The Walt Disney Company: the Entertainment King

Eisner tried strategically to manage Disney’s synergy, brand, and creativity during the first four years. One of his top management priorities was to rejuvenate Disney’s TV and movie business. He enhanced the cross-promotion and licensing through managing Disney’s synergy. He also designed the attendance-building strategy to offset the large investments on theme parks expansion, which resulted in 4.8% growth on CAGR. I agree with Eisner that corporate synergy has the ability to leverage Disney’s brand and create value. It was shown that how synergy boosted revenue through cross-promotion. I believe cross-promotion and synergy management is strategically more important.

Eisner became Disney’s chairman and CEO in October 1984. He seemed to focus on managing the Disney brand, creativity, and synergy. He restored Disney’s culture, which was fading out. The history and culture of the company and Walt Disney’s legacy were included in a three –days training program at Disney’s corporate university. To develop pride in Disney tradition, all new employees, including executives, had to spend a day dressed as characters at the theme parks. Eisner rejuvenated Disney’s TV and movie business. The Disney Sunday Movie on ABC and NBC hit Golden Girls put Disney back on the map.

To manage creativity, Eisner deliberately fostered tension between creativity and financial forces as each business developed its market position. While encouraging expansive and innovative ideas, he expected business to deliver against well-defined strategic and financial objectives.

As the business units expanded after 1984, overlaps and conflicts between them began to emerge. A monthly meeting of 20 divisional marketing and promotion executives was initiated to discuss interdivisional issues. Important issues such as Snow White 50th and Mickey’s 60th birthday were coordinated jointly. As stated by Eisner, meeting of all divisions was a very big achievement bringing back to life an inherent Disney...