Strategic ManagementFinal Case StudyAndrea BarilAs.docx

Strategic Management
Final Case Study
Andrea Baril
Ashley Cleary
Sylvia LaBrie
Marie-Michele Lachance
05/03/2012
Overview
Company Overview
• The Founder
• Growth
• Location Map
• Walt Disney’s Division
Existing Mission
Proposed Mission and Vision
SWOT Analysis
External Audit
• CPM

• Positioning Map
• EFE
Internal Audit
• Organizational Chart
• Financial Trends
• Balance Sheet
• Financial Ratios
• IFE
Strategic Plan
• SWOT Matrix
• Space Matrix
• IE Matrix
• Grand Strategy Matrix
• BCG
• Matrix Analysis
• QSPM
Implementation
• Assumptions
• Projected Income Statement
• Projected Balance Sheet
• Projected Ratios
Evaluation
• Stock Price
• Balance Scored Card
• Strategies
• Recommendations
• Objectives

The founder
• Walt Disney was born on December 5, 1901 in Chicago
• During the fall of 1918, Walt Disney attempted to enlist for
military service but he got rejected.
• He started a small company called Laugh-O-Grams, which
eventually fell bankrupt.
• With his suitcase, and $20 Walt headed to Hollywood to start
anew.
• After making a success of his "Alice Comedies," Walt became
a
recognized Hollywood figure.
• Disney took a deep interest in the establishment of California
Institute of the Arts, a college-level professional school of all
the
creative and performing arts.
• Walt Disney passed away on December 15, 1966.
• Urban legend maintains his corpse would be
frozen and stored beneath the Pirates of the
Caribbean ride at Disneyland. . .
Walt, after the Studio
had won 4 Academy
Awards
Walt Disney 1901-1966

October 16, 1923:
This date is considered the start of the Disney Company first
known as
The Disney Brothers Studio.
1928:
First Mickey Mouse cartoon, and the first appearance by Minnie
Mouse.
1932:
Flowers and Trees, first full-color cartoon and first Academy
Award
winner.
1939:
The Disney Studio begins its move to Burbank, California.
1940:
Walt Disney Productions issues its first stock.
History
1955:
Mickey Mouse Club debuts on television.
1971:

Walt Disney World Resort opens with the Magic Kingdom and
two hotels near
Orlando, Florida.
1982:
EPCOT Center opens at Walt-Disney World Resort .
1983:
Tokyo Disneyland, the first international Disney theme park,
opens in Japan.
1987:
The first Disney Store opens, in Glendale, California.
Growth
1989:
Disney-MGM Studios opens at Walt Disney World Resort.
1992:
Disneyland Paris opens.
1995:
Disney agrees to purchase 25 percent of the California Angels
baseball

team, Disney agrees to purchase Capital Cities/ABC for $19
billion. The
Disney Channel begins operation in the UK.
1996:
Disney Online launches Disney.com.
Radio Disney, a live 24-hour music-intensive radio network,
debuts.
1998:
ESPN Magazine debuts, Disney’s Animal Kingdom opens at
Walt Disney
World Resort, Disney Magic cruise ship departs on its inaugural
cruise.
Growth cont.
’s animation
legacy
Shanghai

2009
LOCATION MAP
Disney Resorts:
1. California
2. Florida
3. Tokyo
4. Hong Kong
5. Paris
Media Networks Park and Resorts
• ESPN
• Disney/ABC Television
Group
• ABC Entertainment Group
• ABC News
• ABC Owned Television

Stations Group
• ABC Family
• Disney Channels
Worldwide
• Hyperion Book s
• Disney Land Resorts
• Walt Disney World Resort
• Tokyo Disney Resort
• Disneyland Paris
• Hong Kong Disneyland
• Disney Cruise Line
• Disney Vacation Club
• Adventures by Disney
• Walt Disney Imagineering
Walt Disney Divisions
The Walt-Disney Studios Disney Consumer Products
• Walt-Disney Studios

Motion Pictures
• Marvel Studios
• Touchstone Pictures
• Disneynature
• Walt Disney Animation
Studios
• Pixar Animation Studios
• Disney Music Groups
• Disney Theatrical Group
• Disney Licensing
• Disney Publishing
Worldwide
• Disney Store
Disney Interactive Media
Group
• Disney Online
• Disney Games
Walt Disney Divisions Cont.

"The mission of The Walt Disney Company is
to be one of the world's leading producers
and providers of entertainment and
information. Using our portfolio of brands to
differentiate our content, services and
consumer products, we seek to develop the
most creative, innovative and profitable
entertainment experiences and related
products in the world."
Mission Statement
Proposed Vision
Walt Disney strives to be the world’s
most famous entertainment
company by creating an amazing
experience for individual of all ages.

HISTORY
Proposed Mission
Our Mission is to be one of the world’s leading producer
and provider of entertainment and information, from
parks to network media, and website for all ages. We
seek to provide a great experience for our customers, as
well as for our employees. By using our unique portfolio to
differentiate our content, services and consumer
products, we seek to develop the most
creative, innovative and profitable entertainment
experiences, which would produce financial rewards to
our shareholders. In everything we do, we try to
contribute to our communities by giving them the best
experience.
SWOT
Analysis

of the most recognizable entertainment company in the
world
f companies, which allows them to
generate more profits from different industry such as Media
Networks and Broadcasting, Park and Resorts, Studio
Entertainment and Disney Consumer Products
-based
merchandise and producer of children’s film-related products
based on retail sales
Strengths

io was a liar
Weaknesses
divisions
have been experiencing declining revenue for the last 3 years
efficiency and lead to a lack of strategic focus

which
leads people to associate Disney World with a costly trip
Weaknesses
Division
due to increase in profit
potential for Disney to make money with their network
heme park and resorts worldwide
increase in guest spending, theme park attendance, and hotel
occupancy
Opportunities

of
exchange rate fluctuations; travel industry trends; amount of
available leisure time; oil and transportation prices; and
weather patterns and seasonality.
instead of buying DVD.
violation of its intellectual property.
tail distribution business are influenced by seasonal
consumer
purchasing behavior and by the timing and performance of
animated theatrical release
Walt-
Disney expenses due to their large amount of employee.
Threats
External Audit

Critical Success factors Weights Rating Weighted Score Rating
Weighted Score Rating Weighted Score
0.0 to 1.0 1 to 4 1 to 4 1 to 4
0 0 0
Advertising 0.12 4 0.48 4 0.48 2 0.24
Market Share 0.11 3 0.33 4 0.44 2 0.22
Company Image 0.12 4 0.48 3 0.36 3 0.36
Financial Position 0.11 4 0.44 4 0.44 3 0.33
Management 0.09 3 0.27 3 0.27 3 0.27
Global Expansion 0.12 4 0.48 4 0.48 4 0.48
Consumer Loyalty 0.12 4 0.48 4 0.48 3 0.36
Production Capacity 0.12 3 0.36 3 0.36 2 0.24
Technology 0.09 3 0.27 4 0.36 3 0.27
Totals 1 3.59 3.67 2.77
CPM
Media Network Segment
Positioning Map
Media Network Segment

