International expansion and highly diversify strategy

  • Everest College
  • HUMANITIES 230
  • Notes
  • anserplouis1983
  • 43
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International expansion and highly diversify strategy Disney is a global brands, Disney Theme Park is not just in America, but also Europe and Asia. Disney also bought UTV for the growth in India. The ambition that Disney wants to growth internationally is clear and it is growing. Disney has built a lot of different products in different industries, however, those segments are all somehow connected with each other. The Walt Disney Company was broadly diversified into theme parks, hotels and resorts, cruise ships, cable networks, broadcast television networks, television production, television station operations, live action and animated motion picture production and distribution, music publishing, live theatrical productions, children’s book publishing, interactive media, and consumer products retailing. The Walt Disney Company’s corporate strategy was centered on : 1) Creating high-quality family content; 2) Exploiting technological innovations to make entertainment experiences more valuables, and 3) International expansion. Disney’s corporate strategy also called for sufficient capital to be allocated to its core theme parks and resorts business to sustain its advantage in the industry. Disney had also made much of its content available digitally; including its Watch ESPN services for Internet, smartphone, and table computers users. Page 6 of 43
Strategic Management BPMN6023 Mohamad Asrofi Bin Muslim 815943 Disney’s international expansion efforts were largely directed at exploiting opportunities in emerging markets. The Disney Channel reached 75% of viewers in China and Russia and was available in more than 100 countries. Disney’s acquisition strategy is aimed to enhance the resources and capabilities of its core animation business with the addition of new animation skills and characters such as acquisition of Marvel and Pixar. This strategy also aimed to reach consumers in new places or in new ways. Differentiation is a key for Walt Disney: a) Prestige and brand image b) Brand Loyalty c) Company culture Corporate Level Strategy : Diversification Disney has proven its success and stability through the company's intense diversification strategy and should continue this acquisition process in both current and new markets Related Diversification Through Vertical Integration a) Animation studios b) Television (Disney Channel) c) Consumer Products d) Unrelated Diversification (Parenting) e) Television (ESPN) f) Pixar g) Social Gaming Technological advancements in the media industry, like high-speed Internet, have spawned the breakdown of industry barriers that have effectively blurred the lines of corporate strategy and consumer interactions (Priem, Butler, & Li, 2013). Dynamic Page 7 of 43
Strategic Management BPMN6023 Mohamad Asrofi Bin Muslim 815943 industries like media production require change management strategies (Thompson, Strickland, & Gamble, 2009) and business models that are consumer-centric (Priem et al., 2013).

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