Walt Disney Company has four major strategic business units: movies (Touchstone), theme parks, consumer products, and television (primarily cable). Place each of these SBUs on the BCG matrix based on your knowledge of them.
By analyzing online data and discussion in pairs, we came to the conclusion that the stars are the movies; the cash cows are the theme parks; the dogs are the television; and the question marks are the consumer products.
We believe that movies are stars, because it fits the definition of the starâ€”â€”a large market share and high business growth rate. According to some statistics of recent 3 years, there are more than 3 Disney movies on in China in the first half of each year. In 2010, Alice's ...view middle of the document...
To begin with, Disney created the theme park. It is definitely a brand new area that no one has reached before, so it is a dominant business in the industry. Although Disney has many opponents, such as Universal, it is obvious that Disney is the leader of the industry with a large market share. Also because of its original design, people of different ages, from different countries, can enjoy their time in the theme parks. In addition, the brand effect and the cartoon star effect create a best environment so that investments in advertising and plant expansion are no longer required. According to the data from Disneyâ€™s official website, the theme park is the main resource of the income and most of the revenue from theme parks is used to produce movies, so it can milk itself to invest in other riskier businesses.
We place the consumer products in the question mark, because they are risky and could fail. Although Disney has a variety of products from food to cosmetics, they are all sold with Disney cartoon patterns which aim at young children. That is to say, we buy them only for temporary interest instead of real demands. So these products now have only a small market share due to its limited consumer groups and other strong competitors who focus on one or two types of products.
At last, the television (primarily cable) becomes the dog. First of all, it is out-of-date. Although it has a channel in the United States, it is only known for the Americans. From the global point of view, it has only a small share of a slow-growth market. As the development of science and technology, media network is now playing a more and more important role in the industry. The cable television is no longer competitive compared with the media network and provides little profit for the corporation.