THE WA[r DISNEY COMPANY 1995
Walt Disney Company's objectiue
is to be one of the world's leading producers and
prouiders of entertainment and information, wsing
its portfolio of brands to differentiate its content,
ices, and consumer prodLtcts."
( http ://home.
In February 2009, Robert Iger CEO of
reported that the company's profits had fallen by
32% in what was "likely to be the weakest economy
in our lifetime."
six months earlier, Disney had
reported record revenues
and profits as the compa-
ny's performance had recovered
after he replaced Michael Eisner as CEO in 2005.
How did Iger revive Disney's performance, and'uvhat
was his strategy
to the global economic
in 2008? To answer
tions, we need to examine how Iger reworked Dis-
ney's strategy and structure to respond to changing
in its environment.
il N T il ne
Michael Eisner, Disney's former CEO, continued in
the same srrategy
he had pursued
with great success
in the 1980s: building Disney's
in the three areas of entertainment and
recreation, motion pictures,
and video and consumer
to take advantage of the value of Disney's
and brand name.
In the entertainment
the size and variety of its theme parks and
other entertainment properties. The number of attrac-
tions offered at its three Orlando properties-Disney
EPCOT, and Disney. MGM-was
expanded during the 1990s, although this significantly
increased operating costs. Moreover, three water parks
were now in operation, together with the Disney Vaca-
tion Club, Discovery
Island' and the Disney Boardwalk.
These properties extended Disney's hotel, restaurant,
In 1995,, Disney announced it would build a
$500 million zoological park as its fourth property
in Orlando, but it would be a zoo with a differ-
ence. Called Disney's
"\7ild Animal Kingdom," rhe
500-acre park is larger than any of Disney's parks
worldwide. It has three main areas, showcasing
live, extinct, and mythical animals. For example,
live animal section of the park features
of African animals, such as elephants and giraffes,
the extinct section of the park fea-
famous moving models (animatron-
ics) of creatures such as dinosaurs and flying hzards;
and the mythical section features creatures such as
This case was prepared by Gareth R.
Texas A&M University.
Copyright O 2009 bv Gareth R.
not to be copied or reproduced
in any manner,
physical or electronic,
of the author.
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and analysis of the company in this case,
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click o1 symbol
itt top of page,
the company's syn-rbol
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