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The Walt Disney CompanyBackground• Founded in October 16th, 1923• Walter Elias Disney and his brother Roy OliverDisney• The Walt Disney Company is an entertainmentconglomerate with branches in film, radio,television, animation, merchandising/retail,theme parks & resorts, publishing, interactivemedia/games, and theater.• Right now, its the largest entertainmentbusiness in terms of revenue
Company Overview• The Walt Disney Company, together with its subsidiariesand affiliates, is a leading diversified internationalfamily entertainment and media enterprise with fivebusiness segments :Media NetworksParks and ResortsStudio EntertainmentConsumer ProductsInteractive Media
Media Network• Media Networks comprise a vast array of broadcast, cable,radio, publishing and digital businesses across two divisions –the Disney/ABC Television Group and ESPN Inc. In additionto content development and distribution functions, thesegment includes supporting headquarters, communications,digital media, distribution, marketing, research and salesgroups.
Parks and Resorts• When Walt Disney opened Disneyland on July 17, 1955,he created a unique destination built around storytellingand immersive experiences, ushering in a new era offamily entertainment.
Studio Entertainment• For more than 85 years, The Walt Disney Studios hasbeen the foundation on which The Walt Disney Companywas built. Today, the Studio brings quality movies, musicand stage plays to consumers throughout the world.
Interactive Media• Founded in 2008, Disney Interactive entertains kids,families and Disney enthusiasts everywhere with worldclass products that push the boundaries of technologyand imagination.
Business to businessAdvertise with UsTravel Agents OnlyDisney Meeting & ConventionsDisney Institutecontains comprehensive, up-to-date information tohelp Travel Agents and their clients plan magicalDisney vacationsA complete resource guide to planningmeetings, conventions or group eventscan design professional development programs tailored to the needs andobjectives of your organization
Studio OperationTheProspectStudiosGolden OakRanchKABC7Studio BThe WaltDisneyStudios
• Disney continues to differentiate itself as aclassic entertainment company built ontradition with a clear vision of the future.• This strategy is one that Porter recommendsas profitable for a company facingcompetition, and is enhanced by thecompany’s continued partnerships withdigital technology leaders – such as Apple,Facebook, Hulu (of which it is part owner),and Sprint – and desire to sustain expansionin high-growth international markets likeChina, India, and Latin America.Strategic Differentiation
Disney Marketing StrategiesSegmenting andtargeting• Disney uses geographic, demographic and psychographicsegmentation. In other words, it uses multi-segment targeting.Although it may seem like Disney targets only kids, Disney’starget market is the whole family. Walt Disney had once said,“You’re dead if you aim only for kids. Adults are only kids grownup, anyway.” Disney’s core constituency is the urban, median-income family who wants to have fun.Understandingthe targetmarket• Disney understands its target market inside out. Thecompany uses this deep knowledge of its target market tosell all kinds of products and services. It serves the infantcategory with as much ease as it does the teen or adultcategory. It creates products and services for its coreconstituency.
Product strategy•Disney’s product strategy is based on delighting the customer. It believes incontinually improving its products and service offerings. For example, in itstheme parks, Disney constantly updates and modernizes its rides so as to pleaseregular customers while attracting newer ones. Disney is also constantlycreating new products. For example, Disney recently forayed into digitalpublishing, launching children’s book apps for iOS and the Android market.Marketing andpromotionstrategy•Disney believes more in building a community of dedicated, loyal fans. It hasused the social media route in a big way. According to a Disney official, “Socialmedia lets you uniquely connect with fans. The tone and the content is morecasual and insight-based and insider-based, especially for the most ardent fans ofthe franchises”. It believes in constant advertising – both online and offline, so asto be always in its customers’ minds. Disney uses direct mail and salespromotions.Expansionstrategy•Disney is always working toward exploring and expanding its markets. For example, Disneyhas developed theme parks in major international cities outside of the U.S., like Hong Kong,Paris and Tokyo.•Disney’s expansion strategy is not just limited to new geographies but also encompasses newproducts and services. For example, with Disney’s acquisition of Marvel Entertainment, theanimation giant acquired rights of around 5,000 fantasy characters, including Spider-Man, X-Men, Iron Man and the Incredible Hulk. This acquisition expanded Disney’s licensing andmerchandising business in a major way.
