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    WALT DISNEYPRODUCTIONS

    ISSUE

    WHEN YOU WISH UPON A STAR,

    MAKES NO DIFFERENCE WHO YOU ARE,

    ANYTHING YOUR HEART DESIRES WILL COME TO YOU

    -PINOCCHIO,1940

    Walter Elias Disney created so much a dream that for him is just inches

    apart but for others so far to be aspired. Uncle Walt started off with just a dream in

    his mind and $40 in his pocket. He went into believing that someday his dreams

    would come true for him. It was as if it was so much to be desired but could only

    be held true by a few.

    Uncle Walt then managed to make his dreams come true with friends at

    his side and a mind full of imagination and stories. He entered a world so new,

    that a few have trodden the path. He entered the world of animation with

    immortal characters; from Alice to Oswald to Mickey. From when he started, it

    was never an easy road, a lot of struggles came. Nothing comes to a man who fails

    to continue.

    The dream became bigger. He was becoming the face of America. He

    didnt stop from series animation, he held a bigger dream. He went into

    production of full-length feature animation. This led him to becoming world

    famous and becoming an icon for animation.

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    He built his studio where the dreams became bigger. And alongside the

    dreams are the problems that go alongside with it. The market is demanding a

    bigger pressure upon the company. The workers are revolting against Uncle Walt.

    Uncle Walt still continued on dreaming but soon enough has lost his charm. The

    dreams still do move on along the company. The dreams are still creating a world

    for children and kids-at-heart.

    And as all stories go, the smiles and the happily-ever-after shall soon come

    to an end at the very last pages of the books. A big turn-around of the smiling faces

    turned into the saddest faces. Cast members alongside the children that Disney

    made happy with his dreams have cried at his death. THE COMPANY MUST

    KEEP ON MOVING FORWARD.

    The problem now arises from here. Many of the companies in the world

    has already experienced the death of its founder which makes it hard for the

    company to make sure that the operations shall still ran smoothly. Companies diedalready alongside the death of its founder. But Disney is quite different; it could

    still handle the pressure as Uncle Walt has left its company with enough

    knowledge to run the business.

    Disney has left a mark of being CREATIVE, INNOVATIVE and being a

    DREAMER. These are the qualities that every manager of Disney should embody.

    The problem grows bigger as many of not all of the managers are quite CRITICAL,

    TECHNICAL and ANALYTICAL; qualities outside of the realm of the culture of

    Disney.

    Materials for new production are already recycled. The movies that Disneyleft unproduced were produced. No more ideas were left to be seen as plausible for

    what Uncle Walt would do.

    The company was stuck with the following lines; Would Uncle Walt do

    this? Would Uncle Walt produce such? The company was left thinking on what

    to do next. A series of movies were released thinking that Uncle Walt would like

    such, but almost every movie produced was a writeoff.

    Managers of Disney should begin thinking outside of the box to be able to

    produce the same quality of movies that Uncle Walt has created during his time.

    Managers are not expected to go at the same path of Uncle Walt because it would

    be too risky causing a redundancy of films being produced and soon market would

    be bored. THE CHALLENGE IS; COULD THE COMPANY LEVEL UP ONCE

    AGAIN WITH THE CULTURE AND EXCELLENCE THAT ONCE WAS DISNEY?

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    INDUSTRYANALYSIS

    The Entertainment industry started from a very long time ago where man

    knew how to work. The entertainment industry is the industry for leisure, where

    the common man rests and relaxes in his free time. This industry is composed of

    two major segments:

    Live Entertainment; and

    Media-dependent Entertainment

    Both segments work hand in hand to be able to reach its market. The Live

    Entertainment Industry is subdivided to four industries of their own:

    Gaming

    Sports

    Performing Arts

    Amusement

    One of the newest and highly patronized industries, the Media-dependent

    Entertainment Industry is composed of industries in their own:

    Film

    Music

    Broadcasting

    Cable

    Publishing

    Walt Disney Productions is a part of the biggest industry in the world, the

    Entertainment Industry1where the fun starts and the stress ends. Generally, we

    cannot classify Disney among the segments of the industry because as a whole, it

    took hold of all industry sectors.

