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Running head: The Walt Disney Company: Its Diversification Strategy in 2018
The Walt Disney CompanyExecutiveSummaryThe Walt Disney Company:Its Diversification Strategyin 2018COURSE: SMGT4408INSTRUCTOR: GREGSPRINGATEDATE: MARCH18, 2020GROUP NAME:
The Walt Disney CompanyTable of ContentsIntroduction1Problem Statement1Analysis2Disney’s Corporate Strategy2The Walt Disney Company’s Business Portfolio2Business Units Competitive Strengths49-Cell Industry Attractiveness and Business Strength Matrix6Strategic Fit and Value Chain8Financial Analysis and Operating Performance9Issues10Alternatives10Recommendations11Implementation Plan12Conclusion13Exhibits14Exhibit A: Average Weights of Disney’s Industry Attractiveness Assessment14Exhibit B: Industry Attractiveness Assessment14Exhibit C: Business Units Competitive Strength15Exhibit D: 9-Cell Industry Attractiveness/Business Strength Matrix16Exhibit E: Strategic Fit and Value Chain17Exhibit F: Financial Analysis Charts18References20
The Walt Disney CompanyIntroductionThe Walt Disney Company is a broadly diversified media and entertainment company. Thecompany was founded in 1923 by Walt and Roy Disney as the Disney Brothers Studio in Hollywood, California. The Disney brothers created many animated cartoons that blended live-action motion picture photography. After the success of the hit cartoon Oswald the Lucky Rabbit, which was produced forUniversal, the Disney brothers found themselves terminated (Thompson, A, 2020, p. C-278).In 1928, things started to turn around, the Disney Brothers Studio and fellow animator, Iwerks created Mickey Mouse character to replace Oswald as the feature character and retained allthe rights over Mickey Mouse, and all the subsequent Disney created characters. Later in 1928, Disney created Mickey Mouse’s girlfriend, Minnie Mouse. Following the popularity of Mickey Mouse, Disney created Pluto, Goofy, Donald Duck and Daisy Duck. 1954 became Disney’s greatest achievement, the construction of Disneyland Park in Anaheim, California (Thompson, A, 2020, p. C-278).In 2006, Disney acquired Pixar animations studio and purchased the rights to Oswald the Lucky Rabbitfrom NBCUniversal. In 2009, Disney bought Marvel Entertainment, and in 2012 it purchased LucasFilm, which is best known as the Star Wars franchise. Fast forward to today, Disney has created a well-diversified company. Disney has business investments in theme parks inthe United States, Hong Kong, Shanghai, Tokyo and Paris, along with cruise lines, television networks, interactive game division and retail chain stores (Thompson, A, 2020, p. C-279).Problem StatementDisney is a well-diversified company. However, they have focused much of their attention on the Parks and Resorts business unit and have failed to grow their other business units. Due to 1
The Walt Disney CompanyDisney ensuring that Parks and Resorts are well-diversified through hotels, parks, resorts and cruise ships, the remaining business units have experienced a decline in operating profits. The