CASE ANALYSIS

“The Experience of Walt

Disney Co.”
Dr. Hanlie A. Taha
Gregorio C. Echague IV
 Financial history is full of
outsized personalities and towering
figures. Many of the richest men in
history got there by building
empires of fur, oil, steel, rails and,
yes, software. All of these are
tangible products with a simple
formula: keep the costs down and
sell more. Disney, the man and the
company, were birds of a different
feather.
 Only by constantly
innovating and pushing the
boundaries of not just
animation, but what Disney was
as a business, did the company
go from a moderately
successful animation studio, to
a complete entertainment
experience, with theme parks,
merchandising, cruise ships and
on and on.
 Walt Disney famously said
"if you dream it, you can do
it." The story of his life and
the creation of his company
reminds us that once you
dream it, you must
continually re-dream and re-
imagine it, to succeed.
 Walt Disney is a master in
globalization. It is one of the largest
companies on the planet. Disney tries
hard to create the big amount of
revenues in the markets and worldwide
itself in order to establish itself become
as a global brand. Afterwards, the
brand has been further developed as a
result of merchandising. Merchandising
has definitely played an important role
in establishing the brand all over the
world.
 An important factor in the success
of Disney has been the integrated
nature of its products, with synergies
between film and television, between
media and theme parks, and between
theme parks, hotels and resort
operations," according to the 1998
book Embracing and Managing Change
in Tourism: A Globalised Theme Park
Market? The Case of Walt Disney Co.
I. Statement of the Problem
One major problem that Walt
Disney Co. is facing is when it
expanded into Europe in 1992,
opening the theme park Eurodisney
near Paris. The European experience
appeared to be difficult, mainly
because the concept was insufficiently
adapted to the diversity of European
cultures.
 Secondary problems are also
noted like high costs in
entertainment and production,
frequent change in top
management positions, parks and
resorts are not easily accessible
leading to a costly trip for visitors,
travel trends or leisure time is
seasonal and interactive media is
overall unprofitable.
 II. Statement of Objectives

1. To adapt to the European

context by considering the
cultural background of the
European people.
2. To strengthen operations
by identifying new opportunities
in the current target markets.
III. Areas of Consideration
Threats
Loss of Control over SBUs
Recession
Negative Publicity
Fierce Competition
Poorly Integrated Acquisitions
• Changing consumption behavior
. Piracy/ protection of intellectual
property.
• Decrease of DVD sales.
Opportunities

Continued Growth through

Further Diversification
New Markets Available for
Expansion (Foreign Opportunities)
Potential for Enhanced Web
Presence
Further Penetration of Target
Markets through Versioning
Knowledge Management-
Information Transfer
 Weaknesses

Top Tier Management Turnover

Redundancy in Business Functions
Due to SBU Structure
Inclusion of High-Risk
Investments in Holdings
Lack of Corporate Control over
Divisions
Growth Barriers in Theme Parks
Strengths

Stable Revenue and Profit

Growth
Diversified Portfolio
Tremendous Brand
Recognition
Responsiveness to Markets
Substantial Asset Holdings
IV. Alternative Courses of Action

1. First, strategic business units

must continue to strengthen
operations by identifying new
opportunities in the current target
markets.
2. Second, by innovative
leveraging of the Disney brand.
V. Strategy Formulation

1. Disney must continue its innovative

developments from within the traditional
strategic business units structure.
2. It must scan for opportunities, such
as the real estate venture, which lie outside
the traditional hierarchy.
3. Disney must constantly revitalize the
organization so that the culture does not
become stagnant at any point.
VI. Action Plan

Activities Areas of Timeline Logistics

Responsibility
1.