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Disney Analysis

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Case Analysis of The Walt Disney Company: The Magic of Disney Fall 2003 Sean Housley Haas School of Business University of California, Berkeley MBA Candidate, Spring 2004 housley@mba.berkeley.edu Abstract Disney has led the entertainment industry for much of its storied 80-year history. What exactly is the ‘Magic of Disney’? And how has Disney sustained the magic for so long? This paper analyzes Disney’s historical competitive advantage, drawing emphasis on the remarkable synergies Disney created across its various businesses. This paper then addresses the contributions of CEO Michael Eisner, credited with restoring Disney to greatness in the mideighties. Finally, this paper evaluates Disney’s growth strategy over the last decade. …show more content…

He also correctly predicted that television would be an important medium, and introduced the highly popular “Mickey Mouse Club” in 1955. Finally, Disney correctly bet big on entering theme parks with Disneyland in 1955. Imperfect Mobility and Co-specialization Disney’s strong legal protection makes it nearly impossible for competitors to copy or imitate Disney’s characters. In addition, the parts comprising the Disney whole would be of less valuable to a poacher than they are to Disney. This is because, for Disney, the sum of the parts is greater than the whole. In a word, synergy. Even if a competitor succeeded in hiring away key talent, for example, the competitor would still lack the tradition, culture, and complementary assets that make up Disney. Synergy Disney has mastered the art of the cross-sell. It has done so by leveraging its characters and carefully controlling its image, driving toward a unified, highly valued customer experience. An example best illustrates this. Consider a typical multi-day family trip to Disney World. A family books lodging months in advance at a hotel inside the park. It does so because it knows that the hotel has the best location, is highly demanded, and will provide good hospitality. Being lodged inside the park, the family eats at Disney-owned restaurants and perhaps buys Disney merchandise. All the while the family willing

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