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Date Submitted: 07/13/2011 01:03 PM

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Walt Disney

What are they really good at?

Disney is known for their ability to create an experience (entertainment) the whole family can enjoy together.

· Have they been successful in applying their core? And why.

Yes because of their consistent innovations and diversification

· Did they do it (their core) well or not?

They always focus on their core and they do it well. All their products and services represent their shared value of family importance and creativity.

·What is Disney’s competitive advantage? Is it sustainable? ( look at the slides for the criteria that give a company competitive advantage)

* Value, rareness, imitability, exploitation

* Disney’s competitive advantage is their diversification leadership and strong creativity. They have been able to wipe out their competitors by diversifying both horizontally as well as vertically, and are always focusing on their core. This helps them gain sustainable competitive advantage because these qualities are not easily imitated and they also have first-mover advantages (ie. first to incorporate sounds into their cartoon stories, first to create national tv ads and special events, first to have an animated film to be nominated for Best Oscar Picture-beauty & the beast). We can see that they have been successful in diversifying since their market shares have been consistently increasing (and they have the highest MS) from 1994-1999 (exhibit 8)

*Disney uses the differentiation strategy for Theme Park business. They have the highest costs (exhibit 6), but the highest number of attendance (exhibit 4)

*Disney is the most powerful in making top-grossing animated films (exhibit 7). This shows how their strategies have worked in bring them success. It also shows how weak their competitors are in comparison to them in this segment.

*Disney uses the low-cost strategy for their film business. They have high market shares (exhibit 8) because they have made their films affordable for the general...