The Walt Disney Co.: The Entertainment King
Marta Aparici Hornero
Business Strategy MG530
1. Why has Disney been successful for so long?
Nowadays, the small animation studio which was created in 1923 by Walt and Roy Disney has been converted in one of the biggest Companies in the entertainment field. With a $30.000 million annual income. The Walt Disney Company manages eighteen theme parks, thirty-nine hotels, eight cinematographic studios, and eleven TV channels.
Walt Disney pictures, the most important cinematographic studio, continues producing animated feature film, in a pretty fast pace. In May 2006, The Walt Disney Company acquired the animations studios Pixar. ...view middle of the document...
By then, they proposed themselves to release two features films per year, plus a number of shorts. Although the company had some ups and downs years after, they survived the lean years.
Disney’s, reissuing cartoon classics to new generations of children became an important source of profits for Disney. Unlike other providers, Disney had and has the ability to reuse and remake previous content. A good example; the new re-release of a 3D version of The Lion King. They have well-used their ability to reuse content.
Another reason for Disney’s long successful is their ease to develop a wide content to appeal to a wide range of ages. Their parks provide an experience for the whole family to enjoy.
Their ability to continually realign its strategy to the trends of the market is another good reason why Disney is still a successful company. Disney always tries and creates new ideas, and they mainly accomplish. They use its strength of insight to predict up and coming industry trends and its incredible scale and wealth of resources to dominate the market.
On the other hand their inability to be imitated; they are protected by various barriers, is and important reason why Disney has been able to reduced/eliminate the competition and sustain a profitable Company over the years. Disney has created characters, like Mickey Mouse, Goofy, and a brand that is unable to be duplicated. As I wrote at the beginning Walt learnt the importance of legal protection, from his fist character “Oswald”.
Improvements and innovation. Disney always tried to upgrade their business lines, whether it was through film production, theme park or customers industry. The upgrading and investing of the three is had made Disney a long lasting company. The three are areas of growth and added value.
2. What did Eisner do to rejuvenate Disney? Specifically, how did he increase net income in his first four years?
Eisner took the helm in 1984. He was named Disney’s chairman and CEO in 1984. According to the case study; he committed himself to maximize shareholder wealth through an annual revenue growth target and return on stockholder equity exceeding 20%. His plan was to build the Disney brand while preserving the corporate values of quality, creativity, entrepreneurship and teamwork.
Eiser took several steps to rejuvenate Disney; it took him years and effort.
He viewed “managing creativity” as Disney’s most distinctive corporate skill. He encouraged expansive and innovative ideas, he wanted to achieve creativity. Firstly he revitalized TV and movies business. It was one of their top priorities. They rebuilt Disney’s TV and movie business. They brought back “The Disney Sunday Movie” on ABC. According to Eisner, the show “help demonstrate that Disney could be inventive and contemporary… It put us back in time” Eisner increased the company’s production of new films and improved the content of films to suit more contemporary audience.
Years later Eisner hired...