Disney

1. Before 1995, what is the rationale of Disney’s corporate strategy and how did it contribute to Disney’s success.

Vertical Integration (refer to Book)

Horizontal diversification

Disney managed to umbrella their different ventures to provide resources, capabilities, and financial gain to the overall benefit of the company.

Share/transfer specialized resources

Share popular animation characters with other business (park, retail, TV)

2. After 1995, has Disney done well in terms of extending its scope by geography, by products and vertically?

3. Should Disney have acquired ABC? Give your reasons from a corporate strategy perspective?

4. What is your overall assessment of Disney’s corporate strategy?

First-mover enter the market with no competition

1923-1966

Licensed Mickey Mouse or its name to the best companies

Flat and nonhierarchical organization => workers were committed to the company

Released full-length feature film => Snow White, a huge success

Scaled up and went public in 1940 to finance the strategy

Profits source=> re-released/reissuing cartoon classics to new generations of children

After the war => financial straits

Quick income from mixed live action with animation

Diversification => Music Company to control music copyrights, TV show

Entered live-action movie production

Eliminated distribution fees by creating its own distribution company =>revenues up

Avoided paying exorbitant salaries by developing the studio’s own pool of talent

Expanded TV presence => hoped to generate financing and public interest to outdoor entertainment park

Separate company to build the park => free of pressure

Park : technically advanced attractions and excellence in all operations

For entire family

Corporate sponsorship => minimize the cost of upgrading attractions and adding exhibits

Licensed food and merchandising concessions

Attempted to retain control over the complete entertainment experience

1967-1984

The opening of...