3. What sort of company did Eisner inherit? Provide a brief summary of the company at the time Eisner took over (discuss each of its business lines in 1-2 sentences that highlight the most important issues).
Eisner inherited a family entertainment company that began as a nonhierarchical organization where no one had titles and everyone was on a first name basis. Walt’s theory was that you didn’t need a title because you knew if you were important. Disney’s philosophy was to create universal timeless family entertainment and believed in the importance of family life maintaining its adherence to the ...view middle of the document...
This form of revenue was the most successful and helped maintained their position as the leader in theme parks.
2 – Movie Division – This line of business began with animation of Walt’s first successful movie short in 1927 before he went solo with “Oswald, the Lucky Rabbit”. Disney included their movie base to include their animation division with different labels for different age groups, i.e. Touchstone Pictures (adults).
4 – Production – First there was Disney Productions and then WED Enterprises was created which provided an environment for the Disney magic to develop, be nurtured and grow. “Imagineers” were able to design and build the parks free of pressure from film unions and stockholders.
5 – Publishing – Disney entered into this line of business with Disney Press (for children’s books) and Hyperion Books (adult books) appealing to all age ranges.
6 – Hotels – Disney incorporated hotels for customers to stay which were located close to/inside the theme parks. First hotel which was very successful was introduced at Disney World.
7 – Travel – Disney operated travel agencies right on site at the hotels to arrange travel and care for customers visiting the parks. Also introduced Disney Cruise Lines.
8 – Disney Toys & Merchandise – With the use of Disney Stores and promotional tie-ins Disney toys and merchandise was successfully promoted. Also utilized were the new channels of distribution through direct-mail and catalog marketing. Also use of cross-promotion made this line very successful.
9 – Home Video/DVD – with Buena Vista Home Video (BVHV) as a new business line at Disney they were able to market their own videos and then later their DVD’s at low prices. Aladdin became the best-selling video of all time.
10 - Theatre Production - In 1993 a stage version of Beauty and the Beast made its appearance and was an instant hit on Broadway. Also restored the Amsterdam Theater supporting and boosting Disney’s commitment to live entertainment.
11 - Internet – In 1996 Disney began to sell its products online which were successful. However, they failed at a launch of a subscription service called the Daily Blast.
12 – Programming Distribution – This line of business was successful through an acquisition of ABC which provided them worldwide distribution outlets for its creative content. The industry likened it as Godzilla marries King Kong it was such an enormous merger. It became the largest entertainment company in the U.S., if not the world.
13 – Sports – acquisition of the National Hockey League and named it after their very successful movie “The Mighty Ducks”. With it came all of the associated sports memorabilia which was sold and became very popular and successful.
14 – Television and Radio – Launch of Disney Channel, using ABC for worldwide distribution for both television and radio,...