Positioning Map
Park and Resorts Segment
EFE
Internal Audit
Disneyland will never be completed. It will continue to grow
as long as there is imagination left in the world.
- Walt Disney
Organizational Chart
Theme Parks & Resorts
International
ABC Television Group
Co-Head Interactive
Co-Head Interactive & Playdon
Human Resources

Motion Picture Distribution
Communication
Stategy and Business Development
Government Relations
Disney Consumer Products
ESPN & ABC Sports
ESPN & Disney Media Networks
CFO
Legal and Secretary
CID
Security
CEO
Financial Trends
Avg P/E
Price/
Sales
Price/

Book
Net Profit
Margin (%)
Book
Value/
Share
Debt/
Equity
Return on
Equity (%)
Return on
Assets (%)
Interest
Coverage
01-Oct-09 12.9 1.41 1.47 9.1 $18.55 0.38 9.8 5.2 9.6
01-Sep-08 14.2 1.69 1.85 11.7 $17.73 0.46 13.7 7.1 10.4
01-Sep-07 15 2.03 2.19 13.2 $15.67 0.5 15.2 7.7 10.4
01-Sep-06 16.9 1.87 1.98 9.8 $15.42 0.43 10.4 5.5 7.5

01-Oct-05 22.2 1.58 1.82 7.8 $13.06 0.49 9.4 4.6 6.3
01-Sep-04 21 1.52 1.7 7.6 $13.05 0.53 9 4.4 5.9
01-Sep-03 28.4 1.52 1.68 4.9 $11.82 0.57 5.6 2.7 3.4
01-Sep-02 33.4 1.2 1.29 4.9 $11.61 0.62 5.3 2.5 3
(in Millions, except per share data) 2009
Revenues $36,149.00
Costs and expenses $(30,452.00)
Restrucuring and impairment charges $(492.00)
Other income (expense) $342.00
Net interest expense $(466.00)
Equity in the income of investees $577.00
Income from continuing operations before income taxes and
minority interests $5,658.00
Income taxs $(2,049.00)
Minority interests $(302.00)
Income from continuing operations $3,307.00
Discontinued operations, net of tax -
Net income $3,307.00

Diluted earnings per share:
Earnings per share, continuing operations $1.76
Earnings per share, discontinued operations
Earnings per share $1.76
Basic earnings per share
Earnings per share, continuing operations $1.78
Earnings per share, discontinued operations
Earnings per share $1.78
Weighted average number of common and common equivalent
shares outstanding:
Diluted $1,875.00
Basic $1,856.00
Income Statement
Balance Sheet
Balance Sheet
Cont.

Selected Financial Ratios
2009 2008
Liquidity Ratios
Current Ratio 1.33 1.01
Quick Ratio 1.19 0.91
Leverage Ratios
Debt-to-Total Assets Ratio 1 1
Debt-to-equity Ratio 1.12 1.93
Long-term debt-to-equity Ratio 0.1 0.12
Times-Interest-earned Ratio -12.14 -14.13
Activity Ratios
Inventory Turns 28.44 33.67
Fixed Assets Turnover 1.11 1.2
Total Assets Turnover 0.57 0.61
Profitability Ratios
Gross Profit margins 1.84 1.8
Operating Profit Margin 0.16 0.2

Net Profit Margin 0.09 0.12
Return on Total Assets 0.05 0.07
Return on Stockholders equity 0.06 0.14
Earning per share 1.78 2.34
Price-earnings Ratio 15.31 12.61
Growth Rations (yearly)
Sales -4.48% 7.66%
Net Income -25.30% -5.55%
IFE
Strategic Formulation
“I do not like to repeat successes, I like to
go on to other things.”
Walt Disney
SWOT Matrix

Space Matrix
Results
Space Matrix
Strategies:
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Unrelated Diversification
IE Matrix
Total EFE
Score
High 3-4
Medium

2-2.99
Low 1-
1.99
Strong 3-4 Weak 1-1.99
Total IFE Score
Average 2-2.99
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Interactive media
Strategies:
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration

Horizontal Integration
Related Diversification
Unrelated Diversification
Grand Strategy Matrix
BCG
Matrix Analysis
QSPM Matrix
QSPM Cont.
Implementation
“Disneyland will never be completed. It will
continue to grow as long as there is imagination
left in the world.”
Walt Disney

“Pixar is the most technically advanced creative
company; Apple is the most creatively advanced
technical company. “
Steve Jobs 2005-02-21
from the retained earnings
open indoor resort in New York in the next
three years.
Park for renovation and new attractions.
= Total of 5 billion
Assumptions
Total Investment of 19.01 billion
Projected Income

Statement
Projected Balance Sheet
Assets
Project Balance
Sheet
Liabilities
Project Financial Ratios
Liquidity Ratios
Current Ratio 1.33 0.51
Quick Ratio 1.19 0.46
Leverage Ratios
Debt-to-Total Assets Ratio 1 0.86
Debt-to-equity Ratio 1.12 1.84
Long-term debt-to-equity Ratio 0.1 0.26
Times-Interest-earned Ratio -12.14 -12.14
Activity Ratios

Inventory Turns 28.44 40.39
Fixed Assets Turnover 1.11 1.11
Total Assets Turnover 0.57 0.62
Profitability Ratios
Gross Profit margins 1.84 1.84
Operating Profit Margin 0.16 0.16
Net Profit Margin 0.09 0.09
Return on Total Assets 0.05 0.06
Return on Stockholders equity 0.06 0.012
Earning per share 1.78 1.72
Price-earnings Ratio 15.31 14.27
Growth Rations (yearly)
Sales -4.48% 0.00%
Net Income -25.30% 0.00%
Evaluation
“You're dead if you aim only for
kids. Adults are only kids grown

up, anyway.”
Walt Disney
Stock Price Graph
Balanced Score Card
Area of Objectives Measure of Target Time Expectations
Primary Responsibility
Customers
1. Costumer satisfaction Customer Survey
Webinar
Yearly Human Resources &
CEO
Representatives
1. Employee Conditions Employee Satisfaction Biannually CEO
2. Career Opportunity Lower employee turnover Biannually
CEO
Community / Socially
Responsible

1. Eco-Friendly Company Maintain clean environment in
resorts
Increase presence of recycling in
resorts
Limit food, paper and water
waste
Limit land destruction
Yearly CEO
Marketing Department
2. Ethical Company Increase in donations and
presence of charitable events
Yearly CEO
Operations/Processes
1. Innovation Number of new products in each
segment
Number of renovated products in
each segment
Yearly CEO

