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Walt Disney Walt Disney is one of the biggest diversified company in entertainment industry.

The net income of Walt Disney increases by 21% for the recent quarter to reach $1.14bn, but the revenue from its media networks & theme park businesses faces losses at its film studio. Even the overall revenue for the recent quarter March 31 increases 6% y-o-y to $9.63bn from $9.08bn. The revenue from cable networks increases 12% during recent quarter to $3.17bn. Also the broadcasting revenue increases 2% to $1.53bn. The Disney parks & resort revenue increases by 10% to $2.9bn, as spending & attendance improved in domestically & abroad. Even the consumer products & interactive media division increased its revenue by 8% & 13% respectively. But, the studio entertainment division decreases its revenue by 12% to $1.2bn through operating loss of $84m.

Diversification: Diversification is the corporate strategy where the company entered into the new market with the new product offerings. It can be occur at the business unit level (BUL) as well as at the corporate level. At the BUL, it is most likely to expand into new segment of an industry that the business is already in. At corporate level, entering into a promising business outside of the scope of the existing business unit.

Related Diversification: The related diversification is that when the business adds or expands its existing product lines or market. In these case, you have the advantage of understanding the business and of knowing what the industry opportunitiee. Unrelated Diversification: The unrelated diversification is that when a business adds new or unrelated, product lines or market. In these case, there are no direct fit with the existing business.

Value chain analysis of Walt Disney: Walt Disney is uses the related diversification strategies as they diversify themselves into the same industry which they are in, such as media networks broadcasting, theme park, Disney cruise line, resort properties, studio entertainment, consumer product, media network cable, walt Disney internet group, etc. The Walt Disney has great opportunities to share value chain activities to achieve strategic fit. They have different markets through different segments which they attached with different value chain. 1) Supply Chain: Media Networks & Studio Entertainment. 2) Manufacturing & Operation: Media Networks & Studio Entertainmnets. 3) Distribution: Parks & Resorts & Consumer Products; ABC Television & Studio Entertainment. 4) Sales & Marketing: Media Networks, Parks & Resorts, Studio Entertainment & Consumer product. 5) Managerial & administrative support: Media Networks, Parks & Resorts, studio entertainment & consumer products. Basically the value chain is a tool that analyzes the value of what the company does & how to maximizes the same. It helps to create the greatest possible value to your customer. Even it also helps to analyze that how the operation, technology development etc. functions are done relatively with the competitors. Basically below are the some common functions of the value chain through which Walt Disney gets benefits in their overall value chain activities. Operations: 1) They hire entertainers to entertain the customers. Which is the most common thing which they apply through overall organization. 2) They built up the environment to entertain customers. These value chain activity add major value to their overall industry value chain. 3) Even they arrange special services to the disability customer, which shows that their focus on the customer.

Marketing & sales: 1) They marketing not only through the advertisement through the newspapers but also the passing words of its customers, which gives them good feedback. 2) They also provides the night tickets & 2 days tickets, which also heps them to increase their sales.

3) They offers special services & events for festival & occasions, through which large no. of customers attracted towards Disney club. Services: 1) They basically offers the services as family oriented. 2) They even gives after sales services too i.e. customer can return their product in 30days if they are not satisfied with the same. 3) Even they provided home delivery services to their customer. Human Resource management: 1) They recruit the domestic level employees as they are known their local language which help them to understand the customer behavior & also to give them best services. 2) Even they have Disney university through which they oriented & trained the staff every year. Technology Development: 1) They provides rides facility. 2) Even they provide new expansion like Toy Story Land which is the first in Asia. 3) Even they always focus on development & expansion of the park.