Disney Case Analysis Alexa van Bergen Jericca Pearson

Background o o o Founded on October 16, 1923 by brothers Walt and Roy Disney as an animation studio One of the biggest Hollywood Studios Licensor of: - 11 theme parks - Several television networks, including ABC and ESPN

Background o o Headquarters and primary production facilities The Walt Disney Studios in Burbank, California Mickey Mouse serves as the official mascot of The Walt Disney Company Walt Disney passed away on December 15, 1966. Urban legend says his corpse would be frozen and stored beneath the Pirates of the Caribbean ride at Disneyland. . .

Background o o o Disney purchased Marvel Entertainment ‘ 09 Roy Disney died at age 79 - He was a key person in Disney’s animation legacy Received approval to build a theme park in Shanghai in ‘ 09

Dominant Industry Characteristic Market Growth o They bought four companies Number of Rivals o There are 200 or so companies in the industry, 7 are dominant o o o o 1. 2. 3. 4. 5. 6. 7. Walt Disney News Corp. Time Warner CBS Viacom Fox Comcast Pace of Technological Change New technologies for the entertainment industry: 3 D filmmaking and programming. Online video and programming distribution. Digital and e. Book advances and distributions. Cell phones with video and TV streaming abilities.

Dominant Industry Characteristic Sawyer & Geoff

Dominant Industry Characteristic • Market Size and Growth • • Number of Rivals • • Within Six Years acquired 4 different companies Within this Industry there are numerous rivals but they are dominant Product Innovation • Within the market that deals greatly with technology they need to strive to stay ahead of the curve.

Five Forces Rivalry Among Existing Firms – High - Wide product portfolio - Many different ones (Universal Pictures, Seaworld, time warner, CBS, etc. ) Power of Customers – Low Threat of New Entrants – - Could increase admission costs without a loss in customers - Willing to pay for the Disney name Low - Large investment for those who wish to enter Power of Suppliers – Average - High switching costs - Disney is highly differentiated and is a very unique industry Threat of Substitutes – Low - Museums, zoos, fairs cant really create a theme park vibe or experience - The Disney name is pretty much a household name

Five Forces Analysis Mark Peetzke and Mitch Walkup

Five Forces

EFE

EFE Adrienne & Maddie

EFE

Strategic Group Map 150, 000 0 Low High

Strategic Group Map Joel Haywood & Zach Klatt

Strategic Group Map

IFE

IFE Adrienne & Maddie

IFE

Mission and Vision Statement "The mission of The Walt Disney Company is 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 Strategy Broad Differentiation Horizontal management approach Diversifying Rapidly its products and services expanding overseas Developing a new theme park more accessible to North East area Enhancing Grow the Business efficiently and suppression slowly, not to impress others.

Competitive Strategy John-Jay and Nate

Competitive Strategy Broad Differentiation - Broadly diversified media and entertainment company - Many different segments o Theme parks o Hotels and resorts o Cruise ships o Cable networks o Music publishing o Children’s book publishing o Etc. - Company’s corporate strategy o Creating high-quality family content o Exploiting technological innovations to make entertainment experiences more memorable o International expansion � Always looking to grow and increase presence/capabilities in new or current markets

SWOT Analysis

Strengths Known throughout the world for being one of the top recognizable entrainment companies Broad Differentiation Strategy Based on retail sales, Disney is the largest worldwide licensor of characterbased merchandise and producer of children's products based off movies Portfolio is extremely wide and unique Disney owns a verity of companies and is multiple industries; Media Network, Theme Parks and Resorts, Consumer Products, Studio Entertainment, and Interactive Media Strong customer service Media Networks and broadcasting is really strong Innovative entertainment business Strong Advertising

Weaknesses Employee turnover is high Narrow target market Disney is known as a costly trip because of its limited locations and accessibility Entertainment production costs are high Very large work load Concentrates primarily on the revenue in North America Insurance is continuing to rise in parks and resorts

Opportunities o o o o Create a wider target group Build more parks in other areas (U. S. and internationally) Governments positive attitude toward Disney's organization Barriers of entry are significant Renovate parks and resorts to create a different type of attractiveness Grow the media network to create more potential for Disney to increase their income (ESPN, Lifetime, Disney, History) Invest in different theme parks to create a different themes and increase the amount of money guest are willing to spend on production, admission, and hotels

Threats Service/ Entertainment business competitors Unemployment rate is high Do to streaming online, the change in technology lead to a decrease in buying DVDs Economy possible regression Expense increase due to labor cost increase Theme parks and resorts are unpredictable due the travel industry, customers vacation availability, prices, and seasonality Cunsumer product retail is based on seasonal purchasing and the time of prodution of movies or shows

SWOT Matrix SO Strategies o (S 2, O 2): Create a customized targeted advertising plan for all their segments o (S 3, O 3): Expand Hong Kong Disney and research in one new market o (S 4, O 4): Research and Develop a way to tell stories to kids through technology ST Strategies o (S 2, T 1): Lower their costs and utilize technology (digital content) o (S 2, T 3): Create and document a trade market and an IP protection plan o (S 2, T 4): Create marketing strategies promotions for customers to use during slow periods at their resorts and theme parks.

SWOT Matrix WO Strategies o (W 1, O 1): Research and develop a plan for emerging markets with low costs o (W 4, O 3): Target those new markets and look into expanding around consumer products o (W 2, O 4): Research the consumers use and need of technology WT Strategies o (W 4, T 1): Digitize content utilize technology and lower costs o (W 1, T 2): Put more efforts on high techs and then and research and develop in that segment

SWOT Analysis Sam & Edwin

SWOT Analysis

CPM

CPM Emma and Bailey

CPM

Ethics For the most part they are pretty ethical Lawsuits: 1. Disney Hit With New Lawsuits By Kids With Autism (November 2014) - Disney wasn’t Disability friendly with their rides. 2. Tanikumi vs. Disney (October 2014) - Tanikumi sued the Walt Disney Co. for $250 million, claiming the studio based the movie “Frozen” on her life. The Peruvian author asserts that Disney stole the story, characters, plots and subplots from two of her autobiographical books, “Living My Truth” and “Yearnings of the Heart, ” that depict her life in the Andes.

Financials

Financials Shawn R. & Josh H.

Financials

Scope of Operations Alex Melius and Mitch Kreifels

Scope of Operations Horizontal 2006 acquisition of Pixar 2009 acquisition of Marvel 2010 acquisition of Playdom 2011 acquisition of UTV

Recommendations Disney should… - Improve advertising to reach a more mature market - Get rid of Interactive Media - Remodel and expand in existing parks and resorts to stay appealing

Sources