The Walt Disney Case Study

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 Birth of Walt Disney

“Oswald, the Lucky Contractual issue gave

Founded by Walter
Rabbit” was the first birth to “Mickey
Disney and Roy Disney.
major hit. Mouse”.

In 1937, Disney released

Introduction of new
“Snow White and the
characters such as
seven dwarfs” their first
Goofy and Donald Duck.
full length movie.
 Post Walt Disney Era
Walt Disney Themed Park opened in 1971.

To generate more foot falls, Disney opened in-house travel company.

Owned by Japanese partner Tokyo Disneyland was announced.

During the themed park construction the quality of Disney films declined
drastically.

Disney launched a fresh adult / teen market label, Touchstone.

Oil tycoon Sid Bass spent $365 million to rescue the
business, restore Roy E Disney to the board and put an end to all efforts at hostility.
 Turnaround Era 1984-93

Former
He encouraged
President and Eisner Box office share
expansive and One of the top
CEO of committed to rose from 4-19%
innovative ideas priority was to
Paramount maximize the due to net profit
in concept rebuild Disney’s
Pictures Eisner shareholder earning of 27
generation TV and movie
was named as equity value to movies out of
phase of a business.
Chairman and 20%. 33.
project.
CEO of Disney.
Expansion of Disney
Launch of Disney
Stores in 1987
introduced a
concept of retail-
as-
entertainment.

In 1993 Disney
accuired Disneyland Paris
Miramax, extended theme
establishing park operations
Hollywood within Europe.
pictures.
 Turmoil within Disney

On April 4, the president of Disney Wells died in a helicopter crash that created a void within the

company.

A number of important executives left the business or shifted roles with Katzenberg's departure.

After acquiring ABC Disney’s financial performance began to deteriorate.

The congenial atmosphere that once dominated the networks top rank was gone.

Some ABC executives were uncomfortable with how ABC was being used to cross promote
Disney Brands.
 Revival in 2000
The development of Disney came back in 2000 owing to the powerful broadcasting and cable activities of the c
ompany and its theme park divisions

ABC shifted from third to top-rated networks

Eliminated companies that were unable to demonstrate good yields, such as Club Disney and ESPN shop

Maintained its market leading role in Theme Park

Started the sale of non-strategic assets

ESPN became the most profitable TV network in the word

Strategic Challenges

Synergy :

Monthly reports were submitted by divisions to discuss cross-division initiatives

Synergy boot camp was held every few months for 25 senior managers from each company

Synergy increased income from cross-promotions and also impacted expenses

Scope of Disney’s business is improved geographically, horizontally and vertically

 BRAND MANAGEMENT

Disney's scope of company is geographically, horizontally and v
ertically enhanced

The firm was considered not to be modern, but rather to adher
e to traditional material

Some of the undertakings generated by the subsidiaries do not 
match the healthy picture of Disney
 Creativity

Some insiders thought too much conflict was integrated into the culture of Disney

Eisner arranged the ' gong shows, ' the weekly meetings that Disney staff from each d
epartment would brainstorm for fresh ideas

The Gong demonstrates continued in the entertainment business but disappeared in 
other areas of the company
 QUESTION AT HAND

Did Disney still have a coherent strategy for its business mix considering its ever growing
number of businesses

Can a company with a $1 trillion presence worldwide be creatively run by a single individual

Did Eisner's 20% growth still make sense when there was ever-
increasing competition in all of his companies?
THANK YOU!