2. Brand expansion/ Accessibility Numbers of new resorts built
Yearly CEO
Financial
1. Reduce cost of production Decrease in cost of Parks, Resorts
and other property
Yearly CFO
2. Increase profitability Increase Sales
Reduce Expenses
Quarterly CFO
evelopment to renovate and
build new attractions in order to attract an
older target market.
theme park which will be more accessible to
the North East area.
Strategies

Resort in New
York.
entertainment which target a more mature
audience.
Park and Resorts to stay appealing to our
customers.
Recommendations
In the next three years Walt Disney should..
Objectives
In the next year Walt Disney should…
entertainment

Questions
Sources
““Home, The Walt Disney Company”, <
http://thewaltdisneycompany.com/<ALDRIDGE, B. “Walt
Disney”,
Brad Aldridge Productions, Berkley, CA, August 2002,
http://www.justdisney.com/walt_disney/’>
“ Annual Reports, The Walt Disney Company”,
<http://thewaltdisneycompany.com/investors/financial-
information/annual-report>
“ Who Owns the Media? Media Ownership Charts, Free Press”,
Florence, MA,
<http://www.freepress.net/ownership/chart>
“ Investor Relations, The Walt Disney Company”,
<http://thewaltdisneycompany.com/investors>
“ Walt Disney Company (DIS) News – The New York Times”
<http://topics.nytimes.com/top/news/business/companies/disney
_walt_company/index.html>
“ Stock Quote for Walt Disney Co – MSN Money”, page
generated 9:55PM,

<http://investing.money.msn.com/investments/stock-
price?Symbol=dis&ocid=qbeb>
“ DIS: Summary for Walt Disney Company (The) Common –
Yahoo! Finance”
<http://finance.yahoo.com/q?s=dis&ql=1>
“ Organizational Chart The Walt Disney Company –
TheOfficialBoard”,
<http://www.theofficialboard.com/org-chart/walt-disney>
“ Disney Corporate Press Releases , The Walt Disney
Company”,
<http://thewaltdisneycompany.com/disney-news/press-
releases?tid=All&field_press_release_date_value[value][year]=
2009&title=&page=3>
http://thewaltdisneycompany.com/
http://thewaltdisneycompany.com/
http://www.justdisney.com/walt_disney/
http://thewaltdisneycompany.com/investors/financial-
information/annual-report
http://www.freepress.net/ownership/chart

http://thewaltdisneycompany.com/investors
http://topics.nytimes.com/top/news/business/companies/disney_
walt_company/index.html
http://investing.money.msn.com/investments/stock-
price?Symbol=dis&ocid=qbeb
http://finance.yahoo.com/q?s=dis&ql=1
http://www.theofficialboard.com/org-chart/walt-disney
http://thewaltdisneycompany.com/disney-news/press-
2009&title=&page=3
2009&title=&page=3
2009&title=&page=3
2009&title=&page=3
2009&title=&page=3
Week 11 Research Project
1
Week 11 Research Project

8
Week 11 Research Project (Case Study Part 3)
Brian Cooke
Wilmington University
BBM 402 – Strategic Management
03/22/2020
1. Porter’s Five Force Model
I. The Threat of New Entrants: Developing a brand like that of
Disney Corporation demands considerable investment and long-
term commitment. Disney Corporation has invested in both
human resources and infrastructure to run the brand. Although
small retailers are trying to compete with big brands, they are
facing intense competition and are struggling to gain a more
significant market share.
II. Suppliers’ Bargaining Power: The suppliers of Disney Co.
have moderate bargaining power. The suppliers of the company
include media partners, technology companies, and other
influential vendors. The suppliers are also well-established
brands like Philips, Nokia, ESPN, and IMAX, and they also
have strong bargaining power. Thus, switching to other
suppliers is difficult because additional options do not have a
big brand than the existing ones. Additionally, smaller brands
can be changed without a significant impact on Disney
Corporation.
III. Buyers’ Bargaining Power: The buyers’ bargaining power is
weak because of the unique experience and popularity of the
brand in the marketplace. The brand has loyal customers who
are enticed by the unique experience delivered by Walt Disney
Company. The company has raised the admission fee for theme
parks with no reasonable loss in customer loyalty. The business
has focused on quality and reliable services for a long time. The
customers have always been ready to spend more to have a

fascinating experience at Disney. The combination of these
factors reduces the bargaining power of the customers.
IV. The Threat of Substitutes: The unique brand and the
excellent image presented by Disney has kept the threat of new
substitutes low. The enterprise also boasts of a more significant
influence than it has over its competitors. The smaller theme
parks and similar firms do not stand a chance to beat Disney.
Disney is part of the culture of many customers of Disney. The
big brand and image cancel the threats of substitutes.
V. The Rivalry Between the Existing Enterprises: The current
brands in similar industries, for example, entertainment and
media, have a great rivalry. Other brands rival Disney in the
marketplace. The renowned rivals include Fox Studios,
Universal, and other providers of amusement and theme parks.
In these industries, the bigger the brand, the higher the
popularity of the brand, and the greater the customer loyalty.
Figure 1: Shows Walt
Disney’s Five Force Model
2. VRIO Framework
a) Valuable: Disney Company has spent a considerable amount
of funds to create their brand. Since the acquisition of Pixar in
2006, the revenues have amplified 404% until 2018 (Do
Patrocínio, de Almeida Souza, Santos, & Martins, 2018).
Additionally, Disney earned 38% of box office sales in 2018.
The move to acquire the brands have given Disney the most
significant market share in the industry of entertainment.
b) Rarity: the brand that Disney has is rare, and other
businesses that attempt to match it can never succeed. They can
also not manufacture similar products because the product
demands massive investment in technology.
c) Imitability: the content created by Disney belongs to Disney

alone, and any corporate trying to match the content has not
been successful. The quality of Star Wars, Lion King, Avengers,
and other materials from Disney are not imitable by other firms.
The ability of Disney to exploit their different brands has led
other companies such as WB to try creating similar products.
However, exhaust their energy and resources but end up
unsuccessful.
d) Organization: Organization is a critical resource for Disney.
Apart from making unique content using their diverse brands,
they are incorporating their content to the amusement parks,
establishing this brand as the most organized in the market.
Figure 1 illustrates Disney’s VRIO framework.
Figure 2: Shows Walt Disney’s VRIO Framework
3. SWOT Analysis
a) Strengths: Disney’s reliability, proficient team, high brand
profile, substantial cash flow, and strong negotiation skills have
been the strength that other firms have been unable to match.
These factors have enabled the company to continue growing
and maintain a significant lead in the worldwide market.
b) Weaknesses: the weaknesses include sky-high attribution
rate, vulnerability to competition, poor planning of finances,
and insufficient scale of demand. These weaknesses inhibit the
quicker growth of the company. Limited diversification is a
strategic factor that inhibits new investments in industries with
high growth potential.
c) Opportunities: The opportunities for Walt Disney
Corporation include core competencies, Gear up for marketing,
and the big and famous brand. If managers can address the
strategic factors related to growth, the companies can gain
penetration in the markets.
d) Threats: The threats to the growth of Walt Disney
Corporation include better technology and products by
competitors, the high toll of expenses, and isolation in America.

