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The Walt Disney Company: Expansion Strategies

1806 words - 8 pages



The Walt Disney Company is one of the leading entertainment companies in the world as it occupies the tenth spot in the list of the leading brands in the world. Incorporated in California more that eighty years ago, the conglomerate enjoys a worldwide presence as it has managed to expand its operations to virtually every corner of the world. To achieve this, the company saw it necessary to not only to focus on the United States market, but also exploit all the other markets around the world as well as diversifying its operations to cover a wider range of entertainment products and services. As of December ...view middle of the document...

The alliance will enable clients to access more option conveniently at the pleasure of enjoying their holidays in Disneyland (Bohas, 2014).
In 2005, the Walt Disney Company signed a strategic alliance with Siemens that would last for 12 years. This brought together the leading company in the world for family entertainment with a key infrastructure and Technology Company in the world. In the terms of the alliance, Siemens was to sponsor several attractions and shows hosted by the Walt Disney Company including the fireworks program, spaceship earth, and IllumiNations.
Although by the time the alliance was formed the Walt Disney company was already using some of the technologies and products produced by Siemens, the strategic alliance made it possible for both companies to expand their technical collaborations across various platforms such as resorts, theme parks, vacation clubs, cruise ships, and other forms of business. Siemens was also to sponsor the showcase of technology in the Innoventions pavilions hosted in Disneyland and well as the attraction dubbed “it’s a small world” the theme park in Anaheim California (Bohas, 2014). Besides sponsorship, the two companies are committed to collaborate in developing and applying a range of new technologies across a variety of platforms. This would be dome in addition to exploring more avenues on how to integrate some of the technologies developed by Siemens into the Disney resorts and attractions in both the domestic and the international destinations (Bohas, 2014).
Vertical integration
The Walt Disney Company is a conglomerate which makes it possible to exercise control over all its production activities and service delivery. For instance, the company is able to distribute all its products using its own internal channels other than depending on other players to distribute and retail its products. Additionally, the company had developed the capability to produce a film in the company’s own studio, create awareness to the public using the company’s networks, and distribute the film via the company’s channel. This ability gives the company immense power which makes it possible to acquire other companies whose operations may relate to that of the Walt Disney Company. The company has over the years gained control over ESPN and ABC, actions that could be termed as vertical integration as the company has taken control over other companies which in other situations would be its main suppliers of service. ABC would for example have charged the company to broadcast the Disney productions (Bohas, 2014).
Outsourcing of labor has been a common practice in the technology and entertainment sectors. Walt Disney is no exception as it has recently made clear its intentions to lay off some workers working in the IT departments of the company’s resorts and parks. This was done as a part of a larger exercise to restructure the IT operations towards innovation oriented projects. The move to restructure...

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