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The Walt
 Disney
Company

            Managing
            creativity

           Estela Almeida
              Estela Almeida
Company Overview
• Founded in 1923 by Walter Disney
• Leading entertainment and media enterprise
• Went through a radical management change
  in 2006
• Four business segments:
  • Media networks: cable, radio, broadcasting, Internet,
    and publishing.ABC, ESPN
  • Parks and resorts: Disney Cruise Line, 11 theme parks
    in 3 continents.
  • Studio entertainment: Touchstone, Miramax, Pixar
    Animation.
  • Consumer products: toys, apparel, food, etc.
Competitive Analysis

       Film, TV, cable TV, publishing, Internet
        More than a third of revenues comes from cable TV
         Struggling with AOL business



             More diversified
             Travel and tourism industry very hurt


                    Film, TV, publishing
                     Hard hit by the declining newspaper industry and
                    declining ads revenues on TV
                        Downsizing in 2009
                           Change in executive leadership in 2009

                          Focused on TV
                           Multiple channels, mass audience, ads across channels
                             Ads account for more than 65% of sales
                               Focusing on international markets for growth
Mission


 “To be one of the world's leading
     producers and providers of
  entertainment and information.
  Using our portfolio of brands to
 differentiate our content, services
  and consumer products, we seek
    to develop the most creative,
      innovative and profitable
   entertainment experiences and
   related products in the world.”
Competitive advantages


                                          Customer-oriented
            Responsiveness to       Excellence in customer service
               customers                Market segmentation



                                           Park attractions
               Innovation       Animation and movie productions (Pixar)
                                             TV channels




              Competitive
               advantage
Management practices

When Michael Eisner    Robert Iger assumed
was in charge….        as the new CEO…


FAYOL                  BEHAVIORAL
  PRINCIPLES:            MANAGEMENT:

• Centralization
                       • Collaborative
• Authority and
  Responsibility         approach
• Order                • Empowerment
• Initiative           • Less centralized
• Control              • Authority goes
• Discipline             with knowledge
The result…

• Creativity is back in   • Relationship with Pixar
                 place!     got better

     • Teamwork and       • Launch of new
        collaboration       products and shows

    • Synergy among       • Development of
    business divisions      franchises


                               Increase in
                                 revenues!
Task environment
       CUSTOMERS                      COMPETITORS

Different business segments,      Media business compete for
   different customer needs         advertising shares



Market segmentation: women,       Disney is diversifying business
  children, teens, girls, boys       and expanding platforms


Changes in consumer behavior



Delivering content in different
  platforms
General environment

   SOCIOCULTURAL                    TECHNOLOGICAL
 Operations abroad: different   Increase of interactive media use
    cultures, values, tastes       by customers



Local shows and productions,    Collaboration among departments
  but content that can travel     to leverage creativity and
                                  synergy among businesses

                                 Increase of interest for animated
                                                 films



                                   Purchase of Pixar Animation
SWOT ANALYSIS

        OPPORTUNITIES                 THREATS
 •Franchising
 •New platforms              •Piracy
 •International Markets      •Advertising revenues
 •Media integration          decreasing
 •Hotel+park deals           •Weak economy

         STRENGHTS                    WEAKNESS

 •Synergy among business     •Retail Operations
 divisions
 •Brand awareness
 •Management style
 •Strong corporate culture
Disney management practices

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Disney management practices

  • 1. The Walt Disney Company Managing creativity Estela Almeida Estela Almeida
  • 2. Company Overview • Founded in 1923 by Walter Disney • Leading entertainment and media enterprise • Went through a radical management change in 2006 • Four business segments: • Media networks: cable, radio, broadcasting, Internet, and publishing.ABC, ESPN • Parks and resorts: Disney Cruise Line, 11 theme parks in 3 continents. • Studio entertainment: Touchstone, Miramax, Pixar Animation. • Consumer products: toys, apparel, food, etc.
  • 3. Competitive Analysis Film, TV, cable TV, publishing, Internet More than a third of revenues comes from cable TV Struggling with AOL business More diversified Travel and tourism industry very hurt Film, TV, publishing Hard hit by the declining newspaper industry and declining ads revenues on TV Downsizing in 2009 Change in executive leadership in 2009 Focused on TV Multiple channels, mass audience, ads across channels Ads account for more than 65% of sales Focusing on international markets for growth
  • 4. Mission “To be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.”
  • 5. Competitive advantages Customer-oriented Responsiveness to Excellence in customer service customers Market segmentation Park attractions Innovation Animation and movie productions (Pixar) TV channels Competitive advantage
  • 6.
  • 7. Management practices When Michael Eisner Robert Iger assumed was in charge…. as the new CEO… FAYOL BEHAVIORAL PRINCIPLES: MANAGEMENT: • Centralization • Collaborative • Authority and Responsibility approach • Order • Empowerment • Initiative • Less centralized • Control • Authority goes • Discipline with knowledge
  • 8. The result… • Creativity is back in • Relationship with Pixar place! got better • Teamwork and • Launch of new collaboration products and shows • Synergy among • Development of business divisions franchises Increase in revenues!
  • 9.
  • 10. Task environment CUSTOMERS COMPETITORS Different business segments, Media business compete for different customer needs advertising shares Market segmentation: women, Disney is diversifying business children, teens, girls, boys and expanding platforms Changes in consumer behavior Delivering content in different platforms
  • 11. General environment SOCIOCULTURAL TECHNOLOGICAL Operations abroad: different Increase of interactive media use cultures, values, tastes by customers Local shows and productions, Collaboration among departments but content that can travel to leverage creativity and synergy among businesses Increase of interest for animated films Purchase of Pixar Animation
  • 12. SWOT ANALYSIS OPPORTUNITIES THREATS •Franchising •New platforms •Piracy •International Markets •Advertising revenues •Media integration decreasing •Hotel+park deals •Weak economy STRENGHTS WEAKNESS •Synergy among business •Retail Operations divisions •Brand awareness •Management style •Strong corporate culture