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Date Submitted: 02/12/2013 08:03 AM
Case study
Walt Disney
By Ilia Natchev
February 3rd 2013
Strategic Management
Introduction
The Walt Disney Company represents a truly immense organization
with the consideration of the consolidated revenue,
represented roughly a whopping 35.5 billion dollars in 2007. The four SBUs are Disney
Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks
Broadcasting , and these can be further subdivided into 28 categories and are composed of a
plethora of brands. The only two fundamental commonalities that can be deduced upon
inspection of the entirety of the Walt Disney Company’s holdings are entertainment and
information. Every business activity the organization is engaged in is related in some manner to
providing its consumer base entertainment and/or information.
Despite the two commonalities of the Walt Disney Company’s activities, there exists
a tremendous spectrum of variety in its operations. One of the growth strategies that have
helped the conglomeration reach its current level of success is the fact that the organization
has expanded, both vertically and horizontally, into new markets by targeted segmentation. In
most cases, it reaches these market segments with an acquired brand, such as ESPN, ABC,
and Miramax Films. Furthermore, it is only through the diversification in branding that
Disney has grown simply because the children’s brand is comparatively limited in terms of the
target demographic. It is also the same diversity that minimizes the systemic risk involved
with operating in too narrow of a portfolio....