    1For the sake of discussion about Walt Disney Productions, we would consider the company as part ofthe Film Industry, one of the segments of the broader Entertainment Industry.

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    DEMANDS FORPRODUCTS ORSERVICES OF THEINDUSTRY

    LONG-RU N GROWTH ORDECLINE

    The increase availability of time among workers and students alike gives a

    precondition that the entertainment industry is needed among the different

    individuals. This in turn says bluntly that the industry, though how old it may be,

    would still continue to grow in the long-run and there would be no expectation of

    any further decline. It, so goes, means that as long as there is time, the

    entertainment industry will continue to exist.

    But this precondition only is applicable to the entertainment industry as a

    whole. Its segments say different. The Film Industry in particular had a series of

    downfall because of the introduction of new media. The film industry had no clearnotion of how to cope up with the newly introduced industry of cable and

    broadcasting during the 1950s. The broadcasting media and cable had also initial

    problems when they first introduced television as it was costly for its market. This

    just goes to show that the more introductions for new media damage the clear

    thinking of the existing media.

    Most of the companies in the film industry took the new media as no

    threat but as an opportunity for them to reach the public faster. This strategy was

    not seen for a decade by some other companies. Disney in particular took the

    opening of new media as an opportunity for him to advertise products,

    merchandises and films more easily. He used the television as an instrument toopen new doors for his company.

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    FIGURE 1 FILM INDUSTRY SOURCES OF REVENUE: WORLDWIDE STUDIO RECEIPTS IN US $BILLIONS (2004 DOLLARS)

    Via the use of the new media introduced, a company could do a rerun of

    its film in television for certain devaluation. This would enable the company to

    increase profit and to reach a wider range of market.

    The industry as a whole shall still continue to grow as the years would pass

    as long as they would know how to cope up with their market and the introduction

    of new technology.

    STABILITY OF DEMAND FORPRODUCTS

    The US market is becoming more saturated. Companies continually grow

    and eat up the companies that are left in the bottom rank. The industry is

    considered to be a dog-eat-dog world for many, as once you failed in the industry

    that is becoming more saturated, the market will not buy you anymore. To further

    prevent the saturation that is currently happening consolidations and buy-outs has

    been occurring.

    Disney has not escaped this scenario. Takeover in the company has beenreaching news. The demand for the films produced by Disney is slowly being lost.

    A series of writeoffs, a precondition that dictates that the market is not buying the

    films, has occurred in Disney. Movies like Something Wicked This Way Comes,

    Night Crossing, The Watcher in the Woods, Midnight Madness, Condorman and the

    like has caused Disney millions of dollars to be lost.

    1950 1960 1970 1980

    Theater 7.80 4.50 3.04 5.28

    Video 0.00 0.20 2.40 6.02

    TV, Pay 0.00 0.39 1.07 1.66

    TV, Free 0.00 3.35 5.74 7.60

    0.001.002.003.004.005.00

    6.007.008.009.00

    StudioRe

    ceipts

    Film Revenue Statistics

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    Something Wicked This Way Comes 21.0 million

    Night Crossing 10.5 million

    The Watcher in the Woods 6.8 million

    Midnight Madness 4.8 million

    Condorman 20.5 million

    ________________________________________________________

    The introduction of the television also threatened the cinema as a whole.

    Moviegoers liked more to stay home and watch cable television than to watch at

    the cinema. This endangered a series of film companies that hasnt infiltrated yet

    the cable television.

    Soon enough another introduction damaged more the cinema that is the

    introduction of VCRs. These small gadgets made it easier for the viewing public to

    watch movies at home and to avoid the long queues at the cinema.

