section 1 disney ppt
TRANSCRIPT
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Introduction
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Fun Facts
Walt was the voice of Mickey Mouse for over 20 years
Reported that Walt was dyslexic
1000 Hidden Mickeys
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History of the Industry
Studio Entertainment, Theme Parks and Resorts, ConsumerProducts, Media Networks, and Interactive Media.
Animation Industry Walt Disney is known for dominating in all industries in which it is
involved.
The theme park industry originated from the mid 1500s in England. What we think of as a
modern day Amusement Park originated in 1950 with Disneyland.
The animated film industry Snow White: 1st successful film, 1937 8 released before this but were not successful & arent around
today
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Porter's 5 Forces Model
1) Threat of Entry
2) Threat of Substitutes
3) Buyer Power
4) Supplier Power
5) Industry Rivaly
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Threat of Entry
TV & MOVIES: Low
Average budget for producing films: 1994: $30 million 1999: $52 million
THEME PARKS: Low
Large amounts
of capital requirements
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Threat of Substitutes
TV & Movies:
Low
Redbox, Netflix
Theme Parks:
Amusement Parks: Low
Vacation destination: High
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Buyer Power
Low
Consumers are willing to pay higher prices to enter
Disney amusement parks than other parks
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Supplier Power
High through vertical integration: Media networks
Studio entertainment
Theme parks and resorts
Direct retail distribution of consumer products Internet and direct marketing
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Industry Rivalry
TV & Movies:
High
Disneys largest competitors in TV:
NBC & CBS
Theme Parks:
Low
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Intra-Industry Analysis of
Disney's Strategies Diversification
Movies
TV
Theme Parks
Consumer Products
Cross-Promotion
Retail-as-entertainment Disney Store
Vertical Integration
From studio to distribution
Sell through approach purchase by consumer & not video rentalstores
Direct mail & catalog marketing
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Intra-Industry Competition
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Disney vs. Time Warner
Movies Warner Bros. New Line Cinema
TV Turner Broadcasting Network
(merged in 1996) Cartoon Network competes
against the Disney Channel Looney Tunes exclusively on
Cartoon Network, previously aired reruns on ABC
Theme Parks Owned Six Flags until 1998 had to sell it because of
increasing risk of bankruptcy, Looney Tunecharacters
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Disney vs. News Corp.
Movies 20th Century Fox
TV Fox Broadcasting Company Fox competes against ABC and is by some
considered to be in the "Big Four
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Disney vs. Viacom
Movies Paramount Pictures
(acquired Dreamworks- 2006)
TV BET, MTV, VH1
compete against ABC for a young adult demographic Nickelodeon competes against Disney Channel for viewers
ages 7 to 17
Theme Parks Nickelodeon Studios is a TV studio/attraction at Universal
Studios Florida
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Other Competitors
CBS Corporation One of the five major media conglomerates CBS one of the "Big Three" television networks
NBC Universal NBC the other member of the "Big Three" in television Universal Studios a big rival of Disney World because it is only 15
miles apart One of the six major movie studios
Sony Corporation of America Columbia Pictures
Six Flags
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Future of the Media
Industry Movies
1930, 5 major Hollywood movie studios:
Paramount, RKO, 20th Century Fox, MGM,and Warner Brothers
Todays "Big SixWalt Disney Pictures,
Time Warner,Paramount,20th Century Fox,Columbia Pictures,
& Universal Pictures
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Future of the Media
Industry
Television Past, consisted of the "Big Three" which
was ABC, NBC, and CBS controlling 99% of
TV broadcasting 2005, "Big Three" only controlled 32% of
the broadcasting due to FOX, the CW,satellite and cable TV channels
ABC, NBC, CBS, and FOX spent 60% oftelevision advertising in 2009 to see adecrease in revenues of 9%
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Future of the Media Industry
Theme Parks
Disney parks - Disney cruises dock at nearby ports tobring the guest to the theme parks
Nickelodeon at Sea has partnered with NorwegianCruise Line
Six Flags filed for Chapter 11 bankruptcy protectionin 2009 and exited in 2010, they are now coming outwith new rides and attractions like the X-Flight
Universal Studios - new ride is the Harry Potter the
Forbidden Journey 2012, developing two new 3-D attractions
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History of Walt Disney
Objective & Mission world's leading producers and providers of entertainment
and information, using its portfolio of brands to differentiateits content, services and consumer products.
Primary financial goals: to maximize earnings and cash flow,and to allocate capital toward growth initiatives that willdrive long-term shareholder value.
Target Market- families & people of every age.
Employs approximately 150,000 people.
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History of Walt Disney
1923, formal beginning of Walt Disney Co. CompanyOriginally known as Disney Brothers Cartoon Studio. Began with Alice Comedies, Oswald, Mickey Mouse Fame of Mickey Mouse
1929, Consumer Products began with Mickey Mousenotebooks
1934, Animated feature film, Snow White- highest grossingfilm of all time, record held until Gone With the Wind.
1940, Pinocchio and Fantasiareleased
1955, Amusement Park -Disney Land
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Disney's Strategy
Use their 5 major business segments to produce
unparalleled entertainment experiences based on the
rich legacy of quality creative content and exceptional
story telling.
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Disney's Competitive Advantages
Copyrights Protect characters
Consumer products
Synergy Complimentary assets & activities
Ex: High School Musical
Corporate Culture Michael Iger, CEO
Creativity, Quality, Entrepreneurship, Teamwork
Disney Institute
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Recent Disney Opportunities
Purchased Marvel Comics for $4 billion
Began distributing content in new ways Video On-Demand
TV shows on ipod In-house video game capabilities
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Future of Disney
Increasing growth Revenue in 2000: $25 billion Revenue Today: $38 billion
Emphasis on Disney original characters/movies than new Snow Whites 50thanniversary, Mickeys 60th Birthday 2000, launch new Mickey Mouse clothing line Lion King in 3D
Increase international sales Disney: 21% of its revenue from abroad Coca-Cola: 63% McDonalds: 61%
Threat: Big conglomerate ran by 1 person may lose creativity Disney Magic
Strategic Issues: Value tangible assets & controlling costs more than
intangible assets
Management control & succession
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Recommendations for Disney
1. Decentralize decision-making A: more creativity, increase revenue D: may be costly (cannot control everyones decisions,
can only give incentives to influence decisions)
2. Research international cultures A: avoid culture clash, more customers, increase
international revenue D: more research costs
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3. Revamp the Disney culture Walts Belief: Money is no substitute for animation
Creativity
Eisners Era: too much conflict Gong show
Inner competition
Make it fun Google A: retain valuable, happy employees
D: not everyone will like change
Recommendations for Disney
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4. Update more theme parks with rides that matchhit movies
Roger Rabit in Cali A: incentive to visit parks D: costs to update rides, replace rides that
customers may be used to
5. Movie theaters inside themeparks
Play movies from vaults A: incentive to visit parks,
increase revenue D: wage costs
Recommendations for Disney
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