Disney Case

In: Business and Management

Submitted By jjmb28
Words 254
Pages 2
Jacob Mizrahi
International Marketing
MAR2141
05/25/2012
Disney Case There are different kind of challenges a company can find some of those can be the language barrier, cultural difference, need to deal with different currencies and also political challenges. However as a foreign government it is important to take a look to what it will benefit the economy and what will be most effective for the investors and the country. For example Disney began exploring what will be the theme of the park in a place so unique and cosmopolitan like Hong Kong. So they went ahead and thought of building a “Tomorrow Land” with the space theme so it could be attractive to the public in Honk Kong. The government contributed greatly to the building of the park when they realized the great influx of money this would create as part of Tourism revenue. Also it is important to include locals in the process of construction for the infrastructure of the theme park. It was not viable for Disney to bring all their “imaginers“ from California therefore; they hired some of the local talented Engineers to take part in the project of Disneyland as well. It is also very important that companies observe cultures practices and traditions in dealing with opening a new business relationship. When companies like Disney want their franchises to be a success they need to keep the best of worlds, the American Dream company plus the input from the foreign market that is being attempted to…...

Similar Documents

Disney Case

...Modes of Entry Subtitle: The Case of Disney By, Carlos Gonzalez Hernandez This thesis was written as a part of the master program at NHH. Neither the institution, the supervisor, nor the censors are -through the approval of this thesis- responsible for neither the theories and methods used, nor results and conclusions drawn in this work. International Modes of Entry: The Case of Disney 1 Abstract The case of Disney’s theme parks represents an opportunity to test major internationalisation theories in a setting of large investments with little chance for reversal of commitments. The purpose of the research is to study the benefit of different entry modes dependent on Disney’s Theme Parks value-generating resources and capabilities while conditioned to certain local industrial and institutional conditions in foreign markets. Five major theories and frameworks were used to analyze all four Disney’s ventures abroad. This resulted in 20 individual hypotheses analyzed. Results indicate that Disney followed a predictable internationalisation process in the cases of Tokyo, Hong Kong and Shanghai, but that it went off-path in the Paris one. In successful cases Disney followed a cautious approach, involving local partners to transfer and adapt the “Disney Experience”. In the case of Paris the company decided to enter the market alone, which neglected the unique needs of the local market. Page | 2 International Modes of Entry: The Case of Disney Table of Contents 1 2......

Words: 19107 - Pages: 77

Disney Case

...Disney Case The Cap Cities acquisition brought a number of entertainment related distribution properties under Disney's ownership including the ABC television network, 10 other television stations, the ESPN network, the ABC radio networks and several newspapers and periodicals. Prior to the acquisition, Disney was primarily a creative content producer and a theme park operator. With the acquisition of Cap Cities, Disney became a major player in media distribution. The investment thesis was to combine, further capture, and improve vertical components of the value chain (i.e. content development and distribution). In hindsight, we would argue that the benefit and cost based synergies were minimal and generally below expectations. As a result, we believe that vertical integration decreased total value – in this case – given that the market exchange is generally more efficient under licensing agreements. For example, the perception at the time of acquisition was that ABC’s distribution network would serve as a perfect outlet for Disney’s creative content and that the benefit based synergies from cross promotion were to be substantial. However, integration does not appear to have had such success. With the acquisition, ABC is effectively forced into purchasing Disney’s content versus the best, and in some cases better, alternatives. As a result, ABC’s ratings have struggled over time (particularly excluding Who Wants to Be a Millionaire) as the end consumer has opted for......