The SWOT analysis is illustrated in the chart below.
Figure 3: Shows Walt Disney’s SWOT Analysis
4.Vertical Integration
ESPN delivers movies and talk shows related to the sport that
are all created from within the company. ESPN Films, which is
a subordinate of ESPN, creates many outstanding products that
are aired in ESPN. This subsidiary firm ensures that ESPN
sustains itself, rather than buying programs from other
producers. Vertical integration is where an enterprise moves
down the value chain for a buyer’s business (Iger, 2015). The
company has exploited vertical integration by controlling at
least three hundred retail shops that sell characters and movies
produced by the firm itself. By doing this, the profits that would
be earned, if they sold their merchandise to other companies,
return to the company. Figure 4 presents vertical integration.
Figure 4: Represents Vertical Integration
5. Walt Disney Financials
The figure below shows Walt Disney’s financials in the year
ended in 2019.
Period Ending:
Dec 28, 2019
Sep 28, 2019
Jun 29, 2019
Mar 30, 2019
Total Revenue
20858
19100
20245
14922
Gross Profit
7842

7278
7426
6546
Operating Income
2691
1460
2245
7339
Net Income
2107
1054
1760
5452
Figure 5: Illustrates Walt Disney Financials for the Year Ended
2019
6. Financial Analysis
In December 2019, Disney revenues were $20.8 billion, an
increase of 36% compared to 2018. The net income decreased to
$2.13 billion, representing a reduction of 23. Revenues Direct-
to-Consumer and international proportion rose from $918 to
$3.98 billion. The Studio entertainment net income increased
from $1.8 billion to $3.7 billion, while the media network
produced a 24% increase to $7.3 billion.
Moreover, the Asia Pacific fragment rose from $1.02 billion to
$2.1 billion. The information represents the performance and
financial position of the company. The comparison was
presented through the eleven critical financial ratios. Disney’s
financial ratios were contrasted with the median values of the
eleven ratios of companies in similar industries and with
quartiles of ratios of other companies. The deviation of the
financial ratios from the median values did not exceed 5% of
the range between the quartile values close to the ration value
and the median.
References

Do Patrocínio, R. F., de Almeida Souza, J. L., Santos, C. T. O.,
& Martins, K. S. (2018). The vision of the Disney World: an
experience marketing study at The Walt Disney
Company. Archives of Business Research, 6(9).
Iger, R. A. (2015). The Walt Disney Company Fiscal Year 2015
Annual Financial Report and Shareholder Letter. Anaheim, CA:
The Walt Disney Company. Accessed May30, 2017.
Running Header: Week 10 Research Project 1
Running Header: Week 10 Research Project 8
Week 10 Writing Assignment (Case Study Part 2)
Brian Cooke
BBM 402 – Strategic Management
03/22/2020
Strategic Analysis of the Company
1. Describe the company’s internal environment.
One of the internal factors is a reliable and famous brand that
Disney has. The decent brand gives the company popularity
amongst Disney's customers. This brand ensures customers are

satisfied across all levels of operations. The developing
portfolio of natural products is another internal factor that gives
Disney an edge in the market. For instance, the variety of
merchandise and movies as well as entertainment parks that
keeps growing with time. The growing portfolio contributes to
the company’s popularity while at the same time, aggregating
the revenues. Additionally, the structure of the organization
ensures equally beneficial cooperation in all business segments.
The synergistic collaboration ascertains the long-term growth of
Disney Company despite aggressive competition.
2. List all of the company’s external factors.
The external factors refer to the opportunities and threats that
Disney Company may encounter in its external environment
(Carillo, Crumley, Thieringer, & Harrison, 2012). The
possibilities for Disney Company include government support
of its activities, the entertainment industry, and limited barriers
of entry. The competent leaders in various departments set goals
and provide vision and encourage their teams to have
accountability and participation—much of the opportunities
present in the field experiences, training, and support from
Disney owners. The main external factor that is of concern to
the management includes technological innovation, expansion
of markets, and growth of different industries under Disney
Corporation. The legal aspects of international investment are
some of the threats that Disney Corporation faces. Other risks
include politics, oversaturated markets, and stiff competition.
3. How does the company differentiate itself from its
competitors?
Analysis of financial ratios of the company has been a useful
indicator for measuring success. The financial ratios are
compared with those of competitors in the industry and also
allow the shareholders and investors to assess the sustainability
and economic health of Disney Company. The main competitors
include 21st Century Fox and Time Warner. The five key areas
of comparison that rewards excellent analysis of finances for a
company include profitability, market value, long-term

solvency, short-term solvency, and asset management (Sandlin
& Garlen, 2017).
4. How does the company differentiate itself from its
competitors?
The high capital investment has enabled Walt Disney Company
to create a unique brand that makes its products and services
accessible in the market, allowing them to make more sales. The
large studios and theme parks producers are rare in the global
market. They can create high-quality content such as
animations, movies, and entertainment creations. The capital
required to sustain a high presence like Walt Disney is very
demanding, and not many companies can afford it. Market
segregation creates brand availability in different sectors of the
economy. The cost structure established by Disney prevents the
excellent framework for differentiation strategy and economics
of scale. The mission and vision of Disney Company are
convincing to the customers. Disney is also an indisputable
leader in the amusement park operations.
Additionally, the company’s television networks have three of
the outstanding channels in the USA in terms of audience size.
The three TV networks include ABC, Disney Channel, and
ESPN. The segregation strategy is a strength that has given the
company a long-term success because having revenue sources
from segregated industries reduces the risks.
5. Identify which generic business strategies your company is
employing. Do they align with its vision and mission?
Walt Disney Company has taken various strategies in different
business segments. The business operates in different
entertainment aspects that include: TV channels, amusement
parks, movies, consumer products, and many others. The
various divisions under Disney’s entertainment industry include
Walt Disney Studios, Disney Media Network, Disney Resorts,
Interactive Media, and Disney Consumer Products. Although
their operations are different, they are all united and well-based
on the mission statement of Disney Company which is, to be
among the global leaders in providing and producing

