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The Walt Disney: It’s Diversification Strategy in 2012

1. What is Walt Disney Company’s corporate strategy?

Disney corporate level strategy is broad differentiation. The company broadly diversified into 5 main business segments: media networks, parks and resorts, studio entertainment, consumer products, and interactive media. The strategy was centered on 1) creating high-quality family content 2) exploiting technological innovations to make entertainment experiences more memorable 3) international expansion 4) capturing the synergies that exist between business units. The strategy is also focused on devoted serious capital into the parks and resort segment to maintain their advantage in that industry.

2. What is your assessment of the long-term attractiveness of the industries represented in Walt Disney Company’s business portfolio?

3. What is your assessment of the competitive strength of Walt Disney Company’s different business units?

4. What does a 9-cell industry attractiveness/business strength matrix displaying Walt Disney Company’s business units look like?

Biggest circle = media networks (most % of total revenue) also in the top, highest ranking circle and second largest= parks and resorts (most competitive and most attractive industry) both fall in 3 boxes in top left of matrix. These receive most resources, opportunity to build most shareholder value. “grow and build. The third largest circle is studio entertainment. This circle would fall into the middle area of the matrix, and receives medium allocation of resources. This one scores a little lower on industry attractiveness due to the decreasing sale of DVD products and the rise of lower cost alternatives. The unit is still somewhat competitive however due to strong intellectual property surrounding the brands. The fourth largest circle is the consumer products unit. This unit is also near the bottom of the middle of the matrix, a lower amount of resources are dedicated...