Fariz

Forestnita

Lidya Vega N.

Karina Nur W.

MM REGULER - 13

THE WALT DISNEY COMPANY

Its Diversification Strategy in 2012
 OVERVIEW AND HISTORY
• The Walt Disney Company is a leading American diversified multinational entertainment a

nd mass media conglomerate, headquartered in Burbank California. Founded on October

16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the co

mpany struggled through years of unsuccessful creations but turned around after the deb

ut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger,

Disney is one of the largest entertainment corporations in the world with approximately 16

6,000 employees and annual revenues approaching the $45 billion mark (Walt Disney).

• For eight decades, Walt Disney has entertained people around the world with its theme p

arks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before div

ersifying into live-action film production, television and travel, the company established it

self as a leader in the American animation industry. The company went public in 1940 an

d was reincorporated under its current name in 1986 and expanded operations and also s

tarted divisions focused on theatre, radio, music, publishing and online media (Cohesion

Case).
 MISSION STATEMENT

The mission of The Walt Disney Company is

to be one of the world's leading producers a
nd providers of entertainment and informati
on. Using our portfolio of brands to different
iate our content, services and consumer pro
ducts, we seek to develop the most creative,
innovative and profitable entertainment expe
riences and related products in the world (W
alt Disney).
 ORGANIZATIONAL STRUCTURE

Walt Disney operates using a strategic business unit (SBU) organizational

structure that consists of five diverse family-entertainment segments: Med
ia Networks, Parks and Resorts, The Walt Disney Studios, Disney Consum
er Products and Disney Interactive.

The Walt Disney Company’s

globally known consumer

brands include: Disney, ABC,

ESPN, Pixar, Marvel and

Lucas Films (Walt Disney).

 MEDIA NETWORKS
• Disney’s Media Networks segment includes domestic broadcast television, television production and distribution operations, dom

estic television stations, international and domestic cable networks, domestic broadcast radio networks and stations and publishi

ng and digital operations. The Disney/ABC Television Group comprises Disney’s global entertainment and news television properti

es, owned television stations group and radio and publishing businesses. Disney/ABC Channels creates programming and franchi

se benefits for all of Disney’s businesses. The group’s portfolio includes: ABC Television Network ABC Owned Television Stations G

roup, ABC Studios, Disney Channels Worldwide, ABC Family, SOAPnet, Disney ABC Domestic Television, Disney Media Distribution,

Hyperion and Radio Disney Network. The ABC television Station Group Operates more than 220 affiliated stations and the ABC O

wned Television Stations Group owns ten television stations, six of which are in top ten rated markets, across the U.S. (Cohesion

Case).

• Disney also produces and distributes live action and animated television programming under the

ABC Production Studios label. ABC Studios develops, produces and distributes entertainment

content across broadcast and cable television and digital platforms (Cohesion Case). This

includes many prime time programs and dramas, such as Castle, Criminal Minds, Desperate

Housewives, Grey’s Anatomy, Private Practice and a variety of syndicated programming. Two of
Disney’s major TV networks (ABC and ESPN) have an arrangement with Cox Communication

where the companies now offer hit shows and football games on demand. In this deal, Cox, the

nations third largest cable operator, agreed to stop the fast forwarding of commercials to gain

access to the content (Marketwatch).

 STUDIO ENTERTAINMENT
• This is regarded as the most visible business within the Disney Company (Battikh). It is also the most extensive with the
integration of ten production branches: Walt Disney Pictures and Television, Miramax Films, Buena Vista Home Entertain
ment, Buena Vista Theatrical Productions, Wald Disney Records, Buena Vista Records, Touchstone Pictures, Hollywood
Records, Lyric Street Studios and Pixar Studios (Strategic Management). Disney produces liveaction and animated moti
on pictures, direct to video programming, musical programming, and live stage plays (Cohesion Case). Disney licenses t
he rights to produce and distribute feature films to third party studios. Disney earns a licensing fee On these films, while
the third-party studio incurs the cost to produce and distribute the film. The company distributes motion pictures prod
uced by DreamWorks under the Touchstone Pictures name
• Disney’s cable network group provides national programming networks and licensestelevision programming both domes
tically and internationally. The majority of the revenue comes from fees charged to cable, satellite and telecommunicat
ion service providers who operate under multi-year agreements. This helps Disney sell time for commercial announcem
ents (Marketwatch). Certain programming developed by cable networks is also distributed: in DVD format by the home
entertainment division in the Studio Entertainment segment, online via Disney’s Internet sites such as ESPN.com, and on
third party services such as iTunes.
• Radio Disney, a 24/7 network for kids, teens and families, also operates under this lic
ensing model (Walt Disney) . It is available on 37 radio stations, 31 of which the company
owns. It is also available on radiodisney.com, SiriusXM satellite radio, iTunes Radio Tuner,
M/DIRECTV and mobile phones
 INTERACTIVE MEDIA
• Disney’s Interactive Media segment creates and delivers Disney-branded entertainment across interactive medi
a platforms, particularly through gaming and online platforms (Cohesion Case). This branch serves as the onli
ne, mobile and social media gateway (Walt Disney). Disney Interactive Games creates and distributes console,
handheld, online and mobile games worldwide based on Disney created features. They also produce online an
d interactive games for social networking websites and Smartphone platforms (Cohesion Case). Children are m
aking the switch to gaming earlier and earlier, so the market for video games is growing. Disney does not how
ever, have a large presence in the rapidly growing video game market, though the company is making large inv
estments in this area, such as a $350 million investment to develop its own inhouse video game capabilities (F
orecasts).

