Case Study Walt Disney Company By: Umar Ali National Textile University Faisalabad, Pakistan

2. Group Members
UMAR ALI
HAMID AFZAL
ZUBAIR SAEED
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5. Walt Disney Company
It’s not about just Disneyland….!
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6. HISTORY
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7. History
1923:
Disney and his brother Roy arrived in California to sell “Alice
Wonderland”.
October 1923:
Disney Brother Cartoon studio was founded. But in 1925 the name
was changed to “Walt Disney Studio”.
1928:
First time ever, the Mickey Mouse emerged as the cartoon in
sound.
1932:
Flowers and Trees, first full-color cartoon and first Academy Award
winner.
1950:
The first live action film “Treasure Island” was completed.
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8. History
1954:
The company began television with Disneyland anthology series.
1955:
The most successful series “The Mickey Mouse Club” began as
well as the opening of new Disneyland Park in California.
1969:
The Disney started its Educational films and materials.
1971:
Walt Disney world Resort was opened with a Magic Kingdom and
two hotels in Orland, Florida.
1982:
Epcot Center was opened as part of Walt Disney World.
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9. History
1983:
Tokyo Disneyland, first international Disney theme park opened
in Japan.
1988:
At the Walt Disney World, Floridian Beach and Caribbean Beach
Resort were opened.
1990:
Disney moved towards Hollywood Pictures and acquiring
Wrather corp. and television station KHJ.
1991:
Disney purchased The Discover magazine (the leading consumer
science).
1992:
The Paris Disneyland was opened in France.
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10. History
1993:
The Disney was awarded the franchise for a National Hockey
League team, The Mighty Ducks of Anatheim.
1995:
The Disney Channel started operation in UK.
1996:
Disney Online launches Disney.com.
Radio Disney, a live 24-hour music-intensive radio network, debuts.
1998:
ESPN magazine started as well as the opening of Animal Kingdom
at The Disney World Resort.
2006:
Disney unveiled Disney Xtreme Digital, a networking site aimed at
children younger than 14 years of age.
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11. Location
Disney Resorts:
1. California
2. Florida
3. Tokyo
4. Hong Kong
5. Paris
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12. Disney’s Corporate Structure
The Walt-Disney Studios
Disney Consumer Products
• Walt-Disney Pictures
• Disney Hard Lines
• Miramax Films
• Disney Soft Lines
• Buena Vista Home
• Disney Toys
Entertainment
• Disney Press
• Disney Records
• Disney Publishing Worldwide
• Buena Vista Records
• Disney Store
• Hollywood Records
• Touchstone Pictures
• Pixar Animation Studios
• Disney Theatrical Group
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13. Disney’s Corporate Structure
Media Networks
• ESPN
Park and Resorts
• Disney Land Resorts
• Disney/ABC Television Group • Walt Disney World Resort
• ABC Owned Television
Stations Group
• Tokyo Disney Resort
• Disneyland Paris
• Internet Group
• Hong Kong Disneyland
• ABC Radio
• Disney Cruise Line
• Disney Vacation Club
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14. Mission Statement
Walt Disney Company is to be
one of the world's leading
producers and providers of
entertainment and information.
Using our portfolio of brands to
differentiate
our
content,
services and consumer products,
we seek to develop the most
creative, inovative and profitable
entertainment experiences and
related products in the world."
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15. Proposed Mission Statement
The mission of Walt Disney
company is to be one of the
biggest and trusted producer of
entertainment and information
provider and
committed to
balancing
environmental
stewardship(to help) with its
corporate innovative goals and
operations by using advance
technology
in
all
brands
throughout
the
world
for
individuals.
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16. Purposed Vision Statement
Walt Disney Company
is to be one of the
world's leading
producers and
providers of
entertainment and
information.
