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Case: Walt Disney Company

Case Background
Walt Disney Company is founded On October 16, 1923, Walt Disney and his brother Roy found
the Disney Brothers Cartoon Studio in Hollywood, California. The studio, now known as the
Walt Disney Company, has had an oversized impact on the entertainment industry and is now
one of the largest media companies in the world.
A talented artist from a young age, Walt Disney drew cartoons for various publications and
became interested in cel animation while working for the Kansas City Film Ad Company. After
his Laugh-O-Gram Studio went bankrupt in 1923, Walt moved to Los Angeles, where Roy was
recovering from tuberculosis. While there, he finally sold a short film produced by Laugh-O-
Gram, Alice’s Wonderland, and signed a contract to make six more such films. In order to
produce the series, the brothers founded their company and persuaded both Virginia Davis, who
played Alice, and their collaborator Ub Iwerks to join them in Hollywood.

After the success of the Alice Comedies and a series based on a character named Oswald the
Lucky Rabbit, Disney began work on his most famous creation. With the 1929 release
of Steamboat Willie, the world was introduced to Mickey Mouse. The character would go on to
become one of, if not the most recognizable cartoons in history.

The popularity of the Mickey Mouse shorts convinced Disney his studio could produce a feature
film, which he began to do in 1934. The project, which some dubbed “Disney’s Folly,” went 400
percent over budget and required over 300 animators, artists, and assistants, but Snow White and
the Seven Dwarfs was a smash hit when it debuted just before Christmas 1937.

Since then, the Walt Disney Company has produced dozens of groundbreaking and
acclaimed films. It has evolved into a holding company for all manner of media and
entertainment properties, opening theme parks across the world beginning in 1955 and
acquiring dozens of companies in the '90s and 2000s. Disney now owns and operates
ABC, ESPN, Pixar, Marvel Studios and Lucas film. 

What began with a handful of animators producing short children’s cartoons is today one
of the most iconic companies in the world. Disney original cartoons and feature films
constitute some of the most popular and enduring entries in the American canon.
Disney’s vision is “to make people happy.”

“The Walt Disney Company's objective 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 products. The company's primary financial goals are to maximize
earnings and cash flow, and to allocate capital toward growth initiatives that will drive long-term
shareholder value.”

SWOT Analysis

Strengths Weaknesses
1. Brand Reputation 1. High cost operations
2. Highly Diversified portfolio 2. Concentration of revenues in US & Canada
3. Strategic & tactical acquisitions 3. Approaches antitrust law limits
4. Global expansion & alliances
5. Economies of scope
6. Top management
7. Loyal customers
8. Strong financial position

Opportunities Threats
1. Benefits from it advance & mobile games 1. Financial recession
2. Build a more eco-friendly image 2. Increasing piracy
3. Further expansion in new emerging
economies 3. Strong competition
4. Release of new successful stories and
characters 4. Continuous need for technological update
5. Change in consumer preferences and tastes
6. Negative publicity due to unexpected event

Key Internal Factors weight ed
1. Brand Reputation 0.15 4 0.60
2. Highly Diversified portfolio 0.15 4 0.60
3.Strategic & tactical acquisitions 0.08 3 0.24
4.Global expansion & alliances 0.05 3 0.15
5.Economies of scope 0.08 3 0.24
6.Top management 0.07 3 0.21
7. Loyal customers 0.10 4 0.40
8. Strong financial position 0.05 3 0.15

1. High cost operations 0.15 2 0.30
2. Concentration of revenues in US & Canada 0.08 2 0.16
3. Approaches antitrust law limits 0.04 1 0.04
TOTAL  1.00   3.09

Key External Factors weight ed
1. Benefits from it advance & mobile games 0.20 3 0.60
2. Build a more eco-friendly image 0.05 3 0.15
3. Further expansion in new emerging economies 0.15 4 0.24
4. Release of new successful stories and characters 0.05 4 0.32

1. Financial recession 0.15 3 0.45
2. Increasing piracy 0.10 2 0.20
3. Strong competition 0.10 3 0.30
4. Continuous need for technological update 0.10 3 0.30
5. Change in consumer preferences and tastes 0.05 2 0.10
6. Negative publicity due to unexpected event 0.05 3 0.15
TOTAL  1.00   2.81

TOWS Matrix
SO Strategies

2-1 Develop mobile game applications with Disney characters

1-2 Collaborating with WWF so as to promote environment mental issues

6-3 Build a multinational management team

8-4 Consumer research on their preferences nowadays

WO Strategies

1-1 Digitalization of our operations in order to low costs & utilize technology

2-3 Target countries as possible expansion through consumer products

ST Strategies

7-1 Offer discount to all members of Disney fun club

3,4-3 Expansion in Brazil market through alliances and synergies

8-4 Invest on R&D for one high tech department

6-5 Monthly consumer research via online polls

WT Strategies

1-1 Re-edit and release in cinemas old classic Disney films

2-3,4 Take advantage of operations that take place in N. America by investing in technology and
R&D for that area

Walt Disney is one the giants in the entertainment industry. They have been
mastering globalization since 1900. Thus, it would effective if they would target more
countries as possible expansion through consumer products. It would need much capital
but it would also return a huge profit for them.

Walt Disney has definitely worked its way into the hearts of almost everyone. The
company has managed to bring fantasies to life on the movie screen for over 80 countries and
represents the culture of American Mickey brings about the best in families through places like
Disney world where he tries to create a vacation where many people can go and have an
enjoyable experience with their families.

It masters the globalization from manufacturing industries up to services industries where it

become a key factor which plays an important role in the economy. Walt Disney is the largest company
in entertainment business, and they also create a big volume of revenues in worldwide top industries.