WALT DISNEY GROUP 6

History of Disney Disney started out in the

studio entertainment in the animated cartoon industry. In 1923 Walter Elias Disney founded Disney Brothers Studio with his older brother Roy. They ran their company as a flat nonhierarchical organization, in which everyone including Walt used their first names, and no one had titles.

Disney Portfolio

Disney 4 Business LinesStudio Entertainment

• Theatrical Films• Walt Disney Pictures• Touchstone Pictures• Hollywood Pictures• Miramax

• Distribution• Buena Vista

• Music Groups• Hollywood Records• Mammoth Records• Lyric Records

• TV Production• Program

Development• First Run Animation• Live-Action

Syndication• Pay TV Services

Media Networks

• Broadcasting• ABC TV Network• TV Stations• ABC Radio Networks• Radio Stations

• Cable Networks & International• ESPN• Disney Channel• Toon Disney• SoapNet• Lifetime• E

Parks & Resorts

• Amusement Parks• Disneyland• Disneyworld• Euro Disney• Tokyo Disneyland

• Disney Cruise Line

Consumer Products

• Merchandising licensing

• Disney Stores

• Disney Publishing

• Walt Disney Art Classics

• Disney Interactive

Innovation from an early age

1923 animated cartoon industry-black & white no sound 1928 called “Steam boat Willie” with Mickey Mouse 1931 1st Color Cartoon 1937 1st full length animated feature film Set Learning Curve Innovation Branding

Today Studio Entertainment IndustryDisney still leading innovation

Movies – full blown action/ special effects/ HD Television- live/reality Animation programs- computer animated Musical recordings- studios Live stage plays- broadway Internet Groups

Studio Entertainment Industry Analysis

Industry Competitors Rivalry

Medium

Potential Entrants

Low

Buyers

High

Substitutes

High & Low

Suppliers

Low

Five Forces

Degree of competitive rivalry Competitive rivalry-Medium high

# of competitors- lowEntrants barriers-highMarket size & growth- highProduct differentiation & brand loyalty- medCost structure of industry- highExit barriers-med to low

Today Disney Top 3 Competitors

2007 Percent of Revenues

2011 Fortune 500

Rank Company500

rankRevenues

($ millions)

1 Walt Disney 66 40,893.0

2 News Corp. 91 33,405.0

3 Time Warner 103 28,974.0

4 Viacom 177 14,963.0

5 CBS 188 14,245.0

6 CC Media Holdings 394 6,161.4

7 Live Nation Entertainment

450 5,384.0

Disney Studio Entertainment Firm Analysis

1980’s Entertainment Slump-Disney technologically adapted & innovation.

First Mover: 1988-Disney Invested $30mm in computer animated production system (CAPS)

Roger Rabbit

Firm Analysis-Disney Diversification

Disney takes on more: Diverse reduces risk in other industries

1980’s-Touchstone 1933-Miramax

Distribution

1978-Home video industry Buena Vista Home Video and International Buena Vista

Disney’s Competitive Advantage

•Produce it, Distribute it, Sell it•Buena Vista Home distribution

Vertically film integrated

•Horizontal Integrated •Growth in the entertainment industry

•Marimax, Touchstone, Disney Studios,

•Music, TV, Films, Plays

Diversification

•Copy Rights on TV, Film, Music, Plays

Intellectual Property Rights

•Changing with Technology•Taking on more risk•Adapting to consumer market preference

Innovation

• Investing in risky projects•Set learning curve

First Mover

•From children to adults•Adults trust Disney. Adults take their kids, and their kids take their kids etc..

Brand Loyalty

•Movies promotes new park rides, promotes new products, promotes new tv shows etc..

Cross Promotion