Disney Case Study Essay

791 Words Nov 26th, 2012 4 Pages
Question #1 – Why has Disney been successful for so long?

The primary reason for Disney’s success is their understanding of a corporate strategy. Since its inception, Disney has successfully utilized its corporate strategy to diversify. This has enabled them to look forward into the future, as well as developing complimenting and cross-promoting business products. They are able to look into the future and foresee upcoming market trends. By expanding their line from movies to theme parks and even cruise ships, Disney has successfully diversified its corporate strategy over and over again. Their corporate strategy is also geared to people across a broad demographic. However, it is the genius of marketing toward children that helps to
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Diversification into the theme park and hotel industry has created significant value for Disney. As previously indicated, their theme parks and resorts comprise nearly 1/3 of their total revenues. Millions of people visit their multitude of parks and hotels annually. Furthermore, each year Disney has the ability to add new features to these resorts, making their consumers more interested and excited to go and ‘see what’s new’ each year. The related diversification of hotels and theme parks is also important in creating value. When people come to visit their theme parks, they will need a place to stay. Sure, they could go stay at another hotel chain, however Disney attempts to draw these people to their own hotels by giving the “the ultimate Disney experience”. The hotels are merely an extension of the theme parks, in which the culture of Disney remains intact. This related diversification also allows Disney to leverage core competencies and share activities, enabling them to build market power.

Question #4 - Should Disney have acquired ABC? (Group #8)

When Disney acquired ABC in the mid-1990’s, the company at that time was appealing to a somewhat niche market. In the 5 years following the acquisition of ABC, Disney saw its earnings drop more than 30%. It can be argued that when Disney took over ABC, it took on more than it could handle. Also, the

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