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The Walt Disney Company Essay

668 words - 3 pages

Disney’s outstanding history of success has been accomplished through a series of strategic business choices involving synergies, brand management, and creativity. Known as the king of entertainment and media, Disney has also been able to remain profitable for so long due to the company’s various strategies used to create value through diversification, expansion, and integration. Throughout Disney’s history, the company was always operated by key businesspeople that had a goal of maintaining the brand and remaining profitable as the largest multinational entertainment conglomerate in the world. Additionally, Walt and Roy Disney set the stage for future leaders of the company to achieve ...view middle of the document...

By expanding the Disney brand throughout various channels around the world, the company was able to expand its product line and continue introducing new ways to remain creative and manage their brand wisely. The company diversified internationally by installing resorts and theme parks in Paris and Tokyo, which allowed Disney’s leaders to gain a better understanding of how people from all over the world react to its many products (via Retail-as-Entertainment) and other various entertainment programs. In addition, Disney was quick to manage synergies on the corporate level by introducing programs such as Disney Dimensions and Gong Shows. Nevertheless, much of the success attributed to the company is due to the rejuvenation created by Michael Eisner.

Disney’s most recent success is due to Michael Eisner’s rejuvenation of the company starting in 1984. Specifically, Eisner increased net income in his first four years by managing creativity, maximizing shareholder wealth and theme park profitability, and expanding into new businesses such as Retail-as-Entertainment. These corporate strategies allowed Eisner to create value through diversification by significantly...

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