Disney Case free essay sample

Merchandise Global Localization: Think Global, Act Local Characters of national and/or regional appeal Cheaper alternatives to toys Disney Music Channel Disney School of Management/Training Institute Multiple markets-provide multiple opportunities for revenue Deficient movie market for children Diversification of products and services Leverage in pricing Positive government attitudes towards the organizations operations Threats: National, Regional, and Global Competitors Employee Retention Sales, Creativity, and Innovation highly demanding Hasty or Unprofitable Acquisition Brand Consistency Product Differentiation Movie business extremely risky Competition in the network-television industry 4. Apply Porter’s Five-Force Model Existing rivalry – low. There are other amusement parks, but they don’t offer what Disney does and none are as massive as Disney. Mature industry life cycle. Threat of potential competition – low. Entry barriers are relatively high, as Disney has a very distinctive niche in the industry. They have grown over a long period of time and have developed in departments of R D, Marketing, and Finance. We will write a custom essay sample on Disney Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Bargaining power of suppliers – low. A company of Disney’s size and with strong brand recognition seems to be in driver’s seat in supplier negotiations. Bargaining power of buyers – high. With so many choices in the entertainment sector, buyers have many choices and can dictate, to some degree, what they like and dislike, through movie or theme park attendance. Threat of substitutes – high. There are other amusement parks, such as Six Flags, Kings Island, etc. Also, options of home entertainment, video gaming, and interactive gaming. 5. What structure and controls can you identify? (10 pts. ) Structure: Founded in 1923 by Walt Disney Michael Eisner-consider savior of Disney Disney possesses: Media Networks, StudioEntertainment, Theme Parks and Resorts, Consumer Products, and Internet and DirectMarketing. 110,000 employees Good training and opportunities for employees. Using innovative ideas from employees Controls: Pioneer most innovative and one-of-a-kind attractions Nation’s leader in family entertainment Competitive advantage in superior product quality and assortment Self-sufficient production scheme Reduced licensing agreements to ?. 6. What are the issues and problems facing the company? Sort them by importance and urgency) (10 pts. ) Needs a new strategic plan to continue to dominate the entertainment industry. Merge together many of its companies to reduce costs. The return on equity fell to 4% in 2000 and was as high as 26% in 1989. 7. Why did these problems emerge? (Identify causal chain. ) (5 pts. ) Michael Aisner wanted to do it all on his own. The company is too big for one individual to run. Communication needs to be better across top management. 8. Are the apparent problems the real problems or only symptoms of the real problems? (5 pts. These are real problems that must be addressed. 9. What are the characteristics of the environment in which the company operates? (10 pts. ) Economy – Unemployment up. Everybody is worried about spending money considering the condition the nation is in. Money is not spent on expensive vacations as before. Costs are up. Globalization 10. What are the characteristics of the industry that the company is in and how is the industry changing over time? (10 pts. ) Highly competitive #1 in entertainment industry. High cost structure Consolidation-needs to consolidate the many of its own companies. Widely known. 11. What is the company’s strategy, in terms of the five strategy elements, for competing in this context? (10 pts. ) Arenas – Target market consists of families, mainly children and teenagers, for family entertainment including amusement parks, resorts, and movies. Vehicles – Founded in 1923 creation of Mickey Mouse in 1928, created animated films 7 years later. Grew from 1. 65 billion in revenues annually to 25 billion in 2000. Differentiators – Fun environment, safety and customer focused, widely known. Staging and pacing – growth of 20% annually. Need to grow internationally. Economic logic – Repeat customers, continuous growth, customer service. 12. What are your recommendations for the future of this company? (10 pts. ) To merge some of its own companies together. Recruit top level leaders for each of its business segments. They need to reduce costs, possibly doing fewer movies annually and downsizing. Research international growth. 13. Are there any possible problems with your suggested recommendations? What contingencies need to be accommodated? (10 pts. ) Research international growth takes time and money. Downsizing could include job loss which hurts the economy. Recruiting leaders also increases costs.