35299443-Walt-Disney - MGO 403 Strategic Management Disney...

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Case Assignment 2 The Walt Disney Company: The Entertainment King Prepared for: Dr. Alok Chakrabarti Prepared by: Jennifer Boada-Rodriguez Kyle Degruttola Gilbert Gatchalian Arthur Robertson Management of Technology MGMT 692 850 - 10680 Summer 2008
2 Table of Contents Introduction ................................................................................................................................ 3 SWOT Analysis .......................................................................................................................... 3 Strengths ...................................................................................................................... 3 Weaknesses ................................................................................................................. 4 Opportunities ............................................................................................................... 4 Threats ......................................................................................................................... 5 Corporate Advantage .................................................................................................................. 6 Corporate Strategy ...................................................................................................................... 8 Diversification .......................................................................................................................... 10 Studio Entertainment ................................................................................................. 11 Parks and Resorts ....................................................................................................... 12 Consumer Products .................................................................................................... 13 Media Networks Broadcasting ................................................................................... 13 Media Networks Cable .............................................................................................. 14 Walt Disney Internet Group ....................................................................................... 15 Conclusion ................................................................................................................................ 15 Resources .................................................................................................................................. 17
3 Introduction Disney has steadfastly experienced a resurgence since Michael Eisner took the helm in 1984. He was able to incorporate his superior business acumen while maintaining the fundamental values founder Walt Elias Disney treasured. With superior strategizing, the Disney Empire was made into one of the most diversified business marvels. Although Disney’s management triumvirate has been disassembled, time will show how successfully newly inducted CEO Robert Iger leads this entertainment giant into the new millennium. SWOT Analysis Strengths Disney’s prominent strength is undeniably its extremely strong brand. Once the words Disney is uttered , it is simultaneously paired with wholesome family fun. Due to Eisner’s insight, this fact remains true far beyond the domestic borders of the United States. Families from the U.S. to Europe and Asia, readily recognizes the Disney brand as a premium supplier of quality family entertainment. This global dispersion has effectively cemented Disney’s brand worldwide. Another salient strength is Disney’s vast options for cross marketing. Their diversification affords them the ability to promote specific ventures across multitudes of other avenues and business units. The fact that they own multiple television stations further adds to their options. Not only does Disney promote heavily internally, they’ve also perfected the art of partnership promoting. When a new movie is set for release, you will easily find droves of merchandise available for the very characters in the movie. Disney’s prowess in marketing has
4 undoubtedly propelled them past their competition. Disney executives were also wise enough to establish their own distribution company, Buena Vista, early on in their motion picture endeavors. Weaknesses One of the primary criticisms of the Eisner era was the corporate culture he fostered. His mentality was that it took toughness to administer change and results. As a result, Disney created an undeniable atmosphere of tension and micromanagement. No one was better able to attest to that than the employees of ABC after the acquisition. It was this autocratic management style that proved to be a culture shock for the ABC employees. Bob Iger must be skillful in re- administering synergy while maintaining authoritative control of the company. Employees feel that more emphasis must be placed on creativity and not dollar value. It is this creativity that has served to garner Disney their distinction.

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