Megan Beabout
MGMT4009- Online
7 April 2013
Value Chain Analysis By conducting a value chain analysis for Walt Disney Company, I will be able to accurately show the “parts of its operations that create value, and those that don’t” (Hitt, Ireland, and Hoskisson, 87). The value chain is segmented into two categories: support functions and value chain activities. Support functions include finance, human resources, and management information systems which “support the work being done to produce, sell, distribute, and service the products [Walt Disney] is creating” (Hitt, Ireland, and Hoskisson, 87). Value chain activities include supply chain management, operations, distribution, marketing, and follow-up services, which Walt Disney
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xix. Walt Disney has researched and developed ideal seasonal opportunities for maximum profitability. For example, holidays offer opportune times for families to travel to theme parks and on cruise lines; Christmas and Easter are profitable opportunities for product release; and because Disney has a strong focus on children, summer (or times when school is out of session) is a profitable season for movie releases. g. Marketing and Sales xx. Walt Disney has developed the ability to internationalize their brand through diversification in entertainment and products for different cultures. xxi. Walt Disney advertises through the most direct channels to their target market, having the ability to maintain brand loyalty and brand recognition. xxii. Walt Disney offers products and services to consumers during low peak times of the year through reduced prices for admission tickets, hotel suites, and cruise line tickets. xxiii. Walt Disney is able to provide high-quality products and services to consumers while maintaining a relatively low price. xxiv. Consumer sales and repurchase motivations are maximized through the hiring and training of motivated staff and customer service representatives. h. Follow-up Services xxv. Walt
One of these media giants is the Walt Disney Company (Disney). Its dramatic growth from a small company to become an oligopolist in the media industry offers an interesting
The Walt Disney or simply ”Disney” is an American mass media corporation, it was founded be Walt Disney and his brother Roy o Disney in October 16 1923. It is one of the biggest animation industries with it’s hand in live-action film, television and theme park. The company current name was came in 1986 and expanding in different area’s like theater, radio, music, publishing and online media. It is one of the biggest organization which has many product of it’s different sectors. From television to media to theme park to publishing it has many hands. It is the leader in animation industries. Now it is one of the leading organizations with annual revenue of 45 billion. It was Walt’s understanding that coordinating the talents of the people he hired, and pointing them at the direction of his ultimate goal was his most important job. Walt was an innovative and visionary man that used his animation background to co-found, manage, and set the platform for The Walt Disney Company’s future. Disney has five main
The success of movies and television programs were due to diversity and distribution. It does its own distribution and targets several markets from children to adults. Finally, the Disney character consumer product sector, which includes clothing, home goods, and toys, has been an extremely important asset to the company. For example, by establishing deals such as an agreement with Mattel, Disney was able to manufacture more than 14,000 Disney licensed products. Furthermore, Disney expanded it’s retailing by opening up Disney stores.
Walt Disney Company for eighty years has captured the attentions of millions of people around the world, offering family entertainment at theme parks, resorts, recreations, movies, TV shows, radio programming, and memorabilia (David, 2009). Today, Walt Disney possesses four main business segments: Disney Consumer products, Studio Entertainment, Parks and Resorts, and Media Networks. Each of Disney's business units increased profits apart from its interactive division, which was recently restructured (Garrahan, 2011). By combining Disney's long history with the commitment to quality, Disney Consumer Products has had a large and steady presence in the toy marketplace (Anonymous, 2010). Studio entertainment has been somewhat of
Walt Disney Company is the most numerous mass media in the world and an entertainment conglomerate with the mass media networks of assets affection, studio entertainment, parks and resorts, and consumer goods. The television of Walt Disney Company and assets of the mass media network include television ABC network and ten radio stations. Besides, Walt Disney 's portfolio cable networks include ABC Family, Disney Channel, Toon Disney, and ESPN (80% of ownership) (Balio, 2009). Walt Disney 's studios make movies through lines, such as Walt Disney Pictures, Touchstone, and Pixar. With recent acquisition of Marvel Entertainment, Walt Disney Company enters as the leading publisher of comics and the film producer. Entertainment of studio makes and gets cinema with living actors and the recovered movies for distribution to theatrical, home video and television markets. Thematic parks and resorts include the operations of Walt Disney World Resort in Florida, Disneyland Park, Disneyland Hotel and Disneyland Pacific Hotel in California. The segment of consumer goods includes licensing of goods, and publication (Siklos, 2009).