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18. The Strategy-Formulation
Analytical Framework
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19. External
Factor
Evaluation
(EFE)
Competitive
Profile
Matrix (CPM)
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Input
Stage
Internal
Factor
Evaluation
(IFE)
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20. EFE Matrix
Key External Factors
Weight
Rating
Weighted Score
Job opportunity
0.15
3
0.45
Highly profitable for state
0.10
2
0.20
Special offers for schools and tourists
0.08
4
0.32
People get freshness on demand movie
0.04
1
0.04
Sale of Hit Dramas DVDs
0.03
2
0.06
Increase media network
0.10
3
0.30
Change in technology
0.12
4
0.48
Unaffordable for middle and lower class
0.05
3
0.15
Economic recession
0.10
3
0.30
Stop physical growth of children
0.07
2
0.14
Success in not predictable
0.08
1
0.08
Security threat due to terrorism
0.08
2
0.16
TOTAL
1.00
OPPORTUNITIES
Threats
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2.81
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21. IFE Matrix
Key Internal Factors
Weight
Rating
Weighted Score
Best entertainment place in the world
0.08
4
0.32
Strong diversification
0.15
3
0.45
Good image (Goodwill)
0.09
4
0.36
Innovation (puppets to digital media)
0.15
4
0.60
Get easy feedback through social network
0.08
3
0.24
Acquire popular teams of different leagues.
0.05
3
0.15
Target niche market
0.05
3
0.15
Costly to visit
0.05
1
0.05
Huge investment with high risk factor
0.10
2
0.20
Specific target market
0.05
2
0.10
More costly R & D
0.05
1
0.05
Negative impact on children’s mind
0.10
1
0.10
TOTAL
1.00
Strength
Weakness
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2.77
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22. Competitive Profile Matrix
(CPM)
Disney
Time Warner
CBS
Critical Success
Weighted
Weighted
Weighted
Weight Rate
Rate
Rate
Factors
Score
Score
Score
Advertisement
0.20
4
0.80
3
0.60
3
0.60
Management
0.18
3
0.54
4
0.72
3
0.54
Market Share
0.10
3
0.30
2
0.20
1
0.10
Global Expansion
0.08
3
0.24
2
0.16
1
0.08
Financial Position
0.10
2
0.20
3
0.30
1
0.10
Product Quality
0.15
4
0.60
3
0.45
2
0.30
Price Competition
0.07
2
0.14
3
0.21
2
0.14
Revenue
0.12
3
0.36
4
0.48
2
0.24
TOTAL
1.00
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3.18
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3.12
2.10
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23. Matching Stage
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SWOT
Matrix
SPACE
Matrix
Grand
Strategy
Matrix
Matching
Stage
IE
Matrix
BCG
Matrix
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25. SWOT Matrix
Strength – S
1. Best entertainment place in the
world.
2. Strong diversification.
3. Good image in the mind of the
people. (Goodwill)
4. Innovation (puppets to digital
media)
5. Get easy feedback through social
network. (Disney Xtreme Digital).
6. Acquire popular teams of different
leagues.
7. Target niche market.
Opportunities – O
1. Job opportunity.
2. Highly profitable for state.
3. Special offers for schools and
tourists.
4. People get freshness on
demand movie.
5. Sale of Hit Dramas DVDs.
6. Increase media network.
Threats – T
1. Change in technology.
2. Unaffordable for middle and
lower class.
3. Economic recession
4. Stop physical growth of
children.
5. Success in not predictable.
6. Security threat due to terrorism.
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SO Strategies
Weakness – W
1.
2.
3.
4.
5.
Specific target market.
Costly to visit Disney Parks
and Resorts.
Huge investment with high
risk factor. (forecasting
based)
More costly Research and
Development.
Negative impact on
children’s mind.