information and entertainment (Iger, 2015). Additionally,
Disney Company uses its portfolio of brands to give uniqueness
to their consumer products, content, and services to develop one
of the most innovative, profitable, and creative entertainment
experiences and other products in the category. These words are
carefully chosen and summed up to produce the vision statement
of Disney as the global leaders of entertainment. The vision of
the Disney Company is to carry out business operations to
realize its mission statement. Thus, the generic business
strategies followed by Disney all align with its mission and
vision.
6. Where is your company in the industry’s life cycle?
The entertainment and movie industry cycle of life can be
categorized in terms of the general industry, and terms of the
animated film industry. These two categories have been the
focus of large mergers in the past two decades. The high sales
of movies and animations have contributed significantly to the
fast growth of Disney Corporation. The growth of the industry
is, however, expected to slow down because of the increasing
competition and the fact that the healthy growth trend is not
generating high revenues like before. On the other hand, the
animation industry is currently signified by accumulating the
number of new entrants resulting from the aggregation of 3D
animations. The animation industry is, however, increased
attractiveness because of rising technological know-how and
new technological advances. The consumers have been more
attracted to the animations produced by Disney Corporation,
giving the company a competitive advantage.
7. Does your company have a cost-leadership position in this
business? If so, identify which cost drivers it uses effectively to
hold this position.
Disney Company uses the differentiation strategy that keeps
them in a cost-leadership position. The company tries to reduce
expenses and sustain high levels of content delivery, especially
in the entertainment industry. Differentiation is what differs
from the company from other competitors. Operating a

successful amusement park is expensive, but it takes content to
attract visitors and ensure that what they paid for is worthwhile.
Content differentiation, such as the unique Mickey Mouse and
other attractive franchises are rarely found in other
entertainment companies. The company also differentiates its
services, and the employees are highly trained in the “Disney
style.” Differentiation is also evident in the expertise, which
makes, and will continue to make Disney successful in both
local and regional markets. Increasing sales and economies of
scale allow the company to sustain cost-leadership.
8. What is your company’s approach to the market? Does it
segment the market?
Among the main strengths of Disney Company is its market
segmentation strategy. At first, the company launched a movie
studio that led to several years of success. Later on, the
company joined the amusement park market, starting Walt
Disney World. In the aftermath, the company opened the Disney
Channel under the Television industry. The organization was
able to expand its operations using diversified industries like
the sub-television extent and amusement parks. For instance,
the television and cinema industries are non-related, but they
are related to particular levels because the cinema industry
supplements the television programs. The corporation also
operates on a small scale in the other two sectors, consumer
products, and one Digital Industry. The digital industry
encompasses websites and video games enterprises. Disney
Consumer products consist of stories and character
merchandise. The corporation aggregated phenomenally in every
sector by creating and acquiring strategic markets under one
organization. In the industry of movie production, the digital
studio is among the top six in Hollywood.
9. Is your company vertically integrated? Explain.
Disney Company is vertically integrated because it expands its
enterprises into diversified steps following a similar production
path (do Patrocínio, de Almeida Souza, Santos & Martins,
2018). Using vertical integration, the distribution and supply

operations are done by the company itself, which helps it to
reduce the operation cost and increase revenues. Disney Parks
and Resorts has a lot of products and services created by the
company itself. For example, the animations film like the Lion
King animations. In the movies section, the creators produce
ideas and take them to the movie and television studios for
production. The merchandise, such as interactive media and
consumer products, is a segment that is vertically integrated.
10. Explain your company’s global strategy.
Walt Disney Company has established itself in the international
markets. The company uses an outsourcing strategy. Because of
being able to produce at a lower cost, it creates higher revenues
in the global markets. It has stores in foreign nations such as
Spain, Italy, and the United Kingdom. External licensing allows
the company to sell products outside the USA. The Disney
brand is well-recognized internationally, which makes it easier
for them to reach customers in foreign countries. The media
networks, travel, parks give the company a superior advantage
of marketing its products (Voigt, Buliga & Michl, 2017). Walt
Disney owns stores and parks in Europe, North America, Middle
East, Latin America, and Asia. The selection of locations is
based on population size and consumers' purchasing power.
Because of many other competitors internationally, Disney
possesses patents and specific trademarks that make them
unique. Market segregation also enables corporately accessible
globally.

References
Carillo, C., Crumley, J., Thieringer, K., & Harrison, J. S.
(2012). The Walt Disney Company: A Corporate Strategy
Analysis. Case Study. University of Richmond: Robins School
of Business, 1-29.
Do Patrocínio, R. F., de Almeida Souza, J. L., Santos, C. T. O.,
& Martins, K. S. (2018). The vision of the Disney World: an
experience marketing study at The Walt Disney
Company. Archives of Business Research, 6(9).
Iger, R. A. (2015). The Walt Disney Company Fiscal Year 2015
Annual Financial Report and Shareholder Letter. Anaheim, CA:
The Walt Disney Company. Accessed May30, 2017.
Sandlin, J. A., & Garlen, J. C. (2017). Magic everywhere:
Mapping the Disney curriculum. Review of Education,
Pedagogy, and Cultural Studies, 39(2), 190-219.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Making People
Happy: The Case of the Walt Disney Company. In Business
Model Pioneers (pp. 113-126). Springer, Cham.
Brian Cooke
03/15/2020
BBM 402
Week 9 Research Project (Case Study Part 1)
Disney: Building Billion-Dollar Franchises
1. List the names of the board of directors.
Board of Directors includes two generations of Walt Disney’s
family and exceptional leaders from our community.
1. Tamara Diane Miller

President of the Board
2. Walter Miller
Board Member
3. Christopher Miller
Board Member
4. Charlotte Goff
Board Member
5. Sebastian Runeare
Board Member
6. Michelle Lund
Board Member and President of the Sharon D. Lund Foundation
7. Kirsten Komoroske
Board Member and Executive Director of The Walt Disney
Family Museum
8. Pat Gallagher
Board Member and Management Consultant
9. Former Presidents of the Board of Directors
10. The Walt Disney Family Museum would like to recognize
the former Presidents of the Board of Directors, without whom
the museum would not be what it is today.
11. Diane Disney Miller
Co-founder of The Walt Disney Family Museum, President of
the Board of Directors (2009–13), and Walt Disney's Daughter
12. Ron Miller
Former President of the Board of Directors (2013–19) and Walt
Disney's Son-in-law
2. What are the company’s vision and mission statements?
Corporate Mission Statement: Disney’s mission statement is “to
entertain, inform and inspire people around the globe through
the power of unparalleled storytelling, reflecting the iconic
brands, creative minds and innovative technologies that make
ours the world’s premier entertainment company.” While the
mission statement talks about the entertainment and impact it
purposes to give its customers, the primary focus of the
company is on leading in developing the entire industry into one

