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1. Global Business Strategy

2. Presenters
Amritha Anubhav Pranshul Sreevatsan
Chottakurien Dawar Chauhan Sreenivasan

3. 1923-1966
 Walter Elias Disney launches the Disney Brothers Studio
in 1923 with his brother Roy Disney
 1928 – Mickey Mouse the character is born
 1937 – Company created the world’s first full length
animated feature film, Snow White and the Seven Dwarfs
 1940 – Walt Disney goes public
 1954 – Expansion into television
 1955 – Theme park Disneyland
 1966 – Walt Disney passes away
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

4. 1967 - 1984
 1971 - Disney World opened in Orlando, Florida
 1976 – First major international expansion, Tokyo Disneyland
announced in 1976
 1980 - Touchstone launched to target the teen/adult market
for film goers
 1980 – Financial condition of Disney deteriorating with
increasing costs and dismal performance of
various divisions
 1983 – Disney Channel launched on cable
 1984 – Roy Disney resigns from the BOD for
poor performance
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

5. 1984 - 1993
 1984 - Michael Eisner takes over as Chairman and CEO, Frank
Wells named president
 Eisner shift focus on growth with targets & maximizing
shareholders wealth
 Gave impetus to creativity which was being stifled within the
firm
 1988 – Turnaround of Disney’s film division
 1988 – High investment in animation technology
 1990 – Focus on maximizing theme park profitability
 1992 – Euro Disney opens in Paris
 1992 – Expansion into NHL league (The Anaheim Ducks)
 1993 – Enters broadway with Beauty and the Beast
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

6. 1994 onwards
 1994 - The Lion King breaks box office
 1994 – Frank Wells killed in helicopter crash
 1994 – Major attrition in senior leadership of the company
 1995 – Disney bought ABC, second biggest acquisition in US
history at the time
 1998 – Disney faces severe financial slump
 1999 – Announcement of theme park in Hong Kong
 1999 – Cost cutting plan undertaken
by company
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

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

8. Diversification Strategy

9. Related Diversification
 High on corporate and operational relatedness in order to
create economies of scope
 Sharing activities among its different movie distribution
companies such as Touchstone & Hollywood Pictures
 Corporate relatedness through installation of a corporate
marketing function to stimulate and coordinate
companywide marketing strategies
 Cross selling of products highlighted in its movies through
theme parks, resorts and merchandise stores
 Themes established in movies become a part of the theme
parks in the form of rides
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

10. BCG Matrix
HIGH ? STAR
Media
Theme Network
Park
Market Growth
Internet and direct
marketing
DOG COW
Studio
Consumer Entertai
LOW
Products -nment
LOW Market Share HIGH

11. Integration Strategies
Vertical Horizontal
Integration Integration
Forward Backward
Forward Backward
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

12. 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

13. 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

14. 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

15. Horizontal Integration
 Acquisition of CapCities/ABC, to own a
programming distribution channel
 ESPN Zones
 DisneyQuests
 Cruise Ships
 Educational Retreats
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

16. SCARF MODEL
Status
Certaint
y utonom
A
y elate
R
d airne
F
ss

17. SCARF
SCARF MODEL
MODEL
Status
•Paying employees more for the skills they posses rather
than the seniority.
•Developing pride among the employees towards Disney
Corporation.
•Developing synergies among the senior executives at
“Synergy Boot Camp”.
•Linked bonuses to the commitment towards synergies.
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

18. SCARF
SCARF MODEL
MODEL
Status
Certaint
y utonom
A
y elate
R
d airne
F
ss
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

19. SCARF
SCARF MODEL
MODEL
Certaint brainstorming sessions with
•Pre movies release
y
consumer product heads.
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

20. SCARF
SCARF MODEL
MODEL
Status
Certaint
y utonom
A
y elate
R
d airne
F
ss
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

21. SCARF
SCARF MODEL
MODEL
•Rather than providing autonomy Eisner practiced
micromanagement of its employees.
Autonom
•Employees had autonomy to resolve their disputes among
y
themselves.
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

22. SCARF
SCARF MODEL
MODEL
Status
Certaint
y utonom
A
y elate
R
d airne
F
ss
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

23. SCARF
SCARF MODEL
MODEL
•Developing synergies among the senior executives at
“Synergy Boot Camp”.
•Too much conflict between the members of the
Relate
organization.
d• Snow White’s 50 Anniversary
•Management jointly organized events :
th
• Mickey Mouse’s 60th Birthday
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

24. SCARF
SCARF MODEL
MODEL
Status
Certaint
y utonom
A
y elate
R
d airne
F
ss
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

25. SCARF
SCARF MODEL
MODEL
•Eisner and Frank Wells were always available for
discussions in case of any discordance
• Available for arbitration
• Encouraged quick resolution of disputes
Fairne
ss
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

26. Balance Score Card

27. TOWS Matrix

28. Questions ?