategies

32. Forward Integration
 Buena Vista Distribution in order to eliminate distribution fee
 Buying back of food and merchandising operations within theme parks
 Launch of the Disney
Channel in 1983
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

33. Forward Integration
 Disney Stores, “retail as entertainment concept”
 New distribution channels such as direct-mail and catalog marketing
 Buena Vista Home Video-marketing videos by surpassing video rental
stores
 Using the internet as a
distribution channel
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

34. Backward Integration
 Walt Disney Music Company formed to control Disney’s music copyrights
 In house travel company to work with travel agencies, airline and tours in
order to bring customers
 ABC focused on using
content developed
in-house
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

35. Horizontal Integration
 Acquisition of Cap Cities/ABC, MARVEL , PIXER to own a programming
distribution channel
 ESPN Zones
 Disney Quests
 Cruise Ships
 Educational Retreats
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King