WALT DISNEY GROUP 6 History of Disney Disney

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WALT DISNEY GROUP 6

WALT DISNEY GROUP 6

History of Disney � Disney started out in the studio entertainment in the animated

History of Disney � Disney started out in the studio entertainment in the animated cartoon industry. In 1923 Walter Elias Disney founded Disney Brothers Studio with his older brother Roy. They ran their company as a flat nonhierarchical organization, in which everyone including Walt used their first names, and no one had titles.

Disney Portfolio

Disney Portfolio

Disney 4 Business Lines Studio Entertainment Media Networks • Theatrical Films • Walt Disney

Disney 4 Business Lines Studio Entertainment Media Networks • Theatrical Films • Walt Disney Pictures • Touchstone Pictures • Hollywood Pictures • Miramax • Broadcasting • ABC TV Network • TV Stations • ABC Radio Networks • Radio Stations • Distribution • Buena Vista • Cable Networks & International • ESPN • Disney Channel • Toon Disney • Soap. Net • Lifetime • E • Music Groups • Hollywood Records • Mammoth Records • Lyric Records • TV Production • Program Development • First Run Animation • Live-Action Syndication • Pay TV Services Parks & Resorts • Amusement Parks • Disneyland • Disneyworld • Euro Disney • Tokyo Disneyland • Disney Cruise Line Consumer Products • Merchandising licensing • Disney Stores • Disney Publishing • Walt Disney Art Classics • Disney Interactive

Innovation from an early age � � � � 1923 animated cartoon industry-black &

Innovation from an early age � � � � 1923 animated cartoon industry-black & white no sound 1928 called “Steam boat Willie” with Mickey Mouse 1931 1 st Color Cartoon 1937 1 st full length animated feature film Set Learning Curve Innovation Branding

Today Studio Entertainment Industry Disney still leading innovation � � � Movies – full

Today Studio Entertainment Industry Disney still leading innovation � � � Movies – full blown action/ special effects/ HD Television- live/reality Animation programs- computer animated Musical recordings- studios Live stage plays- broadway Internet Groups

Studio Entertainment Industry Analysis Five Forces Suppliers Low Potential Entrants Low Industry Competitors Rivalry

Studio Entertainment Industry Analysis Five Forces Suppliers Low Potential Entrants Low Industry Competitors Rivalry Medium Substitutes High & Low Buyers High

Degree of competitive rivalry � Competitive rivalry-Medium high �# of competitors- low �Entrants barriers-high

Degree of competitive rivalry � Competitive rivalry-Medium high �# of competitors- low �Entrants barriers-high �Market size & growth- high �Product differentiation & brand loyalty- med �Cost structure of industry- high �Exit barriers-med to low

Today Disney Top 3 Competitors

Today Disney Top 3 Competitors

2007 Percent of Revenues

2007 Percent of Revenues

2011 Fortune 500 Rank Company 500 rank Revenues ($ millions) 1 Walt Disney 66

2011 Fortune 500 Rank Company 500 rank Revenues ($ millions) 1 Walt Disney 66 40, 893. 0 2 News Corp. 91 33, 405. 0 3 Time Warner 103 28, 974. 0 4 Viacom 177 14, 963. 0 5 CBS 188 14, 245. 0 6 CC Media Holdings 394 6, 161. 4 7 Live Nation Entertainment 450 5, 384. 0

Disney Studio Entertainment Firm Analysis � 1980’s Entertainment Slump-Disney technologically adapted & innovation. �

Disney Studio Entertainment Firm Analysis � 1980’s Entertainment Slump-Disney technologically adapted & innovation. � First Mover: 1988 -Disney Invested $30 mm in computer animated production system (CAPS) � Roger Rabbit

Firm Analysis-Disney Diversification � Disney takes on more: Diverse reduces risk in other industries

Firm Analysis-Disney Diversification � Disney takes on more: Diverse reduces risk in other industries � 1980’s-Touchstone � 1933 -Miramax

Distribution � 1978 -Home video industry Buena Vista Home Video and International Buena Vista

Distribution � 1978 -Home video industry Buena Vista Home Video and International Buena Vista

Disney’s Competitive Advantage • Produce it, Distribute it, Sell it • Buena Vista Home

Disney’s Competitive Advantage • Produce it, Distribute it, Sell it • Buena Vista Home distribution Vertically film integrated • Changing with Technology • Taking on more risk • Adapting to consumer market preference Innovation • Horizontal Integrated • Growth in the entertainment industry • Marimax, Touchstone, Disney Studios, • Music, TV, Films, Plays Diversification • Investing in risky projects • Set learning curve First Mover • Copy Rights on TV, Film, Music, Plays Intellectual Property Rights • From children to adults • Adults trust Disney. Adults take their kids, and their kids take their kids etc. . Brand Loyalty • Movies promotes new park rides, promotes new products, promotes new tv shows etc. . Cross Promotion