Disney-Marvel

Discuss how the Disney-Marvel acquisition article sheds light on the strategic reasons for mergers and the factors that are influential in implementing a merger

Disney’s merger with Marvel Entertainment was a strategic move to expand its brand and expand its audience. Mergers occur for many different, and, sometimes, concurrent reasons. In this case, Disney is betting on a long term financial gain, after investing in the infrastructure and working out the numerous licensing and movie agreements tied up with the Marvel characters.

Essentially Disney is merging to expand their audience as the Marvel characters bring in a male audience, which Disney was lacking. Therefore, if successful, Disney increases its market share in the youth entertainment industry.

The merger also appears to be part of a response to a change in the environment. As stated in the article, studios were struggling to combat declining DVD sales. So, it seeks to widen its market share and leverage the Marvel characters for more screen time and merchandising sales as well as recreational branding in their entertainment parks.

What additional aspects of merger strategy can you learn about from analyzing Disney’s efforts?

The merger appears to be a result of a complimentary business that creates a new strategic advantage when combined. As the writer illustrates, Marvel had the characters for licensing but did not have the resources for marketing and production, but Disney does. Disney can create and generate film and television products based on characters and character branding Marvel owns. It is almost a perfect synergy for product merging, assuming the cultural merging of the organization works for both companies.

This also makes a point about the financial aspects of mergers. These are costly endeavors. Disney is aware that many of the branded characters are tied up currently with other studios and agreements. It must unknot and unbraid these in order to fully push forward...