of the most dynamic and progressive ones. The company is,
therefore, all about stimulating positive changes. The mission
statement by Disney has the following characteristics:
1. Improvement of communities
2. Improving lives
3. Entertain
4. Exceeding expectations
A look at the history of the company shows that the mission
statement of this company has been consistent with what the
company values most – the people. This agrees with the first
characteristic in the mission statement of Disney, which
describes the prioritization of the welfare of communities by the
company.
Corporate Vision Statement: The Walt Disney Company
integrates its vision statement into its mission statement. Upon
separating these two statements, the resulting corporate vision
is future-oriented and clear in terms of the company’s strategic
aspirations. For example, Disney aims for leadership in the
global market for entertainment products. These characteristics
satisfy some of the conventions in writing corporate vision
statements and helps focus managerial endeavors. However, this
vision statement does not specify the kind of “information” that
the company provides. Thus, to improve this corporate vision
statement, it is recommended that The Walt Disney Company
include a more specific description of the “information” it aims
to provide as one of the leading businesses in the global
industry.
1. What is their principal business model?
What is the Walt Disney business model? It’s called the Loyalty
Profit Chain. Here’s how it works: Disney provides a customer
with an outstanding experience. It’s so good that the customer
wants to have that experience a second time, a third time, and

so on. Each additional experience encourages word-of-mouth
marketing to draw in even more customers. This allows Disney
to dominate in its industry.
What are the secrets of the Walt Disney business model?
They’re actually so surprisingly simple that anyone can
implement them.
1. Open Communication.
Above anything else, Walt Disney incorporates an environment
that demands open communication. People need to talk to other
people with transparency for the business model to succeed.
Standards are set very high and employees are required to meet
those standards every day so that customers receive the best
experience possible with the brand.
2. There’s Never a Bad Idea.
You won’t find an executive team shooting down ideas at Walt
Disney and labeling them as the worst thing they’ve ever heard.
There isn’t a bad idea at Disney. There are just ideas that are
implemented and ones that aren’t implemented. Employees are
encouraged to share any idea they may have that might benefit
the organization. If they are implemented, then the employee
gets rewarded in some way. This environment gives people the
courage to speak up and lead, even if they’ve never been a
leader before.
3. They Put Even More Focus on the “Wants.”
To maintain a business, a company must be able to fulfill a
customer’s needs better than any other business within their
industry. To grow a business, however, a company must be able
to also meet the “wants” a customer has better than anyone else.
This is where the Walt Disney business model truly
differentiates itself. By giving customers what they want and
making those wants affordable, they drive up customer demand.
4. Everything Gets Tested as Often as Possible.

Many organizations will test products, services, or even
employee talents, but how many times has the brand itself been
tested? Disney is constantly testing its brand to see if they can
push it to even higher heights. At times they’ll risk their
organizational identity just to see if they can obtain a better
market share. The Walt Disney business model will always have
an influence on kids, but to reach adults something different had
to be done. That’s why this company has so many different
entertainment options available today.
5. Everyone Plays an Important Role in the Business Model.
On any given day, Walt Disney has more than 150,000 people
employed. This large scale means that there needs to be refined
hiring practices in place, but each person must also be able to
maintain an identity. That’s why in the Walt Disney business
model, every employee plays an important role. Whether it is in
front of the camera, behind the camera, as an artist, or as a data
input specialist, each person contributes something to the
dynamic.
6. Company Culture is a Top Priority.
The formula for success at Disney starts even before an
employee is hired. Managers and hiring professionals are
mandated to discuss the culture requirements that are in place at
the company during the application process. If potential
employees seem uncomfortable with the idea of being part it,
then they are generally not brought into the Disney family.
There is one body for the company with many different parts,
but they are equal parts. That equality is what drives
profitability.
7. Consistency.
Just providing some customers with the best experiences of
their lives isn’t good enough. Everyone who encounters the
Disney brand is supposed to have a positive experience. If a
customer has a negative experience, then the Walt Disney

business model demands that this experience be corrected in
some way. You can’t please all of the people all of the time, but
Disney does its very best to do so every day.
The secrets of success in the Walt Disney business model are
straightforward, simple, and easy to implement. Every business
should have these core elements in place in some way. When the
customer comes first, anything is possible.
2. What are the major goals for the company?
Walt Disney CO's current goals are to reduce their impact on
the nature and how much fuel and waste they use and produce.
They are currently trying to use less and produce less waste to
better the environment. The company is mostly focusing on
family, the community, and inspiring children to help around
the community. Past goals for the Walt Disney was that he
wanted to open an affordable good experience for children and
parents to create memories.
Walt Disney's mission statement is “The Walt Disney
Company's objective is to be one of the world's
leading producers and providers of entertainment and
information, using its portfolio of brands to differentiate its
content, services and consumer products. The company's
primary financial goals are to maximize earnings and cash flow,
and to allocate capital toward growth initiatives that will drive
long-term shareholder value.”
3. List any recent changes in strategy.
· Disney created a new business unit that focuses on its direct-
to-consumer streaming platforms.
· The company also said its consumer products and interactive
media segment will become part of its parks and resorts
business.
· CEO Bob Iger said the new structure better positions the
company for the future.
4. What is the Industry in which your company resides?
· Mass Media Entertainment

5. What is the company’s position on corporate social
responsibility (CSR)?
· Disney groups its corporate social responsibility efforts into
two: Environment and Philanthropy. These CSR groups address
two main concerns of the media and entertainment company’s
stakeholders: environmental impact and community impact.
Thus, in general, Disney’s corporate citizenship is two-pronged.
However, an examination of the specific programs and
initiatives contained in the CSR strategy shows that the
company’s approach is multi-faceted and holistic in considering
the conglomerate’s operations and stakeholders. The main
components of The Walt Disney Company’s corporate social
responsibility strategy are:
1. Environmental Stewardship (Environment)
2. Conservation Fund (Environment)
3. Charitable Giving (Philanthropy)
4. Volunteering (Philanthropy)
6. Has your company participated in any mergers or acquisitions
in the past?
· The Walt Disney Company is known for its prodigious
business acumen and high-profile acquisitions. Last year,
Disney’s annual profit came in at $8.4 billion, an incredible
climb from $3.4 billion in 2006. Since Robert A. Iger began his
role as chief executive in 2005, the company acquired Pixar,
Marvel Entertainment, and Lucasfilm. In the last year, Disney
released four movies, which generated $1 billion in global
ticket sales, and this past June, Disney opened the $5.5
billion Shanghai Disneyland. These projects led to an increased
share price of $31 in 2006 to $122 in August 2015.
Case Outline—Remember you are limited to 20 slides plus Title
page and Reference page(s). Narrate with Kaltura; do not
overwhelm the slides with verbiage.
1. Title