    Many of the film companies were challenged then to produce VCRs for

    their movies to prevent further loss of profit. Many companies coped up with the

    introduction of the new technology and managed to back to the stable demand for

    their products.

    Demographical changes soon also changed the demand for the products.

    Like for Disney which was pasted with the name Magic and Kids alongside its

    name has lost further effort to open up to a different genre in film production. The

    number of kids ages 13 and below has been declining. The demand is slowly

    deteriorating and the wants of the audience is also changing.

    FIGURE 2 PERCENTAGE OFAUDIENCE BELOW14 YEARS OF AGE

    1950 1960 1970 1980

    Above 14 Audiences 85.3 81.8 85 86.4

    Young (below 14)Audience

    14.7 18.2 15 13.6

    0%

    20%

    40%

    60%

    80%

    100%

    Numberof

    Audiences

    Percentage of Audience Population

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    Companies who has accepted the different entrance of technology and has

    able to cope up with its market would soon see bright stars ahead of them and the

    demand would continue to be stable.

    STAGE IN

    PRODUCT

    LIFE

    CYCLE

    The Film Industry is still a new industry for the market. But its

    introduction gave a favorable response to the market. Many investors invested

    already in the new industry as it has seen to grow more and more.

    TABLE 1FILMED ENTERTAINMENT INDUSTRY OPERATING PERFORMANCE, MAJOR

    THEATRICAL DISTRIBUTORS

    Revenues($ millions)

    Oper. Income($ millions)

    Margin(%)

    Film Inventory($ millions)

    Invent./revenue($ millions)

    1983 5324.00 590.00 11.10 2980.00 0.56

    1982 4548.00 565.00 12.40 2729.00 0.60

    1981 3749.00 301.00 8.00 2267.00 0.60

    1980 3997.00 489.00 12.20 1423.00 0.36

    1979 4009.00 661.00 16.50 1538.00 0.38

    1978 3498.00 606.00 17.30 1212.00 0.35

    1977 2739.00 406.00 14.80 973.00 0.36

    1976 2336.00 336.00 14.40 936.00 0.40

    1975 2078.00 353.00 17.00 822.00 0.40

    The industry has a balanced return of investment during its golden era.The industry at this point is considered to be at the latter part of the growth stage.

    People would still continue to see the fulfillment of the industry that has started

    off well and good and is starting to meet the standards set by its market.

    SUPPLY OF PRODUCTS ORSERVICES

    C APACITY OF THE INDUSTRY

    The industry offers a varied amount of movies it produces every year, from

    horror flicks to animation features. Here we could already see that the industry is

    able to handle the demand for the product in various forms for various

    specifications per individual.

    Though the industry is still at its growth stage, various entrants of the

    industry are already able to supply the needs of its growing market. A lot of the

    competitions are still working hand-in-hand to be able to appeal to the market via

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    consolidation. The produce of the different companies already answers more than

    enough of the demand of the public.

    TABLE 2 ESTIMATED PROBABLE MINIMUM LIBRARYVALUES AS OF 1983

    Film Company Approximate No. of Titles

    Columbia Pictures 1,800 Features

    Disney 25 animated, 125 live action, 500 shorts

    MGM/UAEntertainment

    4,600 features (2,200 MGM), 1,310 shorts, 1,080cartoons

    Paramount 700 features

    Twentieth CenturyFox

    1,400 features

    Universal 3,000 features, 12,500 TV episodes

    Warner Bros. 1,600 features

    AVAILABILITY OF NEEDED RESOURCES

    Resources for the film industry are readily available for them. New

    technologies every year is increasing and so goes is the production of the materials

    needed for filmmaking.

    Machine and equipments are readily available in the vast changing world

    of the industry. Everything is already at a close grasp for the companies. New

    technological improvements are already available for consumption by the differentcompanies inclined to producing film.

    Manpower is overwhelming except for companies like Disney, who has a

    specialized need for manpower who has the ability to imagine and create. Most of

    the manpower provided by the different states is analytical and technical people

    who would be very much helpful for companies inclined in technical filming and

    period pieces.

