Chapter 2 Case StudyDisney: The Happiest Brand on Earth

TRUE/FALSE
1. By creating sequels and spinoffs of the original Cars, such as short films and a Cars theme park
attraction, Disney is pursuing market penetration.
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$. Disney is a large corporation 0ith many SB1s creating products for e(ery indi(idual in the typical
2and not so typical3 family. So, these units can 4e seen as niche marketing.
ANS: 5
A niche market is a market segment that isn6t important to larger competitors. Disney6s operations
focus on large markets.
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&. 8hen Disney spins off one of its franchises, like a line of 9annah -ontana :eans, it is 4uilding a
sustaina4le competiti(e ad(antage.
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;. Disney6s change in strategy 0ould, if applied to de(eloping a mission statement, 0ould emphasi<e
ser(ing a target audience of young people.
ANS: 5
5alse, 4ecause the Disney case sho0s that the company is intent on producing entertainment products
that follo0 a person throughout his or her life, that is, into adulthood.
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MULT!LE CH"CE
1. A significant demographic dri(er for Disney to e=pand its target market to teens 0as >>>>>>>>>>.
a
.
family%friendly fare
4
.
to achie(e t0een appeal
c
.
fe0er younger children
d
.
to reach out to an adult audience
e
.
all of the a4o(e
ANS: C
/t 0as 4ecoming e(ident that Disney had missed opportunities 0ith the narro0ing of its narro0ing
target market of younger children.
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$. /f Disney created a #onas Brothers 0rist0atch packaged 0ith their latest CD, 0hich only sold in its
theme park gift shops to ma=imi<e profits o(er CD sales in third%party outlets, Disney 0ould 4e
pursing 0hat strategy@
a
.
a promotion strategy
4
.
a mi=ed market
c
.
a pricing strategy
d
.
a place strategy
e
.
all of the a4o(e
ANS: A
his is a promotion strategy designed to increase sales in one place, 4ut it is still a promotion strategy
first and foremost.
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&. +ou are tasked 0ith doing a market opportunity analysis 2-"A3 of Disney6s target markets. 8hich
di(ision2s3 might create the most (alue 4y appealing to each of those markets@
a
.
!i=ar
4
.
Disney6s theme parks
c
.
!i=ar and Disney6s mo(ie studios
d
.
Disney6s sta4le of pop stars
e
.
!irates of the Cari44ean franchise
ANS: C
he most pro4a4ly ans0er is !i=ar and the mo(ie studios 4ecause these 4usiness units create the
products that generate the most spinoffs and sequels.
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;. /n determining that Disney could achie(e a technological ad(antage in purchasing !i=ar as 0ell as
appeal to a smaller num4er of younger children 0ith the most appealing animation, 0hich of the
follo0ing processes 0ould help most in making that determination@
a market myopia
.
4
.
en(ironmental scanning
c
.
taking control of resources
d
.
product differentiation
e
.
identifying a cash co0
ANS: B
*n(ironmental scanning helps identify important macroen(ironmental forces, including social,
demographic, economic, technological, political and legal, and competiti(e.
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B. he decision to purchase !i=ar 0as to re(itali<e Disney6s animation 4usiness. 8hich of the follo0ing
most likely ha(e helped in reaching that decision@
a
.
S8" analysis
4
.
he Ceneral *lectric -odel
c
.
A portfolio matri=
d
.
Ansoff6s "pportunity -atri=
e
.
Any of the a4o(e 0ould 4e of equal help
ANS: A
8hen Disney chose to 4uy !i=ar, it sought to re(itali<e one of its core 4usinesses, animation, that is, it
addressed 4oth a strength and a 0eakness.
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7. Name the person or persons most critical to the strategic plan 4ehind the success of Disney6s
indi(idual franchises.
a
.
the C*" and 'oy Disney
4
.
-ichael *isner
c
.
the franchise management teams
d
.
Ste(e #o4s and Bo4 /ger
e
.
Bo4 /ger
ANS: *
he most critical element in successful strategic planning is top management6s support and
participation.
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