Submitted by: Submitted by rinoa
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Category: Business and Industry
Date Submitted: 02/17/2014 09:08 AM
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...