    The market is vast changing, and needs are growing. The industry could

    answer the different needs in one blow. Companies should just stick to their status

    quo and they are good to go. A varying media would also be applicable to the vastchanging needs of its market.

    Raw materials for production are also readily available. Talents are just

    roaming around the country and cost wouldnt be a problem for raw materials as

    the materials necessary for filmmaking are available at budget prices. Advertising

    could also lessen the cause of the different raw materials needed for production.

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    SOCIAL CONSTRAINTS

    The US and world market had a series of demographic changes that

    threatens some companies inclined to only a limited number of market in a certain

    demography. Disney for example is losing its market because of the changingneeds of their market. Most of the young adults that they are catering want more

    sex and violence on the things they are watching. The same series of social

    constraints is experienced by a lot of the different companies inclined to film

    production.

    The demographic changes soon shall change the different focus of the

    industry. If such change would not be coped upon shall death knock on the doors

    of the dreams of the companies trying to make a need upon their market.

    The sales are not really that slow nor is it exponentially growing. The

    stagnancy of the increase of revenue so goes mean that the industry needs to cope

    up with their market to be able to stand firmly on ground to prevent any further

    loss for the companies.

    On the other hand, the increase time of leisure permits social freedom

    among its target market thus improving the return of investments for companies

    who looks into the needs of their market.

    COMPETITIVE CONDITIONS IN THE INDUSTRY

    STRUCTURE OF THE INDUSTRY

    The entertainment industry is one of the largest sectors of the US

    economy and is in fact becoming one of the most prominent globally as well. It is

    composed of 12 major enterprises:

    Movies

    Music

    Television ProgrammingAdvertising

    Broadcasting

    Cable

    Casino

    Publishing

    Performing Arts

    SportsTheme Parks; and

    Toys and Games (otherwise

    known as merchandising)

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    The different major entertainment enterprise has only been touched by a few film

    companies; to name a few:

    Walt Disney Productions

    Disneyland

    Disney World

    EPCOT

    Animation

    Live Action Films

    NBC

    The Disney Channel

    Universal Studios

    Universal Studios

    NBC

    CNBC

    USA/ Sci-fi

    Paramount PicturesNickelodeon

    MTV

    VH1

    DreamWorks

    The industry in its vast expanse created tight competitions between

    networks. At the start of the 1980s the industry became a dog-eat-dog world.

    Where competitions are eliminated and the so-called mimicry and mirroring

    in the industry started.

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    CONCLUSION

    The entertainment industry is a vast industry that accommodates many

    markets. The vastness of the industry is also a threat to most companies as new

    technologies and introductions for new type of media could threaten a certaincompany without really meaning a threat.

    Some took the threat as a challenge to be defeated but soon enough failed

    and joined the new media instead. The prime threat for the industry is not the

    introduction of new media but the changing demographics.

    The change in demographics paralyzed many companies because of the

    culture that was pasted to them. In this case, any companies who want to

    penetrate the market well must be very versatile and only paste a name of quality

    to their names not a trademark that would be limited to dying demographics.

    The company should also establish a rapport with their market that they

    exist as a company for prime leisure and for no other means.

    IN ORDER TO SURVIVE A DOG-EAT-DOG WORLD, DONT

    UNDERESTIMATE YOUR COMPETITION EVEN HOW SMALL IT IS, BECAUSE

    TO BE ABLE TO PENETRATE TO YOUR INDUSTRY, ALL YOU NEED IS A

    POCKET FULL OF DREAMS AND A MIND FULL OF STORIES.

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    POSITION OF THE COMPANY IN THE INDUSTRY

    One of the best examples of service through people is Walt Disney Productions

    How Disney looks upon people, internally and externally, handles them,

    communicates with them, rewards them, and is in my view, the basic foundationupon which its five decades of success stands.