Words: 517 - Pages: 3

Case Disney

...Case # 4 Analysis 1. Background: Walt Disney Co. founded by Walter Elias Disney and his brother Roy Disney in 1923, is one of the world’s biggest transnational companies whose main objective is entertainment and mass media. At the beginning, the cartoons created by Walt Disney were not aimed at the young audience and the characters portrayed rebelliousness and people’s non-conventional features or at least different to the time’s standards. After the World War II, the animation process focused on meeting the young audience’s needs, with stories of magical worlds, and the adult population, with the technological innovation and animation advances. In 1955, the company launched the first theme park called Disneyland. With headquarters in Paris and Hong Kong, the company focused on the creation of films and theme parks, by aiming always at the young audience with magical stories and characters full of innocence and fantasy. Throughout the time, the company has faced great challenges, such as the demand’s decrease of cartoons’ production or the economic problems that reduce the families’ monetary ability to visit the theme parks. The implementation of those out of the United States has been a big challenge for the company, too. In the 2005, Bob Iger was named as CEO. The company has started a wide diversification of other sorts of audience by doing market segmentation and focusing on meeting the needs of each one of the segments with different kinds of products...

Words: 3223 - Pages: 13

Disney Case

...“월트디즈니”사의 다각화 전략 월트디즈니” 2013303389 부상혁 -차 1. 디즈니 회사 소개 - 회사 연혁 - 브랜드 구조 례- - 브랜드별 수익 구조 2. 디즈니의 다각화 - 수직 통합 - 관련 다각화 - 다각화의 성과 1. 디즈니 연혁 1923년 1928년 1955년 1983년 1984년 1992년 1995년 월트 디즈니와 로이 디즈니 형제가 Disney Brothers 스튜디오 설립 미키 마우스 캐릭터 개발 놀이 공원 (디즈니 랜드) 건립 첫 해외 지점 도쿄 디즈니 랜드 건립 디즈니 채널 설립 Touch Stone Pictures 설립 마이클 아이즈너 CEO 취임 파리 디즈니 랜드 건립 ABC 인수 2. 브랜드 구조 5개 사업부, 31개 자회사로 구성 Media Networks Parks & Resorts The Walt Disney Studios Consumer Products Media Networks Television 방송 라디오 네트워크 4개의 테마파크와 17개의 리조트 Disney Crusine 영화제작&배급 음악, 뮤지컬 캐릭터와 작품의 지적 소유권 판매 게임, 인터넷 컨텐츠 개발 3. 브랜드별 수익 구조 2012년 매출 Media Networks Parks and Resorts Studio Entertainment Consumer Products Interactive 영업이익 Media Networks Parks and Resorts Studio Entertainment Consumer Products Interactive 42,278 19,436 (46%) 12,920 (31%) 5,825 3,252 845 9,964 6,619 (66%) 1,902 (19%) 722 937 (216) 2011년 40,893 18,714 11,797 6,351 3,049 982 8,825 6,146 1,553 618 816 (308) s r all o d n oilli M : ti n U 증감 3% 2% (4)% 8% (14)% 3% 11% 7% 18% (32)% 29% 19% 1. Vertical Integration 영상 컨텐츠를 내보내는 “브로드 캐스팅”기능의 방송 인프라를 수직 통합 컨텐츠 제작자 → 거대 미디어 기업 컨텐츠 제작 - Touchstone - Pixar - Marvel TV 방영 -ABC -Cable -Video Division Video 판매 -Disney Internet Group Internet Cable TV Channel의 유럽, 아시아 진출 가속화 1995년 ABC 인수 1998년 LA 지역 방송국 3억 2천만 달러에 인수 Why?? 1. Vertical Integration 거대 미디어 기업으로서의 “정보의 포위” 1. 영화를 만들어서 CA TV로 방영하고 3. 인터넷을 통해 전파 2. 비디오화 하여 TV로 방영 4. 나아가......

Words: 366 - Pages: 2

Disney Case

...driving the stock price and dividends as high as possible. The practice, in turn, signals to management that long term profits are not as important as the present value of the company’s stocks and profits as the company’s value is being judged at market price of its stocks. Thus, all investment return is measured by the sum of cash flows, capital gains and dividends for a given level of risk. Having this Western business philosophy, Walt Disney walked into the negotiation with only their shareholders’ interest in mind. They refused to compromise or lower the terms for Tokyo DisneySea Park. Walt Disney’s terms were so rigid that OL, the main Japanese investor in this contract, objected. Walt Disney was not willing to cough out anything for the construction of the park, but it imposed a 10% royalty on the admission fee and sales of foods and beverages Moreover, at the time of negotiation, Walt Disney’s financial position was weak, its movie and TV production divisions were struggling financially Under these terms, Walt Disney would collect a fixed amount of cash from its Japanese partner without bearing any risks. It was an unfair contract for the Japanese partner, but Walt Disney’s management needed some other source of income to make the firm’s financial numbers look good, and in turn, boost up its stock price on the market. In contrast, Japanese believed that a firm’s objective is to maximize its corporate wealth. A firm has to treat its shareholders and......

