Global Business Strategy_Walt disney

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Global Business Strategy_Walt disney

  1. 1. Global Business Strategy
  2. 2. Presenters Amritha Anubhav Pranshul SreevatsanChottakurien Dawar Chauhan Sreenivasan
  3. 3. 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
  4. 4. 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 performanceSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  5. 5. 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 BeastSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  6. 6. 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 companySource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  7. 7. diversif ied Internet &Media Studio Theme Consumer DirectNetworks Entertainment Park/ Resorts Products Marketing Cable Networks Disney W Disney alt ABC InternetThe Disney Anaheim Sports Merchandisin GO.comBroadcasting & International Publishing Imagineering Group Store g Licensing Comerce Theatrical Beuna Vista Films Home W EntertainmentDisney Disney Regional Disney alt Disney Attractions GO.com alt W Entertainment Classic Interactive Art International Television Distribution Production ESPN Beuna Vista Internet Theatrical Disney Online Music Group Group Productions GO Network Televentures
  8. 8. Diversification Strategy
  9. 9. 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 ridesSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  10. 10. BCG Matrix HIGH ? STAR Media Theme Network Park Market Growth Internet and direct marketing DOG COW Studio Consumer Entertai LOW Products -nment LOW Market Share HIGH
  11. 11. Integration Strategies Vertical Horizontal Integration Integration Forward Backward Forward BackwardSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  12. 12. 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 1983Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  13. 13. 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 channelSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  14. 14. 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-houseSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  15. 15. 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
  16. 16. SCARF MODELStatusCertainty utonomAy elateRd airneFss
  17. 17. SCARF SCARF MODEL 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.Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  18. 18. SCARF SCARF MODEL MODEL Status Certaint y utonom A y elate R d airne F ssSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  19. 19. SCARF SCARF MODEL MODEL Certaint brainstorming sessions with •Pre movies release y consumer product heads.Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  20. 20. SCARF SCARF MODEL MODEL Status Certaint y utonom A y elate R d airne F ssSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  21. 21. SCARF SCARF MODEL MODEL •Rather than providing autonomy Eisner practiced micromanagement of its employees. Autonom •Employees had autonomy to resolve their disputes among y themselves.Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  22. 22. SCARF SCARF MODEL MODEL Status Certaint y utonom A y elate R d airne F ssSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  23. 23. SCARF SCARF MODEL MODEL •Developing synergies among the senior executives at “Synergy Boot Camp”. •Too much conflict between the members of the Relate organization. d• Snow White’s 50 Anniversary •Management jointly organized events : th • Mickey Mouse’s 60th BirthdaySource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  24. 24. SCARF SCARF MODEL MODEL Status Certaint y utonom A y elate R d airne F ssSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  25. 25. SCARF SCARF MODEL MODEL •Eisner and Frank Wells were always available for discussions in case of any discordance • Available for arbitration • Encouraged quick resolution of disputes Fairne ssSource: Harvard Business Case Study. The Walt Disney Company: The Entertainment King
  26. 26. Balance Score Card
  27. 27. TOWS Matrix
  28. 28. Questions ?

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