Walt Disney case Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Question 1

Walt Disney Company’s corporate strategy

The corporate strategy of Walt Disney Company was centered on:

ü Creating a high quality family content.

ü Exploiting technological innovations with an aim to make entertainment experience more memorable.

ü International expansion of the company’s business. By expanding business in some of the big emerging markets as well as in the markets that are more developed outside the United States.

The corporate synergies of Walt Desiny also attempted to capture the synergies existing between its business units. The corporate strategy of the company was based on both, the differentiation and growth strategy. The objective of its corporate strategy was also to allocate sufficient capital to its core theme parks and resort business in order to sustain the advantage in the industry.

Question 2

Long-term attractiveness

The business portfolio of the Walt Disney Company consists of the media networks, parks and resorts, studio entertainment, consumer products and interactive media.

The media network business includes the domestic and international cable networks, the television production, the ABC television network and the U.S domestic television stations. The overall long term attraction is the media network which brings most of the revenue and operating profit for the company as compared to the other business units, the operating income from the media network increased from the year 2009 to 2011.

The Park and resort business unit of the company has long-term attractiveness for the customers as it is the second largest business unit of the Walt Disney that brings most of the revenues and operating profits. The studio entertainment business of the company has long-term attractiveness as this business unit is increasing operating profit. It has a strong competitive position.

The consumer product has low long-term attractiveness although the sales growth are increased after the acquisition of the Marvel and the strong performance of the Toy story merchandised but this business has less strength as compared to other business units. Interactive media has average long-term attractiveness as this business unit of the company is losing money and is a weak business unit as compared to other business units. But it has the potential to grow further in the future and it has good competitive position.

The overall long-term attractiveness of the industries represented in Walt Disney Company’s business portfolio is attractive.

Competitive strength of Walt Disney Company’s different business units

Network media

This business of Walt Disney operates the domestic and international cable networks, the television production, the ABC television network and U.S domestic television stations. The media networks’ products are advancing in the global market with filmed entertainment. Most of the T.V stations of the company are number one in their market. Network media consists of new brands that are very strong with 238 local affiliates that reach 99% of the U.S household. Radio Disney is offered by the company through the multiple platforms that include siriumXM, iTunes and mobile phones. Walt Disney is utilizing technology to reach viewers of mobile devices and online viewing applications. The operating income for the network business unit increased 29% from 2009 to 2011.

Parks and resort

The Walt Disney Company has resorts on both, west and east coast of the United States as well as a cruise line with ports on both the coasts of U.S. The parks and resorts of the company provides the customers with inclusive facilities so that the visitors never need to leave the area which results in the high revenue for the company due to the hotel lodging and sales of the food. All the parks and the resorts of the company toe back to the themes of the popular films that are produced by the Disney. The company has the excess capital resources to expand their business to attract more customers when necessary.

Studio entertainment

The studio business unit for the Walt Disney produces live action and animated movies, pay per view, musical recording DVDs, home entertainment and Disney on ice live performances. The Pixar and Marvel has been purchased by Disney for the use of technology as well as for the character use. The company knows exactly how many of each branded movies will be produced each year that will give Disney, competitive edge in the market. The operating profit of the company’s studio entertainment business unit grew after the acquisition of the Marvel.

Consumer product

The consumer products business unit includes Disney stores and the businesses that focus on merchandise licensing, children books and magazine publishing. This business unit of the company is globally dispersed with the 208 Disney stores in North America, 103 in Europe and 46 Disney stores in Japan. The publishing of the consumer products includes print format as well as in the electronic format which can be viewed on mobile as well as on tablet devices.

Interactive media

The interactive business unit of the Walt Disney produces video games for different devices as well as for the websites of the Disney. The acquisition of the Playdom Inc creates online games for social networking that help the company to speed up the product development capabilities in the interactive media area............................

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