Team Disney Case
Steven G. Mihaylo College of Business and Economics
California State University, Fullerton
The Walt Disney Co.
The Disney Group
Aaron Michelson
Andrew Olson
Chirag Pandya
Emily Leinen
Pedro Puga
Marketing 449
Tuesday 19:00 – 21:45
Spring 2015
March 24, 2015
Walt Disney Co. Case Evaluation
1) Disney has sustained its success through a series of business decisions that descended from the vision of its famed founder, Walt Disney. Walt Disney was a forward thinker, and emphasized the importance of innovation. This emphasis on innovation led to strong brand recognition, and consumer’s perceived differentiation in quality of entertainment. The success of Disney’s motion pictures became the catalyst of several expansions that enhanced Disney’s competitive positions in the entertainment industry. Additionally, these business acquisitions led to an increase in diversification, horizontal/vertical integrations, and synergy, which Disney propelled to acquire more revenues, and establish itself as the, ‘Entertainment King’.
Steamboat Willie set the tone for several creative animated characters such as Snow White and Cinderella that led to Disney’s trademark in animated film productions. Disney also established vertical integration of his film production by constructing Buena Vista Distributions in 1953. This helped Disney retain more of the film’s gross revenues (2). Eventually, Disney captured the top 24 out of 30 animated films of all times as ranked by Gross (21).
Disney success did not stop at animation. They adopted a corporate-level strategy that involved diversification. Disney expanded from solely studio production into different forms of entertainment such as: media networks, theme parks and resorts. The decision to branch out was a success because it capitalized in product differentiation which transversed between each segment. These differentiations involved innovation, branding, and culture. The development into media networks helped Disney
California State University, Fullerton
The Walt Disney Co.
The Disney Group
Aaron Michelson
Andrew Olson
Chirag Pandya
Emily Leinen
Pedro Puga
Marketing 449
Tuesday 19:00 – 21:45
Spring 2015
March 24, 2015
Walt Disney Co. Case Evaluation
1) Disney has sustained its success through a series of business decisions that descended from the vision of its famed founder, Walt Disney. Walt Disney was a forward thinker, and emphasized the importance of innovation. This emphasis on innovation led to strong brand recognition, and consumer’s perceived differentiation in quality of entertainment. The success of Disney’s motion pictures became the catalyst of several expansions that enhanced Disney’s competitive positions in the entertainment industry. Additionally, these business acquisitions led to an increase in diversification, horizontal/vertical integrations, and synergy, which Disney propelled to acquire more revenues, and establish itself as the, ‘Entertainment King’.
Steamboat Willie set the tone for several creative animated characters such as Snow White and Cinderella that led to Disney’s trademark in animated film productions. Disney also established vertical integration of his film production by constructing Buena Vista Distributions in 1953. This helped Disney retain more of the film’s gross revenues (2). Eventually, Disney captured the top 24 out of 30 animated films of all times as ranked by Gross (21).
Disney success did not stop at animation. They adopted a corporate-level strategy that involved diversification. Disney expanded from solely studio production into different forms of entertainment such as: media networks, theme parks and resorts. The decision to branch out was a success because it capitalized in product differentiation which transversed between each segment. These differentiations involved innovation, branding, and culture. The development into media networks helped Disney