Walt Disney Strategy Case Essay

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1. What is Walt Disney Company’s corporate generic strategy? Explain the reason for your answer.
Broad Differentiation because its products are in media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Thus, it attracts a wide base of consumers through differentiating its products by superior dedication to creating high quality content, technological innovations in entertainment and international expansion.

2. What is your assessment of the long-term attractiveness of the industries represented in Walt Disney Company’s business portfolio? See p. 234 in test.

Attractive (from most to least) : Studio Entertainment, Consumer Products, Parks/Resorts, Media
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Interactive media and studio entertainment are currently generating the least revenue. This is due to the high cost to produce films for studio entertainment and the fact that interactive media is a relatively new business channel for Disney. However, out of all business lines, these two have the most potential in their industry and are therefore very attractive. Interactive media is a hot trend that Disney will be able to capitalize on due to its acquisition of Playdom. While films are very expensive to produce and distribute, the profit potential from Marvel and Pixar make the industry very attractive overall.

5. Does Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? Please be specific and explain why.
Brand sharing is extremely relevant across all brands except for Media Networks (because it covers ESPN and other adult audience channels).

6. What is your assessment of Walt Disney Company’s financial and operating performance in fiscal years 2010-2011? What is your assessment of the relative contribution of the Disney SBUs to the financial strength of Disney, based on the 2011 fiscal year financial data? Numbers please!

Operating Profit Margin (Profitability of Current Operations)
% of Total Rev
Current Ratio (Liquidity - CA/CL)
Debt to Equity (>1)

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