Walt Disney Case Analysis

Strategic Management
Members
Team: C.V
Raman

Ranjani. M
Venkataramanan.
V
Kavi Ranjan
Berny

AGENDA
Timeline and Case Analysis
Financial Analysis
Organization Structure
Objectives and Porters 5 Force Analysis
Q&A

Case Study: Brief Understanding

Some historical clues

Founded by Walt Disney

Established in 1923
Headquartered in California, USA
Currently worlds largest
conglomerate in terms of revenue

Case Study: Brief Understanding

Case Study: Brief Understanding

Walt Disney Organizational Structure

Walt Disney Organizational Structure

Case Study: Brief Understanding

Walt Disney Company

Disney Consumer
Products

Disney Hard Lines

Disney Soft Lines
Disney Toys
Disney Publishing
Disney Press
Disney Editions

Studio Entertainment

Walt Disney
Pictures

Miramax Films

Buena Vista Home

Entertainment

Buena Vista
Theatrical
Productions

Walt Disney
Records

Buena Vista
Records

Hollywood Records

Lyric Street Studios

Pixar Studios

Parks and Resorts

Walt Disney World

Disneyland
Tokyo Disney
Disneyland Paris
Hong Kong
Disneyland
Disney Cruise Line
Disney Vacation
Club

Media Networks
Broadcasting

Disney-ABC
Television
ESPN Inc.
Walt Disney
Internet Group
ABC-Owned
Television Stations
ABC Radio

Case Study: Brief Understanding

Walt Disney Objectives

Case Study: Brief Understanding

Walt Disney
Porters 5 Forces Analysis

Q&A
Why has Disney been successful for so long?
The 4 key reasons for the continued success for Disney

Disney University trains its

employees "

Walking the park" continues to be

the ultimate leadership approach
used at Disney resorts worldwide
Walt Disney placed a longstanding value of providing
employees a tailored, relevant
training and education experience

Entertainment is the cornerstone

of the Disney experience

Q&A
Why has Disney been successful for so long? (Continued)

Survives by continually realizing the depth of a new idea

Harvests available profit from its ventures before acquiring and moving to newer and more forward thinking
endeavors
Uses its strength of foresight to predict upcoming industry trends and its incredible scale and wealth of
resources to dominate the market
Fundamental understanding of corporate strategy has allowed Disney to vertically integrate during its early
days in the film business through the creation of its own distribution network

Q&A

What did Michael Eisner do to rejuvenate Disney? Specifically, how did he increase net
income in his first four years?

The history and culture of the company and the legacy of Walt Disney were inculcated in a three-day training
program at Disneys corporate university
Managing creativity - Disneys most distinctive corporate skill
Encouraged expansive and innovative ideas
Was protective of creative efforts in the concept-generation phase of a project

Rebuild Disneys TV and Movie Operations

Eisner launched several shows and movies on ABC
Shows were also launched on other networks, not just the Disney Channel and ABC
Katzenberg was also brought in to help revitalize the films division in order to launch more movies, as Disneys
share of the box office had fallen to 4% in 1984
Maximize Theme Park Profitability
More attractions were brought in the Theme Park
a) new attractions such as Captain EO (1986) starring Michael Jackson
National television ads, special events, retail tie-ins, and media broadcast events
Lifted restrictions on the numbers of visitors permitted into its parks
Raised the Ticket prices

Q&A
Has Disney diversified too far in recent years?
Yes! Disney has diversified too far.

Grown beyond the traditional amusement parks, movies, television shows, clubs, or books business
Stable of businesses include Disney Cruise Line, Resort Properties, Radio Broadcasting, Musical Recordings and sale of animation art,
Interactive software and internet site, etc.
The company's corporate strategy identifies the fact that while Disney may have some 'magical' products (its core products), its strength is not in
the products themselves, but instead in the way in which they interrelate and complement each other
Disney's diversification efforts further increased the 'magic' of Disney. Television advertised the movies, which advertised the hard-goods and
which advertised the television shows

Conclusion:
Since the coming of Eisner, revenues grew from $1.6 billion in 1984 to $2.9billion in 1987 as the result of the pursuit of
diversification as a strategy for growth. One of Eisner's greatest achievement was how he placed creativity as Disney's most
valuable asset and supported this as a leader to get the best out of his core innovation team

Thank You!