Words: 2025 - Pages: 9

Disney Case

...Case Study: Disney’s America Theme Park 1. From a government relations perspective, key issues that Eisner must consider include the following: a. Support and opposition for the project was bipartisan. Debate among the House, Senate, and Governor largely focused on financial matters, including how budget resources were to be allocated for road construction. b. Opposition focused mainly on Disney’s choice of the Manassas site, and not the issue of whether the theme-park should come to Virginia. Responding to Disney and Allen’s projections of job creation, opponents argued that employment was already low in northern Virginia relative to the rest of the state. c. Activists with different reasons for opposing Disney’s America united behind the single, common cause of fighting suburban sprawl. The defeat of a developer’s plans to construct a shopping mall in the 1980s was testament to their grassroots capabilities. d. The Piedmont Environmental Council spearheaded efforts to protect the site from development. e. The Manassas Battlefield Park had long been a point of controversy involving those who wish to preserve its historic integrity. Preservationists in the 1980s were already successful in preventing the development of a similar Marriott Co. theme-park near Manassas. f. Vocal opponents included prominent historians, namely David McCullough (a Pulitzer Prize winning biographer and narrator of a public television series on the......

Words: 295 - Pages: 2

Disney Case

...Disney is a diversified American multinational mass media corporation. Disney was founded on October 16, 1923 by Walt Disney and his brother Roy O. Disney. The company is best known for the production of cartoons, animations and recently a movie Pirate of the Caribbean Sea. In 2006 Disney under the CEO Bob Iger, came up with hit movie cars that generated $462 million worldwide. Then he created Hanna Montana, High school musicals and the Disney princesses. Bob Iger introductions have broadened Disney’s opportunities in the following ways; the creation of Cars franchise helps in cracking tween boy market which in turn will open another new franchise of science fiction adventures. Hanna Montana is another market opportunity that targets children that were created by Bob; he did this to push for new market for adult since the franchise was known to produce children film. Pirates of the Caribbean Sea were also the market changes since a new target market of adults came on board. Bob Iger priority was to broaden the Disney market which he did successfully by the creation of the franchises. He also increased viewership by the move of Disney channels from the premium to basic cable and also launching the local version to international or global market. Bob Iger created a new brand to broaden the market the first one was Pirates of the Caribbean, first Disney film which was rated Pg-13. It played an important role in the...

Words: 633 - Pages: 3

Disney Finance Case

...Executive Summary Walt Disney Productions Inc. (Disney) is the target of a takeover attempt by Saul Steinberg. Over the course of several months, Disney management has resisted the takeover in several ways including the acquisition of Arvida Corporation in a "for stock" deal and the pending acquisition of Gibson Greeting Inc. (Gibson). Steinberg has countered these moves with a public tender offer of $67.50 per share if Disney acquires Gibson and $72.50 if Disney does not acquire Gibson.With a current price of approximately $50 per share, Steinberg's offer is 35% to 45% above market value. This paper addresses two questions. The first question is answered from the perspective of the shareholders while the second question is answered from the perspective of Disney management. From the shareholder perspective, the tender offer is advantageous from a financial perspective and should be accepted if profit is the sole motivation. The answer to the second question depends heavily on management's good faith in the current leadership and their ability to grow Disney, as the case clearly provides evidence of management inefficiencies that are consistently reflected in Disney’s declining profit margins and ROE since 1981 (Exhibit 6). Analysis: As a Shareholder Regular shareholders with limited financial education should look for three things in an investment: 1. Per-share growth and earnings history- As a shareholder, the incentive that comes from investing in a......

