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  • Essay / Walt Disney Case Study - 1862

    The Walt Disney CompanyThe King of EntertainmentI. SummaryAfter analyzing the case of Walt Disney, we found that the fundamental problems include the need to increase revenue to meet the 20% growth goal set by senior management and to expand into new markets and/or sectors. We used Porter's Five Forces analysis to develop our alternatives (please see Appendix A for more information). The alternatives we proposed were to expand globally and enter the Internet and cable business. We analyzed these alternatives against a select set of criteria, including: implementation time, how the alternatives fit into Disney's corporate culture and corporate synergy, whether alternative would provide competitive advantage, cost of implementation for Disney and revenue. potential for the alternative. Once our analysis is complete, we recommend that Disney expand globally to capitalize on unrealized markets to alleviate its fundamental problems.II. Fundamental Problems The two fundamental problems for Disney are: • Growing revenue to meet the 20% growth goal set by senior management. • Expand into new markets and/or sectors III. AlternativesWe have proposed two alternatives that address Disney's fundamental problems. These two alternatives are possible solutions to the fundamental problems we have proposed. The alternatives are: • Expand globally • Enter the Internet and cable industry IV. Evaluation Criteria:A. Implementation timeframe In recent years, many mergers have taken place, particularly in the telecommunications and broadcasting market, leaving a few extremely large companies to compete with each other. One of the most recent was a merger between America Onli...... middle of paper ......ng CompetitorsAverage • The industry is growing rapidly and is cyclical with periods of overcapacity• Fixed costs are relatively low • Significant Brand identities and product differences • Competitors are more specialized than diverse • Low switching costs for customers • Competitors all come from the same background, are relatively the same size and have similar training Exhibit B: Cable Industry Operating Revenues Report Exhibit titled: Cable Mergers, Monopoly Power and Price Increases by Mark Cooper, January 2003 http://www.consumersunion.org/pdf/CFA103.pdfExhibit C: Competitive Advantage ComparisonThe Walt Disney CompanyMedia NetworksCable DistributionBroadcast and International Cable NetworksABC Stations ESPNTV Disney ChannelABC Radio Networks Toon Disney Radio Stations SoapNet