Does Walt Disney's portfolio exhibit good strategic fit?

What value chain match-ups do you

see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?

The four divisions business units: Parks, Experiences and Products, Media Networks, Direct-to-
Consumer & International, and Studio Entertainment in Walt Disney’s portfolio exhibit good
strategic fit. Fox 's purchase helped them to increase their market valuation and acquire a greater
customer base. They have now purchased Twentieth Century Fox and FX (from the 21st Century
Fox acquisition) both of which make for a better portfolio.

Since Disney has many business units in diverse areas and fields, it can use many of its assets and
competencies in a variety of ways. They reach out to get companies that add value to their
business, and they also end up reducing some competition. Through these acquisitions they
improved their role in the television and film industries. Disney and Lucas Films along with Disney
and Marvel Studios are value-chain matchups that I can identify. Lucas Films, with Star Wars, and
Marvel each have an overwhelming fan base, and by first purchasing these studios they add value
to their business, and then making higher-budget films to make a stronger, more profitable
commodity. Lucas Films and Marvel were able to share that ability with one another, but they
could also share this expertise in other Disney films. Costs sharing in producing the film comes into
play as each studio brings multiple resources, meaning that there are potentially bigger deals that
can now be made to save money.

Also, in many areas we can see opportunities for skills transfer and cost sharing. For example:
Disney’s Media Networks can advertise their theme parks, their studios can be used for movies,
and technology researched by Studio Entertainment can certainly be shared across the board.

Citing Thompson, Peteraf, Gamble and Strickland (2021) "The Walt Disney Company’s corporate
strategy also attempted to capture synergies existing between its business units. Two of the
company’s highest grossing films, Pirates of the Caribbean: On Stranger Tides and Cars 2 were also
featured at the company’s Florida and California theme parks. The company had leveraged ESPN’s
reputation in sports by building 230-acre ESPN Wide World of Sports Complex in Orlando that
could host amateur and professional events and boost occupancy in its 18 resort hotels and
vacation clubs located at the Walt Disney World resort.”

Thompson A., Peteraf M., Gamble J., & Strickland A. (2021). Crafting & Executing

Strategy: The Quest for Competitive Advantage: Concepts and Cases.

[VitalSource Bookshelf]. Retrieved from

https://bookshelf.vitalsource.com/#/books/9781264250165/