    - Peters and Waterman, In Search of ExcellenceMARKET POSITION OF THE COMPANY

    RELATION OF COMPANYSALES TO TOTAL INDUSTRY ANDLEADING COMPETITORS

    TABLE3 FIL M INDUSTRYMARKET SHARE

    Year TwentiethCentury Fox

    WarnerBrothers

    Paramount Columbia Universal MGM/UA Disney Others

    1983 21.00% 17.00% 14.00% 14.00% 13.00% 10.00% 3.00% 8.00%

    1982 14.00% 10.00% 14.00% 10.00% 30.00% 11.00% 4.00% 7.00%

    1981 13.00% 18.00% 15.00% 13.00% 14.00% 9.00% 4.00% 14.00%

    1980 16.00% 14.00% 16.00% 14.00% 20.00% 7.00% 4.00% 9.00%

    1979 9.00% 20.00% 15.00% 11.00% 15.00% 15.00% 4.00% 11.00%

    1978 13.00% 13.00% 24.00% 11.00% 17.00% 11.00% 5.00% 6.00%

    1977 20.00% 14.00% 10.00% 12.00% 12.00% 18.00% 6.00% 8.00%

    1976 13.00% 18.00% 10.00% 8.00% 13.00% 16.00% 7.00% 15.00%

    1975 14.00% 9.00% 11.00% 13.00% 25.00% 11.00% 6.00% 11.00%

    1974 11.00% 23.00% 10.00% 7.00% 19.00% 9.00% 7.00% 14.00%

    1973 19.00% 16.00% 9.00% 7.00% 10.00% 11.00% 7.00% 21.00%

    1972 9.00% 18.00% 22.00% 9.00% 5.00% 15.00% 5.00% 17.00%

    1971 12.00% 9.00% 17.00% 10.00% 5.00% 7.00% 8.00% 32.00%

    1970 19.00% 5.00% 12.00% 8.00% 13.00% 9.00% 9.00% 25.00%

    In contrast to the upbeat optimism of management, customers and

    business pundits, securities analysts and some journalists were less enthusiastic.

    The performance of Walt Disney is beyond par the industry standards. It is still

    playing as a small player in the industry though its enough efforts to maintain a

    number one spot. The reasons are because of high costs of production that would

    only give back a small percentage for revenue. This occurred in a series of year

    where the company spends more than what they can earn.

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    TABLE 4 FIL M INDUSTRYMARKET SHARE, 1983

    The industry share of Disney is only a mere 3% that signifies the high cost

    of production and the low return of sales. A series of writeoffs for their films after

    the death of Disney has cost a lot for Disney. Many hearsays of a takeover because

    of the lack of independency in film production has been widespread ranging from

    family members like Roy E. Disney, to business tycoons like Saul Steinberg.

    The competition is still far ahead from Walt Disney Productions.

    RELATIVE APPEAL OF THE COMPANY

    Walt Disney Productions has appealed to a lot of audiences for its years of

    existence; but a name was stuck for a certain market. The Walt Disney Company

    describes itself as a diversified international company engaged in family

    entertainment and community development. The business activities of the

    company are divided into four segments: theme parks, films, consumer products,

    and real estate development. In the different segments a series of market failure

    has been seen.

    The appeal of the different movies produced by Walt Disney Productions

    has been a great writeoff for the company. The market supposed to watch themovies held the company as unable to satisfy the need and demand of the public.

    The expectations of the supposed audience were not met by the company. Walt

    Disney left behind an image that the company creates magic and makes dreams

    come true.

    The changing market demographics have also endangered the appeal of

    the company towards its market. The broad audience expected by the company

    21%

    17%

    14%14%

    13%

    10%

    3%

    8%

    Film Industry Market Share, 1983

    Twentieth Century Fox

    Warner BrothersParamount

    Columbia

    Universal

    MGM/UA

    Disney

    Others

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    has been decreasing. The young adults dont want more child entertainment but

    frankly speaking, more sex and violence with what they watch. If they would

    implement such, the image of Disney in a greater market would be in burden. The

    market is becoming more sophisticated and more demanding for quality films

    brought to them. This was the main dilemma if the whole industry.