2. Company Situation/Problem Description
a. Briefly describe the situation for which you are developing
the case. This situation may include multiple issues/problems.
3. Problem Addressing
a. Clearly describe the specific problem
b. Of the problems noted in the situation, which one is your
focus?
c. Why did you pick this one?
d. What is the global implication of this problem?
4. Recommendations
a. Make at least three recommendations regarding the way the
situation could be resolved/improved.
b. Why do you believe these recommendations will
resolve/improve the problem?
c. What is your justification?
5. Action Plan
a. Select one recommendation
b. Develop an objective to resolve/improve the problem
c. Develop the action steps necessary to meet the objective—Be
Specific
d. For each action step, include how much time is needed to
complete the action step and the anticipated budget for
completing the action step
6. Justification
a. Support your action plan
b. Include why you believe this strategy will be successful
i. Utilize strategic analysis techniques such as Porter’s Five
Forces, Value Chain, or other tools that are in the text
7. Outcomes
a. Be thorough
i. What will be the impact on the company?
ii. Why?
iii. What might cause problems?
iv. Are there potential unintended consequences?
v. What are the global implications?

The Ten Commandments of Case Analysis (Adapted from
Thompson et. al.)
1. Go through the situation twice, once for a quick overview and
once to gain full command of the facts; then take care to
explore the information in every one of the case exhibits.
2. Make a complete list of the problems and issues that the
company’s management needs to address.
3. Be thorough in your group’s analysis of the company’s
situation.
4. Look for opportunities to apply the concepts and analytical
tools in the text chapters—all of the cases in the book have very
definite ties to the material in one or more of the text chapters!
5. Look for opportunities to apply international/global concepts
to the cases. Make sure your group addresses issues that may
be similar or different in international settings.
6. Support any and all off-the-cuff opinions with well-reasoned
arguments and numerical evidence; don’t stop until you can
purge “I think” and “I feel” from your assessment and, instead,
are able to rely completely on “The analysis shows.”
7. Prioritize your group’s recommendations and make sure they
can be carried out in an acceptable time frame with the
available resources. Include the timeframe and resources
needed to comply with the recommendations.
8. Support each recommendation with persuasive argument and
reasons as to why it makes sense and should result in improved
company performance.
9. Review your group’s recommended action plan to see if it
addresses the problem and issues your group selected—any set
of recommendations that does not address all of the issues and
problems you selected is incomplete and insufficient.
10. Avoid recommending any course of action that could have
disastrous consequences if it doesn’t work out as planned;
therefore, be as alert to the downside risks of your group’s

recommendations as you are to their upside potential and
appeal.
Expectations for Final Case Study Presentation
Your final case study will be a narrated PowerPoint presentation
using Kaltura, and will be evaluated using the rubric provided.
You must have 20 slides plus the title page and reference page.
Case Study Planning Tip:
Go through and read the case twice, once for a quick overview
and once to understand the facts.
Make a complete list of the problems and issues that the
company needs to address.
Look for opportunities to apply the concepts from the text book.
To meet the course expectations for this presentation, consider
the following suggestions:
· Your presentation should be clear, concise, and logical with an
intuitive progression of ideas and supporting information.
· Your presentation should be motivating and should convey the
main idea. All information must be accurate.
· Your presentation must be readable with well sized fonts. The
background and colors should enhance readability.
· Your presentation should be aesthetically pleasing. Use
appropriate headings.
The Ten Commandments of Case Analysis (Adapted from
Thompson et. al.)
1. Go through the situation twice, once for a quick overview and
once to gain full command of the facts; then take care to
explore the information in every one of the case exhibits.

2. Make a complete list of the problems and issues that the
company’s management needs to address.
3. Be thorough in your analysis of the company’s situation.
4. Look for opportunities to apply the concepts and analytical
tools in the text chapters—all of the cases in the book have very
definite ties to the material in one or more of the text chapters!
5. Look for opportunities to apply international/global concepts
to the cases. Make sure you addresses issues that may be
similar or different in international settings.
6. Support any and all off-the-cuff opinions with well-reasoned
arguments and numerical evidence; don’t stop until you can
purge “I think” and “I feel” from your assessment and, instead,
are able to rely completely on “The analysis shows.”
7. Prioritize your recommendations and make sure they can be
carried out in an acceptable time frame with the available
resources. Include the timeframe and resources needed to
comply with the recommendations.
8. Support each recommendation with persuasive argument and
reasons as to why it makes sense and should result in improved
company performance.
9. Review your recommended action plan to see if it addresses
the problem and issues you selected—any set of
recommendations that does not address all of the issues and
problems you selected is incomplete and insufficient.
10. Avoid recommending any course of action that could have
disastrous consequences if it doesn’t work out as planned;
therefore, be as alert to the downside risks of your
recommendations as you are to their upside potential and
appeal.
Disney: Building Billion-Dollar Franchises

This activity is important because, as a manager, you must be
able to identify the growth and
diversification goals your organization hopes to achieve and
choose the most successful ways in
which to meet them, whether through mergers, alliances, or
acquisitions.
The goal of this exercise is to demonstrate your understanding
of different growth and diversification
strategies by applying concepts to recent actions by Disney and
evaluating the challenges it faces.
Read the case below and answer the questions that follow.
Case
With $55 billion in annual revenues in 2017, Disney is the
world’s largest media company and is
renowned for its Walt Disney Studios and the popular Walt
Disney Parks and Resorts. Over the past
decade, Disney has grown through a number of high-profile
acquisitions, including Pixar (2006),
Marvel (2009), and Lucasfilm (2012), the creator of Star Wars.
All this was done with the goal of
building billion-dollar franchises based on movie sequels, park
rides, and merchandise. But
midsummer 2017 revealed even bigger ambitions.
Disney’s Corporate Strategy Going into 2017
As a diversified media company, Disney is active in a wide
array of business activities—movies,
amusement parks, cable and broadcast television networks
(ABC, ESPN, and others), cruises, and
retailing. It became the world’s leading media company to a
large extent by pursuing a corporate

strategy of related-linked diversification. That is, some, but not
all, of Disney’s business activities
share common resources, capabilities, and competencies.
Disney executes its corporate strategy by entering alliances and
acquiring other media businesses to
create theme-based franchises. The corporate strategy of
creating billion-dollar franchises is Disney’s
main focus, and CEO Bob Iger leads a group of about 20
executives whose sole responsibility is to
hunt for them. These senior leaders decide top-down which
projects are a go and which are not.
They also allocate resources to particular projects; Disney has
even organized its employees in the
consumer products group around franchises such as Frozen, Toy
Story, Star Wars, and other cash
cows.
The corporate strategy around building billion-dollar franchises
is certainly paying off: Disney has
seen steady growth to its top line, and it earned some $10
billion in profits in 2016. Its stock rose
more than 350 percent between 2010 and 2017, outperforming
its rivals such as Time Warner, Sony’s
Columbia Pictures, and 21st Century Fox.
Disney and Pixar: “Try Before You Buy”
To understand Disney’s corporate strategy of growing through
acquisition, let’s look at one of the
most successful deals in recent history: Disney acquired Pixar
and then built a number of billion-
dollar franchises around it. It all started with a strategic
alliance. Pixar began as a computer hardware
company producing high-end graphic display systems. One of
its customers was Disney. To