Disney has become a marketing goliath and the #1 entertainment company in the US. They have been able to develop a creativity-driven philosophy that over time was tempered by financial responsibility and that benefitted from powerful synergies between its divisions. From the very beginning, Disney has been synonymous with innovation within the children’s entertainment industry, from their introduction of animations with synchronized audio, full-length animated feature films and then later into theme parks and on-ice and Broadway shows. One important element of Disney’s success was the extent to which they integrated and expanded into different
The Walt Disney Parks and Resorts is a product line offered by the conglomerate Walt Disney World. This line offers intangible products only.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
Walt Disney once said, “All our dreams can come true, if we have the courage to pursue them.” Walt Disney was one of the most successful entrepreneurs of all time, a man who took a dream and pursued it, making a worldwide famous company, Walt Disney World. This paper will look at the history, financial situations, and marketing strategy of Walt Disney World. As Walt would say, “Sit back and enjoy!”
According to Robert Iger, CEO of The Walt Disney Company, Disney’s corporate strategy for diversification is a combination of three objectives that are to be achieved through the fundamental alignment of the Company’s core business units. The three objectives to be achieved by The Walt Disney Company are (1) creating high-quality family content, (2) exploiting technological innovations to make entertainment experiences more memorable, and (3) expanding internationally. The Walt Disney Company’s three objectives that make up the Company’s corporate strategy are to be achieved through each of the Company’s core business units that are split up in to five divisions (1) media networks, (2) parks and resorts, (3) studio entertainment, (4) consumer product, and (5) interactive media.
The Walt Disney Company is considered to be one of the most active family entertainment companies in the world. Primarily Disney became known as an animated film company and a cartoon creator. Later, the company expanded its range of activities into other markets through the Disney stores and theme parks around the world. The Walt Disney Company’s key objective is to be the world’s premier family entertainment company through the ongoing development of its powerful brand and character franchises.
“The purpose of the company "Walt Disney" is to be one of the world 's leading producers and providers of entertainment and information using its portfolio of brands to differentiate its content, services and consumer goods. The primary financial objectives of the company are to maximize profits and cash flow, and allocate capital to initiatives the development of long-term shareholder value.”
Of the four business units that make up The Walt Disney Company (Disney), the Media Networks unit is by far the largest with revenues accounting for about 43% of total company revenues in 2016 (Appendix C) (MERGENT Online). This segment is made up of cable networks like ESPN and Freeform, broadcasting networks, and all the technology and assets that go into producing content for these networks (MERGENT Online). Through it’s media networks division, Disney aims to provide family-friendly entertainment options to households across the world through television and radio networks. Because the cost to watch Disney’s channels is essentially the same as the cost to watch a competitor’s channel, competitors in this industry must compete on differentiation to attract viewers. This value proposition and strategy helps to focus the segment’s value chain and its efforts to capture value. The value chain (Appendix A), seems to suggest Disney’s brand, technologies, and recruitment capabilities are driving the segment towards its 24.86% margin (MERGENT Online).
The Walt Disney Company is known throughout the world as a leader in entertainment. The strategies that the Walt Disney Company have used include competitive advantage, a growth strategy, and a renewal strategy. When a person mentions a theme park, Disney is the first park that comes to mind. They were not the first theme park, but they have mastered the art of creating memories for adults and children alike. As a former employee of Disney I can vouch for the amount of effort that goes into
Under Mike Porter’s Value Chain analysis every organization has primary activities and support activities. Primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and customer service. Support activities are infrastructure, human resource management, technological development, and procurement. For a conglomerate like Disney creating value is done by leveraging all the outputs of its various segments to benefit the others.