After the death of Walt Disney, Michael Eisner took over the business and made Disney what it is today when Disney was going downhill.

1. MICHAEL EISNER‟S DISNEY
Prepared For:
Mohammad Hannan Miah
Prepared By:
Khandker Sabbir Hasan 073656030
Syed Mashhud Quader 1010792030
Syed Shafquat Huq 0910337030
Syeda Tubla Tasneem 083194530
Tahia Asad 0930544530

2. Outline
 History and development
 Porter’s five forces
 SWOT analysis
 3 “I” analysis
 Corporate level strategy
 Business level strategy
 Structure, control and organizational structure
 Recommendation

3. Disney’s history and
development
1922-1928 The Silent Era
-Company was found
-Created the short film: Alice in wonderland
1928-1934 Mickey Mouse and Silly Symphonies
-Created the most successful Disney character: Mickey Mouse
-Experience in cartoons developed; contract with Technicolor to
produce cartoons in color
-Won its first Oscar
1934-1945 Snow White and seven dwarfs and War World II
-Snow white and seven dwarfs was introduced which was a
huge success to hit the box office
-Revenue to set up studio at Burbank
-Issued 155,000 shares which raised the working capital to
$3,500,000
Onset of World War II, box-office profits began to dry up

4. Continued..
1946-1954 Post War and Television
-foray into television
-Movies such as Water Birds, The Alaskan Eskimo and many
others were produced which were huge successes and are still
1955-1965 popular
Disneyland
-Walt Disney opened Disneyland to the general public
-Disney World, Orlando
‡ -The long-running anthology series
1966-1971 The Deaths of Walt and Roy Disney and the opening of
Walt Disney world
-Walt Disney died
-Michael Eisner took over and Walt‟s brother Roy took over the
management of Disney world
-The first part of Disney world was built: The Magic Kingdom

5. Continued..
1972-2004 The Eisner Era
-Michael Eisner and Jeffrey Katzenberg from Paramount pictures
were brought on board
--Disney channel came online with 532,000 subscribers but was
not as successful
-Disney‟s acquired Mirmax films
-Ronald Miller became the CEO and with his turnaround strategy
brought Splash which was a huge hit
- In September Michael Eisner took complete control on Disney
-Hired Gary L. Wilson for developing and expanding further
-Profits from Disney world and Disney land rose by 38%
2005- -Another part of Disney was built which was a huge success:
The Iger Era
present Typhoon Lagoon
-sales jumped from $1.46billion to $4.59billion
-Michael Eisner replaced by Robert Iger as CEO
-Expected profits to increase by 20%
-Purchased Pixar Animation Studio

6. Porter’s
five L
Threat of
O
forces W
new
entrants
Current H
L Bargaining Bargaining
power of competition: power of I
O
suppliers customers G
W STABLE
H
L
O Threat of
substitutes
W

7. Strengths
 Popular brand name with popular characters, famous
logo with high awareness among people
 Walt Disney was a creative genius and he and his
company then were always at the forefront of
technological developments
 His invention on various techniques won him Oscars
 After Walt, Michael Eisner was the savior of the
fortunes of the corporation
 Entertainment and recreation
 Motion pictures and home videos
 Consumer products

8.  Built shops, bars, restaurants and
took control over the food operations
of their parks
 Their Imagineering Unit is responsible
for all technical advances
 Opened hotels for Disney guests to
stay instead of them staying in other
hotels not owned by Disney.
 Disney was involved in selling its
organizational culture which is
centered on high-quality customer
service for its new recruits.

9. Weakness
 The motion picture FANTASIA was a
commercial disaster, coincided with
the unpopularity of cartoons during
World War, plunged Walt Disney
Productions into debt.
 After Walt‟s death, Disney‟s movie
operations suffered, because they
failed to find good scripts and projects
and there was also the start of fighting
between Disney‟s managers and
stockholders
 Before the arrival of Eisner, none of
the business segments followed any
clearly defined strategy to exploit the
Disney resources

10. Opportunity
 With the end of the war, public was open to fun and
fantasy and Disney took it as an opportunity to
search for new projects.
 Disney took popular fictional characters and turned
them into movies, embarked on a series of nature or
wildlife projects, took their projects to the television
screen
 Its entry to the home video market
 Disney recognizing the possibilities of water
attraction from Sea World, and created Typhoon
Lagoon