demonstrate the graphic display systems’ capabilities, Pixar
produced short, computer-animated
movies. Despite being sophisticated, Pixar’s computer hardware
was not selling well, and the new
venture was hemorrhaging money. To the rescue rode not Buzz
Lightyear, but Steve Jobs. Shortly
after being ousted from Apple in 1986, Jobs bought the
struggling hardware company for $5 million
and founded Pixar Animation Studios, investing another $5
million into it. The Pixar team, led by
Edwin Catmull and John Lasseter, then transformed the
company into a computer-animation film
studio.
To finance and distribute its newly created computer-animated
movies, Pixar entered a strategic
alliance with Disney. Disney’s distribution network and its
stellar reputation in animated movies were
critical complementary assets that Pixar needed to
commercialize its new type of films. In turn,
https://www.coursehero.com/file/32276402/MGMTNotes803pdf/
Th
is
stu
dy
re
so
ur
ce
w

as
sh
ar
ed
v
ia
C
ou
rs
eH
er
o.
co
m
Disney was able to rejuvenate its floundering product lineup,
retaining the rights to the newly created
Pixar characters and to any sequels.
Pixar became successful beyond imagination as it rolled out one
blockbuster after another: Toy Story
(1, 2, and 3), A Bug’s Life, Monsters, Inc., Finding Nemo, The
Incredibles, and Cars, grossing several
billion dollars. Given Pixar’s huge success and Disney’s
abysmal performance with its own releases
during this time, the bargaining power in the alliance shifted

dramatically. Renegotiations of the
Pixar–Disney alliance broke down in 2004, reportedly because
of personality conflicts between
Steve Jobs and then-Disney Chairman and CEO Michael Eisner.
After Robert Iger was appointed CEO, Disney acquired Pixar
for $7.4 billion in 2006. The success of
the alliance demonstrated that the two entities’ complementary
assets matched and gave Disney an
inside perspective on the value of Pixar’s core competencies in
the creation of computer-animated
features. Integrating Pixar allowed Disney to transfer and apply
some of its own unique
competencies including marketing, brand building, and product
extensions.
Acquisitions Ever After…
In 2009, Disney turned to acquisitions again. The acquisition of
Marvel Entertainment for $4 billion
added Spider-Man, Iron Man, The Incredible Hulk, and Captain
America to its lineup of characters.
Marvel’s superheroes grossed a cumulative $15 billion at the
box office, with The Avengers bringing
in some $2 billion. In 2012, Mickey Mouse’s extended family
was joined by Darth Vader, Obi-Wan
Kenobi, Princess Leia, and Luke Skywalker when Disney
acquired Lucasfilm for more than $4 billion.
In 2014, Disney acquired Maker Studios, a YouTube-based
multichannel network, for $675 million.
Under Disney, Maker Studies is no longer focused on providing
some 60,000 YouTube creators with
support by promoting their channels and selling ads. Rather,
Maker now has marching orders to
focus on no more than the top 250 YouTube content creators

with large followings. The goal is to
build billion-dollar franchises in the new on-demand TV space.
One of Maker Studios’ early success
stories was YouTube megastar PewDiePie, who at one point had
the most successful YouTube
channel and for many years was one of the highest-profile stars
on YouTube. In 2017, however,
Disney cut ties with PewDiePie following his posting of videos
in which he made inflammatory
remarks, not in line with Disney’s values.
Building Billion-Dollar Franchises
After taking the reins, CEO Iger transformed a lackluster
Disney following a decade or so of inferior
performance by refocusing it around what he calls franchises,
which generally begin with a big movie
hit and are followed up with derivative TV shows, theme park
rides, video games, toys, clothing such
as T-shirts and PJs, among many other spin-offs. Rather than
churning out some 30 movies per year
as it did before Iger, Disney now produces about 10 movies per
year, focusing on creating box-office
hits. Its annual movie lineup is dominated by such franchises as
Stars Wars and Marvel superhero
movies and by live-action versions of animated classics such as
Cinderella and Beauty and the Beast.
The biggest Disney franchises that started with a movie hit
include the Pirates of Caribbean (grossing
more than $4 billion), Toy Story (over $2 billion), Monsters,
Inc. (close to $2 billion), Cars (over $1
billion), and, of course, Frozen (over $1.5 billion).
The 2013 animated movie Frozen (made by Walt Disney
Animation Studios run by Pixar execs
Catmull and Lasseter) has grossed over $1.5 billion, making it

the most successful animated movie
ever. To further build its Frozen franchise, Disney is working
on a sequel of its animated movie hit for
release in late 2019. It has spun off several shorter films and is
now also a Broadway musical. It offers
much merchandise and is a dreamlike ride through the fictional
world of Arendelle at Disney World’s
Epcot Center, replacing a previous attraction that had grown
stale.
The Star Wars franchise, however, is clearly the crown jewel in
Disney’s lineup of billion-dollar
franchises. The 2015 Star Wars sequel The Force Awakens
grossed over $2 billion on the big screen,
making it the third-highest grossing movie ever, after Avatar
and Titanic.
Intergalactic Finance: The Star Wars Franchise Is Worth $10
Billion
The numbers generated by the Star Wars franchise do seem
fantastic. First, consider just the movies.
Although The Force Awakens grossed over $2 billion in box-
office receipts on a budget of about
$260 million, NYU finance professor Aswath Damodaran
estimates the final gross receipts of the
2015 Star Wars sequel to be $10 billion.
https://www.coursehero.com/file/32276402/MGMTNotes803pdf
/
Th
is
stu
dy

re
so
ur
ce
w
as
sh
ar
ed
v
ia
C
ou
rs
eH
er
o.
co
m
Powered by TCPDF (www.tcpdf.org)
http://www.tcpdf.org

Strategic ManagementFinal Case StudyAndrea BarilAs.docx

Strategic ManagementFinal Case StudyAndrea BarilAs.docx

Recommended

Recommended

More Related Content

Similar to Strategic ManagementFinal Case StudyAndrea BarilAs.docx

Similar to Strategic ManagementFinal Case StudyAndrea BarilAs.docx (20)

More from rjoseph5

More from rjoseph5 (20)

Recently uploaded

Recently uploaded (20)

Strategic ManagementFinal Case StudyAndrea BarilAs.docx