The Walt Disney Company: Mckinsey 7s Model the Entertainment King

2453 Words Apr 1st, 2014 10 Pages
The Walt Disney Company: The Entertainment King
Starting as a young boy from Missouri, farmer Walter Elias Disney set out to make a mark on society. After first joining the Red Cross in World War I, he came back determined to be an artist. After moving to Hollywood in 1923 with his older brother Roy, they founded Disney Brothers Studio. After diversifying as much as possible, Disney had a firm grasp on the global market share until the 1980’s where the company’s revenues began to slump in the film industry. Luckily Sid Bass invested $365 million in order to rescue the company and bring an end to all hostile takeover attempts. Disney’s billion dollar powerhouse status in the entertainment industry can be broken down and analyzed using the
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Walt believed the true revenue lay with full-length feature films. In 1937 Walt Disney and his studio created the world’s first full-length, full-color animated feature, Snow White and the Seven Dwarfs. This was the highest-grossing animated movie of all time, even out grossing animated films until the year 2000 (Exhibit 7). Disney Brothers Studio attempted to increase its market share so cleverly in the fact that they began a signature trend of stocking shelves with products the day of the film’s release in huge retail stores such as Sears and Woolworth’s.
To maintain this competitive advantage and market share, Disney set a goal of releasing two feature–length films per year, in addition to a large number of shorts. As the company was skyrocketing in sales and revenue, Disney began to scale up, and employee base grew sevenfold and they even built a new studio in Burbank. In order to finance these new additions, Disney Brothers Studios went public in 1940. World War II was a sluggish time for Disney so in 1944 Disney began another trademark tactic of re-releasing its full-length classic cartoons every few years so as to capture the interest of all the new generations of children. This strategy became an important source of profits for Disney. After the war ended, Disney diversified further by creating Walt Disney Music Company to control music copyrights and to recruit the finest artists. Disney took the diversification strategy to new heights by offering…

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