Advertising andPromotionalStrategies•Disneys ownership of media networks such as "ABC," "Disney Channel," and "ESPN" isa strategy the company is using to market its brand to Americans. This includes asystematic approach to television advertising, as well as radio commercials, print,outdoor advertising, and mobile initiatives, promoting discounts on resorts, and familypackages. To reach teenagers, Disney launched "advergaming," which puts ad messagesin online and video games. The goal is to reach kids directly and encourage them to urgetheir parents to visit a Disney park for a family experience.InternationalOutreachStrategies•According to "DEMC," a small-business strategist, Disney recognizes that manypeople do not have the opportunity to travel to the U.S. to visit Walt Disney Worldor Disneyland. As a result, Disney developed theme parks around the globe tocapture the market, adapting them to local cultures. They include DisneylandParis, Tokyo Disney, and Hong Kong Disneyland. With worldwide expansion,Disney aims to increase its marketplace and expand its brandInnovation as aMarketingStrategy•As part of its marketing strategy, Disney believes in innovation to stay ahead ofthe competition and build business. With rapid advances in technology, thetraditional passive television audience is in transition, no longer captive to prime-time scheduling on major networks. According to "eMarketer," by 2011, 86 percentof Internet users in the U.S. will be downloading video content. Disneys strategyis to connect with kids directly via storytelling utilizing multiple technologies.
Social Media for Disney’sMarketing• Every day, The Walt Disney Company connects withmillions of people around the world through its more than1,000 social media accounts. In addition to the accountslisted in this online directory, a variety of TV personalitiesand talent at Disney, ABC, ESPN and Marvel engage withfans through social media. The Walt Disney Company iscommitted to providing our fans and social communitieswith exciting new content and experiences, allowing themto connect with their favorite brands, characters andstories anywhere, at any time, on every platform.• Disney has more than 200 million likes onFacebook and 25 official account on twitter• Disney used Facebook, Twitter, Youtube, Pinterest, andalso Instagram to reach their world-wide consumer.
The Exceptional MarketingStrategiesSell More to Existing Customers - While at the Walt Disney World theme parks you arecontinuously offered other products / services to purchase. Disney knows that currentcustomers are the easiest customers to up-sell. As a result, they take every opportunityto sell you more.•Upon exiting attractions, you enter a store themed to that attraction with gifts.•During travel on trams, monorails, trains, boats, etc. there are always marketingannouncements. These recordings inform you of ways to upgrade your ticket, to stay longer, tovisit other parks, to dine at restaurants, to stay at resorts or to go to other attractions.•Booths in the parks have representatives selling Disney vacation packages for future visits.•Stores with gifts and restaurants with food are on every corner for your convenience.Continuous Promotion - Walt Disney World is always advertising. They do not start,stop and then start again. They have a marketing budget and plan that’s designed tokeep their message in front of audiences. Disney also continually sends direct mailpieces to past customers with varying offers. Disney’s promotions are designed tokeep them in your mind. So when it’s time for vacationing, you think of going toDisney World or perhaps another (undefined) destination. But as Disney has keptitself in your awareness it is always a consideration. Other vacation destination havenot established themselves nearly as well!