• In 2010, the company acquired Playdom, Inc., one of the largest

developers and publishers of online social games (Chmielewski).
This move was made to enhance the brand’s previously
insignificant presence across social media platforms, as they
became a more integral component of interactive entertainment.
Playdom broadens Disney’s portfolio of games with new and
diverse titles such as Market Street, Sorority life, and Bola, which
the company estimates, draws around 42 million players a
month (Chmielewski).
 Strategi
Manajemen
• Integrasi media adalah salah satu fitur yang paling khas dari industri film selama beberapa tahun. Disney telah memperluas inves
tasi baik di dalam negeri dan global melalui integrasi perusahaan . Seperti pesaing mereka , Disney secara agresif mengakuisisi fi
lm lain perusahaan menggunakan sumber dayabesar mereka. Untuk menggantikan pendapatan yang hilang dan menanggapi per
ubahan industri, studio film telah mengalihkan fokus utama mereka dari acara kualitas dan konten untuk distribusi, perizinan, pe
masaran, dan pengaturan merchandising, mencari alternatif sumber pendapatan dan mengambil keuntungan dari peluang teknol
ogi yang muncul, dan studio telah menambah jangkauan mereka secara lebih luas dalam bentuk hiburan lainnya .

Teori kompetitif utama perusahaan ini dibangun dari enam bagian :

• Globalisasi : Produk dan Layanan Walt Disney yang ditemukan di seluruh dunia dalam bentuk
yang berbeda. Disney telah difokuskan pada pertumbuhan internasional dalam lalu beberapa
tahun. Sebagai merek global, Walt Disney International memberikan pengawasan kegiatan
perusahaan di luar Amerika Serikat dan bertujuan untuk meningkatkan globalisasi perusahaan
sehingga memastikan hal itu relevan secara lokal untuk konsumen di seluruh dunia.
Perusahaan mendirikan fondasi untuk pertumbuhan jangka panjang di pasar Amerika Latin,
Rusia, India dan China. Baru-baru ini fokus lebih ditempatkan di Jepang, Eropa, Timur Tengah
dan Afrika, di mana perusahaan ini dikategorikan mapan, namun ada
ruang yang cukup besar untuk pertumbuhan (Walt Disney).
• Integrasi horizontal : Walt Disney memiliki banyak perusahaan hiburan studio,
perusahaan produk konsumen, dan jaringan media. Disney menggunakan
integrasi horizontal untuk mempromosikan produk, mendapatkan lebih banyak minat dan
memisahkan diri dari pesaing. Disney juga memberlakukan strategi ini untuk meningkatkan
kehadiran dan pasar kesadaran melalui crosspromotions. Selain itu, Disney terus memperluas
luar “family entertainment” dengan lebih banyak outlet utama
• Integrasi Vertikal: Walt Disney memiliki banyak sub-perusahaan memungkinkan untuk merencanakan,
memproduksi, beriklan, dan mendistribusikan semua produk sendiri, tanpa bergantung pada yang lain
seperti pajasa perusahaan, kualitas sehingga pengendalian yang lebih baik, konten dan biaya. Kolab
orasi antar sektor bisnis dengan budaya perusahaan yang sama & nilai komunikasi dan produksi yan
g lebih efisien dan efektif (Strategis Pengelolaan).
• Synergy: Media Melalui perusahaan yang dimiliki oleh Disney, dapat dengan baik memproduksi dan
mendistribusikan produknya. Juga, Disney menciptakan media yang membentang lebih dari satu pro
duk menjadi beberapa bagian lainnya, seperti game online yang memainkan film mereka. Faktor pen
ting dari keberhasilan adalah sifat terpadu dari produk-produknya yakni adanya sinergi antara film, te
levisi, media, taman hiburan dan operasi resort
• Diversifikasi : Walt Disney telah difokuskan pada diversifikasi pasar selama bertahun-tahun. Perusaha
an meliputi berbagai macam produk dan jasa; film nya, menunjukkan, tema taman, musik, TV, radio y
ang ditawarkan dalam berbagai untuk semua selera, budaya dan usia.

