Entertainment and Marketing Industries
Al Lieberman
Monday (3:30 -4:45)
The Walt Disney Company Case
Why has Walt Disney been so successful for so long?
Disney’s long term success lies mainly in the quality and type of product it creates and the firm’s successful and tactful management of its creative content and resource s. At its core
Disney, unlike many other content providers has the ability to reuse and remake previous content. A demonstration of this ability is the current re-release of a 3D version of The Lion King that is current in theater. This ability to reuse content is achieved because Disney can market its children’s movies to each new generation of children and to their parents, with whom many of their productions once resonated with. Disney has exploited this aspect of their business by returning movies to the “Disney Vault” and only having a set number of movies available for purchase at any given time. Furthermore, Disney is a multifaceted business that has developed content to appeal to a wide range of ages. Such that once one moves beyond The Lion King they can engage in content created for an older and more contemporary audience, like Touchstones’ films. And when these consumers finally become parents they are once again touched by the
Disney magic through their children. Disney’s other businesses such as ABC, and ESPN, allow them to hone in on specific consumer groups and their parks provide and experience that the whole family can enjoy. Overall Disney’s success is a result of their ability to engage new audiences and cycle their audience through various aspects of their content.
What did Michael Eisner do to Rejuvenate Disney? (Specifically how did he increase net income in the first four years?)
When Eisner joined Disney in 1984 he committed himself to maximizing shareholder wealth through annual revenue growth of 20%. At the core of his plan to rejuvenate the firm and achieve these revenue