100%(8)8 out of 8 people found this document helpful
This preview shows page 11 - 13 out of 20 pages.
interactive media [ CITATION CSI \l 1033 ]. Fortunately the video gaming and interactive media industry isa growth industry, with a global market of $151.06 billion in 2019 and expected annual growth of 12.9 percent through to 2027 [ CITATION Gra20 \l 1033 ]. Given Disney’s position within the industry, and the attractiveness of the industry the placement of the division on the GE McKinsey matrix suggests that thisis an area where Disney should invest to gain market share within the interactive media division by capitalizing on the strong brand image Disney already has.Strategic Fit The Walt Disney company’s portfolio does exhibit a particularly good strategic fit. The businessesand divisions you see in the Disney portfolio are all very closely related and offer various opportunities ofsupport. This also provide opportunities within the companies under the Disney umbrella to operate more efficiently and effectively by possibilities to share costs as well as assets.The companies Disney has acquired offer many value chain matchups. Opportunities include, providing more content and characters to be used in television and movie productions, to grow the parksand resorts division, and provide more consumer products. There are many opportunities to decrease costs by combining certain activities such as administrative, marketing and sales, and sharing distributionspaces. The diversity provided by Disney’s portfolio offers endless opportunities for skill transfer and creates an environment to obtain top talent in the entertainment industry. The strategic fit of Disney’s portfolio has also provided advantages in creating wider consumer reach by diversifying into areas and obtaining well known brands in areas such as sports and news, as well as helping them to enter into new distribution markets such as HULU in the direct to consumer market.7
THE WALT DISNEY COMPANY | Group EIssuesWalt Disney is a renowned and a very diversified company. However, the biggest issue the company is facing is that it has a competitive disadvantage with its media networks. The growth in this business unit has been very minimal because of Disney missing the emerging trend of direct to consumer (DTC). Consumers have shifted their preferences from cable programming to media offered through DTC platforms. This is the reason that the company has experienced decline in number of subscribers for its ESPN Cable networks resulted in decline in revenues for its Consumer products & interactive media business unit. The Company is facing challenges in adopting new technologies, which requires conversion of TV to internet services.Alternatives1- Investment in new interactive gaming marketDisney can consider investing in the digital interactive entertainment industry which is a fast-growing market with a lot of potential. The video game industry has been and will continue to be highly competitive as there’s a proven demand for its offerings, and it seems almost certain that interactive entertainment will be even bigger in the world of the future (Noonan, 2019). Table 1 shows some of the