Walt Disney Corporation
The Walt Disney Corporation (Disney) is an entertainment conglomerate with operations in the media networks, studio entertainment, parks and resorts and consumer products. They operate in North America, Europe, Asia Pacific and South America, with the U.S. being the major market.
In order for Disney to experience long term growth, they have established 3 marketing priorities: creative innovation, global expansion and application of technology. With the execution of their marketing strategies, they had a great creative year in 2005.
For creative innovation, they have invested in healthy food with Kroger and will soon launch a food line offering healthy ...view middle of the document...
Intense competition, decreased consumer spending, Piracy, and regulatory risks are all factors that challenge Disney’s growth in the marketplace.
Challenge 2 – In Global Markets
Disney invested in India, China and other markets around the world by introducing Disney television and magazines, but there are challenges and limitations on the returns in their investment in these markets. Culture and spending are different from the United States. So they know that return on investment will be relatively slower in Asian than the American market.
They opened the new Hong Kong Disneyland which will take years before they see any profits from this new theme park. With it is a new Resort to strengthen the Disney brand name in China, but it too has failed to meet expectations. The park only has 16 attractions with only one thrill ride compared to 52 at Disneyland Paris. The Hong Kong Polytechnic University did a survey which showed that “70% of the local residents polled said they had a more negative opinion of Disneyland since its opening. The company has also faced ticketing and employee relations issues. The weak performance of Hong Kong Disneyland would tarnish Disney's image and prospects in Asia.” (Datamonitor, 2006).
Challenge 3 – In Technology
With the development of new technology, Disney is continuously facing competition. Many of the Disney brand products are also copied and illegally sold, called piracy.
As technology expands, other familiar brands increase dramatically. But fortunately, Disney has some of the strongest brands in the entertainment industry, like Disney and ESPN. They continue to stress confidence in Disney’s brand names and consumer products around the world.
Impact of these Challenges
To overcome these challenges that they face in technology, products and parks, Disney is now looking at venturing into other things. Their partnership with Apple iPod, for instance, provides ABC and Disney channel content on the iPod. The consumer can stay connected with their favorite TV shows. More than half of the one million videos sold in the first three weeks on iTunes were those TV shows.
The Apple deal served as a catalyst to help the Disney team to think increasingly outside the business models by taking intelligent risks to the benefit of their consumers and stockholders.
They also recently launched the Mobile ESPN phone and Disney Mobile and thanks to the strong affinity of consumers to the Disney brand name, their consumer products operation is seeing increased sales. They joined a partnership with Kroger to launch a food line...