Always Improve and Add to your Offerings - Disney is never complacent. They are alwaysgrowing, building, expanding and improving. With their existing theme parks theycontinuously work to add in new attractions and shows. The most well known of theirproducts are their movies. Disney studios is always working to create new motion pictures.Constantly making and releasing movies to the marketplace brings in consistent profitsfor Disney. In addition, Disney further leverages their movies by creating products – dolls,toys, games, etc -. as well as incorporating them into their theme park attractions. Thesynergy Disney has developed between their theme parks and their movies, helps drivemovie sales in theaters as well as on dvds, leads to increased sales of their dolls, toys,games, etc, and continues to bring visitors to the parks.Tracking Business - Disney knows the times of year which are busy and those thatare slow. They track attendance at their parks and resorts and plan accordingly.Rather than simply accepting the slow times, Disney runs promotions to improvesales. At Disney resort prices, each time of the year has a different rate. Disneyentices school age children during the year by offering school bands, cheerleadingsquads and other student groups opportunities to come to the parks and perform.These packages work to boost attendance as well as improve Disney’s reputation.Disney’s determination to bring in customers year round has worked. If you examinecrowd attendance levels over the years, their theme parks attendance overall hasincreased and slower times are not nearly as slow as they once were.
Categories• ABC Television Network • Cable Networks• ESPN• Disney Channel• Disney ChannelInternational• E! Entertainment• Lifetime• Toon Disney• SoapNetBroadcasting Cable Network
Media Network• The company acquired Fox Family channel, which becomeABC Family, in 2001 ($2.9 Billion in cash, plus $2.3 billionin debt). This acquisition is expected to increase therevenues in $600 million in 2003 (EBIAT close to $150million).
Hyperion• Hyperion Books publishes general-interest fiction and non-fiction hardcover, trade, and mass-market paperback booksfor adults and includes the Voice, Hyperion eBook andHyperion Audio imprints. Hyperion publishes more than100 hardcover and paperback books a year, and offers manyof its titles as e-books and as audio books through itsHyperion Audio division.
• SOAPnet owns the world of character-driven soapy drama,from daytime and primetime dramas to reality shows andmovies. The network features same-day episodes of populardaytime dramas including “All My Children,” “Days of ourLives,” “One Life to Live,” “General Hospital” and “TheYoung and the Restless”; favorite primetime series“Gilmore Girls,” “The O.C.,” “One Tree Hill” and “BeverlyHills 90210”;
ESPN• From an inauspicious debut as a television network reaching1.4 million homes, ESPN is a true business successstory. Today, it is the leading multinational, multimediasports entertainment company featuring the broadestportfolio of multimedia sports assets with over 50 businessentities. With a passionate fan base and the powerful natureof live and unscripted action, ESPN continues to grow.
Media Network• Disney international channels are now in 14 countries,with a strong distribution growth (expected tobreakeven in 2003).
Cost Structure• Cost structure is very general since disney arefocused in entertaining world with so manybusiness channel. A few cost structure like :– Salary– Design– Infrastructure– Legal & Rights– Operational Movie Cost
Revenue Stream• Revenue Stream is so high since disney have somany business channel, here is a few revenuesource of disney company :– Park Ticket– Movie Income– Merchandise– Advertising
SWOT ANALYSISInternal AuditStrength• A Vast and DiversePortfolio• Diversification• Incredible CustomerService• Acquisition of PixarAnimation StudiosWeakness• The Constant Need ofSuccessful CreativeMaterial• High (and increasing)Cost of Operation• Lack of DevelopmentalProperty• Lagging ConsumerProducts Revenue
SWOT ANALYSISExternal AuditOpportunity•Increasing impact in themusic industry•Expansion into untapped•Geographical areas•Expand Radio Operations• Reuse of Past PortfolioThreats•Struggling Global Economy•Rapid Pace of changingMedia and Technology•Competition with UniversalOrlando•Unionized work force
FINANCIAL ANALYSISOverall success due to success of five business segmentsMedia NetworksInteractiveMediaConsumerProductsStudioEntertainmentParks andResortsEach piece contributes to the Disney empire by forging newand additional paths to market that together ensure Disneyfulfills its mission.
The ratios encourage managers to focus onimproving the company’s profitability byimproving sales, controlling costs, andusing assets efficiently .Knowing the company;s ability to generate earningsfor a certain period and provides an overview of theeffectiveness of management in carrying out itsoperationsImportance of Measuring CompanyPerformance