Buena Vista Competitive Advantages

Disney took advantage of Buena Vista’s distribution capability and sold videos at low prices. It proved valuable as movie Aladdin was sold in 30 million copies in 1993. Distribution channel is definitely sustainable advantage utilized in other business units. Potentially, the existing route system can be used in all its business units which will minimize cost and maximize profits together, under one corporate umbrella, than apart. These synergies are extremely powerful. This is very rare and not imitable because it requires radically changing route systems and operating philosophies.
Likewise, “Integrated Marketing Plan” is another important capability that Disney have to maintain to achieve sustainable competitive advantage because this is
where the true potential lies. It will build the core synergies among all other business units under one corporate roof. These synergies are active corporate function. This is evident from the case that after installing marketing function in 1987, Disney created more synergies by venturing new businesses due to the fact that the cross promotion in business units proved enormous value. For example, the stores would stimulate by not only selling the classic mickey toys, but would also coordinate in merchandise from the latest blockbuster animated movies.