    THEY NEED TO SURVIVE THE GAME WITHOUT ENDANGERING

    THE NAME, ELSE, THEY NEED TO CHANGE THEIR IDENTITY TO REACH A

    BROADER MARKET.

    STRENGTH OF THE COMPANY IN MAJORMARKETS

    Walt Disney Company has infiltrated different regions of the world in

    order to sell their products. The first five feature films:

    Snow White and the Seven Dwarves

    Pinocchio

    Fantasia

    Dumbo; and

    Bambi

    These movies have touched the major markets of the world and have set the

    standards for future feature-animation films.

    Via the new inventions and innovations of Walt Disney Company, a lot of

    audiences have been gathered across the different cinemas around the globe and

    gave a name for Disney as the image and icon of America.

    A series of rip-offs soon came after the death of its founder. These movies

    soon dirtied the name of Disney. The dreams became duller and duller as they

    produce more films for the succeeding years:

    Something Wicked This Way Comes

    Night Crossing

    The Watcher in the Woods

    Midnight Madness

    Condorman

    The Black Hole

    After a series of writeoffs and rip-offs, Walt Disney Productions has been

    back in track but so slow that it only produced two classics since the death of their

    founder:

    The Rescuers

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    The Fox and the HoundThe biggest sale of the two films was at Western Germany, where The Rescuers

    held the biggest hit of all times.

    Another manifestation of the strength of Disney was the series of wins at

    the Oscars for the different feature film of Disney. The prestigious award sends amessage to the public that the company is able to play alongside the big

    companies of the industry, namely:

    1. Twentieth Century Fox2. Warner Brothers Picture; and3. Paramount Pictures

    SUPPLYPOSITION OF THE COMPANY

    COMPARATIVE ACCESS TO RESOURCES

    Resources needed for film production is readily available for Walt Disney

    Productions, having its own studio, it accomplished to retain all its technology and

    is able to innovate and invent new technologies needed for the maintenance of

    production.

    People are also readily available for Walt Disney Productions as they are

    located at the United States where talents are readily available for them. An

    assurance came to Walt Disney Productions when they affiliated the company tothe different universities around the states.

    Raw materials are screaming around the company studio. Many of the

    needed resources are already available at the company.

    For the theme parks of the company, the resources are very hard to find as

    the demand of the owner is very exact. Resources came around the world for to

    exemplify what Uncle Walt wanted for his park.

    UNIQUE PRODUCTIVITYADVANTAGE

    Walt Disney Productions produced the firsts in the industry. They have

    created the very first sound cartoon via Steamboat Willie with the help of Silly

    Symphonies. This became the start of the sounds for cartoon. The next firsts for

    Disney was the first Technicolor Cartoon via Flowers and Trees. This has also set

    the standard for the next cartoons that Walt Disney would be producing and this

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    was also been the barrier for all cartoon producing companies. Another firsts was

    the multi-plane camera used for the first animated feature film, in the name of

    Snow White and the Seven Dwarves.

    The different firsts for Disney came into rushing soon after the

    establishment of the Walt Disney Studios at Burbank. The company changed in

    exponential ways, employing more people and creating more quality cartoons.

    The first theme park in Florida was given credit to Walt Disney

    Productions in the existence of the new Disneyworld. A series of theme parks soon

    followed, from Walt Disney World to EPCOT. The company kept on giving great

    firsts.

    RESEARCH AND DESIGN STRENGTH

    The greatest strength of Walt Disney Productions before the death of

    Uncle Walt is their amazing research and design strength. New technologies are

    always given credit to Walt Disney Productions, they have created a new

    dimension in film making and animation; from sounds to feature-length animation

    to theme parks.

    Soon after the death of Uncle Walt, everything came crumbling down.