Words: 967 - Pages: 4

Walt Disney Case Analysis

...Walt Disney Case Analysis Corporate Strategy The Disney brand is extremely well known, but most may not realize how diversified the company actually is. The company is made up of media networks, theme parks and resorts, studio entertainment, consumer products, and interactive media. Walt Disney Company’s corporate strategy involves three aspects; creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and internal expansion. Disney wants the whole family to be involved. Much of their success is due to targeting not just children, but the entire family. The movies and shows they release are done with family in mind. Theme parks and resorts, Disney Cruises, live performances and interactive media are all aimed at creating high quality family content. Disney acquired Pixar, Marvel, and Playdom in order to satisfy their second corporate strategy. The acquisition of Marvel and Pixar was intended to enhance Disney’s animation abilities to make experiences more memorable. Playdom gave the company new online gaming capacities that Disney hoped would help to improve its struggling interactive media division. UTV was acquired to facilitate its international expansion efforts. Disney’s international expansion strategy mainly focused on opportunities in emerging overseas markets. As of 2012 The Disney Channel was available in more than 100 countries and reached 75 percent of viewers in China and Russia. This......

Words: 1872 - Pages: 8

Disney Case

...Lina María Montaña Lina María Montaña Contexto * Disney Brothers Studio nació en 1923 en estados Unidos y se estableció en Hollywood. * En 1928, después del éxito y pérdida del Oswald el conejo suertudo, Disney hace unas modificaciones a este y crea a Mickey Mouse, personaje que le traería gran reconocimiento internacional. * Disney tenía una estructura plana y sin jerarquías que se basaba en el trabajo en equipo, comunicación y cooperación. * Como medida de control y para reducir costos con el tiempo Disney empezó a encargarse de otros negocios complementarios como la música y distribución de las películas. * Para Walt Disney su pasión era el entretenimiento y por eso creó parques de diversiones. * Como parte de la estrategia posterior a la muerte de Walt Disney, la empresa siguió diversificándose amplió su negocio a un canal de televisión, espectáculos en vivo e incluso creó un sello llamado Touchstone, enfocado en adolescentes y adultos. * Entre 1980 y 1983 se deterioró el desempeño financiero de la empresa, especialmente por las grandes inversiones que hizo y como parte de la solución se incorporó en 1984 a Michael Eisner quien al tomar el liderazgo logró cambiar el rumbo que traía Disney, aumentando las utilidades y ganancias hasta lograr darles a los accionistas un 27% de retorno anual. * En 1996 Disney hizo la compra de la cadena ABC, lo que requirió de grandes esfuerzos para fusionar las empresas y por varios años......

Words: 1909 - Pages: 8

Disney Case

...Why has Disney been successful for so long? Disney’s long term success lies mainly in the quality and type of product it creates andthe firm’s successful and tactful management of its creative content and resource s. At its coreDisney, unlike many other content providers has the ability to reuse and remake previouscontent. A demonstration of this ability is the current re-release of a 3D version of The Lion King that is current in theater. This ability to reuse content is achieved because Disney can market itschildren’s movies to each new generation of children and to their parents, with whom many of their productions once resonated with. Disney has exploited this aspect of their business byreturning movies to the “Disney Vault” and only having a set number of movies available for purchase at any given time. Furthermore, Disney is a multifaceted business that has developedcontent to appeal to a wide range of ages. Such that once one moves beyond The Lion King theycan engage in content created for an older and more contemporary audience, like Touchstones’films. And when these consumers finally become parents they are once again touched by theDisney magic through their children. Disney’s other businesses such as ABC, and ESPN, allowthem to hone in on specific consumer groups and their parks provide and experience that thewhole family can enjoy. Overall Disney’s success is a result of their ability to engage newaudiences and cycle their audience through various aspects......

