globalbusinessstrategywaltdisney-121218180405-phpapp02

Global Business Strategy

Presenters

Anubhav Dawar

Pranshul Chauhan

SreevatsanSreenivasan

Amritha Chottakurien

1923-1966 Walter Elias Disney launches the Disney Brothers Studio

in 1923 with his brother Roy Disney

1928 – Mickey Mouse the character is born

1937 – Company created the world’s first full length animated feature film, Snow White and the Seven Dwarfs

1940 – Walt Disney goes public

1954 – Expansion into television

1955 – Theme park Disneyland

1966 – Walt Disney passes awaySource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

1967 - 1984 1971 - Disney World opened in Orlando, Florida

1976 – First major international expansion, Tokyo Disneyland announced in 1976

1980 - Touchstone launched to target the teen/adult market for film goers

1980 – Financial condition of Disney deteriorating with increasing costs and dismal performance of various divisions

1983 – Disney Channel launched on cable

1984 – Roy Disney resigns from the BOD for poor performance

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

1984 - 1993 1984 - Michael Eisner takes over as Chairman and CEO,

Frank Wells named president Eisner shift focus on growth with targets & maximizing

shareholders wealth Gave impetus to creativity which was being stifled within

the firm 1988 – Turnaround of Disney’s film division 1988 – High investment in animation technology 1990 – Focus on maximizing theme park profitability 1992 – Euro Disney opens in Paris 1992 – Expansion into NHL league (The Anaheim Ducks) 1993 – Enters broadway with Beauty and the Beast


1994 onwards 1994 - The Lion King breaks box office

1994 – Frank Wells killed in helicopter crash

1994 – Major attrition in senior leadership of the company

1995 – Disney bought ABC, second biggest acquisition in US history at the time

1998 – Disney faces severe financial slump

1999 – Announcement of theme park in Hong Kong

1999 – Cost cutting plan undertaken by company


Media Networks

Studio Entertainment

Theme Park/Resorts

Consumer Products

Internet & Direct Marketing

Broadcasting

Cable Networks & InternationalTheatrical

Films

Beuna Vista Home Entertainment

Beuna Vista Music Group

Theatrical Productions

Distribution Television Production

Televentures

Walt Disney Attractions

Walt Disney Imagineering

Anaheim Sports

Disney Regional Entertainment

Disney Online

ESPN Internet Group

ABC Internet Group

GO.com Comerce

GO.com Internatio

nal

GO Network

Merchandising Licensing

The Disney Store

Disney Publishing

Walt Disney Art Classic

Disney Interactive

diversified

Diversification Strategy

Related Diversification High on corporate and operational relatedness in

order to create economies of scope

Sharing activities among its different movie distribution companies such as Touchstone & Hollywood Pictures

Corporate relatedness through installation of a corporate marketing function to stimulate and coordinate companywide marketing strategies

Cross selling of products highlighted in its movies through theme parks, resorts and merchandise stores

Themes established in movies become a part of the theme parks in the form of rides


BCG Matrix

Mar

ket G

rowt

h

Market ShareLOW

LOW

HIG

H

HIGH

COW

Internet and direct marketing

Media NetworkTheme

Park

Studio Entertai-nment

Consumer Products

DOG

STAR?

Forward Backward

Vertical Integration

Horizontal Integration

Forward Backward

Integration Strategies


Forward Integration

Buena Vista Distribution in order to eliminate distribution fee

Buying back of food and merchandising operations within theme parks

Launch of the Disney Channel in 1983


Forward Integration Disney Stores, “retail as entertainment

concept”

New distribution channels such as direct-mail and catalog marketing

Buena Vista Home Video-marketing videos by surpassing video rental stores

Using the internet as a distribution channel


Backward Integration

Walt Disney Music Company formed to control Disney’s music copyrights

In house travel company to work with travel agencies, airline and tours in order to bring customers

ABC focused on using content developed in-house


Horizontal Integration

Acquisition of CapCities/ABC, to own a programming distribution channel

ESPN Zones

DisneyQuests

Cruise Ships

Educational RetreatsSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF MODELStatusCertaintyAutonomyRelatedFairness

SCARF MODEL

Status•Paying employees more for the skills they posses rather than the seniority.

•Developing pride among the employees towards Disney Corporation.

•Developing synergies among the senior executives at “Synergy Boot Camp”.

•Linked bonuses to the commitment towards synergies.

SCARF MODEL


SCARF MODEL

StatusCertaintyAutonomyRelatedFairness

SCARF MODEL


SCARF MODEL

Certainty•Pre movies release brainstorming sessions with consumer product heads.

SCARF MODEL


SCARF MODEL


SCARF MODEL


SCARF MODEL

Autonomy

•Rather than providing autonomy Eisner practiced micromanagement of its employees.

•Employees had autonomy to resolve their disputes among themselves.

SCARF MODEL


SCARF MODEL


SCARF MODEL


SCARF MODEL

Related

•Developing synergies among the senior executives at “Synergy Boot Camp”.

•Too much conflict between the members of the organization.

•Management jointly organized events :• Snow White’s 50th Anniversary• Mickey Mouse’s 60th Birthday

SCARF MODEL


SCARF MODEL


SCARF MODEL


SCARF MODEL

Fairness

•Eisner and Frank Wells were always available for discussions in case of any discordance

• Available for arbitration• Encouraged quick resolution of disputes

SCARF MODEL


Balance Score Card

TOWS Matrix

Questions ?

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