Disney Case Study
Section 1
Disney’s corporate strategy till 1994 was rooted on Walt Disney’s vision to “create universal timeless family entertainment.” Disney’s synergistic and coherent strategies supported the enterprise expansions and market growths during this period with stellar financial results as well as the timeless brand image. The strategies and the successful effects can be described into four categories (see Exhibit 1 for Disney’s strategic activities)
Control of quality and financials, vertical integration “Oswald, the Lucky Rabbit” taught Disney the important lesson of total control and vertical integration. Disney established its own distribution house, film studio, music label and so on to better control quality content and costs. Synergies among business sectors with the same corporate culture & value made the communication and production more efficient and effective.
Control of Brand Image
To better promote and differentiate itself from competitors, Disney used horizontal integration to promote the same product to gain more customer interests. Disney’s Broadway shows were produced to promote Disney’s brand and parades were used to attract people’s attention. Also, licensing characters was not only about cash flow, but also to refresh them and keep the characters live longer in customer’s mind. Therefore, it was important for Disney to be selective and careful about its copyright and distribution in order to maintain its high brand equity and to completely control the entertainment experiences.
Expand horizontally & geographically with synergies & leverage of resources & capabilities
To increase its presence and market awareness, Disney applied horizontal integration to expand potential target segments with cross-promotions. In addition, more contents for adults were produced to expand beyond the “family entertainment” base which offered animation, theme parks, movies and many more that fit into the mainstream market. Geographic Expansion was
Disney’s corporate strategy till 1994 was rooted on Walt Disney’s vision to “create universal timeless family entertainment.” Disney’s synergistic and coherent strategies supported the enterprise expansions and market growths during this period with stellar financial results as well as the timeless brand image. The strategies and the successful effects can be described into four categories (see Exhibit 1 for Disney’s strategic activities)
Control of quality and financials, vertical integration “Oswald, the Lucky Rabbit” taught Disney the important lesson of total control and vertical integration. Disney established its own distribution house, film studio, music label and so on to better control quality content and costs. Synergies among business sectors with the same corporate culture & value made the communication and production more efficient and effective.
Control of Brand Image
To better promote and differentiate itself from competitors, Disney used horizontal integration to promote the same product to gain more customer interests. Disney’s Broadway shows were produced to promote Disney’s brand and parades were used to attract people’s attention. Also, licensing characters was not only about cash flow, but also to refresh them and keep the characters live longer in customer’s mind. Therefore, it was important for Disney to be selective and careful about its copyright and distribution in order to maintain its high brand equity and to completely control the entertainment experiences.
Expand horizontally & geographically with synergies & leverage of resources & capabilities
To increase its presence and market awareness, Disney applied horizontal integration to expand potential target segments with cross-promotions. In addition, more contents for adults were produced to expand beyond the “family entertainment” base which offered animation, theme parks, movies and many more that fit into the mainstream market. Geographic Expansion was