Exploring Walt Disney Company: The Entertainment King Essay

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Strategic Management
The Walt Disney Company: The Entertainment King[1]

I. Why has Disney been successful for so long?
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are made through Disney’s
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In addition, Disney was also able to integrate backwards through its strategic alliance with Pixar. Disney needed their strong creativity and ideas in the production of new movies and simultaneously offered Pixar strong distribution channels (class notes). Also, Disney reached geographic diversification by better integrating its overseas operations and horizontal integration through establishment of completely new types of entertainment (1, p.12). In general, Disney realized early on that its core business “studio entertainment” was not as profitable as other industries and would not enable them to survive in the long-term. Thus, through diversification and congruence of its corporate strategies, Disney was able to align and reach synergies between all its various business lines and establish long-term success.
Not only in the Walt Disney years, but also in the following duration, Disney always was focused on not loosing their sight of preserving corporate values like quality, creativity, entrepreneurship and teamwork, at which the success of Disney was built on in the first place (1, p.4). This has been accomplished by managing synergies and creativity and in leveraging its strong brand image throughout the years. Developing synergies
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