• Distribusi: Melalui lisensi dan pemasaran dan outlet bisnis yang beragam,
ketika Disney menghasilkan gambar baru atau merek, seperti karakter film,
terus memanfaatkan karakter lama setelah itu telah meninggalkan box
office. Sebelum film naik daun bioskop, Disney sudah merilis lini mainan
dan produk melalui toko-toko dan outlet lainnya, yang kemudian diikuti
dengan rilis DVD dan seringnya kehadiran karakter Disney di taman
bermain
 FINANCIAL STATEMENT

• Sumber utama pendapatan bagi perusahaan berasal dari belanja iklan , sebagian besar didorong oleh
ekonomi , dan adanya peristiwa TV skala besar . Keberhasilan Disney adalah didorong oleh kualitas
pemrograman di berbagai saluran dan ukuran penonton . Kestabilan sumber pendapatan juga berasal
dari biaya afiliasi untuk kabel dan satelit pemrograman , dan mereka diperkirakan akan tumbuh di ha
mpir semua lingkungan ekonomi ( Forecasts ) . Disney menghasilkan Biaya afiliasi tertinggi dalam ind
ustri , sebagian besar karena popularitas ESPN .

• Disney terus berkembang ke pasar baru dan berkembang ke kancah

internasional . Pada tahun 2011 perusahaan meluncurkan free-to –air
Disney Channel di Rusia , mencapai lebih dari 40 juta rumah, sekitar 75 %
dari pemirsa Rusia ( Walt Disney ) . Hal ini diikuti oleh satelit gratis Disney
Saluran di Turki , memperluas pasar dari 1,5 juta rumah di negara itu
menjadi 11 juta. Disney juga terus memanfaatkan potensi pasar baru di
India , di mana ia mengakuisisi UTV. Kesepakatan ini juga meningkatkan
keuntungan Disney di ruang media digital , yang sejauh ini telah menjadi
bagian lagging , dengan dimasukkannya Indiagames , sebuah perusahaan
game mobile teratas di pasaran
 FINANCIAL STATEMENT

Di akhir tahun fiskal terakhir (2012), Disney mencapai rekor laba bersih, pendapatan dan Laba bersih per
saham. Secara keseluruhan, Walt Disney siap untuk melakukannya dengan sangat baik di masa depan
(Russell). Denga waralaba film yang kuat (Disney, Lucas, Pixar dan Marvel), TV (ABC dan ESPN), berbagai
hiburan dan permainan di Broadway, Disney adalah pemain utama dalam bisnis hiburan dan diharapkan
untuk terus tumbuh secara internasional dan mampu melanjutkan kesuksesan dalam hal keuangan.
Analisis
SWOT
 Strengths
 • Strong diversification.
 • Responsiveness to markets.
 • Brand recognition/ loyalty.
 • Size of operations.
 • Largest worldwide licensor of character based merchandise.
 • Global standardization.
 • Well established divisions.
 • Increasing trends in overall revenues and profits.
 Weaknesses

 High costs.
 o Sunk costs.
 o Research and development costs.
 o Costs of entertainment production.
 • Frequent change in top management positions.
 • Parks and Resorts are not easily accessible leading to a c
ostly trip for visitors.
 • Parks and Resorts success unpredictable.
 o Travel trends
 o Leisure time
 o Seasonal
 • Interactive Media- overall unprofitable.
 • Company’s name still highly associated with specific target
audience- children
 Opportunities

 • Growth through further diversification.

 • International growth and new markets. Recent acquisitions i
n India (UTV) and Russia gives more room for development.
 • Increased media Networks/ online presence.
 • Changes in technology and consumer consumption.
 • Increase Disney Music Channel.
 • Growth from cable and satellite networks.
 • Marvel and Lucasfilm.
 • International cable.
 • Disney school of management and training.
 Threats
 Employee retention- retaining and recruiting innovative people.
 o Competition on finding and affording the most creative human resources.
 o Increasing salaries and labor costs.
 • Changing consumption behavior. Switch from physical to digital and onlin
e.
 • More concern with content over quality.
 • Piracy/ protection of intellectual property.
 • Decrease of DVD sales.
 • Maintaining product differentiation.
 • Economic recession. Change of how people choose to spend their ‘enterta
inment’ money not as willing to spend on a park or resort.
 o Uncontrollable changes in travel and tourism.
 • Viacom’s upcoming animation studio in 2014.
 Recommendations
In the next three years Walt Disney
should..

 Build an indoor theme Park and Resort in New Y

ork.
 Improve advertising to promote entertainment
which target a more mature audience.
 Remove the Interactive Media Segment.
 Remodel and build new attractions in every Park
and Resorts to stay appealing to our customers
.
Thank you!