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Case Study Of Disney Studio Entertainment

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Strategic Problem: How can Disney Corporation leverage the Disney Studio Entertainment business unit's core competencies in developing "franchises" and high quality content to increase the scope of Disney's Studio Entertainment operations? The studio entertainment division is currently a "star" business unit – with world leading market share (24.1%) in the motion picture industry, and increasing global growth; with a 24% global growth rate and 30% growth in China alone [1].

We have developed two strategies for consideration to address this problem: Option 1) Further investment to promote growth by increasing global appeal with more culturally diverse franchised content via international strategic alliances in the motion picture industry OR Option 2) Pursue a linked diversification strategy through joint ventures with a leading cinema operator – which will drive demand for Disney's franchises by enhancing the moviegoers' experience at the box office.

We recommend Option 1 because, with a higher NPV of $___, it is the superior vehicle for growing international market share. Utilizing the borrow & buy portions of the BBB Framework. Disney can align with international firms, who possess intimate cultural knowledge in their respective regions, to develop original content and develop culturally diverse franchises that have stronger appeal in their specific markets. …show more content…

We have produced two strategies that would proliferate their operations, the first being a growth strategy through investment into international alliances in the motion picture industry, and the second being a diversification strategy through vertical integration with current movie theater operations. Ultimately we would recommend The Disney Corporation go with our growth strategy because it has a higher NPV providing the most additional

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