Section 1 Disney PPT

8/2/2019 Section 1 Disney PPT

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Introduction


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Fun Facts

Walt was the voice of Mickey Mouse for over 20 years

Reported that Walt was dyslexic

1000 Hidden Mickeys


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History of the Industry

Studio Entertainment, Theme Parks and Resorts, ConsumerProducts, Media Networks, and Interactive Media.

Animation Industry Walt Disney is known for dominating in all industries in which it is

involved.

The theme park industry originated from the mid 1500s in England. What we think of as a

modern day Amusement Park originated in 1950 with Disneyland.

The animated film industry Snow White: 1st successful film, 1937 8 released before this but were not successful & arent around

today


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Porter's 5 Forces Model

1) Threat of Entry

2) Threat of Substitutes

3) Buyer Power

4) Supplier Power

5) Industry Rivaly


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Threat of Entry

TV & MOVIES: Low

Average budget for producing films: 1994: $30 million 1999: $52 million

THEME PARKS: Low

Large amounts

of capital requirements


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Threat of Substitutes

TV & Movies:

Low

Redbox, Netflix

Theme Parks:

Amusement Parks: Low

Vacation destination: High


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Buyer Power

Low

Consumers are willing to pay higher prices to enter

Disney amusement parks than other parks


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Supplier Power

High through vertical integration: Media networks

Studio entertainment

Theme parks and resorts

Direct retail distribution of consumer products Internet and direct marketing


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Industry Rivalry

TV & Movies:

High

Disneys largest competitors in TV:

NBC & CBS

Theme Parks:

Low


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Intra-Industry Analysis of

Disney's Strategies Diversification

Movies

TV

Theme Parks

Consumer Products

Cross-Promotion

Retail-as-entertainment Disney Store

Vertical Integration

From studio to distribution

Sell through approach purchase by consumer & not video rentalstores

Direct mail & catalog marketing


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Intra-Industry Competition


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Disney vs. Time Warner

Movies Warner Bros. New Line Cinema

TV Turner Broadcasting Network

(merged in 1996) Cartoon Network competes

against the Disney Channel Looney Tunes exclusively on

Cartoon Network, previously aired reruns on ABC

Theme Parks Owned Six Flags until 1998 had to sell it because of

increasing risk of bankruptcy, Looney Tunecharacters


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Disney vs. News Corp.

Movies 20th Century Fox

TV Fox Broadcasting Company Fox competes against ABC and is by some

considered to be in the "Big Four


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Disney vs. Viacom

Movies Paramount Pictures

(acquired Dreamworks- 2006)

TV BET, MTV, VH1

compete against ABC for a young adult demographic Nickelodeon competes against Disney Channel for viewers

ages 7 to 17

Theme Parks Nickelodeon Studios is a TV studio/attraction at Universal

Studios Florida


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Other Competitors

CBS Corporation One of the five major media conglomerates CBS one of the "Big Three" television networks

NBC Universal NBC the other member of the "Big Three" in television Universal Studios a big rival of Disney World because it is only 15

miles apart One of the six major movie studios

Sony Corporation of America Columbia Pictures

Six Flags


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Future of the Media

Industry Movies

1930, 5 major Hollywood movie studios:

Paramount, RKO, 20th Century Fox, MGM,and Warner Brothers

Todays "Big SixWalt Disney Pictures,

Time Warner,Paramount,20th Century Fox,Columbia Pictures,

& Universal Pictures


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Future of the Media

Industry

Television Past, consisted of the "Big Three" which

was ABC, NBC, and CBS controlling 99% of

TV broadcasting 2005, "Big Three" only controlled 32% of

the broadcasting due to FOX, the CW,satellite and cable TV channels

ABC, NBC, CBS, and FOX spent 60% oftelevision advertising in 2009 to see adecrease in revenues of 9%


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Future of the Media Industry

Theme Parks

Disney parks - Disney cruises dock at nearby ports tobring the guest to the theme parks

Nickelodeon at Sea has partnered with NorwegianCruise Line

Six Flags filed for Chapter 11 bankruptcy protectionin 2009 and exited in 2010, they are now coming outwith new rides and attractions like the X-Flight

Universal Studios - new ride is the Harry Potter the

Forbidden Journey 2012, developing two new 3-D attractions


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History of Walt Disney

Objective & Mission world's leading producers and providers of entertainment

and information, using its portfolio of brands to differentiateits content, services and consumer products.

Primary financial goals: to maximize earnings and cash flow,and to allocate capital toward growth initiatives that willdrive long-term shareholder value.

Target Market- families & people of every age.

Employs approximately 150,000 people.


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History of Walt Disney

1923, formal beginning of Walt Disney Co. CompanyOriginally known as Disney Brothers Cartoon Studio. Began with Alice Comedies, Oswald, Mickey Mouse Fame of Mickey Mouse

1929, Consumer Products began with Mickey Mousenotebooks

1934, Animated feature film, Snow White- highest grossingfilm of all time, record held until Gone With the Wind.

1940, Pinocchio and Fantasiareleased

1955, Amusement Park -Disney Land


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Disney's Strategy

Use their 5 major business segments to produce

unparalleled entertainment experiences based on the

rich legacy of quality creative content and exceptional

story telling.


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Disney's Competitive Advantages

Copyrights Protect characters

Consumer products

Synergy Complimentary assets & activities

Ex: High School Musical

Corporate Culture Michael Iger, CEO

Creativity, Quality, Entrepreneurship, Teamwork

Disney Institute


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Recent Disney Opportunities

Purchased Marvel Comics for $4 billion

Began distributing content in new ways Video On-Demand

TV shows on ipod In-house video game capabilities


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Future of Disney

Increasing growth Revenue in 2000: $25 billion Revenue Today: $38 billion

Emphasis on Disney original characters/movies than new Snow Whites 50thanniversary, Mickeys 60th Birthday 2000, launch new Mickey Mouse clothing line Lion King in 3D

Increase international sales Disney: 21% of its revenue from abroad Coca-Cola: 63% McDonalds: 61%

Threat: Big conglomerate ran by 1 person may lose creativity Disney Magic

Strategic Issues: Value tangible assets & controlling costs more than

intangible assets

Management control & succession


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Recommendations for Disney

1. Decentralize decision-making A: more creativity, increase revenue D: may be costly (cannot control everyones decisions,

can only give incentives to influence decisions)

2. Research international cultures A: avoid culture clash, more customers, increase

international revenue D: more research costs


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3. Revamp the Disney culture Walts Belief: Money is no substitute for animation

Creativity

Eisners Era: too much conflict Gong show

Inner competition

Make it fun Google A: retain valuable, happy employees

D: not everyone will like change



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4. Update more theme parks with rides that matchhit movies

Roger Rabit in Cali A: incentive to visit parks D: costs to update rides, replace rides that

customers may be used to

5. Movie theaters inside themeparks

Play movies from vaults A: incentive to visit parks,

increase revenue D: wage costs



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Section 1 Disney PPT

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