11.  Opened Euro Disney Theme park in Europe
 Signed an agreement with Mattel, to sell toys
worldwide
 Disney also announced that it would open a
new record division called Hollywood records
 Disney music channel and develop more
attractions in the park

12. Threats
 After Walt Disney died, nobody could provide the
creative vision to lead a company whose mission
was to provide fun and fantasy
 The profits being earned by businesses in the vicinity
of the park were vastly more than the revenues
Disney received.
 The open conflicts inside the organization after
Walt‟s death increased possibility of unfriendly
takeover by corporate raiders.
 For every dollar, Disney was collecting in revenues

13. THREE “I” ANALYSIS
 IMMEDIATE COMPETITORS: Universal
Studios, MCA, Sea World, Six Flags Theme
Park, Hyatt Hotels, Hilton Hotels, CBS, Time
Warner, Fox Entertainment, Paramount
Parks, Orlando Theme park
 IMPENDING COMPETITORS: China and UK
Theme Parks
 INVISIBLE COMPETITORS: Play Station,
Xbox, Virtual gaming centers

14. Corporate Level Strategy
 Walt Disney started full length cartoon motion
picture.
 In 1940 they went public raising $3,500,000.
 Walt invested into television sector.
 He further invested in making theme parks.
 In 1966 after the death of Walt his brother Roy
took over management.
 Roy planned on investing on a huge tract of
land to realize some dreams of Walt.

15.  In 1971 a new CEO came forward Cardon Walker
after the death of Roy Disney.
 He wanted to liquidate the movie making sector
which was the core business.
 Due to unrest because of his attitude soon
enough a new CEO was appointed named
Ronald Miller in 1983.
 He opened a new division known as Touchstone
Films.
 Roy II, nephew of Walt lost confidence on the
management and appointed Michael Eisner as
the CEO.

16.  Eisner aided the concept of new attraction and
brought forward a new water park and also went on
collaboration with MGM.
 He took hold of the food selling vendors aspect inside
the park.
 In 1985 Eisner announced collaboration with George
Lucas for a Star Wars attraction at Disney Land.
 In 1983 they opened one in Tokyo, Japan.
 In 1991 they opened one in France, Europe.
 He distributed movies to television and as Videos.

17.  Eisner kept in mind „new attraction‟ bit and decided
to make one classic a year so that customers
would always be with them along the journey.
 In 1989 Disney bought KHU-TV a station and
changed the name to KCAL-TV.
 On the same year, Disney established a third
motion picture company called Hollywood Pictures.
 In 1987 he made a deal with Sears for clothing
and toy which was for 10 years.
 In 1988 Disney paid $52 million to buy Childcraft
Education Corporation which sells educational
toys.

18. Business Level Strategy
 Differentiator:
 Movies
 TV and Radio
 Publishing
 Theme Parks
 Vacation Resorts
 Consumer Products

19. Business Level Strategy
 Product Development-
 Introduction of zoological park, food concessions,
water park etc.
 Opening hotels and resorts near theme parks
 Market Development-
 Going global- Canada, Europe, China, Japan, Hong
Kong, India etc.

20. Structure
 Decision making Triad
Mark
Eisner(CEO)
Frank wells Gary Wilson
COO CFO

21. Structure
Divisional structure
Disney
Motion Pictures and
Entertainment and Home video
Consumer Products
Recreation Jeff Katzenberg
Creative head

22. Control
Personal control
 Michael Eisner‟s Personal control
 The influence of Walt Disney

23. Control
Behavioral Control
 Leadership and Conflict before Eisner
 Imagineering Unit

24. Control
Output Control:
 Studio skills.
 Monitor customer segments and
behavior.
 Licensing and Brand Name.
 Distribution control.

25. Organizational culture
 Pixie Dust- training,
communication and
care.
 High quality customer
service.
 Trained employee.
 Empowered employees
to learn to take their own
decision.
 Innovation.

26. Recommendations
 Expand in Persian Gulf
Countries (Dubai) which
can be a lucrative market
given their growing
popularity as tourist hub
 Get into E-learning
 Open institutes to train
animators
 Develop to stop piracy
(esp. China)