Disney’s corporate strategies
Disney’s corporate strategies are (1) creating high-quality family content (2) exploiting technological innovations to make entertainment experience more memorable (3) expanding internationally. In the related corporate-level strategy, Disney acquired Pixar in 2006 and finished acquisition of Marvel in 2009 in order to enhance its resources and capabilities of its core animation business with additional of new animational skills. The acquisitions of Marvel and Pixar is an IP acquisition. As a result, Disney can provide its customers with more innovative and attractive products. For unrelated corporate-level strategy, the acquisition of Playdom enable Disney to have capabilities to join online gaming. Social gaming is becoming an important part of today’s market and it developing its domination at a very fast pace. The acquisition of Playdom helps Disney to join a new social space. Disney acquired UTV to help it exploit international opportunities. With UTV, Disney became the largest studio and significantly develop its distribution network in market. Disney’s corporation strategy gives its investor a lot of confidence and thus it attract enough capital to allocate its theme parks and resort business to sustain its advantage in the industry. From the exhibition 2, we can see that Disney company’s stock price performed very well in the past 10 years and increase 800 %, the growth of Disney company’s stock is much higher than that of its industry, especially after 2011. Form the growth of stock price, we can tell the acquisitions that Disney made help Disney to develop in a much faster way. The Walt Disney desires a synergics between its business units and wants to exploit opportunities in emerging market. In 2012, Disney Channel was available for more than 100 countries and own around 75 % of audiences in China and Russia.
b. If it operates in more than one business, do the businesses share or trade resources?
c. What are the connections among the different businesses?
The connections among Disney’s different business is that all of those businesses are in service and entertainment industries
d. What has been the primary mode of diversification –Acquisition, joint-venture, internal growth?
e. What is your assessment of its growth mode?
f. If the firm operates in one business, could it gain value through diversification?
g. If so, which businesses would you recommend and how can it create value?
h. What mode of diversification and growth would you recommend?
3. International Strategy: ( Chapter 7)
a. What strategic approach has the firm taken towards international growth –localization, global standardization?
b. Describe the nature of any challenges to expand internationally for the company.
c. What mode of expansion has it used? Licensing, Franchising, etc.
d. If it is a U.S company, what is your assessment of its international opportunities?
e. What strategy and mode of expansion should it use?
STEP 2: ISSUE SECTION: Clear statement of issues confronting the company ( 2 slides in visual presentation as well as in your written report)