WO Strategies
S1, S3 + O1, O2 =
W1 + O2, O6 =
Market development
Product Development
ST Strategies
S2, S4 + T1, T2, T3 =
Batter Management
Through cover the cost
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WT Strategies
W3, W4 + T1, T5 =
Focus on R & D
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26. SPACE Matrix
Internal Position
Financial Strength
External Position
Rating
Environmental Stability
Rating
Liquidity
6
Technological Change
-5
Working Capital
3
Security Threat
-3
Earning Per Share
5
Economic Recession
-2
Return On Investment
4
Competitive Pressure
-5
Cash Flow
4
Change in Demand
-6
Total
22
Total
-21
Competitive Advantage
Rating
Industrial Stability
Rating
Market Share
-1
Financial Stability
6
Product Quality
-2
Market Growth
5
Customer Loyalty
-3
Utilization of Resources
5
Diversification
-2
Increase media network
3
-8
Total
19
Total
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27. SPACE Matrix
Calculation:
FS
FS
ES
ES
Sum of FS
CA
Number of components
22
4.4
CA
5
Sum of ES
IS
Number of components
21
4.2
IS
5
Y Axis
Y Axis
Y Axis
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= FS + ES
= 4.4 + (-4.2)
= +0.2
Sum of CA
Number of components
8
2
4
Sum of IS
Number of components
19
4.75
4
X Axis
X Axis
X Axis
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= CA + IS
= -2 + 4.75
= +2.75
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28. SPACE Matrix
FS
Conservative
Strategies
Aggresive
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Unrelated Diversification
(+2.75 , +0.2)
CA
IS
Defensive
competitive
ES
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30. BCG Matrix
Market growth rate
High
1.0
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High
+20
Relative market share
Medium
0.5
Media Network
Park & Resort
Parks & Resorts
Studio Entertainment
low
0.0
Consumer Products
Medium
0
Low
-20
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31. IE Matrix
IFE Total weighted score (2.77)
Strong
EFE Total Weighted score
(2.81)
3.0 to 4.0
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Average
3
2.0 to 2.99
Weak
2
1.0 to 1.99
1
4
High
3.0 to 3.99
3
Medium
2.0 to 2.99
2
Low
1.0 to 1.99
1
Hold and Maintain
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32. Grand Strategy Matrix
Rapid Market Growth
Quadrant 2
Quadrant 1
Strategies
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Unrelated Diversification
Strong
Competitive
Position
Weak
Competitive
Position
Quadrant 3
Quadrant 4
Slow Market Growth
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33. Decision Stage
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34. Decision
Stage
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• QSPM Matrix
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35. QSPM Matrix
(Quantitative Strategic Planning Matrix)
Key Factors
R&D
Market Development
Weight
AS
TAS
AS
TAS
Job opportunity
0.15
4
0.60
3
0.45
Highly profitable for state
0.10
4
0.40
3
0.30
Special offers for schools and tourists
0.08
3
0.24
2
0.16
People get freshness on demand movie
0.04
---
---
---
---
Sale of Hit Dramas DVDs
0.03
---
---
---
---
Increase media network
0.10
2
0.20
1
0.10
Change in technology
0.12
4
0.48
3
0.36
Unaffordable for middle and lower class
0.05
3
0.15
2
0.10
Economic recession
0.10
2
0.20
3
0.30
Stop physical growth of children
0.07
---
---
---
---
Success in not predictable
0.08
2
0.16
1
0.08
Security threat due to terrorism
0.08
2
0.16
1
0.08
TOTAL
1.00
Opportunities
Threats
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2.59
1.93
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36. QSPM Matrix
(Quantitative Strategic Planning Matrix)
Key Factors
Weight
R&D
Market Development
AS
TAS
AS
TAS
Strength
Best entertainment place in the world
0.08
3
0.24
2
0.16
Strong diversification
0.15
---
---
---
---
Good image (Goodwill)
0.09
4
0.36
3
0.27
Innovation (puppets to digital media)
0.15
3
0.45
2
0.30
Get easy feedback through social network
0.08
---
---
---
---
Acquire popular teams of different leagues.
0.05
---
---
---
---
Target niche market
0.05
4
0.20
3
0.15
Costly to visit
0.05
---
---
---
---
Huge investment with high risk factor
0.10
2
0.20
1
0.10
Specific target market
0.05
1
0.05
2
0.10
More costly R & D
0.05
1
0.05
2
0.10
Negative impact on children’s mind
0.10
---
---
---
---
TOTAL
1.00
Weakness
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1.18
4.14
GRAND TOTAL
1.55
3.11
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37. Recommendation
Strategy we adopt is:
Research and Development
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40. ANY QUESTION??????????
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