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Group 37
Globalization has been at the core of Disneys strategy since its inception.
History of globalization:
o Incorporation of various ethnicities in media productions like Lion
King, Princess and the Frog, Alladin, etc, which has helped Disney
become famous worldwide.
o First international theme park in Tokyo.
o European initiative in 1990s establishing European headquarters
in France.
o Partnership with ESPN and many other networks to enhance reach
o Production of region specific content to enhance relevance in
various countries.
o Taking the help of social media and other technological
developments and to gain interaction with worldwide public.
Disney movies now reach over 190 countries in the world today and
Disney channels have a reach of 600 million people across 100 countries.
Apart from entertainment, Disney has had a major impact on global
tourism as well. Over 52 million people vacation at Disney World annually,
making it the most visited resort in the world.
The Walt Disney Company creates content and experiences in ways that
are relevant to the many cultures and localities found around the world.
The prime focus of Disney in the recent past has been to establish the
foundations for long-term growth in the emerging markets of Latin
America, Russia, India and China the most promising emerging
economies in the world.
MEDIA AND ENTERTAINMENT GLOBALIZATION
Due to extraordinary growth of the middle class all across the globe,
entertainment industry like so many others is undergoing enormous
changes.
70% of global box office is generated outside US. A few years back, the
reverse was true.
For the first time in history, American studios are setting offices abroad to
facilitate local productions in local languages and with 40 international
operational offices Disney is no far,.
The globalization of entertainment and media is not just globalization of
capital, but culture as well, which makes it even more complex.
With the increasing demand in developing nations, not only are new
markets getting created, but so is the demand for newer content.
CURRENT GLOBAL ISSUES
With an increasingly global world and the rise of many new markets, we are
faced several new challenges, along with opportunities. These challenges are
changing the traditional way of doing business and need to be tackled very
carefully:
But along with the demand for global content, the demand for localization
of the content will also grow.
Along with global content, demand for local content, with global
standards, will also be on an alarming rise.
PATH MAKING
In this global world, shrouded with uncertainty, we need to improve the path we
take towards globalization and minimize the risks we may face along the way.
a) Anticipate bumps detours and predictable surprises and be
prepared: We need to study the markets we endeavour into very
thoroughly, take into account the risks, threats, competition and
opportunities in extreme depth in order to optimally capitalize on the
opportunities the country has to offer. For eg, in order to enter a country
with a negative sentiment towards USA, we must enter with more and
more local content and collaborations. While in a country where US
content is considered to be elite and aspirational, we need to enter with
content already successful in the western markets. We need to be so
strong in our research that we are able to anticipate any trends,
preference changes, bumps, which we may face along the way and be
prepared for it.
b) Add to predictive power by taking things down to the industry
and company level: Do not just study the country and the market, study
the industry. Each market will have a different set of competitors which we
have to face. For e.g., the release of Star Wars faced competition from
Bollywood movies, which is a completely different genre and market
segment. Be on the lookout for competition from everywhere, locally and
internationally, on TV or online.
c) Dont let a focus on the future crowd out consideration of the
here and now: Dont let the aspiration to expand and grow make you
lose focus on the present situation. We are leaders in media and
entertainment across the globe, in terms of content as well as technology,
and we need to maintain that position in order to grow any further.
5 STEPS TO A GLOBAL STRATEGY AUDIT
In order to get started with redefining the way we reach the world, we need to do
an audit of how we do things right now. We can follow a 5 step framework to
start devising a better global strategy.
1. Performance review:
o As of 2014, 75% of revenues were still being generated in the US.
REFERENCES
1. https://ditm-twdc-us.storage.googleapis.com/FY14-PerformanceSummary.pdf
2. http://csimarket.com/stocks/segments_geo.php?code=DIS
3. http://thewaltdisneyco.blogspot.in/2011/09/chapter-5-developing-globalvision.html
4. http://disneycareers.com/en/about-disney/global-footprint/
5. http://www.gereports.com/post/109210929783/the-globalization-ofentertainment/
6. http://www.nytimes.com/2013/10/15/business/media/peering-into-thefuture-of-media.html?pagewanted=all&_r=0
7. http://www.fool.com/investing/general/2013/11/23/disney-needs-toaddress-these-2-issues.aspx
8. http://www.smarteranalyst.com/2015/08/13/apple-inc-and-walt-disney-cosimilar-past-similar-issues-similar-future/
9. Interaction with Disney India office