Walt A Case Study on Walt Disney Company: The

Entertainment King
Disney

BY:- Group :-3

HIMANSHU GARG
SHIVAM DHAR
NISHANT DWIVEDI
VIBHOR MALHAN
VINAYAK TRIVEDI
SUGAM SHUKLA
• Formed by Walt and Roy with focus on short stories.
• First major hit was “Oswald, the lucky rabbit”
• Minor changes to the rabbit led to the creation of “Mickey Mouse”
• Adding synchronized Sound.
• Licensed mickey mouse for earning cash in the short term
• A flat, non hierarchical structure with focus on team work,
communication and co operation
• First full length movie to sustain the business with goal of releasing two
feature films per year.
 Snow White – Launched 1st Own
Founded 1st featurefilm TV Special distribution
company – full length Channel

1923 1937 1950 1963

1928 1940 1955 1966

Mickey Company went Opening of Death of Mr.

mouse public Disney Land Walt
launch
• Walt Disney world(Theme park) opened in 1971.
• Disney opened in house travel company to increase traffic inpark.
• Tokyo Disneyland announced in 1976 wholly owned by Japanese
partner.
• Film output constantly declined because of lack of creativity.
• New Label Touchstone to target teen/adult market wasintroduced.
• Deteriorating financial performance due to incurring high cost
to finish EPCOT.
• Oil tycoon Sid Bass invested $365 million, reinstating Roy E. Disney to
the board, and ending all hostile takeoverattempts.
• Eisner former President and CEO of paramount Pictures was named
as Chairman and CEOof Disney
• He committed toa return on stockholder equity exceeding 20%.
• He viewed “managing creativity” as Disney’s most distinctive corporate
skill.
• Top priority was to revitalize Disney’s movie and TV business, started the
Disney Sunday Movie in 1986 to put disney back on map.
• Box office share improves from 4% to 19% because 27 out of 33 movies
were profitable.
• Disney pursued strong scripts from less established writers and well known
actors in career slump and TVactors then movie stars.
• Investments made on attractions
• Attendance building strategies to promote growth and
revenues.
• National television ads, special events, media broadcast events
• Lifting restrictions.
• Raised ticket prices
• Co-ordination among businesses.
• Expanding into new businesses , regions and audiences
• Overlaps amongst expanded businesses
• Negotiated internal transfer pricing ( Disney film librarymaterial)
• Corporate marketing function
• Marketing calendar
• Monthly meeting – interdivisional issues
• Library committee
• In-house media buying group
• Joint co-ordination of important events
• Pioneered the concept of retail-as-entertainment concept with the launch of Disney
Stores in 1987
• In the late eighties to early nineties, Disney founded Hollywood records (a pop music
label), Disney Press (publisher of children books), and Hyperion Books (an adult
publishing label). Each of these divisions proved to be successful because of their
low start up costs and huge profits.
• Opening of Euro Disney (later renamed to Disneyland Paris) allowed Disney to have
theme park operations within Europe, whereas new attractions were added to the
existing parks
• With acquisition of Miramax in 1993 and establishing Hollywood Pictures, Disney
were expanding their movie business
 The
Katzenberg Departure
t ransi tions
Led executives to leave company or
change roles
Wells Eisner

•Second largest acquisition in the history ofUS

•Observers of the merger were skeptical for the purchase price; 22 times the 1995 earning and
synergies due to vertical integration
• Press reports of cultural clashes between ABCandDisney
•ABCexecutives were uncomfortable on the fact that how ABCwas used to cross promote Disney
Product
• Key to synergies was Disney Dimension.
• Larger bonuses were awarded to those who had beenmost
committed to synergies.
• Synergies boosted cross-promotion.
• With help of cross-merchandising, Disney intended to make eachnew
animated film to function as amini-industry.
• Focus was on generating more revenue from outside U.S, it planned
to integrate its overseasoperations.
• Horizontally, Disney began developing new venues in the US, LIKE
ESPNzones, sports restaurants multistory facility like DisneyQuest.
• It also expanded in cruise ships and educational retreats.
• Disney Institute opened in 1996 focused on fitness and adventure in
learning.
• Vertically, major initiatives involved Internet andTV.
• Synergy drove lower cost on theme park aswell.
• But Disney had far too many relationship to productivelymanage.
• New businesses faced the prospect of damaging the brand.
• Controversy over show Ellen because of her sexuality and ethnicity
• Resentment shown by Catholic group for movie Priest
• Stereotypical portrayal in Aladdin faced the decrement by Arab-
Americans
• Disney theme park got delayed for 2 years because Kundun faced
apprehension from Chinese govt.
Disney had a much traditional approach based on myths, fairy tales
and history whereas Nickelodeon’s targeted the kids by keeping
pace with the time.
• Traditional techniques for managing creativity and show for
brainstorming ideas across the divisions
• Was a success for some projects Little Mermaid, Pocahontas
• Major drawback was the important people pulling out of those
meetings because nobody liked his/her idea getting dismissed
so the group dynamics were always at stake. As a result 75
executives left the company in 1994-2000.
•

•
•
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• The Walt Disney has been extremely successful in the past 94 years due to the
vision of Walt Disney himself and the strategic management skills of Michael
Eisner

Largest media and Entertainment company High Investment with high risk involved
Strong Brand Equity Frequent Changes in SeniorManagement
•nnovation and Differentiation Limited range of target audience

S W
The Walt
Global Localization O Disney T
Diversification Business Major Competitors (Universal Studios,Paramount
merchandising Pictures)
ESPN zone and cruis ship GovernmentPolicies Piracy