Words: 1585 - Pages: 7

Disney Case

...to you. If your heart is in your dreams, no request is too extreme. . . . —Jiminy Cricket On September 22, 1994, Michael Eisner, CEO of the Walt Disney Company, one of the most powerful and well-known media conglomerates in the world, stared out the window of his Burbank office, contemplating the current situation surrounding the Disney’s America theme park. Ever since November 8, 1993, when the Wall Street Journal first broke the news that Disney was planning to build a theme park near Washington, DC, ongoing national debate over the location and concept of the $650 million park caused tremendous frustration. Eisner thought back over the events of the past year. How could his great idea have run into such formidable resistance? The Controversy Comes to a Head Eisner’s secretary clipped several newspaper articles covering two parades that took place on September 17 in Washington, DC. Several hundred Disney opponents from over 50 anti-Disney organizations marched past the White House and rallied on the National Mall in protest of the park. On the same day in the streets of Haymarket, Virginia near the proposed park site, Mickey Mouse and 101 local children dressed as Dalmatians appeared in a parade that was filled with pro-Disney sentiment. Eisner was particularly struck by the contrast between the two pictures: one showing an anti-Disney display from the National Mall protest and another of Mickey and Minnie Mouse being driven through the streets of Haymarket during the......

Words: 8354 - Pages: 34

Walt Disney Case

...Case 20: The Walt Disney Company Introduction The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports have always been America’s past time and it’s unlikely to see them ever declining or the viewership that goes along with it. People have always poured capital into sports and will continue to for many centuries to come. Aside from Disney’s ventures, investors focus and confidence should be in the trademark of Disney. Characters such as Mickey Mouse and Buzz Light-year are icons that will never be lost in the pages of time. Kids and adults alike will always want to participate in the next big thing the company has to offer and these kinds of expectations will always lead to Disney having a stable stock price and even unstable in the positive manner because the growth potential is limitless for this company. You can see that limitless with the many......

Words: 10253 - Pages: 42

Disney Case

...sophisticated thinking compared with conservative people in the mainland. As there are large diversity in the mindset and lifestyle in their daily life, it is inefficient to target both of them with a single kind of marketing strategy. Moreover, the family structure in Hong Kong changes, the low birth rate leads to the children population is relatively small and the average age is increasing in Hong Kong. Children are normally the major target group of Disneyland. Together with the materialistic logic of Hong Kong residents, HKD had to do more for targeting different segment in Hong Kong. Natural Factor HKD is the third park that Disney had opened outside of the United States. The Tokyo Disney Resort, the largest park in the Asia, is well received by the Japanese and the Asian love of fantasy and costume. Due to the close geological factor, the Tokyo Disney Resort is a great alternative to the target group of customer in Southeast Asian region. Hong Kong has limited land for the development of HKD. For the construction of the main park, it already reclaimed the land at the Penny’s Bay. But the HKD is still the smallest park among the five Disneyland in the world. The daily capacity limit, 29000, is not enough for approaching visitors. The air pollution is another big concern. Due to the air pollutant passing down from Mainland China, a thick haze would easily hover over the whole park. Although the Hong Kong Government has many measures to deal with this problem, the......

Words: 754 - Pages: 4

Walt Disney Case

...Walt Disney Company Walt Disney is more than just a billion dollar industry in not only the United States, but all over the world. Walt Disney represents the idea of happiness and a sense of tradition for families all over the world. According to the case in the text, Walt Disney has fallen 26 percent in 2006 with their Movie Studio being the worst performing division reporting in an operating loss of $12 million dollars. Their number of DVD sales is also part of their structure that has been declining since 2006 up to 2009. Walt Disney needs to change up their strategic plan from what it was when the company was founded back in 1923. They cannot expect to keep up with the competition if they are not willing to change their plan and start gearing it towards their future instead of the past and present. Mission and Vision Statements. According to the text, Disney’s mission statement 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, innovative and profitable entertainment experiences and related products in the world.” It also states that Disney does not have vision statements. In order to gear their strategy for the future, it is crucial that Disney develops clear and concise vision statements. I think this is the first problem that contributes to their recent dramatic revenue drop and a simple......

Words: 1274 - Pages: 6