Walt Disney

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STRAT Case Study “The Walt Disney Company: Its Diversification Strategy in 2012 LELE SONG February 9, 2015 February 9, 2015 KEY ISSUES * Understand why a company’s resources and capabilities are central to its strategic approach: Diversification is Disney’s main strategy for constant growth. The company is broadly diversified, including five major segments. Disney attempted to capture synergies existing between its business units. * Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of…show more content…
The deadline for the project has been changed for several times. Even though Disney is very optimistic about the project and expects the project to generate high income for the company, developing business overseas is still very challenging. However, the theme park industry is becoming more and more competitive in China and there are many theme parks opened every year in China. In order to succeed in the global theme park industry, it is very necessary for Disney to diversify their resources and localized the company’s products. Disney should also try to adapt its theme parks to the preferences of its new Asian customers. In order to successfully compete with the local companies, Disney should focus on strategies of decreasing their operation costs and become more competitive on cost and price. In addition, Disney’s expansion plan is very likely to be influenced by the changing laws and regulations in foreign countries. Foreign countries may impose any number of a variety of restrictions---trade restrictions, ownership restrictions, or currency exchange controls, any of which could affect the Disney Company. The company’s businesses in foreign countries are subject to the laws of those countries. The company may have to spend additional money to comply with that country’s regulations. Disney has to be prepared to deal with all kinds of challenges during expansion. Disney’s success is also highly dependent upon technology. The company aims to

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