Global Business Strategy

Presenters

Amritha
Chottakurien

Anubhav
Dawar

Pranshul
Chauhan

Sreevatsan
Sreenivasan

1923-1966

Walter Elias Disney launches the Disney Brothers Studio

in 1923 with his brother Roy Disney
1928 Mickey Mouse the character is born
1937 Company created the worlds first full length
animated feature film, Snow White and the Seven Dwarfs

1940 Walt Disney goes public

1954 Expansion into television

1955 Theme park Disneyland

1966 Walt Disney passes away

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

1967 - 1984

1971 - Disney World opened in Orlando, Florida

1976 First major international expansion, Tokyo Disneyland
announced in 1976
1980 - Touchstone launched to target the teen/adult market
for film goers
1980 Financial condition of Disney deteriorating with
increasing costs and dismal performance of
various divisions
1983 Disney Channel launched on cable
1984 Roy Disney resigns from the BOD for
poor performance

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

1984 - 1993

1984 - Michael Eisner takes over as Chairman and CEO, Frank

Wells named president
Eisner shift focus on growth with targets & maximizing
shareholders wealth
Gave impetus to creativity which was being stifled within the
firm

1988 Turnaround of Disneys film division

1988 High investment in animation technology

1990 Focus on maximizing theme park profitability

1992 Euro Disney opens in Paris

1992 Expansion into NHL league (The Anaheim Ducks)

1993 Enters broadway with Beauty and the Beast

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

1994 onwards

1994 - The Lion King breaks box office

1994 Frank Wells killed in helicopter crash

1994 Major attrition in senior leadership of the company

1995 Disney bought ABC, second biggest acquisition in US

history at the time

1998 Disney faces severe financial slump

1999 Announcement of theme park in Hong Kong

1999 Cost cutting plan undertaken

by company

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

diversified
Media
Networks

Studio
Entertainme
nt

Theme
Park/Resort
s

Internet &
Direct
Marketing

Consumer
Products

ABC
GO.com
Merchandi
Disney
Anaheim
The
Walt
Disney
Internet
Broadcastin
Cable
Comerce
sing
Sports
Disney
Imagineerin
g
Networks
& PublishingGroup
Licensing
Store
g
TheatricalInternationa Beuna Vista
l
Films
GO.com
Home
Walt
Disney Disney Disney
Walt
Internatio
Entertainme
Attractions
Regional
Interactiv nal Disney Art
nt
Entertainme
Classic
Distribution
Television e
nt
Production

Beuna Vista
Music Group

ESPN
Theatrical
Internet
Productions
Group

Televenture
s

Disney
Online

GO
Network

Diversification Strategy

Related Diversification

High on corporate and operational relatedness in order to

create economies of scope
Sharing activities among its different movie distribution
companies such as Touchstone & Hollywood Pictures
Corporate relatedness through installation of a corporate
marketing function to stimulate and coordinate
companywide marketing strategies
Cross selling of products highlighted in its movies through
theme parks, resorts and merchandise stores
Themes established in movies become a part of the theme
parks in the form of rides

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

BCG Matrix
HIGH

Internet and direct

marketing

Theme
Park

Media
Network

COW

DOG

Consumer
Products

LOW

Market Growth

STAR

LOW

Market Share

Studio
Entertai
-nment
HIGH

Integration Strategies

Horizontal
Integration

Vertical
Integration

Forward

Forward

Backward

Backward

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

Forward Integration

Buena Vista Distribution in order to

eliminate distribution fee
Buying back of food and merchandising
operations within theme parks
Launch of the Disney
Channel in 1983

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

Forward Integration

Disney Stores, retail as entertainment

concept
New distribution channels such as direct-mail
and catalog marketing
Buena Vista Home Video-marketing videos by
surpassing video rental stores
Using the internet as a
distribution channel

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

Backward Integration

Walt Disney Music Company formed to

control Disneys music copyrights
In house travel company to work with travel
agencies, airline and tours in order to bring
customers
ABC focused on using
content developed
in-house

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

Horizontal Integration

Acquisition of CapCities/ABC, to own a

programming distribution channel

ESPN Zones

DisneyQuests

Cruise Ships

Educational Retreats

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF MODEL
Statu
s
Certain
ty
Autono
my
Relate
d
Fairne

SCARF
SCARF MODEL
MODEL
Statu
Paying employees more for the skills they posses rather
than the seniority.
s
Developing pride among the employees towards Disney
Corporation.
Developing synergies among the senior executives at
Synergy Boot Camp.
Linked bonuses to the commitment towards synergies.
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Statu
s
Certain
ty
Autono
my
Relate
d
Fairne
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Pre movies release brainstorming sessions with
consumer product heads.

Certain
ty

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Statu
s
Certain
ty
Autono
my
Relate
d
Fairne
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Rather than providing autonomy Eisner practiced
micromanagement of its employees.
Employees had autonomy to resolve their disputes among
themselves.

Autono
my

Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Statu
s
Certain
ty
Autono
my
Relate
d
Fairne
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Developing synergies among the senior executives at
Synergy Boot Camp.
Too much conflict between the members of the
organization.

Relate
d

Management jointly organized events :

Snow Whites 50th Anniversary
Mickey Mouses 60th Birthday
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Statu
s
Certain
ty
Autono
my
Relate
d
Fairne
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

SCARF
SCARF MODEL
MODEL
Eisner and Frank Wells were always available for
discussions in case of any discordance
Available for arbitration
Encouraged quick resolution of disputes

Fairne
Source: Harvard Business Case Study. The Walt Disney Company: The Entertainment King

Balance Score Card

TOWS Matrix

Questions ?