The Walt Disney Company was founded in 1923 by Walt and Roy Disney as an animation studio. It is now one of the largest Hollywood studios, owning 11 theme parks, 2 water parks, TV channels like ABC, and production facilities in Burbank, California. Disney has diversified into areas like mobile phones, acquiring Pixar in 2006. It generates revenue from films, theme parks, TV channels, merchandise, and more. With over 133,000 employees in 2006, Disney continues to strengthen its brands and pursue new opportunities globally.

1. Walt Disney
Case Study

2. • The Walt Disney Company (known as Disney) was
founded on October 16th 1923 by brothers Walt and
Roy Disney as a small animation studio.
• Now it is one of the largest Hollywood studios.
• It owns 11 theme parks, 2 water parks and several
TV channels, including the American Broadcasting
Company (ABC.)
• Disney’s corporate headquarters and primary
production facilities are located at the Walt Disney
Studios in Burbank, California, USA.

3. • June 12th 2006 – Disney Mobile phone
service is launched.
• January 23rd – Disney announces a deal
to purchase Pixar Animation Studios in an
all-stock transaction worth $7.4bn.
• July 2006 – Disney film Pirates of the
Caribbean 2 is the highest grossing film in
opening weekend history at
$135,000,000 USD.
• Employees 2006 – 133,000.

4. Media and Entertainment:
• American Broadcasting Company
• Buena Vista Distribution
• Buena Vista Motion Pictures Group
• Walt Disney Studio Entertainment
• Walt Disney Parks and Resorts
• Disney Consumer Products

5. Strengths:
• Global Standardisation.
• Achieves target audience (children.)
• Creative Process.
• Brand name known across the world.
• Diversification
• Financially strong
Weaknesses:
• High sunk cost.
• Excessive research and development.
• High investment.
• High risk factor.

6. Opportunities:
• Merchandise expanding.
• Global localisation.
• Characters of national or regional appeal.
• Cheaper alternatives to soft toys.
• Disney Music Channel.
Threats:
• Competitors: national, regional & global.
• Employee retention.
• Highly demanding in terms of sales, creativity and
innovation.
• Brand consistency.
• Profit differentiation.

7. • Disney Channel.
• Disney theme parks and resort.
• Disney Stores.
• Disney Studios.
• DVD/Blu Ray/video.
• Soundtracks.
• Board games.
• Offers a co-branded Visa card to adults – card holders earn $1 for every
$100 charged to the card (can charge up to $75,000 annually) and then can
redeem earnings for Disney merchandise or services.
• Home depot – offering a line of licensed childrens room paint colours with
paint swatches in the signature Mickey Mouse ears shape.
• Licensed food products with its characters on its brands, e.g. Disney
provides a yoghurt called Yo-Pals yoghurt with features Winnie the Pooh
and friends.

8. • Pirates of the Caribbean – video game,
DVD/video, TV series and comic books.
• Home on the Range – accompanying sound track
album, line of toys, clothing featuring the
heroine, theme park ride and a series of books.
• Kim Possible – stationery, lunchboxes, food
products, room decor, sportswear, sleepwear,
daywear, accessories, action figures, beanbags,
fashion dolls, diaries, junior novels, comic books,
soundtrack, DVD/video and a Game Boy Advance
game.

9. • Net income: $5.7bn – an increase of 18% from 2011.
• Revenue: Record $42.3bn – up 3% from 2011.
• Gained the media brands: ESPN, ABC, Pixar and
Marvel.
• Wreck-It Ralph delivered the highest grossing
opening weekend in Disney Animation history and
also became the 75th Disney film to cross the $100m
domestic box office threshold.
• Marvel’s The Avengers was the year’s #1 hit as well as
the third-highest grossing film of all time, with more
than $1.5bn.