    Marketing researches were very insufficient. The question, what would Uncle

    Walt do? and will Uncle Walt accept this? rounded the whole company. They

    didnt have any direction to go to. They were stuck with the old ideas of their

    founder. Films did not sell, the marketing research lacked. Though the image

    remained intact, the quality of the pictures produced are exponentially

    deteriorating, films of quality are very scarce and very seasonal. Movies produced

    are not anymore at par with the standards left by Uncle Walt.

    THE MANAGEMENT IS AFRAID TO TAKE RISK AND SO GOES

    AFRAID TO PUT MORE TIME INTO RESEARCH.

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    SPECIAL COMPETITIVE CONSIDERATIONS

    ABILITY AND VALUES OF COMPANYMANAGERS

    Walt Disney has left so much to be desired. He has created a company

    where dreams come true and where imagination runs wild. He didnt have any

    room left for anything more inferior than what he expects. He wants perfection

    and every reality to be as close as what he has imagined.

    He never really draws any of his character nor created any of the sounds or

    music for any of his cartoons, but he created stories and room for imagination in

    every production that he did. This in turn gave his company a name among the

    brightest stars in Hollywood.

    Soon after his death, managers came in crawling upon the rubles finding a

    way to continue what Disney started. They had a problem. What Uncle Walt left

    was creativity, imagination and freedom. The new managers didn t have that, what

    they have are the critical, technical and analytical concepts for film production.

    Theydont have the ability to create great stories. Everything they are producing is

    already leftovers, and some, redundancies. They dont have the right direction to

    go to.

    The company now is under rumors of takeover. The company was deemed

    unable to handle independency. They hang too much to the death of their

    founder.

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    DISNEY

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    CONCLUSION

    Walt Disney Company is experiencing a common sickness for many

    companies, the death of the founder. Disney has no direction since the founder

    died but Walt Disney trained all his personnel well on how to operate the businesshe would soon be leaving. The company is at the tip of the iceberg, one wrong

    action and it would explode into a very big problem, a TAKEOVER, where in the

    long run, would kill the company as a film producer.

    Strengths

    Innovative

    Creative

    Production Quality Brand Recognition

    Stable Market

    Weaknesses

    Management

    Costly Productions

    Lack of Independency Poor Production Value

    Writeoffs

    Opportunities

    New Technology

    New Media

    International Market

    ChangingDemographics

    Threats

    New Media

    ChangingDemographics

    Cost of Production

    Communism

    Demand

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    DISNEY

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    CTIONS

    ALTERNATIVE COURSES OF ACTION

    CHANGE THE IMAGE OF THE COMPANY AND TOUCH MORE ON

    WHAT IS CURRENTLY ON DEMAND WHILE STILL PRODUCING

    FEATURE ANIMATION FOR CHILDREN. This action would help themanagers to think freely and outside of the box and create a more revenue

    based market.

    GO FOR A TAKEOVER. Thiswould help the management to be handled

    by another person just like when they were being handled by Uncle Walt.

    Another advantage of a takeover is that they would be able to produce

    movies without the burden of thinking of what to produce.

    SELL DISNEY CHANNEL. For one to be able to sell a part that is highly

    susceptible to loss would gain the company more revenue without the

    danger of too much expense.

    SELL THE REAL ESTATE BUSINESS. The real estate business is too

    stagnant to be able to give back revenue. The company should sell the

    segment of the company that would burden any revenues.

    RECOMMENDATIONS

    After all has been said and done, the company should change the image

    left by Disney or change the name a little to create a new identity for Walt

    Disney Productions to be able to produce freely movies outside of the

    realm of the culture of the old Disney. The market demographic has

    changed drastically after the death of Disney. To be able to cope up with

    the change in demographics and with what Disney has left his company.A

    CHANGE OF IDENTITY MUST BE DONE. The managers are too much

    of a square for what Disney has left. They must adapt to what they are

    capable of doing and not what Disney would say, as Disney is already

    dead.